It's Your Money-Get Involved
Posted: Wed Nov 19, 2008 5:31 am
Call me crazy or naïve or just plain dumb, but help me with the math.
Both GM and Ford are currently on a pace to burn up $ 2 billion a month on operating expenses based on third quarter earnings. On the other hand, the car companies have told Congress that collectively they need $25 billion to pay employees, retool, get reorganized and back on track (to what I am not sure).
Let’s say they get the $25 billion, GM will receive $10-$12 billion of that total. If they are using up $2 billion more than they take in, then $12 billion will last GM six months. How does that get them extra money to recover, unless of course you believe that the recession will be over in less than six months and new cars will begin flying out of the showrooms. :driving:
While testifying yesterday before Congress the CEOs judiciously worked in the words green and electric in their testimony no doubt impressing the members of Congress with their forward thinking. The car companies already have received $25 billion in loans to retool for green vehicles, something that should have come from earnings and shareholders long before the onset of any financial crisis. If the emergency is so dire why not let the use this money for short term survival needs, do we really need to invest more in the sinking structure of the “American auto industry? :driving:
Both GM and Ford are currently on a pace to burn up $ 2 billion a month on operating expenses based on third quarter earnings. On the other hand, the car companies have told Congress that collectively they need $25 billion to pay employees, retool, get reorganized and back on track (to what I am not sure).
Let’s say they get the $25 billion, GM will receive $10-$12 billion of that total. If they are using up $2 billion more than they take in, then $12 billion will last GM six months. How does that get them extra money to recover, unless of course you believe that the recession will be over in less than six months and new cars will begin flying out of the showrooms. :driving:
While testifying yesterday before Congress the CEOs judiciously worked in the words green and electric in their testimony no doubt impressing the members of Congress with their forward thinking. The car companies already have received $25 billion in loans to retool for green vehicles, something that should have come from earnings and shareholders long before the onset of any financial crisis. If the emergency is so dire why not let the use this money for short term survival needs, do we really need to invest more in the sinking structure of the “American auto industry? :driving: