This concept of a 90-day float loan to the Big-3 is so silly I can't believe people listen to it and can keep from rolling on the floor in laughter.
- What will be better or different on Days 91 through 150?
- Will there be a stampede to Big-3 dealerships to buy/lease new cars because of the fabulous tax rebates and return checks we'll all get in February?
- Will Santa leave everyone a coupon for Buy-One-Get-One-Free from the Big-3?
- Will all union contracts change from US Dollars to Vietnamese Dong as the currency of measure? (1USD=16,900VTD) so that the overhead numbers balance?
In other words, what makes the Big-3 believe that John Q. Public - meaning you and me - will all of a sudden develop "car fever" and purchase one-at-a-time from that glut of inventory sitting in storage lots?
The Big-3 can pay its executives whatever it want, and pay the labor force whatever the labor force can arm-twist from management ONLY as long as there are sufficient sales to make the accounts-receivable folk work stress-free. So far, NOTHING has come forward that demonstrates there will be "future sales" sufficient to serve as collateral for any loan. If there was, the commercial money-sellers would be standing in line to service one of their best customers.
So, will YOU buy a Big-3 car within the next 150 days? Do you know anyone who probably will? Are there enough potential sales (real sales, not 'maybe' prospects) to cover the loan (at least the interest on it) and stop the fiscal bleeding? Anything else is political smoke-and-mirrors out to disguise the truth, whatever that truth may be.
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