WOW!! Prices raised, citing market demands.

[mmurph]

FYI:

http://www.cargroup.org/documents/FINALDet...pact_3__000.pdf

In a report released Wednesday, the Center for Automotive Research in Ann Arbor, Mich., outlined what would happen in two separate scenarios if General Motors Corp., Ford Motor Co. and Chrysler LLC were forced to scale back or shut entirely.

If all three Detroit manufacturers were to cease operations, the U.S. economy would lose 2.95 million direct and indirect jobs in the first year. Governments would lose at least US$156.4-billion in taxes over the first three years.

If Detroit cut output and employment by 50% to meet ever-shrinking market share, which would mean contraction by two of the automakers, 2.46 million jobs would be lost initially. Governments would lose US$108-billion in revenue over three years, according to the analysis.

"The circumstances are such that either of these scenarios is possible, and indeed one or the other is probable, within the next 12 months," the non-profit think-tank said.  

     

Plus:

DETROIT (AP) -- Bad news kept piling up for General Motors on Monday as its shares plunged to their lowest point in 60 years and some industry analysts predicted the automaker would collapse without a government bailout.
 
"Without government assistance, we believe that GM's collapse would be inevitable, and that it would precipitate systemic risk that would be difficult to overcome for automakers, suppliers, retailers and sectors of the U.S. economy," Deutsche Bank's Rod Lache wrote in a note to investors.

He essentially said GM's common stock is worthless by cutting his price target to $0.


Um, I guess Graham overpaid. Refund coming.  

[mmurph]

I was hoping to start a Dodge project today that would have lasted 15 days.  It was cancelled/postponed due to lack of funds!  ....  So what am I doing:  shooting samples, can't think of anything else to do.  Jim

Hang in there Jim!  I expect the Michigan unemployment rate will double in the next year. Already the worst in the country. We have a bit of a rough ride ahead. Look to Chicago maybe?

I closed my small studio in Ann Arbor 2 years ago due to chronic pain. Lost my Ford work shortly after that. Now I am just hunkering down for the long haul.

When you get bored and sick of the grey and cold, come out to Ann Arbor. We can sit in the coffee shops or Borders all day, and drink coffee and wifi - just like the dot commers!     Great web site also FWIW.

do you mean you could shoot me?
in that case i`ll buy it.

Sold!  

They are onto us though! Better close the deal quickly. The aforementioned $0 is adequate compensation:


According to a news story in The Flint (MI) Journal, General Motors (GM) has informed the United Auto Workers (UAW) union that it is close to selling it's  motorhome chassis business to an undisclosed buyer.  The article said, UAW officials told the paper that they were informed by (GM) management that the sale is mostly complete. They did not name the prospective buyer.

By presstime, RV News was unable to confirm the story after checking with sources in Detroit. A survey of several RV manufacturers using the Chevy chassis also turned up little factual information. Lew Howard of National RV told RV News that he had heard the rumor, but had not been able to confirm it.

Best,
Michael

[haefnerphoto]

Michael, Just when you thought it couldn't get any worse, it does!  I'm hoping the bridge loan from the government buys enough time for the economy to improve and cars to become marketable again....  Jim

[Kumar]

Yeah, market cap for GM at Yahoo yesterday was $2.7 billion. That is less than Ford paid for Jaguar 15 years ago.

A year ago Tata Motors from India bought both Jaguar AND Land Rover for $2.3 billion!

Kumar

[Carsten W]

Yeah, market cap for GM at Yahoo yesterday was $2.7 billion. That is less than Ford paid for Jaguar 15 years ago.

[!--quoteo(post=236134:date=Nov 11 2008, 01:16 PM:name=)--][div class=\'quotetop\']QUOTE ( @ Nov 11 2008, 01:16 PM) [a href=\"index.php?act=findpost&pid=236134\"][{POST_SNAPBACK}][/a][div class=\'quotemain\'][!--quotec--]A year ago Tata Motors from India bought both Jaguar AND Land Rover for $2.3 billion![/quote]

Looks like Ford worked their magic on the value of Jaguar too.

[SeanBK]

JamesH, MichaelM, Carstenw..
   That was my O.P that market is not looking good, no matter which way you cut it US & world economy IS changing for the worse. Here also in Ohio, which is as bad as MI.
    On national front lotsa magazines are folding & more by the beginning of the year. Oprah's spinoff magazine Home is closing the shop & more to follow as per Hearst publication, as Advertising budgets are being slashed. Overall I made more money this year, but had to work more jobs.
   On side note, JamesH love your studio & always love your vision of images of old classic cars. I also have shot Stout Scarab couple of years back & the image I didn't post on my website is almost exactly like yours (rear cropped view). You definately do inspire people.
   Sean
    www.vintagecarphotography.com/

[mmurph]

Hi SeanBK,

Sorry to hijack your thread.  A little bit of "whistling past the cemetary" I think!    

My stomach hurts today listening to the news on the auto industry, the change in the bailout plan, etc.  

Did you see this NY Times graphic yesterday - states with the most "negative equity" (upside down, or "underwater") mortgages:

http://www.nytimes.com/interactive/2008/11..._MORTGAGES.html

Too late to leave with all the sales competition from foreclosures.  Jim, let me know when you find good bread lines - large boxes without long lines.      

I was looking for a new studio in September. That is definitely on hold for now.

I'll leave you guys with one last quote from today's news.  Then go listen to music and take some photos, before the sun goes out.      

Best,
Michael

******************************************************


on Nov. 7, Wagoner said that GM's research shows that 80% of those surveyed said they wouldn't buy a car from a bankrupt car company. "If your revenue line falls, you would not be talking about a reorganization, you would be talking about a liquidation."

Grant Thornton's Rodriguez says that Ford and Chrysler, in the event of a GM bankruptcy, would also be quickly driven to bankruptcy court because their costs would be so much higher than GM's, "they'd quickly find themselves uncompetitive." Too, there could be such a disruption to auto suppliers that the auto companies' production of vehicles would be interrupted as if their workers were on strike. Seventy percent of GM's suppliers also supply critical parts to Ford and Chrysler, and there is no new credit or loans for those companies outside of the government.

A GM bankruptcy could send the U.S. jobless rate as high as 9.5 percent, up from a 14-year high of 6.5 percent in October, and produce a recession comparable in length to that of 1980-82, according to Behravesh