So all of this talk about the big three automakers and whether or not they would get a slice of the auto bailout is finally concluded. The results are in from the final weeks of our lame duck president’s tenure: we will give them nearly $17 billion to stay afloat and fend off Chapter 11. However, they must meet some really simple conditions to do so. Does this bother anybody that they were only asking for less than half that amount at first, now two of the big three want double the original amount?
One of the largest auto makers in the world, Toyota, has posted their fist losses in seventy years, since the middle of World War Two, in late 1941. Spurred mostly by the global recession that has nearly bankrupted the big three auto makers in the United States, Toyota is acting quickly to assure that they do not meet the same certain fate that the American big three auto makers have succumbed to. And while Toyota operates in union-free plants in the US, with far lower operating costs than other rival auto makers, they have already lost a few billion dollars this year alone, and expect the trend to continue well into 2009.
The auto bailout is on the minds of many during our troubled economic times. However, there is a light at the end of the tunnel, and a brighter future is not that far off in the distance. While car buying is at an all time low—the major auto makers aim to sift that presiding notion by restructuring everything they know to make it all work again. And what this ultimately translates into, is that very soon, in the not so distant future of the next coming year, will be the best time to buy a car since the 1980s.
If you are wondering yourself what many other Americans are wondering, as it relates the big three auto maker and whether or not any of them will be in business come this time next year, there are some pros and some cons to ponder. Firstly, what happens if the bailout is successful, and what does that mean for you and me? Secondly, what if the bailout fails, who foots the billions of dollars in loans? And finally, is this bailout worthwhile, or should the auto makers be forced into bankruptcy? And one more thing to consider here: what effect has the auto maker unions had on the failure of the big three auto makers?
If you have not seen it all over the news today, President Bush, in an effort to preserve some sort of a legacy, approved a $17.4 billion auto bailout for GM and Chrysler, whose executives during congressional hearings over the past few months have voiced that their companies did not have enough cash to sustain operations into the new year. But the bailout is just a temporary fix to a big time problem, one that staves off an orderly bankruptcy, according to Bush, and allows the major auto makers to regroup and restructure into viable and profitable entities by an end of March deadline in 2009.
All I can do when I arrive at the gas pump is smile and look fondly at how low the prices are now for a gallon of gas. A nostalgic, Clinton-era tear whets the corner of my eye, provoked by fond memories of gas that was just about a buck a gallon during the earlier part of this decade. And on the other side of my face streams another tear, rejoicing that my monthly gas bill has effectively dropped from $180+ per month, to well under eighty bucks; more nachos and movies for me this December!
For those of you who find yourselves in the position to purchase a new automobile, you may want to look to another company than an American automaker right now until further headway and progress is made with the fall of the ‘Big Three’ automakers in the United States. Now there are some who would say this is preemptive, and that more Americans need to buy more American made cars and trucks. But from a personal perspective, there is much to consider before you make your decision on whether or not you should hold off on buying that new GM, Ford or Chrysler car.
As if you did not need the top four reasons as to why you should be wiser and hold off on that new car purchase, I aim to demonstrate exactly why! The economy is daft, at the present. Many people are losing their jobs every day. In fact, November of 2008 posted the most job losses in nearly thirty years, a nice round figure of over half a million of those who were gainfully employed, but opened their locker, or arrived at their cubicle to find a pink slip next to their holiday greeting card. And for those who thought that their holiday bonus may tide them through the yuletide, many are finding that the businesses and companies that they used to be employed with are so strapped that they are not even issuing bonuses in many cases. So yes, indeed, making a whopping commitment to purchase a new car is not the most educated decision that one could make right now, all things considered.
I am sure that you have seen them frequently on the television set, especially late at night, when the TV channels seem adorned with advertisements and infomercials galore—you know those zero money down car commercials brought to you by your local dealership, touting a zero interest loan for everybody. Here is a good rule of thumb when it comes to car dealership advertisements on the television: the big print gives and fine print takes away. What I find dreary and downright manipulative about these array of misleading ads, is that they are indeed misleading! Who do you know in your lifetime that has ever gotten approved for a zero interest auto loan? And, even if you happen to know one person, then what about the other hundred that didn’t get approved?
Have you heard about or seen these new so-called ‘Smart Cars?’ They are these teeny little things that barely have four wheels and can be quite often seen driving around the cities in our great nation. They are really small, and seat two people at maximum, and hail a small two cylinder engine which boasts a fabulous mile per gallon ratio, and they tend to be far less costly than most other vehicles. So that is the good part about the Smart Car. But are people overlooking something that is very important when it comes to automobiles – their safety if they become involved in a car accident?
As the senate is currently busy debating whether or not they should offer up a sizable portion of billions of dollars in taxpayer money to bailout the auto industry, some of the largest US automakers are on the verge of ceasing to exist. GM posted its largest losses in the history of the company this year, and without a few billions dollars in accessible cash; they predict that they will be out of business in early 2009. So what does this tragedy mean for those who already own or just purchased a brand new GM vehicle?News From the Klat Network
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