While GM and Ford’s stocks are plummeting to the bottom(the worst since 1950), GM states that “bankruptcy is not an option” as they still have billions of cash in hand. (which is washing away rather quickly)
Here’s an excerpt from LA Times:
“We face unprecedented challenges related to uncertainty in the financial markets globally and weakening economic fundamentals in many key markets,” Renee Rashid-Merem, a GM spokeswoman, told Bloomberg News on Thursday. “But bankruptcy is not an option GM is considering.”
According to Clark, a bankruptcy filing would probably have terrible effects on the residual value of cars and their warranties, making it even harder to sell new cars as consumers gravitate to other, more stable carmakers. That, he said, means that carmakers would choose to stay out of bankruptcy far longer than companies that might normally see it as a way out of untenable financial straits.
I think it’s a good thing that GM is trying to outlast this economic disaster, but I wouldn’t want to see any of my tax dollars going to fix their problems. As a owner of a GM car, I am sure my replacement parts and warranties would really be gone into the thin air, but this shouldn’t be a reason why Uncle Sam should help the big car companies.
My thoughts are still clear that business financials should not be paid for my U.S. citizens. It’s an outrage when that happens as I too, should be getting my expenses paid by the government.
I don’t think helping the car companies will do a great deal other than keeping them alive little bit longer (in case we happen to see Depression-era here in the U.S.). Better way would be to let them go bankrupt, let’s focus our attention on the other 90% of U.S. economy and all the people who have lost jobs as of lately.
GM should help others before they ask the government for help, otherwise, it’s a bad business anyways.
Do you want to pay $20 billion to auto-makers out of your tax dollars? Heck no, I worked too hard for the last couple years paying those ridiculous taxes that went into wars because of Bush. Yes, I do deserve money before those big corporations, don’t you?