As predicted, like clockwork, Chrysler and GM are begging for another bailout.
Chrysler LLC on Tuesday told the U.S. government it needs even more taxpayer money to survive. General Motors is expected to do the same. Acknowledging that industry conditions are worse than expected when it made the case in December for a government bailout, Chrysler requested an additional $5 billion in government loans. It originally said it would need $3 billion more. The company had previously received $4 billion from the Treasury Department.
General Motors Corp (NYSE:GM – News) said on Tuesday it could need a total of up to $30 billion in U.S. government aid — more than doubling its original aid — and would run out of cash as soon as March without new federal funding.
The request for additional aid from the top U.S. automaker came in a restructuring plan GM submitted to U.S. officials on Tuesday.
The GM restructuring plan of more than 100 pages was posted on the U.S. Treasury Web site
Chrysler has already received $4 billion and is now asking for an additional $5 billion after originally estimating that they would need $3 billion. GM has already received $13.4 billion and is now asking for $30 billion after originally estimating that they would need $18 billion.
So, both companies are still bleeding cash like they have a severed aorta and neither company met today’s deadline to obtain concessions from the recalcitrant UAW.
Will we let these obviously insolvent and unprofitable companies fail and proceed to Chapter 11 bankruptcy to reorganize like 99.9% of the other companies that find themselves in untenable economic positions? Hell no! It’s bailout mania season in Washington, expect the Bad Business Enabler Cavalry to ride your tax dollars to the rescue! Well, actually your tax dollars were all already spent a long time ago, so they’ll have to borrow or print the money and you or your children or grandchildren will just have to pay for it all later, with interest.
Will Obama stop the craziness? Hell no, Giddy Up!
It will take more than one “car czar” to help get the embattled U.S. auto industry back on track, President Barack Obama has decided.
Instead, his administration is establishing a presidential task force to direct the restructuring of General Motors Corp. and Chrysler LLC, a senior administration official said Sunday night.
Treasury Secretary Timothy Geithner and National Economic Council Director Lawrence Summers will oversee the across-the-government panel, the official said, speaking on the condition of anonymity because no announcement has been made.
So, assume the position and prepare to bend over again for the Detroit Duo and the UAW!
/you know, I can understand bailing out the major banks, because if the international banking system fails the entire global economy will crash overnight, however, if GM and Chrysler go into Chapter 11 bankruptcy reorganization, you’ll still be able to buy a car the next day
Filed under: Blog Entry | Tagged: Auto Bailout, Barack Obama, Chapter 11 Bankruptcy, Chrysler, Economy, General Motors, Lawrence Summers, National Economic Council, Timothy Geithner, UAW, United Auto Workers | Leave a Comment »