May 5, 200520 yr This is a big blow for two of the big 3. This means that their interest rates on their bonds are going to WAY up. It is not a good time to be a US car company. Both stocks have fell hard intraday after the news was made public, with both stocks falling about 5%.
May 5, 200520 yr OUCH. This is the last thing these companies needed. I will tell you now, that the same things that have happened in the airline industry is about to happen with the auto mfg (read renegotiations on the union contracts). Granted, GM is way bigger then AMR, for example, but still... plant closings and the like is the only thing that will save this company. (edit - in the long term).
May 5, 200520 yr Author QUOTE(kapkomet @ May 5, 2005 -> 12:14 PM) OUCH. This is the last thing these companies needed. I will tell you now, that the same things that have happened in the airline industry is about to happen with the auto mfg (read renegotiations on the union contracts). Granted, GM is way bigger then AMR, for example, but still... plant closings and the like is the only thing that will save this company. (edit - in the long term). And the thing is the UAW has minimum employee numbers written into their contracts, and are refusing to renogitate them before they are to end in 2007. GM and F's only options if they want out is to declare bankruptcy.
May 5, 200520 yr M FFIL bought a Mercury Mariner yesterday. Now to keep Brian from stealing it...lol.
May 5, 200520 yr QUOTE(southsider2k5 @ May 5, 2005 -> 05:19 PM) And the thing is the UAW has minimum employee numbers written into their contracts, and are refusing to renogitate them before they are to end in 2007. GM and F's only options if they want out is to declare bankruptcy. Yea, but I will tell you that these union guys better enjoy the fat pig now... because it's ending then, if not before. I know way more about how to skirt union contracts in bankruptcy then I ever wanted to... To this day, you have pilots out there that claim to be the ones that brought Eastern Airlines down. What a badge of honor... "my union shut the muthaf***a down!!!" Sometimes people don't get it.
May 5, 200520 yr Author QUOTE(kapkomet @ May 5, 2005 -> 01:24 PM) Yea, but I will tell you that these union guys better enjoy the fat pig now... because it's ending then, if not before. I know way more about how to skirt union contracts in bankruptcy then I ever wanted to... To this day, you have pilots out there that claim to be the ones that brought Eastern Airlines down. What a badge of honor... "my union shut the muthaf***a down!!!" Sometimes people don't get it. That's the hang up. GM has something like $16 billion in cash, and has said they have no plans to file bankruptcy, so the red ink will continue to flow.
May 5, 200520 yr You also have to remember that GM is WAAAAAY bigger then GM- the auto manufacturer. Finance Hughes (did they sell that yet) - DirectTv? I don't think so... mortgages etc etc etc
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