Originally Posted by Mike Wevrick
But they were not making much if any money before the downturn.
That's not accurate, and you know it. Do a search on GMs or Ford's profits.... as recently as 3 years ago, Ford made a profit of $2 Billion. As recently as 4 years ago, GM was pulling in quarterly
profits of nearly a Billion dollars.
Why should we prop up companies that may never be competitive/profitable?
Because the cost in jobs far out weighs the cost to give them LOANS... again folks, it's not "free money", it's simply loans. And those are loans that GM probably would have been able to get themselves, if not for the financial collapse.
Even in this craptacular economy, GM is still going to sell about 7 Million cars this year and next... those are huge numbers and huge possibilities of success.
Also when a car company actually gets it's act together, it too might have a market cap of nearly $100Billion and pull in profits of $25 Billion like Toyota did in 2007. The fact that even they are seeing a loss this year (their first in 70 years) proves what kind of awful economic environment we are in right now.
Are you implying that if they needed it (just hypothetically), Toyota shouldn't be given loans to assure they are around for another couple of years till the economy improves? They obviously don't need help, but Toyota's past success goes to show how profitable the auto business can