“Dear [GoldE],
You made the right choice when you put your confidence in General Motors, and we appreciate your past support. I want to assure you that we are making our best vehicles ever, and we have exciting plans for the future. But we need your help now. Simply put, we need you to join us to let Congress know that a bridge loan to help U.S. automakers also helps strengthen the U.S. economy and preserve millions of American jobs.
Despite what you may be hearing, we are not asking Congress for a bailout but rather a loan that will be repaid.
The U.S. economy is at a crossroads due to the worldwide credit crisis, and all Americans are feeling the effects of the worst economic downturn in 75 years. Despite our successful efforts to restructure, reduce costs and enhance liquidity, U.S. auto sales rely on access to credit, which is all but frozen through traditional channels.
The consequences of the domestic auto industry collapsing would far exceed the $25 billion loan needed to bridge the current crisis. According to a recent study by the Center for Automotive Research:
• One in 10 American jobs depends on U.S. automakers
• Nearly 3 million jobs are at immediate risk
• U.S. personal income could be reduced by $150 billion
• The tax revenue lost over 3 years would be more than $156 billion
Discussions are now underway in Washington, D.C., concerning loans to support U.S. carmakers…”
[The letter goes on to provide additional info as well as links to sites cited as support]
My Added Comments:
I’m afraid that the “bridge loan” would only be a temporary patch in a thread bare tire. Restructuring of the Detroit Three appears inevitable.
It is unfortunate that the economy in general and gas prices in particular can affect these companies so quickly and severely. I’ve maintained for years that “The Big Three” excel at manufacturing large vehicles (pickups, large SUVs, etc) but I’ve never had much confidence in their small to mid-sized car and car based offerings. They’ve gotten better, but have a long ways to go.
You made the right choice when you put your confidence in General Motors, and we appreciate your past support. I want to assure you that we are making our best vehicles ever, and we have exciting plans for the future. But we need your help now. Simply put, we need you to join us to let Congress know that a bridge loan to help U.S. automakers also helps strengthen the U.S. economy and preserve millions of American jobs.
Despite what you may be hearing, we are not asking Congress for a bailout but rather a loan that will be repaid.
The U.S. economy is at a crossroads due to the worldwide credit crisis, and all Americans are feeling the effects of the worst economic downturn in 75 years. Despite our successful efforts to restructure, reduce costs and enhance liquidity, U.S. auto sales rely on access to credit, which is all but frozen through traditional channels.
The consequences of the domestic auto industry collapsing would far exceed the $25 billion loan needed to bridge the current crisis. According to a recent study by the Center for Automotive Research:
• One in 10 American jobs depends on U.S. automakers
• Nearly 3 million jobs are at immediate risk
• U.S. personal income could be reduced by $150 billion
• The tax revenue lost over 3 years would be more than $156 billion
Discussions are now underway in Washington, D.C., concerning loans to support U.S. carmakers…”
[The letter goes on to provide additional info as well as links to sites cited as support]
My Added Comments:
I’m afraid that the “bridge loan” would only be a temporary patch in a thread bare tire. Restructuring of the Detroit Three appears inevitable.
It is unfortunate that the economy in general and gas prices in particular can affect these companies so quickly and severely. I’ve maintained for years that “The Big Three” excel at manufacturing large vehicles (pickups, large SUVs, etc) but I’ve never had much confidence in their small to mid-sized car and car based offerings. They’ve gotten better, but have a long ways to go.
