General Motors has released a video explaining in detail what would happen if they, together with the other two thirds of the Big 3 in US collapses. Obviously to be used as one way to convince their government to aid them. No use explaining more in details here, watch the video after the jump.
VIDEO: What would happen if GM collapses?
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After dabbling for years in the IT industry, Paul Tan initially began this site as a general blog covering various topics of personal interest. With an increasing number of readers paying rapt attention to the motoring stories, one thing led to another and the rest, as they say, is history.
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Should call the website as GM scared tactic to save own ass campaign.
Spending to much time searching OSAMA, now you die la.
that’s alright man.. they’re rich wat.. thousands of bombs drop everywhere..
try not using the bombs and save GM
yeah save their own a$$… patriotic konon
but the facts on the video clip very true la..imagine 3 million people takde kerja…what they gonna do..
merge all of them into one..make them stronger la…
GM..i have better suggestions..ask ur G to ban toyota and Honda
and a better one..follow malaysian NAP…
sure you can save the 3 million people..
Where are all the Proton/Perodua bashers?
The big 3 have been living in their comfort zone for too long believing that the auto industry will never collapse regardless of what’s happening around the globe. When every other car manufacturer is building smaller and more fuel efficient/hybrid cars, they are still building gas guzzlers sponsored from funds of US oil companies.
Now they are blackmailing their own Government to rescue them. They should bring back their troops from Afgan, Iraq, and everywhere else and use the millions to save their economy and the lives of their own soldiers.
As president elect Obama said, “it’s time for a change!”. Can they?
I do not like US (they behave like ‘white-collar’ gangsters/ROBBERs, just like SOME of our politicians). But this time, I really pity on them. I do not hope US go into bankrupcy. I hope GM/F/Chrysller will survive and learn from their mistake. And I hope everyone is safe, still earning a living and learn to save money during and after this economic crisis.
ASK Proton to take over GM la
Yeah lor can buy GM mah for US$1. Proton standby!
And we get Proton Camaro, Proton Hummer.
you know what, gm , stop giving us daewoo and give us opel’s and saabs
ya?????? let proton take over gm hohoho…and implement NAP???????????????????????????????????????????????????
bleh…USA..pi mampos. they claimed justice while it seems more like self righteous, what reason by bombing other ppl’s country, with only the main concern of conquering petroleum n gases. if USA is indeed that bad that need citizens to donate..etc, why dun we see bush do some charity some out of it? it is still his mess after all, bleh…
o i wan proton cadillac btw hehe.
dont think the US govt will allow them to shut down. the collapse of the auto industry would be disastrous for the US… you guys must remember that it will be a ripple effect, not just affecting GM, but all their vendors in heavy industry, electronics..etc. etc.
Learn from the east, learn from Malaysia, NAP!
Why start Thinking about Future?
In facts the way as these US ppl doing Auto business has no future…..at all.
Expensive, Gas Guzzler, Not reliable, Old looking style, bad maintenance….you named it.
On the other hand, at the moment all Japanese AUto maker are also suffering too, even if they can be the same level with Japanese.
So, WHERE is the future? I don’t see any, could you? OBAMA stops talking CHANGE on US Auto lah, NO WAY to CHANGE them. Sell it off might be the only way now.
GOOD LUCK US AUTO MAKERS, and OBAMA. Honestly I do hope some CHANGE could happens soon. But…..
Seriously, there’s no way US gonna let their auto industries collapse and turn into a domestic turmoil. This is a FACT, they are ‘ARROGANT’ and will not letting the whole world see them falling and failing. Remember Vietnam War? They not only lose the war but their faces as well. I personally know that their G will find any way possible to save them including the 3 million people.
3 million people out of job? Think the worst could happen. Crime rates will surely gonna raise, they know this and they scared. Desperate times sometimes lead to desperate measure. As far as I can see, we’ll just have to wait and see.
why wd u want to bail them out since its the same management that put GM into this Mess…thy should jus file for chapter11 bankrupcy…overhaul or restructure the entire operation and managemnt…
If US government helping their home-grown companies, it is called an ‘Organizational Re-structuring’ and it is good. 3 million workers will mati tak makan etc etc.
if Malaysian government helping their home-grown companies to make them more competitive, it is immediately called a ‘Bail-Out’ and it is bad and all the jokers will start attacking Malaysian economic policies and plans.
So bias isn’t it.
So President OBAMA, please do your bail-out this time because many of your business look like they are going to lingkup soon, and use all your money to help them instead of supplying that IS-f***ing-RAEL will all those free-of-charge f***ing missiles and bombs and your f***ing billions of U$D.
So tired of all your stupid antics, dear US-f***ing-A.
Just another crappy political posting by me. And more will come.
e-nabilll said,
November 19, 2008 @ 12:37 pm
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Agree!! But do you remember GM public announcement that BANKRUPTCY is NOT in their vocabulary some time back?!! As I said…ARROGANT.
that is the most desperate cry for help video i have ever seen in years!
but the fact remains that in a downturn businesses have to restructure to stay afloat. but taking up a loan but maintaining the same rigid operating structure means that a prolonged downturn will see them coming back for help again.
and if every major players in every industry come knocking on the government’s door with a video like this i dont see how the government can help much either.
Probably we can get Proton GT40? That would be nice.
The strategy they use to convince the government to give them the loan seems interesting. Probably we can use the same technique to warn the government of their flip flopping policies (i.e. fuel price) and its effect to the people and country.
The problem is that no one are buying their cars which are grossly inefficient, poor design and of poor quality..they have failed to produce cars which the consumer wants and yet over pay their employees..if they were to fail, all is not lost for the suppliers and workers, there will be a surge in the demand for fuel efficient cars in the US thus would demand the market leaders (Toyota, Honda..etc)mostly asian manufacturers to set up plants in the US and to meet the demand..this will in turn make the US suppliers more efficient and produce high quality products..Toyota can easily produce an all US model with 100% local content..The big three are fat,inefficient and been poorly managed, they deserve what they get..Its not about the companies, its about adopting a more efficient system, and the Japs and Korean’s will benefit
This is a clear example of LYING by STATISTICS! They are giving you misleading and simply said.. bullshit data!!! First, they are talking about the big three automakers – but then when presenting the figures, they take the whole industry volume including the smaller US domestic players and foreign imports. This is wrong. This is data manipulation. It can’t be that all the suppliers in the US supply only to the big 3. It can’t be that all 13 millions affected people depended solely on them. The Japs, the Germans and the Koreans all have manufacturing operations there. Aren’t they employing workers? Aren’t they procuring parts from domestic suppliers?
Even when all three of them file for Chapter 11, they are not going to get vaporized just like that. Other manufacturers will sure grab pieces of them. These pieces will continue to provide jobs and generate positive ripple effect on the economy as a whole. Clearly… blatant lies!
Waaah.. I never used such strong words before… but I guess this is due.
It will get worse, and the only way out is a huge govt bail out. The bail out must be done immediately, because the problem will get bigger by the day, as even at this very moment, no one would want to buy a car from a company that may go under. Because sales will be drastically reduced, inventory of cars and parts will pile up, and there will be a clash with the unions once working hours are shortened or people are laid off.
My view is that any bail out will not save the auto industry in the long run. It’s present predicament is inevitable, and they have been surviving on income from their financing activities rather than selling cars. Daimler Benz thought they got a good deal when they merged with Chrysler, but the clash of cultures was too great a strain on the relationship, and Daimler Benz cut losses and moved out.
The problem with the Americans is that whilst their consumers know how good or bad their cars are, compared to the Europeans, Korean or Japanese, the leaders of the industry are too proud to admit that they have a lot to learn from others. This is kiasu big time. But their biggest problem is still their unions, who want to work less and paid more.
There are two things that the video does not elaborate. It says that even after producing fuel efficient and better cars, their performance is still dismal. Secondly, it does not tell us what they will do after. Is it business as usual?
Next, maybe Boeing may ask for assistance, because the almost 2 months of strike (correct, almost TWO months) would definitely have hurt the company badly.
a video 4 sympathy ?
this is what happen when u didn’t protect. you idiot should learn from malaysia la haha… just give them them 20billion.. then you nationalize it, so GM, Ford and crysler will be the USA national car. let them enjoy tax examptions, grant facilities…. put high tax and duti to the bloody japanese n korean , … you idiot never learn..
The rise in the EASTERN power…. Chinese, Japanese, Koreans, Malaysian…..
Hope Proton Can buy some stake from GM!!!!!
i totally agree with alihms’s statement. in fact, the smart always plays with the figures. as long as it’s effective enough to achieve the goal and reach the target audience, nothing matters. same tactic used by our G, whenever there’s an issue raised against their policies (eg. NAP), they’ll use the statistical figures to convince the public.
the bailout could be a good option if the funds are allocated efficiently. the main concern is how the funds are used? where the money go? would it be mis-used or go into someone’s pocket? whatever bailout plans implemented, the allocation and usage of funds is not shown, no transparency at all.
The 3 companies can go bust for all I care. Most of the cars are useless. No one needs a pickup truck all the time. This just show that they have been to full of themselves. Let them suffer. Also, another note, the army’s annual budget is more than 700 billion usd. take money from that
I would really like the big 3 to file for chp 11. The beauty of the chp 11 is that you are bankrupt and that all loans and debts are nullified. This also means all the UAWs would not receive their big fat ass checks for nothing. Mind you one of the biggest problem of the big 3 is the damn unions who are literally holding them at hostage. Filing for chp 11 releases them from the unions and maybe they could restructure.
Another thing would be that those figures are grossly overestimated. You’d think that once they go down all will lose their jobs but the matter fact is that many car companies would love to buy their brands. In Chrysler their Jeep brand is one of the most value car brands and in the right management we could see Jeep being a reputable brand once again.
The very least, everyday American can go up to their Congressmen and get answers on this. As I’m writing this, Bloomberg is showing LIVE Members of the House Financial Services Committee are ‘grilling’ CEO of GM,Ford etc.
The CEO’s are due to explain among others why are the American cars company
– makes gas-guzzler
– lack of innovation
– does not know when they will run out money etc
Who can put Proton’s CEO before our Parliamentary Committee or even PAC and ask them why they make caplang standard cars, expensive etc etc etc.
Right now GM’s CEO is getting ‘grilled’ because he can’t answer how much GM needs to stay afloat by March 30.
Why saving US Auto Industry is important or crucial…apart from the legacy of US Automaker, its 3 million blue-colored committee who are also UAW members…who are also majority Dems…is because of the economic chain-reaction effect if the big 3 falls.
Those of you who have visited Cleveland Ohio in the Midwest, signs of the Great Depression like abandon factories etc.
If the auto industry in the US collapse, GM, Ford etc goes down…the Midwest will be a where 1920’s Great Depression will start again, ground zero.
Its more than just saving automaker. Unlike Proton, these 3 – 4 companies in total are bigger than our economy, so one couldn’t possibly fathom the impact.
serious matters.
doesn’t take a rocket scientist to know that if GM falls, auto industry will suffer.
the problem is identifying the after effects that are not clear here.
who knows if the fall here will spill over somewhere else. or plunge the US into a 2nd depression.
but i am pretty sure other car companies are interested in snapping up the leftover companies. good utilisation of assets and management(what’s left of it)
we’ll just have to see if the American Government will really bail them out.
oh my.. the person behind this campaign idea must be one heck of a bigot.. it seems as if Toyota and Honda cannot support the industry.. if the Detroit 3 falls, & leaving a huge vacant space in the industry, I believe companies like Toyota, Honda, BMW, VW, Merc, Peugeot, Fiat, TATA and even our good old Proton for that matter would take the oppurtunities to slice the market up further, thus maintaining what the Detroit 3 claim they would loose…
the ripples will be world wide. some mexicans in USA cant pay up for the house they bought on credit, Ahmad in malaysia will lose alot of money in his shares even thought he bought only malaysian shares.
the lesson to the motoring world or any other industry is quite apparent, if a business cannot turn a profit for its investors and cant survive on its own 2 feet, then it should go under sooner than later. rather than rely on government bail out or policies. not that they didnt see it coming, 10-20 years of toyota conquering thier market, but they didnt really make a change. now the bill to foot is even higher than ever. In this sense i think proton is headed down the same path. just that proton has quite stronger monopoly in place and thus will continue to bleed the country slowly to death. better to pull out the knife and stich up the wound rather than just plugging the open wound with cotton wool.
For the sake of the world, these companies cannot go down. either sold off to toyota or VW to let the smart guys battle it out.
The Americans have been living in borrowed times honestly. Every year for the past decade or maybe more the trade deficit has been in the billions. This is what happens when 270++ million people consume quarter of the world’s resources, financed by other countries. Eventually, the economy will collapse.
UAW workers are known to make 50USD/hr. That’s the pay for blue collar job for GM, Ford and Chrysler. That’s not counting the millions they have to give to Medicare, Social Security, 401k plans and god knows what else. For years they have been complacent producing gas guzzling behemoths and ignored the Kyoto protocol. Bigger is better-No replacement for displacement– they actually lived by these principles.
This is payback time. Karma, bad luck, whatever you want to call it. What goes around comes around. All I can say is good riddance to the big three.
bullshit
It’s a domino economic theory, if the big 3 falls, the entire supporting economy of it will fall and US economy will fall. If US economy collapse, the world free market will fall too,including Malaysia.
Few weeks back, when Lehman Brothers, Merrill Lynch, AIG etc went under, some uninformed people here in Asia thought, its just an American issue. Now few thousand DBS staff in Singapore are jobless, few thousand Hong Kong investors have their lifetime investment turn into Vapor, Temasek’s investment into Lehman and Meryll Lynch are vapor…StatisChipac and few other component makers in Ulu Klang and Penang are retrenching hundreds if not thousands and so on. Heck, even some England big football clubs are going bankrupt. It all started in Wall Street, the effect is felt globally.
If I was a farmer in a closed-economy country like Cuba, I wouldn’t be worried. But, Malaysia…like Singapore and other ASEAN neighbors, our economy is driven by FDI. FDI shrinks, our economy shrinks too and people will be jobless.
Its not only about the big 3, its bigger than that. If one assumes, well if GM,Ford,Chrsyler falls, so what? Toyota and Honda will be rich, people will buy more Honda.
Wrong. If 3 companies collapse, their supplier, 3 million people are jobless, people will have less money to buy everything, including cheaper and fuel efficient Honda’s and Toyota and when Jap cars sales falls, if their sales falls too, they will end up having to layoff people.
The auto industry is more than fast cars and engines.
Haaa now where are those Dubai Sheikhs….Those people should buy these companies and turn them into their toys like those football clubs. LOL
jagermeister said,
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well said.. i think what most people fail to see is, if the big 3 fall, the rest of the us economy goes with them.. it could mean the end of the US being an industrial power.. it doesn’t mean people will only stop buying cars from the big 3, no one in the US will have money to buy any car whatsoever, and as jagermeister said, that will have a ripple affect on the other manufacturers who depend so much on the US market… people like toyota, honda, bmw, VW…etc.etc. etc.
super power GM can fall but funny how come malaysia Proton not yet .
coz there have many slave n idiot monopolize way whit a easy way only for there own gov whit a race to control there gov politics , but there dont realise that there ar killing then own country man by the long run if the no certain ethnic to help , do u think what there will B!
DAN L said,
November 20, 2008 @ 4:24 pm
super power GM can fall but funny how come malaysia Proton not yet .
coz there have many slave n idiot monopolize way whit a easy way only for there own gov whit a race to control there gov politics , but there dont realise that there ar killing then own country man by the long run if the no certain ethnic to help , do u think what there will B!
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if you did enough research, you will probably find the answer yourself. and no, i dont think proton is in any way near collapsing at all at this moment in time. sorry to disappoint you..
DAN L, ppl not buy proton because they are slave… u r exaggerating… why dont just say financially incapable… not all ppl can afford other brand like u (mybe)…
GM, FORD and CHRYSLER should just close down for the good of USA. These sick companies are never ending blood drainer. Let them have lethal injection and go to sleep once and for all.
Same with PROTON, should pack and close down. Although 2000 will loose job but this will certainly protect 20 million tax payers’ pockets.
bmx said,
November 20, 2008 @ 9:10 pm
GM, FORD and CHRYSLER should just close down for the good of USA. These sick companies are never ending blood drainer. Let them have lethal injection and go to sleep once and for all.
Same with PROTON, should pack and close down. Although 2000 will loose job but this will certainly protect 20 million tax payers’ pockets.
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u do know its usa fault that toyota and honda are the great powers now. without gm, ford or chyrsler, there would be no mustangs, corvettes, camaros, hummers and definitely no transformers.
yea, proton should totally close down. it give this country a bad image. its so bad now that the foreigners think that vietnam is much richer than us. they look at the roads, they don’t care if we have the tallest twin condoms in the world.
\
you better go away from malaysia lah alpina.
A good PR works and brilliant idea to convey the message done by the Big 3… hehehehe…
bmpower said,
November 21, 2008 @ 4:10 pm
you better go away from malaysia lah alpina.
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you go away la bahasa melayu power
problem with these big three is that even if u give them the millions they want to survive just a little longer. they’ll still be like proton. continue to create bad products , bad service, not honouring repairs under warranty and dragging it until there is no warranty. only difference is proton’s financial assistance is in the form of market monopoly which is way way better than a bail out.
at this point i think its even better to declare bankruptcy and use the money to compensate the workers. until a foreign car company buys over the facilities and provides jobs for the locals. i think hyundai would fit the bill just right. but then again if i was hyundai i wouldnt buy in unless its economically viable.
unsustainable companies like gm ,ford and proton need to be shutdown.
shutdown proton, gm and ford actually make decent cars in europe like the insignia, astra, corsa, mondeo and focus. just that they don fuck with us asians properly
I was watching CNN the other and Michael Moore (film producer/human rights activist) was commenting on GM bailout request, anyway what caught my attention is that what he propose for GM :
1) agree for bail ONLY IF govt has full control over GM (remove the current mngt) with better mngt governance & transparency etc
2) GM to build cars that consumer need – efficient & practical
3) focus on transport technology (not just car technology) identify creative ways to improve transportaion sys that minimizes cost & improve efficiency
4) propose to govt to modify the business of GM to build national interest vehicles (eg : trains, buses, trams etc as an alternative mode transportation for the general public at a long term)
point 3 & 4 was very interesting, i wonder if proton can actually modify their nature of business to build alternative transportation vehicles (other than cars). as we wonder how relevant are cars will be in next 10, 20 years?