My question to you is this fear mongering to get a bailout or is GM just presenting the facts (because they want a loan)? The answer is both, and of course they are resorting to fear, but they are probably presenting some salient facts. The problem is that GM and other auto manufacturers are not dealing with the drain on them: The unions. The unions are willing to drive the automakers over a cliff, even if they all lost their jobs just because they are bullies and ignoramuses. Unions are just as complicit in this fiasco as the management of automakers are. If unions are not willing to help with this with concessions, GM will have to file chapter 11 and if they survive chapter 11, they will need (read that should) to move manufacturing overseas. No matter what, there will be massive downsizing in the auto industry in the months to come. You have to wonder what could kick start the industry, as people aren’t spending money on new cars? Think 1938-39. Even if GM gets bailed out, survival is going to be tough. Tough for Chrysler and Ford too.
Thank you for reading this blog.