GM is back for more money.

[Ollie]

You were right BC.

Nailing jello to a tree... Some people are just plain clueless.

Yes, yes you are.
Don't believe me.
Read Gainster's post.

Ok, here's what I have been trying to say all along.
See if you can follow this.
It's from Jan. But still applies.

http://triad.bizjournals.com/triad/stories/2009/01/19/story11.html

 

[Beels]

If you want to play google wars, here's 2 videos to watch that may clarify a few things for you.

http://www.realclearmarkets.com/video/2009/11/03/us_automaker_rebound.html

http://www.realclearmarkets.com/video/2009/10/28/gmac_back_at_the_bailout_trough.html

From the same site as Gainster's link.

Look, I'm not arguing about the validity of the automaker bailouts. What's done is done and the feds almost have to make sure this succeeds to recoup anything. It isn't going to be overnight and it will be a rough road. Don't forget that GMAC's liquidity situation was caused by real estate.

Ollie, you just don't seem to understand what role dealer and retail financing plays in the auto industry.

 

[Ollie]

If you want to play google wars, here's 2 videos to watch that may clarify a few things for you.

http://www.realclearmarkets.com/video/2009/11/03/us_automaker_rebound.html

http://www.realclearmarkets.com/video/2009/10/28/gmac_back_at_the_bailout_trough.html

From the same site as Gainster's link.

Look, I'm not arguing about the validity of the automaker bailouts. What's done is done and the feds almost have to make sure this succeeds to recoup anything. It isn't going to be overnight and it will be a rough road. Don't forget that GMAC's liquidity situation was caused by real estate.

Ollie, you just don't seem to understand what role dealer and retail financing plays in the auto industry.

So you are saying that by GMAC getting the bailout that it "isn't" going to free up cash?
It won't have any effect on whether GMAC will back car loans for GM?

you are correct in the fact the bailouts are a done deal, kiss that money goodbye you will never see it again.

My WHOLE point was the fact I think this is just a backdoor way for the feds to help GM.
By giving money to GMAC (which was never intended to be a bank) it allows GMAC to deal with the real estate situation and it frees up liquid funds that can then be used to back car loans.

I understand the whole dealer/lender market just fine, I just see this whole thing as just that. A lender/dealer deal.

 

[B C]

I completely understand GM benefiting from the situation, no arguements there. I just wanted to get it across that the money GMAC is receiving, does not go directly to GM. It is stated that way in your thread title, and many of the posts on here. GM is not directly receiving the money, or receiving it directly from GMAC. They absolutely benefit from the situation.

Maybe the title should read: GMAC back for more money.

 

[triple]

Without GMAC General Motors goes POOF!.
They are the financial arm of GM.
They may not be directly controlled by GM, but GM can't survive without em.
So from my reasoning, that is the same thing as giving GM more money. They will give money to GMAC so they can continue to make car loans for GM and Chrysler.

Bull K-Rap. GM Doesn't need GMAC. SOme dealers florr plan theri inventory with GMAC and it they go away, the dealer will just use another source.

 

[Ollie]

I completely understand GM benefiting from the situation, no arguements there. I just wanted to get it across that the money GMAC is receiving, does not go directly to GM. It is stated that way in your thread title, and many of the posts on here. GM is not directly receiving the money, or receiving it directly from GMAC. They absolutely benefit from the situation.

Maybe the title should read: GMAC back for more money.

Correct, GM will not get cash directly from GMAC.
They will get it indirectly.
My whole point was that I believe this is nothing more than a back door way to help prop up GM.
You can look at it this way.
GMAC gets money from the feds and as a side effect it frees up cash to help GM.
I look at it as GMAC getting money from the feds specifically so they can help GM.
15 years ago I wouldn't have thought twice about it.
However with all the corruption and the fact NOTHING is as it appears, I don't trust the fed for sqwat. I don' think this has anything to do with saving GMAC, I do believe it is all about helping GM.

Triple there are any number of ways to finance a dealership, it's just GMAC is the principle method by far. GM owns 49% of GMAC, if GMAC goes under that is a HUGE hit to GM and at this point I don't think GM could handle it.

 

[Beels]

One of our short line farm equipment manufacturers used Textron for dealer floor plan and then they announced they were ceasing that program effective Feb. 09. Created major freaking havoc for everyone involved. This was with a company that had 402 million in gross sales worldwide last year. I can't even imagine the disaster with GMAC having to pull out of that arena.

 

[Ollie]

What I find interesting about the Whole GMAC/GM thing is this.
GMAC had to buy a bank or two in order to qualify for tarp funds.
Beyond the whole GMAC financing thing with GM is another point.

That is that if GMAC goes under I really think it will drag GM down with it. GM is too financial unstable to take any hit the size of losing GMAC.

I still think the whole bailout of GMAC (the first and second time) is just another way to prop up GM.

 

[woodzy]

ObamaMan won't let GM die. No way.

 

[Ollie]

ObamaMan won't let GM die. No way.

That is my thought also.
He and the dems have way to much invested to let it go under.
He can't give GM money directly, there is too much public resistance and his own party would raise cane.
So, it is my opinion that by giving money to GMAC he can back door help GM.
He has to help out GMAC just to keep it viable, but he also has to help GM get low cost loans to stay in buisness. So to me this is just a back door way to prop up GM.

 

[woodzy]

^^ Agree 100%^^

 

[skidoorulz]

Man I'm getting dizzy, but I'm still going to order a new 10 or 11 Dodge HD if they ever get their heads out of their butts and get pricing and info to their dealers so that 1 can be ordered.

 

[Ollie]

Bo and company were correct on one thing.
Gm is too big to fail.
Not in the way they think but in the shear size of the company (even what is left of it).
There are WAY too many GM products out there to simply say, too bad, we're done.
Even if they (GM ) officially filed for bankrupcy, they would survive. I think GM would have done much better had they simply filed Bankrupcy to begin with.
They wouldn't have the 50 billion debt and bo and the unions running everything.

 

[woodzy]

GM wouldn't fail, it would devalue itself for awhile, then a company that doesn't have it's head up it's own a$$ would buy it on the cheap. Clean house happens and company makes profit. Capitalism.

 

[BigJake]

Man I'm getting dizzy, but I'm still going to order a new 10 or 11 Dodge HD if they ever get their heads out of their butts and get pricing and info to their dealers so that 1 can be ordered.

I am going to hold off for a few years and see what happens. My 01 Dodge has fairly low miles and is in excellent shape. I really like the new Dodge 3/4 2500's, but I find myself looking at Ford's just because they are financially in much better shape and didn't take the government handout.

What is sad I can only get around 7 grand for my 01 that is in excellent shape. Not much incentive for me to want to trade if that is all that I can get. 30 grand or so is a lot of money for that new car smell.