The Big Three Are Not Alone- flipside

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krogoth's picture
krogoth
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The Big Three Are Not Alone- flipside

The Big Three Are Not Alone flipside

December 1, 2008 - by Donny Shaw

Today is the deadline for GM, Chrysler and Ford to submit their revised plans to Congress explaining how, exactly, a $25 billion bailout is going to help them be financially viable going forward. We’ll be reporting on that as information is made available.

In the meantime, here’s some news out of Japan that should give the companies a boost going into their next round of negotiations with Congress:

Toyota Motor Corp. and Nissan Motor Co. led the biggest drop Japan’s auto sales in 34 years as the country’s recession cut wages.

Sales of cars, trucks and buses, excluding minicars, fell 27 percent to 215,783 vehicles in November, the Tokyo-based Japan Automobile Dealers Association said in a statement today. Toyota Motor Corp., Japan’s largest automaker, sold 106,342 vehicles excluding the Lexus brand, down 28 percent. Sales at Nissan Motor Co., the country’s third-biggest, fell 30 percent to 30,134.

Honda’s sales dropped 22 percent to 29,448 vehicles last month. Mazda Motor Corp.’s fell 33 percent to 9,699 vehicles.

The point here is that auto sales are falling significantly throughout the entire market. The decline among these stronger, foreign brands are comparable to what the Detroit companies are expected to report this week (GM -28%, Ford -33%, Chrysler -42%), and the numbers should help convince Congress that the Big Three’s troubles are a result of the financial crisis, not poor management. If they can make that case, it should be a lot easier for skeptical lawmakers, who are concerned that the companies lack plans for improvement, to approve $25 billion to tide them over until the economy picks up.

rlee's picture
rlee
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Posts: 148
Re: The Big Three Are Not Alone- flipside

100% against any ridiculous bailout for these guys.  The numbers are what they are, and the auto INDUSTRY is in despair, not just three prized companies.  While the financial crisis got them where they are today, maybe some leadership and hard core management decisions should come to bear in getting them out.

brandenism's picture
brandenism
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Re: The Big Three Are Not Alone- flipside

Agreed.

Massive cutbacks may not have been needed a few years back, but they are now just to stay afloat.

 My dad has owned his own business for 35 years now and I remember when I was young he tought me some basic principles.  One of those is that when business is good, he makes more money.  When business is slow, he cut his paycheck.  What a revelation. 

rlee's picture
rlee
Status: Silver Member (Offline)
Joined: Sep 18 2008
Posts: 148
that's called leading!

Hey Branden,

Your Dad is displaying leadership.  Count him among the minority, and remember everything he tells you!!! 

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