Yet the media are claiming 1.5M jobs saved in the industry by bailing out GM.
These numbers are pulled out of some auto industry schmuck's rear end but are never challenged.
The auto industry includes suppliers. The direct employees of GM, Ford, Chrysler, etc. are only part of the auto industry. Many suppliers would have had to go out of business if there was no GM to supply since GM is a large buyer of supplies. It would also have jeopardized U.S. security.
(((( It would also have jeopardized U.S. security.))))
Almost no impact there since GM makes no military equipment anymore.
If there had been a need for a changeover to a wartime footing, the govt would have stopped car production on those machines anyhow, so continuing to make cars with those machines was not criticial.
Fact is we will never know what would have happened if they were allowed to go thru proper bk. But as many experts believe it was handled correctly, just as many believe that long term, they would have been better off going thru a proper bk. GM did not solve any long term issues.
So who really knows.
"Fact is we will never know what would have happened if they were allowed to go thru proper bk."
If by "proper bk" you mean without any government involvement, we do know what would have happened. GM would have liquidated. There was no adequate private financing available at the time so liquidation would have been the only realistic option. With the benefit now of some hindsight, it is very difficult to paint any post liquidation scenario that would have cost this nation less than the bailout.
Perhaps you should consider the jobs through out the supply and value chains. Seems like the number is about correct. Anyway I was not a fan of this bail out but it really has worked in many ways. The company will continue to build fine cars on a value basis and retake some lost share and create income for the corporation and these 1.5 million jobs all of which will be taxable at some point. This is a better investment than you credit it for. Perhaps you would like to put another 10% of the country on food stamps ? Believe me this administration is more than happy to do that. Better we should lend a hand and let them earn their way back. The only major regret that I have is the President handed the keys over to the Union.
Sentiment: Strong Buy
The report was about the ".. .federal bailout of General Motors Co, Chrysler and parts suppliers,' NOT just GM.
The jobs saved were not just the jobs at those companies but the many associated jobs that rely on them. These would be the suppliers, the supplier's sub-contractors, the companies that supply the raw material to the suppliers for the production of parts (plastics, metals, composite materials, cloths, etc.), transporation companies that move all this about, plus shipping vehicles via train and truck, all related maintenance personnel, the people who handle HR for all involved workers, the impact on the economy of all of those lost jobs and lost spending, and more.
As suppliers shut down some local businesses supported by those employees (restaurants, gas stations, convenient stores) may have had to shut down.
There was a lot more at stake than just the people on the assembly lines. I thought you knew something about this business?
Look, I'm tired of arguing about this. You are convinced doom would have ensued if GM had not been given that ~$90B of our taxpayer cash and tax breaks.
I am convinced someone would have found ways to disposition GM's assets and we would have come out the other end of this okay.
(Hmmm...if only we had a country where the auto companies there suddenly stopped and local suppliers all lost their most important customers. Oh, wait -- we do.....Australia. Ford left, and this very week GM says it's pulling out in a few yrs.)
So instead of arguing this anymore, let's just see what happens when you say no to bailouts. I say, Australians will come out of this just fine.
You don't KNOW what could have happened.
Someone would have seen the opportunity and would have filled the vacuum.
Short term, we would have bought more foreign cars.
Longer term, maybe new domestics could have taken up the slack.
As it was, a new company (New GM) took everything over and restarted production.
Without the bailout, the various plants in various states may have been turned into separate companies, some of which may have been run far better than GM.
((((As suppliers shut down some local businesses supported by those employees (restaurants, gas stations, convenient stores) may have had to shut down.)))
Oh, please. This money did not come to you at no cost to anyone else.
So let's talk about the people who had to fork over that $10B in tax money.
What might they have done with that money in their OWN communities? How many gas stations closed down? How many libraries have closed, or shortened hours? How many vacations were not taken? How many teaching jobs were not created? How many after school basketball programs were shut down? How many bridges were not fixed?
How many restaurants died elsewhere around the country, all because Obama chose to send $10B to Michigan as his slimy political payback to the UAW?
PS: How many 'convenient' stores?
"I thought you knew something about this business?"
This is Webby/Clown/Mullah/Robert in troll mode. Of course he knows the jobs number is more than just GM employees - he's not that stupid, although, I'll concede it's often difficult to tell!
Questinator, t hese are the companies rdh-web defends the ones that don't help our local economies whether its in Michigan or in any state in America. How many Americans have went down over the last 30 years sop now we are dealing with these kinds of suppliers.
Hahahaha .... I love it. I didn't read the article, did it say save 1.5M American jobs or globally? Whatever that is, there is no such thing called American jobs or non-American jobs. The problem is either we ship our jobs oversea or bring foreign workers here, what is the difference? Obama know jack about job market, he is like a parrot, he says what he hears. He knows nothing outside his oval office.