Bailout vs Chapter 11 for the Detroit 3

#1
volinbham

volinbham

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#1
Republican opposition to the bailout surrounds a contention (by the opposition) that the Detroit 3 should be moved into Chapter 11 for reorganization. The alternative is a simple bridge loan with no restructuring ties.

1. Would you buy a car from a company in Chapter 11? What about if the government backed the warranty?

2. Should Congress dictate bankruptcy? What about as a condition for receiving government funding?

Question 1 is a big ? to me.

Depending on the answer to Q1, I would favor the opposition plan over the current plan.
 
#4
#4
I haven't kept up with it all that much. My gut reaction is let them die and restructure....Question 1 aside. Pay now as opposed to pay more later. Delaying the inevitable will only make it worse.
 
#5
#5
rjd970 said:
I haven't kept up with it all that much. My gut reaction is let them die and restructure....Question 1 aside. Pay now as opposed to pay more later. Delaying the inevitable will only make it worse.
Click to expand...

Depends on the inevitable? My guess is it would be throwing away money if we bail them out under the current circumstances.
 
#8
#8
I might continue to buy used Big 3 cars, simply because the parts network is vast and fairly cheap.

If I ever buy another new car, it'll be either a Japanese or Korean make.
 
#9
#9
Bankruptcy to get out of the current labor contracts might be the only way to realistically change the expense structure.
 
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