ST Alpha - "Looking al Lee Iacocca's testimony from 30 years ago to support the Chrysler bailout, the US auto industry seems to have gone nowhere" (Reading a Post)

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Looking al Lee Iacocca's testimony from 30 years ago to support the Chrysler bailout, the US auto industry seems to have gone nowhere

Posted by Brian (aka trav007) Nov 17 '08, 10:36

"Lee Iacocca�s opening testimony on 18 October 1979 before the House Banking Committee, which was considering a loan guarantee bill, laid out Chrysler�s basic argument for passage. Given more breathing room, Chrysler would introduce fuel-efficient cars and return to profitability. Bankruptcy was not an option, nor was a merger with another car company. A Chrysler bankruptcy would result in the loss of more than 500,000 jobs nationally and directly affect over a million people. In the first year alone, bankruptcy would cost federal, state, and local governments $10 billion in welfare and unemployment payments, lost taxes, pension liabilities, and other costs."

Only the numbers change (thelede.blogs.nytimes.com)

Responses:

Of the big 3, crysler's had the worst drive off the lot experience with the most return for repairs of improperly installed or malfunction parts. - zeitgeist Nov 17, 11:02
[deleted]
Do loan guarantees cost the federal government anything? -- nm - Mop Nov 17, 10:43 1
- I assume they do if the loan is defaulted? -- nm - celedhrymandias Nov 17, 10:51
Pretty much. The only thing that might save them is Chapter 11 reorg. They need to get out from under the unions and associated legacy costs. - TWuG Nov 17, 10:42 3
- Doesn't Chapter 11 require you to be able to work through the reorganization - sgtmike Nov 17, 10:45 2
  - That's one of the arguments against bankruptcy - Brian Nov 17, 11:05
  - Yes, Chap 11 is a working bankruptcy. But it allows them to do things they currently can't - TWuG Nov 17, 10:52
no they drove in a US made car thats why they ran out of money given the curret gas prices! -- nm - DaneDukeNuuk Nov 17, 10:41

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Looking al Lee Iacocca's testimony from 30 years ago to support the Chrysler bailout, the US auto industry seems to have gone nowhere

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