A case for government intervention?

[mookiemookie]

Originally Posted by GoldenRivet

Its called "Restructuring under Chapter 11 Bankruptcy"

its what every other business has had to do up until the dangerous precedent of the government bailout - the message the government has sent to management and CEOs is clear: "Screw up all you want... we will save your asses.".

Nail on the head. Prepackaged bankruptcy would have avoided a lot of problems and not set bad precedents. The pandora's box of moral hazard has been opened by bailouts going all the way back to Lockheed in the 70's

[SteamWake]

Originally Posted by The Third Man

This should help GM, but it may induce a bailout for GE.

GE said Thursday it will buy 25,000 electric vehicles by 2015 in hopes of sparking demand for the emerging market for which it makes charging stations and other infrastructure.

Those charging stations must be very pricey indeed if GE can buy the cars to boost sales of the charging station. Or is it more smoke and mirrors, for which the tax payer will be on the hook.

http://finance.yahoo.com/news/GE-to-...&asset=&ccode=

Guess you missed my post

[GoldenRivet]

Originally Posted by mookiemookie

Nail on the head. Prepackaged bankruptcy would have avoided a lot of problems and not set bad precedents. The pandora's box of moral hazard has been opened.

and when Mookie agrees with me...

you better take it to the bank, like right now.

[Takeda Shingen]

Originally Posted by GoldenRivet

we will never know the answer to this question... we will only know that - if it had failed and vanished another would have risen to take its place.

its called the free market. by allowing GM to fail, who knows? perhaps it could have given rise to companies producing highly stylish electric cars, like Aptera or some other small company.

^^This.

One of the major tenants of free market capitalism is that companies that are unable to sustain themselves, as well as the needs of the public, fail. GM was and is unable to do so. What is clear now is that instead of going out of business and possibly giving rise to companies that offer a superior product, it is now a dinosaur on interminable life support from the federal govenment, which has the clear intention of nationalizing the American automotive industry; a result that will be vastly more catastrophic than the loss of General Motors.

[gimpy117]

Originally Posted by SteamWake

Ah this may explain their projections a little.

http://news.blogs.cnn.com/2010/11/11...leet-vehicles/

GE huh... of course what goes around comes around.

http://www.washingtonexaminer.com/po...-40686707.html

A hybrid fleet vehicle seems like a good idea. Should save money in the long run. Especially because company cars get a lot of use.

[SteamWake]

Originally Posted by gimpy117

A hybrid fleet vehicle seems like a good idea. Should save money in the long run. Especially because company cars get a lot of use.

Saves money

1.) Inital investment (they aint cheap)

2.) Equipment to keep them charged (it aint cheap) oh sold by GE by the way.

3.) Maintance (batteries do fail and they aint cheap) "Qualified mechanics required". Given GM's past history of reliability.. Ill bed a damn headlight for these gadgets cost 200 bucks.

4.) Limited range (If you want to travel more than 100 miles your going to have to use a 'normal' car).

I see it as a 'feel good' 'show you care' type of sentiment at best.

At least they found a ready made market for them otherwise it would really had been hard to sell them.

[AVGWarhawk]

Meh....GE is probably getting some hugh friggin tax break for buying these cars plus they are lining their own pockets because GE has been very open with advertizing the charging stations. GE see this ploy as a selling tool and will have much to gain if they pull it off.

[SteamWake]

Originally Posted by AVGWarhawk

Meh....GE is probably getting some hugh friggin tax break for buying these cars plus they are lining their own pockets because GE has been very open with advertizing the charging stations. GE see this ploy as a selling tool and will have much to gain if they pull it off.

Sigh... Ill forgive because it was on the previous page...

http://www.washingtonexaminer.com/po...-40686707.html