Where is this Gonna come from?

[G3RMAN]

U.S. auto parts suppliers are facing liquidation and bankruptcy this month unless they can tap into a $700 billion Wall Street rescue fund, an industry leader said Tuesday.

 

While General Motors Corp. and Chrysler LLC dodged bankruptcy filings last month when the federal government agreed to give the automakers up to $17.4 billion in loans, the money isn't helping suppliers, who are having trouble accessing cash to continue operating as Detroit's Big Three implement unprecedented production cuts.

 

I think this money could go to better places like Africa or to fund research for Vaccines

[YeOldeTDUMan]

Do you have to keep on making lots and lots of new threads over the same issue ?

 

The reason why the Automotive Parts Supplier Industry (you will notice I have dropped the U.S. prefix as it's a Global issue) is because if you may have noticed the Global Car Industry is currently in decline because the Global Economy is in Recession (well not officially yet but that's just because you can't declare recession until decline has happened over a certain time period)

 

So here are THE FACTS

 

1. World Economy is in trouble

2. People aren't buying new cars as

i. they don't have the money

ii. they can't get a loan because of the poor World Economy

iii. they don't have the confidence in the World Economy and so don't want to spend any money

3. Car companies can't keep on producing cars for the sake of it

4. Car companies therefore don't need parts (e.g. seats, brakes, electrics, etc)

5. Supplier companies are therefore in trouble as they are not getting any imcome

 

 

You say this money would be better spent in Africa ... well in times of good economy I think we should spend as much as possible helping the poorer countries of the world ... but now is not the time ...

 

If a major car company fell ... it would not just mean that all the design and manufacturing staff would lose their jobs but on top of that suppliers would close which would then have a knock on effect to other car companies (as a supplier of seats (for example) will supply to lots of companies but because of it's profit margin it needs all those companies to survive) and then there's also the loss of jobs locally in shops and cafes/restaurants as people won't be working in the area ...

 

See this is a HUGE problem ... almost as significant as Banks collapsing

 

I think that's enough of a rant

[eleKtro]

Seems to me, German goes on other forums. And copy pastes all of their threads and posts them here.Or just copy pastes from News Sites like

 

http://www.detnews.com/apps/pbcs.dll/article?AID=/20090121/AUTO04/901210339/1364/AUTO01

[CarMadMike]

Actually i think this was copied off of autoblog, or somewhere else, just that there was a story about this on autoblog today

[gingervette]

And since the automakers have already been bailed out, then this poll is irrelevant

[YeOldeTDUMan]

Well the whole thing is linked ... next thing G3rman be posting a new thread about is the fact that the SMMT and MIA have approached the UK Government to provide aid/loans to the UK car industry of suppliers and manufacturers

 

And since the automakers have already been bailed out, then this poll is irrelevant

 

 

well the suppliers need cash too, I don't think they got any cash in the original 'bail out' ... but the suppliers were one of the reasons Ford were worried

[Speedtouch]

I'm not sure about this sort of stuff. $700 billion may be a lot of money, but GM and Chrysler would eat it up in weeks. Putting money into them is needed, and $700b is a lot more than $17.4b.

 

As for putting the money into places like Africa - you would need a colossal amount of money to change even one part, and even then it would still need military force. Its not a nice solution, but its the only one which has a slight chance of working. Going by my opinion - third world countries are buggered. I'm not saying this is good, but places like China have proven that a developing country becoming developed is only bad. There just isn't enough space, and because of that, we are likely to be the last generation to walk the earth.

[G3RMAN]

Yes i know i copied and pasted can't be bothered putting that up myself and they have not got the bail out this is a big issue.And is relevant to economics 700 million dollars is a lot of money and that is tax money

[gingervette]

700 billion was never even the planed money for the bailout. It was around 30 billion. And while they haven't gotten money to the suppliers yet (which has already been stated), GM and Chrysler have already recieved money. Ford has not yet but their's is on the way.

[Recon]

not as many people realize that it all comes down to the banks. they are a big reason the american automakers are in the crapper. unless you're rich, you need a loan to buy a car. and since the banks are "playing it safe" and not giving out loans, the automakers are losing money on the cars they produce, b/c no one can buy them