Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Think4Yourself who wrote (170861)	12/12/2008 12:30:22 PM
From: Smiling Bob	Read Replies (2) \| Respond to of 306849

GM just issued statement declaring Dec sales are strong. Sounds like a miracle They can see the light Sound recovery just 15 billion away. Don't deny Rick that last inch of lifeline.

To: Think4Yourself who wrote (170861)	12/12/2008 12:40:35 PM
From: butschi2	Read Replies (2) \| Respond to of 306849

Suppliers will fold because of huge (forced) trade credit for normally 90 days, parts in the supply chain not billed yet and razor thin margins, already stretched balance sheets and huge overcapacity due to sales down 25% or more. Perhaps the insurers get hit if the supplier credit is insured as in often Europe or the suppliers go CH11. Insurance coverance was removed from Ford/Opel in Europe for trade credit to them, therefore suppliers are on their own now, but not delivering is although no option if this means no sales. They will therefore deliver parts and pray for a rescue. CH11 not possible because of DIP financing sparse could rip the supply chain. Due to specialization there are often only few suppliers for special parts, if they go bust there could be a shortage for needed parts.

To: Think4Yourself who wrote (170861)	12/12/2008 1:28:41 PM
From: tejek	Respond to of 306849

You are right. Toyota is very concerned about the impact on suppliers, and rightfully so. That is the real issue for the industry. If one big automaker goes down, what happens to the suppliers they all use? Prices definitely go up for everyone but what if a key supplier folds and the remaining companies can't get critical parts? With Just In Time manufacturing the whole industry would shut down almost overnight. There should be no argument at this point. As much as I don't want to loan money to GM, it can't be allowed to fail. And Bush won't let it. The Senate is behaving childishly......it needs to keep its fingers in the pot.....so there will be some continuity after Bush leaves.