http://money.cnn.com/2009/02/17/news/companies/auto_plans/index.htm?postversion=2009021716 Hey...I had a positive video interview this afternoon in GM headquarters at the Ren Cen in Detroit with a Florida based company and as I was leaving all the news crews were setting up for the "big story". Can't wait to get the f@@k outta here!
Congrats Dave. I sencerily hope that you find a lucrative position soon and that I still have one when you do. :shock:
... however, unless GM and Chrysler are planning on having a playoff on the gridiron for the lion's share of the bail out money, this belongs in the back room. I'll move it there but leave a shadow topic here. Again, I'm glad to see a little optimism in your future.
Please.....get me outta here! "Bankruptcy could be 'cataclysmic' A newly-appointed auto panel will review both plans and determine by March 31 if GM and Chrysler can be viable in the long run. Specifically, the Treasury Department is looking for details about the progress of negotiations with creditors and the UAW. White House spokesman Robert Gibbs issued a statement late Tuesday saying that the panel would be reviewing the plans and that "We appreciate the effort that these companies and their stakeholders have made." The automakers' request for a $34 billion federal bailout in December fell short when Senate Republicans blocked passage of the request. The Democratic majorities in both houses of Congress have grown since then. While both plans are more than 100 pages each, they have only limited details about the latest deals reached with the United Auto Workers union to shed costs, as well as about GM's efforts to shed much of its unsecured debt, as required under the terms of its existing loans. GM is struggling under a $35 billion mountain of unsecured debt. It hopes to shed about two-thirds of that debt with a swap of debt for equity with its bond holders. But the company was not able to reach a deal with the bond holders by Tuesday's deadline, although it did include a letter from their committee's financial and legal advisers saying that they are "prepared to recommend that the committee approve and support the bond exchange" proposed by GM. If the federal panel looking at the plans rules either company is not viable, it could recall the outstanding loans, a move that would likely force them into bankruptcy. In a statement, Chrysler chairman Robert Nardelli said he believes additional federal help is the best course for both Chrysler and the battered U.S. economy. "We believe the requested working capital loan is the least-costly alternative and will help provide an important stimulus to the U.S. economy and deliver positive results for American taxpayers," said Nardelli in the statement. To that end, the companies also submitted an analysis of what would happen if it filed for bankruptcy. In a reorganization scenario, GM said it might need up to $100 billion in additional federal loans to finance their operations during a two-year reorganization. Chrysler said it would need up to $20 billion to $25 billion. If it was forced to liquidate, Chrysler estimated there would be a loss of 2 million to 3 million jobs, resulting in a $150 billion reduction in federal tax revenue over three years. Nardelli added that a Chrysler bankruptcy would have a "cataclysmic" impact on the auto parts supplier industry, which would affect operations and production at all automakers. Sales forecast: From bad to worse The other member of Detroit's so-called Big Three, Ford Motor (F, Fortune 500), requested a credit line of $9 billion from Congress in December. But Ford said it would not to have to tap the line of credit unless conditions in the auto market and economy deteriorated more than expected. Since then, demand for cars and trucks has gone from bad to worse, with January sales falling to their lowest level in 26 years. The automakers and industry experts have also slashed sales forecasts for 2009 and beyond. Chrysler has been among the hardest hit in the industry though. Sales plunged 54% from year-earlier levels in December and January, and the company left most of its 12 North American assembly plants idled throughout January due to weak demand and excess inventory. " BOL Gipper!!!
Things are tough all over, not just the auto industry. Applied Materials has announced six weeks of shutdowns, one week at a time, between now and the 4th of July. I am on one of these weeks right now. We have had forced vacations last year as well. I am down to zero vacation available so these weeks are mostly unpaid time off. I am using this time to get certifications under my belt for teaching NRA classes. There is not a lot of money in teaching these classes, but I am doing something to help myself without being a burden on the taxpayers like the damn democrats would like me to become. I have never collected unemployment in my life and I will not start now. I respect what my company is trying to do. These shutdowns are keeping us from pushing more people out the door. If I have to take a cut in pay (unpaid time off) to help others keep their jobs, I am ready to do so.
Tom, I'm surprised you are on forced vacation. BuckeyeT posted a week or so ago the announcement that Intel was going to spend 8 Billion or something like the building new factories for the .32 chips in the USA. Don't you guys sell them that equipment?
Yes we do. However, that is $7B in the next two years.They have to break ground and build the facilities before we can sell them the tools. Semiconductor equipment manufacturers like Applied Materials usually find themselves about 6 months behind the semiconductor chip manufacturers. We will not feel this decision by Intel until our 4th quarter (Aug - Oct) at the very earliest.