More Videos
- Growing Sub-Prime Auto Loans - New Troubles for Automakers?
- Savings at the Pump Still Supreme for Car Buyers
- GM Says It's Dropping Out of Super Bowl Ad Race
- Two New Models, Two Different Drivers in Mind
- GM Still Likes Its No-Facebook Ad Strategy
- World's Biggest Brands Flex Their Muscles
- A New World Record: 80 Million Vehicles... and Counting
- Is Toyota Back?
- Ford Cuts Summer Idle Time at US Plants, Will GM Follow?
- Auto Stocks Stuck in Neutral
MOST SHARED
- JPMorgan Trading Loss: Did Regulators Miss the Risk?
- Marc Faber: 100% Chance of Global Recession
- RIM May Cut at Least 2,000 Jobs in Restructuring: Report
- How Nasdaq Lost Control of Facebook IPO, by the Minute
- Heard in More US States: See You in Tax Court!
- Bacon Tourism: From the Davos of Bacon to Bacon Mecca
- The Biggest Market Myth There Is?
- Judge Says Skilling Can Seek New Trial
- 5 Spots Where the Dollar Buys a Great Vacation
- What College Tuition Will Look Like in 18 Years
- A New Look at the ‘New Poor’
- Six Pack: Beer Buzz of the Week
- Greek Exit Could Trigger 50% Fall in Euro Stocks: Analyst
- Under Pressure, FHA Skews to Wealthier Home Buyers
- Big Stock Upside for Hudson City Deal: Analyst
- 5 High-Yield Stocks Ready to Boost Dividends
- Yoshikami: Four Things You Need to Know About Gold Now
- Steinbock: The Euro Zone Endgame Begins
- Option Bulls Take Another Shot on Idenix
- How Nasdaq Lost Control of Facebook IPO, by the Minute
- Week Ahead: Europe Has Wall Street Bull on Short Leash
- Pro-Bailout Greeks Regain Lead in Polls Before Vote
- Citigroup Lost $20 Million on Facebook IPO Trades
- JPMorgan to Shake Up Risk Team After Big Loss: Report
- RIM May Cut at Least 2,000 Jobs in Restructuring: Report
- EU Finalizes Bank Reforms; Shifts Burden to Bondholders
- Spain's Bankia Eyes Stake Sales After Record Bailout
- EU Set to Launch Action Against China Over Telecom Aid
RSS FEED
Behind The Wheel
Text Size 
Big Three Ready For Show And Tell Time?
While most of us are spending a long holiday weekend relaxing or watching a cheesy new Christmas movie because your spouse loves seeing even the worst ones, this is a working weekend in Detroit. At GM [GM
Loading...
()
], Ford [F
Loading...
()
], and Chrysler executives are preparing their "business plans" for Congress to review starting Tuesday.
RELATED LINKS
Strange as it sounds, this is a trickier exercise than you would expect. On one hand Detroit's auto makers want to show law makers they DO have plans that will lead them back to profitability. On the other hand, they don't want to give too many details that might be leaked out and tip their hands before they are ready. It's a fine line they'll have to walk if they're going to secure $25 billion in low interest loans.
 |
CNBC.com General Motors |
As I've said over the last month, I think Congress will ultimately give the Big 3 the money needed to avoid bankruptcies. With the economy already weakened and with the bailout of Citi [C
Loading...
()
] earlier this week, Congressional leaders will feel compelled to approve money for the Big 3. Even critics of Detroit are sending signals that a bailout will eventually pass.
Still, the CEOs of the Big 3 know they are going to be grilled about their "business plans". The biggest question: how confident can Congress be that $25 Billion is enough money to rescue Detroits auto makers?
There are plenty of people on Capitol Hill, Wall Street, and yes, even of the streets of Detroit who wonder if the Big 3 will go back to Congress in a few months and ask for more money. Heck, estimates on Wall Street have GM alone needing between $22-$40 Billion to make it into 2010. You can bet Senators and Representatives at the hearings will have those analyst reports and will ask GM if $12 Billion will truly be all the money it needs.
More on the Big Three
- In A Crippled Auto Industry, Reasons To Give Thanks
- GM, Ford Shares Skyrocket as Bailout Hopes Brighten
- Chrysler Readies Turnaround Plan for Congress
So Rick Wagoner finds himself once again on the hot seat. Only this time, he will be expected to give even more details. The same goes for Alan Mulally and Bob Nardelli. Act two of the "Big 3 go to Washington" is about to debut. For Detroits sake, the sequel needs to be better than the first production.
_____________________________________
Click on Ticker to Track Corporate News:
- Ford Motor [F
Loading...
()
]
- General Motors [GM
Loading...
()
]
- Nissan [NSANY
Loading...
()
]
- Honda Motor [HMC
Loading...
()
]
_____________________________________
Questions? Comments?
Data is a real-time snapshot *Data is delayed at least 15 minutes
