According to a published report by Reuters, struggling American auto makers General Motors and Chrysler may end up getting funds from private institutions, if the U.S Government decides not to provide further funds to both companies, that will then force the auto makers to file for Chapter 11 which basically mean that both companies will go into restructuring, to become viable businesses.
A number of external advisers to The Treasury are rumored of trying to secure the funds from private institutions, which will be needed to restructure both companies. The amount which is rumored to be about U.S $ 40 billion, and to be backed or guaranteed by the government would also be used to pay back the U.S $ 17.4 billion the government initially lent General Motors and Chrysler late last year.
This means that the U.S Government would not tap into “the people’s” money to give a helping hand to both auto makers. However, this brings us to the next question; will these private institutions be able to extend the above mentioned amount during such uncertain times? If both companies file for Chapter 11, they would also be temporarily protected from creditors.
Looking to sell your car? Sell it with Carro.
Now, this may be a rather unpopular sentiment, but if it looks like the only way out is to go for major restructuring for filing for chapter 11 .
The major leach in the US automaker is the UAW, the union behind most of the workers. I have personnally known several people in the auto industry under the Canadian manufacturing arms, that even general workers are paid a lot. Much more so than white collar professionals. They can typically get between 22-40 CAD (about 1CAD:3RM back then) per hour, plus a very generous benefit/medical package.
With that sort of leaching, I wont be surprised they are in the red. When the times are good, its not so bad, but when times are bad, it can get ugly.
If they go chapter 11, they might nullify the UAW contracts and start afresh.
Both GM & Chrysler would not be doing well until they sort out their Union problem. I had a US friend back then working with automotive industry. He told me he can earn as much as RM8 per hour just by driving a fort lift. Plus good medical coverage that strecth cover most of his family members.
So i guess going to Chapter 11 would be what they plan for to get they asses out from the deep hole.
Probably a typo somewhere. Most likely 80 ringgit /hr
That's a whole lot of cash for emoluments alone. Thousands of workers across the board. What kind of education is required to get such a job? What's the supposed correct amount for blue collar guys make an hour outside the auto industry?
For some reason american blue collar worker wants to be paid more than their counterparts in China. Makes little business sense why you still have to fund them. Close factories in expansive places, open in cheaper places.
haha..tak malu ke dengan tengku mahaleel….