AFSCME 3357-HOF'S BLOG

GM & Chrysler Need $ Billions to Make it to the New Year
Total Request for 3 Automakers is $32 Billion
UAW Contract Likely to be Reopened

The first reports of the Begfest on Capital Hill are in. Chrysler says that it needs $7 Billion in cash to make it to the end of this month. GM says it "only" needs $4 billion to make it to December 31st. Overall, the Detroit 3 are asking for $32 billion in emergency aid. None has proposed bankruptcy, but Chrysler and GM are using the veiled threat in an attempt to get immediate cash. As expected, Ford displays the least immediate need for cash and correspondingly demonstrates that it both deserves the cash more, and can put it to better use.

There's more going on than I can even summarize in this blog format. To keep up, go to www.autonews.com, www.detnews.com, and for a less reverent outlook, www.ttac.com.

It seems like the conventional wisdom is shaking out as follows: Chrysler is doomed. It's beyond saving and needs to be parted out. GM can be saved but probably only through Chapter 11. Ford might be able to avoid Chapter 11 with some cheap government money and (hopefully) a rebounding auto market in a year or so. The current UAW contract for all three will need to be renegotiated, and everything (including the legal services benefit) is on the table.