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Why does GM and Chrysler need more money if they are closing plants and laying off people?

Seems to me by doing that they are saving money....am i wrong

Answer Question
 
Anonymous

Asked by Anonymous at 8:04 AM on Feb. 18, 2009 in Politics & Current Events

Answers (13)
  • They should never have gotten the money to begin with. Chrysler is listed as one of the top 15 companies who likely wont survive 2009.
    gemgem

    Answer by gemgem at 8:06 AM on Feb. 18, 2009

  • I agree gemgem they should have never gotten any money but for them to say they are closing down plants and still need more money for what? sorry i posted anon
    4kids1970

    Answer by 4kids1970 at 8:11 AM on Feb. 18, 2009

  • Because they are running a company on faulty business practices and they will never change unless they file for ch 11 protection...
    grlygrlz2

    Answer by grlygrlz2 at 8:16 AM on Feb. 18, 2009

  • They need to stay afloat, they need the money because they are so far in debt but they need to find a way out because so many are dependent upon them.
    taylorsmommy00

    Answer by taylorsmommy00 at 8:48 AM on Feb. 18, 2009

  • taylorsmommy00 ......but if they are closing plants laying off workers aren't they saving money and what did they do with the 1st bailout?
    4kids1970

    Answer by 4kids1970 at 9:03 AM on Feb. 18, 2009

  • GM is cutting Hummer loose. I really don't understand this one - they could just shut down the H2 and H3 plants, and keep the military humvees which are guaranteed income from the government and other nations' military (what they had when they bought it in the first place). Instead, they're going to dump the whole division and all the years worth or H1 orders that go with it. I guess we'll find out next month if the plant here is going to be shut down - though around here, the extra unemployment numbers are just a drop in the bucket...
    NotPanicking

    Answer by NotPanicking at 9:03 AM on Feb. 18, 2009

  • They are probably saving money due to the plant closures, but they are still having to pay out for the current employees and retirees. Not only that but sales continue to drop, lots of people think they should buy cars made overseas. I have no idea what they did with the first bailout, I haven't looked over their "books" ;o) I am just stating that too many depend upon these car companies to just let them go under, the effects of them going bankrupt are huge, beyond just the corporation themselves.
    taylorsmommy00

    Answer by taylorsmommy00 at 9:31 AM on Feb. 18, 2009

  • Are you serious, they are cutting Hummer loose? My hubby wanted to buy one when he got back from deployment...
    grlygrlz2

    Answer by grlygrlz2 at 9:42 AM on Feb. 18, 2009

  • but they are still having to pay out for the current employees and retirees


    They will always be paying out to the Union.  That is one reason for the faulty business practices

    grlygrlz2

    Answer by grlygrlz2 at 9:44 AM on Feb. 18, 2009

  • They will always be paying out to the Union. That is one reason for the faulty business practices



    exactly ..............grlygrlz2
    4kids1970

    Answer by 4kids1970 at 9:54 AM on Feb. 18, 2009

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