Autoworkers get squeezed in GM and Chrysler repayment plans

Wednesday, February 18, 2009

General Motors and Chrysler presented their repayment plans to the Treasury Department yesterday. Unfortunately in order for them to make enough money to re pay their loan they are going to have cut 47,000 jobs and close five more plants. And the kicker is that GM needs another $30 billion to survive. President Obama's new auto cabinet (that doesn't really have a ring to it) has a lot of work ahead of them. To walk us through the reconstruction plans is Nick Bunkley, reporter for the New York Times.

For more, read Nick Bunkley's and Bill Vlasic's article, Automakers Seek $14 Billion More in Aid, in today's New York Times.


Nick Bunkley

Hosted by:

Daljit Dhaliwal

Comments [3]


Immoral? As if the "marketplace" is the ultimate "moral" authority. What is not moral is acting as though people and industries are throw away because the technologies of "money" and "capitalism" are gods. The marketplace is probably the best way to determine what types of vehicles to make and what the models should look like. My gut feeling is that we will see cars like Saturns pouring out of factories owned by foreign auto makers soon. And the profits from the lower wages they pay will be fleeing from our shores. While our government has to mop up with our safety net. Go figure how this is a better business and social model. It's not.

Feb. 18 2009 07:35 AM

IF tarp had worked there'd be money to loan to the 'Big 3' AND the consumer...
but it didn't-
IF this was a plan with a reasonable chance for success it would get private funding (for example, Chrysler's owner, Cerberus won't touch it)-
IF the automakers were any good at predicting their own future the dollars they projected they'd need a few months ago wouldn't have essentially already doubled-
IF this bail-out is approved it shows that President Obama is just as frivolous with the tapayer's money and just as immmoral concerning the fate of future Americans as his predecessor was. CHANGE? Sadly, no. We are doomed as a nation.

Feb. 18 2009 07:04 AM

Sure is strange that American automakers are doing so badly when the auto magazines are raving about the new models. Look at all the American vehicles in blue collar neighborhoods and you will realize they provide good value. If people could get credit again this problem would evaporate. Regarding the "bailout," keeping 10% of workers employed is a stimulus. And why is no one talking about the security impact of losing the capacity to manufacture vehicles in the US?

Feb. 18 2009 06:19 AM

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