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GM loses $2.5 billion dollars in 90 days, thousands of auto industry jobs lost, more expected
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U.S. auto industry sinking fast
I grow more frustrated with the auto industry every day. As I write this, U.S. Automakers are reportedly going to seek $25 billion (yes, I said BILLION) dollars in loans from you and me; the taxpayers.
Based on the feedback I have gotten from previous articles, believe me, I get it. If General Motors, Chrysler, and Ford go under, there will be the obvious job losses as well as those we do not readily think of. These include vendors and suppliers both from the manufacturing level as well as on the retail side.
On the other hand, what makes anyone think that these companies will use the proposed loan monies more wisely than they used their own money? General Motors said that it lost $2.5 billion dollars between July and September. Ford Motor Company lost $129 million dollars over the same period.
What has the auto industry done to save itself? If we give them the loan money, will some of those brilliant minds from President Elect Obama’s financial dream team be assigned to take over the helm of these automakers, as the current leadership has proven so inept?
As Mr. Obama and Congress move forward to save the U.S. Auto Industry, I hope that they learned a valuable lesson from the Troubled Assets Relief Program. Thus far, TARP has done nothing meaningful to open up the spigot of credit to business, especially small business, and may prove to be more of a boon to shareholders than consumers.
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