Thursday, December 4, 2008

Auto Bailout Senate Hearings Today

Well, today is the day for the Detroit Three to meet once again with the US Senate. Are they more prepared this time? Barack Obama says their proposals are much more serious this time. Nancy Pelosi has already said that they will get help and not go bankrupt. So I guess the hearings are just a formality? Should be interesting as we watch today.

Rick Wagoner is driving around in a Chevy Volt prototype, which is basically a Chevy Cruze "mule". A mule is a test car with all the innards of the production intent vehicle, but retaining the chassis and body of an already existing vehicle, which is the Chevy Cruze in this instance. It should be fun to watch 'ole tricky Ricky Wagoner. I am sure there will be plenty of pictures available later and I will post some!

Finally, from Automotive News:
"General Motors and Chrysler are considering accepting a pre-arranged bankruptcy as the last-resort price of getting a multi billion dollar government bailout, Bloomberg reported, citing a person familiar with internal discussions. In response to automakers' bailout plea, staff for three members of Congress have asked restructuring experts if a pre-arranged bankruptcy could be used to reorganize the sector without liquidation."

I have never heard of a pre-arranged bankruptcy, have you? I have also never heard of auto manufacturers getting "bridge loans", which are used exclusively for real estate transactions.

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