TIME reported The latest wave of bad news came out of Detroit Friday morning as both GM and Ford reported heavy losses for the third quarter of 2008. Ford lost $2.75 billion, pretax, from operations; GM fared even worse, losing $4.2 billion, excluding a one-time gain.
So we exclude gains to make it look like they lost more, so they get a bigger bailout.Both companies are also burning through cash at an alarming rate — Ford used up $7.7 billion during the third quarter and GM burned through $6.9 billion. Concerns intensified about GM's ability to stay afloat.
Let them go through the clensing of Chapter 11. The reason they are losing so much money is they have given into the demands of the labor unions for ridiculously high benefits (health care and other). It makes their cars too expensive to compete. Go through Chapter 11, get the courts to cancel the contracts, and maybe the unions will not be so greedy.The losses added yet another note of urgency to auto industry leaders' discussions with Washington, which were in the spotlight on Thursday when the chief executives of GM, Ford and Chrysler met with House speaker Nancy Pelosi and Senate majority leader Harry Reid on how to increase the size of Washington's aid package to the Big Three. Though details are still being worked out, the push is for an additional $25 billion in federal loan guarantees for Detroit in addition to the $25 billion already promised to assist the industry's shift to green technology.
There should ne NO bailout for the Big 3 Automakers.And now the City of Detroit has its hand out too. Stop the bailouts.