Quote:
Originally Posted by jfelbab
You all seem to assume that they will go down for the count if not bailed out. More likely they would file for Chapter 11 protection and continue operating. This would give them the ability to renegotiate all their supplier and employee contracts as well as restructure their debt. This most likely would result in a reduced size but they would continue in a restructured and quite possibly a more economical manner. This doesn't mean that they would not be in business at all. It means smaller, leaner and hopefully on a competitive basis with the imports. I'm against this bailout.
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The parts I highlighted will have a major effect on the economy because everything you mentioned equates to significant job losses. They've been trying to lean out for years. I've lost count of the number of Tier suppliers that have gone out of business because their contracts were cancelled(or "renegotiated") without pay. Over the last few years I've already experienced countless instances where the parts that were manufacturered through suppliers were no longer available because that supplier went out of business. Try buying a frame for a Chevy SSR. You can't. The supplier that produced them went out of business. If you own one of these vehicles and need a part, you're screwed. Not to mention all the contract people in place at both the OEM and suppliers that took the knife 1st. Reduced size also means 100's of dealerships closing too. Ford is planning on discontinuing the Mercury brand and merging Ford & Lincoln together at 1 dealership just to be smaller. That's going to affect people in many ways as well. Sorry to sound all gloom and doom, but the auto industry is a vital part of the country, if not the world as a whole.