Some interesting reasons for the Big 3 downfall.

C

carcat1

New member
I came across this discussion regarding car dealerships in the Detroit area, the birthplace of the automotive assembly line, and a city that houses GM in downtown Detroit, Ford in Dearborn, as well as Chrysler in Auburn Hills.



It is shocking to learn about such business practices, as GM is literally days away from bankruptcy, while Chrysler is already bankrupt.



Unable to steer friends towards Big 3. - DetroitYES Forums
 
Bankruptcy is the best thing for both these companies. It dosen't mean they go away it means they get rid of all their bills and can start anew. The judge can (and will) void all contracts with the UAW and the Bond Holders. (The UAW should've friggin listened now their in a real pickle) They didn't want to take concessions so now they're going to really get hosed over. When GM remerges from bankruptcy it should be a much stronger more viable company. I personally think this is long overdue. Hopefully they can get thier pricing structure under control now.
 
I read that link and it's crap. I've had good and bad experiences with GM, Ford, Dodge, Honda, Toyota and Subaru dealers. I've never found that the Detroit Three dealers are any different than the others. Same with the hours. I've never found my Subaru dealer to have better hours than my Ford dealer either. Everyone online is an expert at running a Fortune 500 company for some reason.
 
Jakerooni said:
Bankruptcy is the best thing for both these companies. It dosen't mean they go away it means they get rid of all their bills and can start anew. The judge can (and will) void all contracts with the UAW and the Bond Holders. (The UAW should've friggin listened now their in a real pickle) They didn't want to take concessions so now they're going to really get hosed over. When GM remerges from bankruptcy it should be a much stronger more viable company. I personally think this is long overdue. Hopefully they can get thier pricing structure under control now.
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Who were the ones that did not agree with the terms with Chrysler? It was the greedy bond holders who thought that they were going to come out ahead. The majority of UAW workers voted in the agreement to meet the goverments terms. Just becuase chrysler has gone into bankruptcy it does not mean that all contracts with them will be voided
 
RedlineIRL said:
Who were the ones that did not agree with the terms with Chrysler? It was the greedy bond holders who thought that they were going to come out ahead. The majority of UAW workers voted in the agreement to meet the goverments terms. Just becuase chrysler has gone into bankruptcy it does not mean that all contracts with them will be voided
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LOL wanna bet...
 
Dealers in MI are no different...



People in MI are hurting more then most to all other states though...







The big 3, and yes Ford too has fallen, fell because of greed mismanagement and stupid buyers...Just like the housing crash it was the fault of the buyers going for bigger and better...
 
Redline, the bond holders are basically being told to go screw themselves. The government has given $15 billion in loans. The bond holders have given over $27 billion. Yet when it is said and done, the bond holders getting ~10% of the company, the government gets 50+% and the UAW the rest. Yeah that seems real fair.



As for the bond holders, there are small and large bond holders, some are just people who are retired who used the bonds as a source of income, others for example the University of Kentucky Pension Plan, had a significant amount of money in bonds (I think around $3 million or so). According to the article below, up to 25% of GMs bondholders are small time mom and pop bond holders (in most companies it is under 1%). So yeah lets keep screwing those greedy bond holders.



Stry on mom and pop bond holders: Faith in GM has hurt small investors - Los Angeles Times
 
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