Posts Tagged ‘auto industry bailout’

Hecker Update: Dealerships closed and jobs lost

November 23, 2008

Mr. Hecker wasn’t kidding in his lawsuit against Chrysler for cutting off his credit.  Looks like he is in a bad way, having closed six dealerships and sold three more.  400 people have lost their jobs as a result.  I think this is just the beginning of a big contraction for all the auto-related industries that depend on the big three.  Whether they get bailed out or not, if they don’t sell cars, all these related sectors are extremely vulnerable.

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GM Delaying Dealer Payments

November 18, 2008

It appears that the company has focused its strategy on a public relations campaign to beg the American people to bail them out because if they file bankruptcy, the economy will collapse.  Here is another press release about how they are delaying reimbursements to dealers because they are in desperate straits.  We know this is a strategy because they are using the company spokesman, John McDonald, to spread the word to the Associated Press. 

To me, a more effective strategy would be tell us what GM is willing to give up; carbon emissions, gas-guzzlers and the bad business practices that got them in this mess.  Note to GM: you need us more than we need you.

Update:  I just checked the GM website and when I clicked on corporate information it took me to a website, http://gmfactsandfiction.com/ where their scary video is featured along with all their “scary” facts.