As everyone has heard, the big three, GM Ford and Chrysler, have came out and begged the U.S. Congress to give them bailout money. Most of America and Congress rejects it. The Speaker even told them to come back with a plan. Here are some interesting facts from their begging found in the WSJ:
“General Motors Corp., Ford Motor Co. and Chrysler LLC may go back to Washington and urge Congress to take measures to spur consumer demand, in addition to providing the $25 billion in loans the auto companies seek.
“There is no way any car company can make money at the current demand level,” said a key executive at a Big Three auto maker. “The government has to get credit flowing so that the market goes back to at least 14 million to 15 million [vehicles]…. We can figure out how to survive at that level.”
On Monday, Sen. Charles Schumer (D., N.Y.) plans to send a letter urging the Federal Reserve to make financing available for the auto companies’ lending arms, which would allow them to offer more auto loans, a spokesman for the senator said. The letter will also ask the Treasury to speed approval of GMAC LLC’s request to become a bank holding company.”
There is no way any car company can make money at the current demand level is the dumbest thing I have ever heard. If this was true that means no one would be demanding a new car. That is obviously not true so they are obviously pulling it out of their behind. They basically want the taxpayers to feed the money to make them buy their cars. Toyota seems to be doing fine.
The worse part is the last paragraph, where it says that they want to be a bank holding company. Other than getting free bailout out money, why does a car company need to be a bank holding company? PCCapitalist’s joke of giving every person a car and having them pay for it through taxes is becoming true.
It is a scary day in America.