Right now GM owns 49% of GMAC. Cerberus owns the other 51%. Which is
why
Cerberus is at GM's door - I give you Chrysler, you give us 49% of GMAC
-
that sort of stuff.
And GMAC is not in good shape. They got into the housing mortgage
market,
and I think you can take it from there. GMAC is presently lining up
for
federal mortgage money and wants to change over to a bank classification
to
open up a wider source of working capital.
Another thought came to mind - what of Chrysler Financial? What
happens to
it? CF never got into mortgages so it should be doing well.
All GM comes away with is a duplicate of itself, on a smaller scale,
including dealers they don`t need. They get the Jeep and Caravan, both
good
sellers and moneymakers when the market is good. Plus a pile of cash
that,
hopefully, will cover the bills for less than a year. All else is a
write-off. Other than the cash there really is nothing there to help GM
in
a turnaround situation.
Bill
Vancouver, BC
----- Original Message ----- From: "Dave Casey" <dcasey@xxxxxxxxxxxxx>
To: <1962to1965mopars@xxxxxxxxxx>
Sent: Monday, November 03, 2008 1:58 PM
Subject: Re: GM-Chrysler Merger Talks to Intensify After Election
And I don't see how the deal would be very good for GM either. They'll
be
giving up the one part of the company that makes money - the financing.
Dave Casey
----- Original Message ----- From: "Bill Watson" <wwatson6@xxxxxxx>
To: <1962to1965mopars@xxxxxxxxxx>; <mml@xxxxxxxxxxxxxx>
Sent: Monday, November 03, 2008 3:49 PM
Subject: Re: GM-Chrysler Merger Talks to Intensify After Election
Obama will not be negotiating anything all by his little ol' lonesome.
No
politician has just as no president has ever written a bill by himself,
no
matter how much he claims the bill is "his". Obama will meet with
whomever
with a room full of 'experts' in tow. Just as his campaign promises
were
formulated with assistance with the back room boys, so will any
agreements
he may be able to hammer out in the case of the American auto industry.
So
it matters not how much his experience is or is not. The backroom boys,
though, that is another matter. Besides, look at the mess the "experts"
created with the American auto industry. Maybe some "inexperience"
might
open some minds and doors. Including Obama's in the end.
The saddest part of this GM-Chrysler deal is that Chrysler is actually
in
better shape than GM. Last year GM lost over $38 billion and its
October,
2008, sales are down 45% compared to last year. It is still #1 in the
U.S.
as Toyota sales fell 23%. GM is presently going through a billion
dollars
a month, an improvement of the average $3 billion last year. On the
other
hand, Chrysler sales are down 25% and the firm lost a little over a
billion
dollars in the first six months of 2008.
As to Chrysler's potential loss of 12,000 jobs, note the person being
quoted has a personal interest in Chrysler. Thus no GM figures. GM is
presently cutting back employees and closing plants, more than Chrysler
has
in the same period. Should GM acquire Chrysler, both GM and Chrysler
employees and factories will be hit. The 12,000 Chrysler jobs lost will
be
but the tip of the iceburg.
There are people out there who say that Chrysler becoming a part of GM
is
best for the survival of Chrysler. I just cannot understand how some
people
wander through life with their eyes closed and their ears plugged. This
"merger" will destroy both Chrysler and the American auto industry. As
far
as I am concerned, GM is a black hole when it comes to money. If this
situation occurred fifty years, GM would be considering Chapter 11
proceedings.
Bill
Vancouver, BC
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