Misery Index

GM has also said that the $230 million is only three to seven days’ worth of cash, but by selling its stake in Suzuki, GM would save more money by delaying for two weeks incentive payments to its dealers.  Dealers were notified of the change in an email Monday.

Suzuki will finance the acquisition from its cash reserves, the Nikkei newspaper reported today, citing a company statement.

Suzuki Chairman Osamu Suzuki said in a statement Monday that the Japanese automaker and GM will continue to collaborate on projects currently underway.  “There will be no impact on Suzuki’s current business plan,” Suzuki, Chairman and CEO, Suzuki Motor Corp. said in a statement yesterday, indicating that they [GM and Suzuki] will cooperate to jointly develop environmentally friendly cars.

“As GM taking this particular step to sell the shares it owns as a step toward strengthening its balance sheet is very understandable, we wanted to support GM’s decision,” Suzuki had said.

With this stock sale, GM now owns no stake in any Japanese automaker as it already sold its entire stake in Isuzu Motors Ltd. and Fuji Heavy Industries Ltd. in recent years amid deteriorating earnings.

In 1981, Suzuki and GM entered a capital tie-up when GM acquired a 5.3% stake in the Japanese car-maker.  The stake was bolstered to 20% in 2000 but in 2006, GM reduced its stake in Suzuki to 3% as part of its restructuring program.

If you missed it, GM distributed a propaganda video on YouTube making the case that a $25-billion bailout now would be far less costly to the nation than allowing the industry to fail.

Ford Motor is selling 20 percent of its 33.4 percent stake in Mazda for Y52Billion but they will still remain the Japanese carmaker’s biggest shareholder however, its  reduced interest will give it less control over the company.  This means, many of whose current top executives on on loan from Ford.  Two of three board members from Ford are going to leave, Mazda said, and Takashi Yamanouchi, executive vice president, is going to become its new president and CEO.  Hisakazu Imaki, the current chief executive, will become chairman.

  

Mazda is also buying shares, 6.87 percent in off-hours trading on Wednesday morning for Y17.9 billion or Y184 each, the closing price on Tuesday.  Mazda said the two companies will continue their relationship.

The remaining stock will be probably picked up by a group of Japanese parts suppliers, trading companies and casualty insurers, who will divide Ford’s interest into segments of 1 or 2 percent each.

Ford President and CEO Alan Mulally said “This agreement allows Ford to raise capital that will help fund out product-led transformation, and at the same time, allows Ford and Mazda to continue our successful strategic relationship in the best interest of both companies.”  Mulally added, “Ford will continue to focus on the Ford brand worldwide and deliver the products our customers really want and value.”

Ford help invent Mazda in 1979 and had owned a steak in Japan’s fifth-largest automaker since then.  What is interesting to note is that Ford rescued Mazda from bankruptcy 12 years ago.

SOURCES:

• Ford Motor Company News Release

From the website:

On Election day twelve Obama voters were interviewed extensively right after they voted to learn how the news media impacted their knowledge of what occurred during the campaign.  These voters were chosen for their apparent intelligence/verbal abilities and willingness to express their opinions to a large audience.  The rather shocking video below seeks to provide some insight into which information broke through the news media clutter and which did not.”

Kroft:  Where is all the money going to come from to do all of these thing?  And is there a point where just going to the Treasury Department and printing more of it ceases to be an option?

Obama:  Well, look, I think what’s interesting about the time that we’re in right now is that you actually have a consensus among conservative Republican-leaning economists and liberal left-leaning economists.  And the consensus is this:  that we have to do whatever it takes to to get this economy moving again, that we’re gonna have to spend money now to stimulate the economy.

And that we shouldn’t worry about the deficit next year or even the year after.  That short term, the most important thing is that we avoid a deepening recession.

And you really think that Obama is going to lower your taxes.  That is the kind of attitude that got us in this bank failure, foreclosure situation.  Thinking that “yes we can”, I can take the loan out to pay for this house, although right now I can’t pay it, but I’ll find a way.  And banks giving out loans to people under the assumption that they will find a way to pay back the loan, although they don’t have the income to make the payments on the mortgage, especially if the rate increases.

While it is important that we, as a nation, do what needs to be done to avoid a deepening recession, it is also important to make sure that we, as taxpayers, don’t pay for it for the next 20 years via our Federal and State Income and Sales taxes and loss of our retirement accounts by seizure of our 401(k)s and IRAs.

Kroft:  Have you been reading anything about the Depression?  Anything about FDR?

Obama:  You know, I have actually.  There’s a new book out about FDR’s first 100 days and what you see in FDR that I hope my team can – emulate, is not always getting it right, but projecting a sense of confidence, and a willingness to try things.  And experiment in order to get people working again.

I am sorry to disappoint, but I, along with the millions of other taxpayers and our economy are not laboratory guinea pigs or lab rats to be “experimented” with.  And our economy and our country is not something to be “toyed with” and “experimented” with to see what happens.  This is not something that is a “pet project” and  if it fails, it’s not a major loss.  This is a country, where millions of people live, because if an “experiment” fails, then our country fails.  If you don’t know what you are doing, then don’t do it.  I’m not saying that our economy doesn’t need “fixed” however, this is not a game and should be taken seriously and not “experimented” with to see what the results are.  Because if it fails, there is the little issue of accountability, and do you really want over 300 million pissed off citizens knocking on your door?

So let me get this right.  Auto sales are down, no one is really buying new cars because they have no money, or can’t get a loan and thus the Big 3 are suffering.  So they are asking for a bailout, so they can pay Union worker to either stand around and get paid, or work and make fewer cars that no one is going to buy and sit on lots and pay off their pensions and healthcare benefits to those who have retired.

And in the meantime, the Big 3’s demand for supplies lowers, thus the suppliers aren’t making as much money and lay off people or go out of business, just so the Union’s can stand around and half work still getting paid their same wage (which with all benefits has been determined to be around $70 an hour), and also so the Big 3 can pay their pension funds to those who no longer work for the Big 3?

And in this video, GM says they are responsible for generating $693 billion in new vehicle sales.  Well, they aren’t this year, now are they or they wouldn’t be asking for welfare now would they?

And all the Big 3 are good for is $60.1 billion in 2009?  $54.3 billion in 2010 and $42.0 billion in 2011?  That’s all the Big 3 are good for?  Pfftt…….

Did I miss anything?

Ya know.. welcome to the recession Big 3 and all your 239,000 employees, all your 775,000 retirees and family, and 2 million who use the Big 3 for healthcare.  Welcome to misery like the rest of the United States who have no jobs, and millions who don’t have healthcare benefits.  Because right now “I see no profit” in it for me, the average taxpayer and all I see is you getting bailed out by the Feds, while all your employees and retirees get things that the rest of the country is losing right now.  And ya know, 1.2 million people are unemployed right now, and you suddenly seem concerned about an additional 3 million (according to your skewed numbers).  Tell ya what, yes to your bailout however, EVERY taxpaying American in 2009 gets a 2010 vehicle for $500.00.  How’s that for a deal?

BTW, the Senate plans to introduce legislation Monday attaching an auto bailout to a House-passed bill extending unemployment benefits.  A vote is expected as early as Wednesday.  Again, the House can’t do it’s job, and the Senate cleans up for the House.

So why is it I ask, that a bank bailout was made in around three days from start to finish, and now its going to be the same for the Big 3, yet a stimulus package for taxpayers is taking MONTHS?