It is not a slam dunk yet but the Obama transition team are expecting the worse and are already contacting bankruptcy legal firms to package a proposed bankruptcy policy for the Big Three automakers.
Pelosi and Frank have asked the automakers to come back on December 2 with a plan on how they would apply the 25 billion dollar bridge loan which is a cleverly disguised bailout package.
Automaker CEO’s were not in the slightest embarrassed by their excessive expenditures on 3 Leer jets they used to attend the Senate hearing on their own corporation’s possible bankruptcy. The CEO’s had no answers and no specific business model to plan their restructuring to avoid bankruptcy.
Meanwhile these executives demand salaries of up to 15 million dollars per year with bonus packages and other perks in the midst of their own failures to keep their respective companies above water.
Dealerships throughout the country have huge inventories of gas guzzling cars in a bad economy where credit is tight and the jobless rates are rising dramatically.
In fact the GM latest models for 2009 presented their Hummers and Cadillac Escalades with large V8 engines that average 14 miles per gallon. Bailouts would not cure what is wrong with these three corporations, that have ignored high gas prices throughout 2008 at $ 5.00 per gallon which has harmed the economy. A court proceeding will take up to one year to resolve the restructuring process which would rely on a bridge loan from the government.
The three CEO’s of the automakers Robert Nardelli Chrysler’s CEO, Rick Wagoner of GM, and Alan Mulally of Ford have all rejected the pre-arrangement bankruptcy prior to asking for bailouts from Congress.
The world is waiting for these three amigos to get their act together before taking down millions of jobs in parts suppliers, auto dealerships and other auto related companies.
Tags: Congress, Congress bailout, Rick Wagoner, Robert Nardelli, Alan Mulally, Big 3, Big Three Automakers, Automakers, Obama Team, Obama Transition Team, auto dealerships, pre-arrangement bankruptcy, Automaker’s CEO.