The three big automakers: If Ford Motor Co. is doing okay, how come it "needs" to be bailed out along with?

GM and Chrysler? Would it be possible to help only the one (Ford) who is actually going to make it in the long run? ... Why are they clumped together? It's very possible Ford won't need to tap into the bailout money, but the other two will probably file for bankruptcy anyway. Any thoughts? Thanks!

F is really hurting too, but they had sold a ton of assets over the last 2 years when the market was more stable, so they have some $42 billion in cash I believe, but actually has more debt than GM.

That is why they are asking for a $9 billion credit line and not immediate cash like GM and C.

All 3 auto companies have BK risk.

In a BK, typically, the equity get's wiped out in a bankruptcy.

GM has more debt than equity, by no less than $38 billion.
http://finance.yahoo.com/q/bs?s=GM&annual

I would not be owning GM, or F. Bailout or no bailout. Have posted this many times in detail for some time.

With $15 billion one could buy GM 5 times over at current stock prices will money left over. One could prob buy all 3 auto makers for maybe $13 billion.

GM market cap on 12-10-208 = $2.8 billion.
F market cap on 12-10-208 = $7.7 billion.
Chrysler = privately held. Prob would be $1.00 to 30 cents if it was still public.

In a GM, F stock buyout, does one want to take on several hundred billion in debt? GM and F's combined debt obligations based on their Dec 31, 2007 balance sheets is $459 billion (debt).

http://finance.yahoo.com/q/bs?s=GM&annual
http://finance.yahoo.com/q/bs?s=F&annual

I have said that GM, et al will need somewhere between $75 to $150 billion+ over the next 2 years, plus a miracle.

Will you run out and go buy one if we bail them out?
Do you think a bank will make a loan on a car right now?

They all need to restructure and get their labor costs inline with the foreign auto manufactures (such as Toyota, Honda, Nissan, Hyundai, even BMW etc. ) that build some of their cars in America by Americans. This would lower the cost of buying cars for Americans by about $2,000.00 (About $30.00 to $40.00 a month lower payments when financing a car) some reports have suggested.

Now we know one big reason why US cars depreciate faster than foreign cars. We are paying more for high union labor, and 1930's style benefits, not for extra quality.

LOOK AT THIS CHART!
Average Hourly Wage Costs:
http://www.heritage.org/research/economy/images/wm2135_chart1.gif

Can you say welfare? Wouldn't you like to make $70-75 an hour?

F and Chrysler got smart and got rid of their dividends to save the company money.

GM is still living in the 1930's. GM (common stock) right now has a div that is yielding 20% a year. There is no way in my view that GM who has no cash and negative assets and plunging sales can payout 20% of their gross earnings to shareholders in the form of a dividend.

They're just asking for backup money in case they need it.Chrysler is a private company and I'm TOTALLY against them getting a dime.GM is just useless.

The 14 billion is for Chrysler and GM.Not Ford.

Want to hear my thoughts on the UAW?ROFL

Ford isn't doing ok. It's just Ford has been in the tank for a lot longer and they've developed a corporate plan to handle it. As it stands, they would not get any money but they want to be able to keep that option open if it should come to it.

Ford is a long way from surviving, but I think the CEO they have now is trying his best. He should definitely not be ousted like the CEOs of GM and Chrysler.

I believe they're doomed anyway.

Everyone is predicting unemployment will continue to rise well into next year. So there is no money for common folks. Any income the common folk has is going to pay bills like water, heat food and mortgages. NO ONE is shopping for cars. It's stupid to bail them out. Let them fail they made their bed now lay in it.
As far as the Union Workers that are going to be unemployed due to it. Sorry. You have been overpaid too long. Welcome to reality baby.

If you have read all the news, you will see that Ford thinks it can make it without help. That is just for the immediate future, They are saying At least until next year, they have the money to run. I imagine if the economy does not get any better then they will be having problems,also.

Ford discovered that it was still a financially viable company when the government insisted that as a condition of the bailout that they fire their CEO.

It could be done, but they all need to file chap 11 and ride themselves of the unions.

the problem is that if GM goes under, the parts suppliers that all three rely on will go under too, making it difficult and expensive for Ford to make cars. If Chrysler goes under, it won't be as big of a deal as it is much smaller that GM or Ford.

we've been in a recession for months. People dont have money to spend on luxuries like new cars, so all auto industries are down. The American automakers are worse because they pay better than the japanese automakers, and provide benefits and retirement

I disagree. GM will make it in the long run as well. I think if they want to bail out wall street, bail out the car company's too!! Better yet, bail out every american that is losing their house, and behind on all their bills. Sorry, but it isn't fair to the rest of america to give them bailouts. Also, GM will not file for bankruptcy, it isn't an option.

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