The horse and buggy evolved into in the auto-mobile. Perhaps the auto-mobile will morph into the OU-mobile: something which generates electricity and provides a means of transportation.
harry > > > ----- Original Message ----- > From: "Hoyt A. Stearns Jr." <[EMAIL PROTECTED]> > Date: Monday, November 24, 2008 5:08 pm > Subject: RE: [Vo]:The case for Chapt. 11 bankruptcy for carmakers > > > They've seemingly ignored another portion of the equation: People > > will still > > want cars and maintain them, so any jobs lost will just migrate > to > > otherfirms providing the same services or manufacturing efforts. > > > > > > > > -----Original Message----- > > From: Jed Rothwell [mailto:[EMAIL PROTECTED] > > Sent: Monday, November 24, 2008 9:00 AM > > To: [email protected] > > Subject: Re: [Vo]:The case for Chapt. 11 bankruptcy for carmakers > > > > > > Here is a comment about the effects of bankruptcy on automobile > > buyers, from the New York Times. Customer opinion surveys show that > > the problem is severe. It is worse than I thought. > > > > - Jed > > > > Source: > > > > http://www.nytimes.com/2008/11/24/opinion/24abraham.html > > > > > > ". . . Almost every carmaker that has ever gone bankrupt has > > disappeared for good. And there is no reason to believe the Big > Three> would not do the same. Chapter 11 filing would almost surely > lead to > > liquidation. > > > > Just as financial institutions depend on the confidence of those > with> whom they do business (as Bear Stearns and Lehman Brothers > > discovered), automakers depend on the confidence of car buyers. To > > purchase a car is to make a multiyear commitment: the buyer must > have> confidence that the manufacturer will survive to provide > parts and > > service under warranty. With a declaration of bankruptcy, that > > confidence evaporates. Eighty percent of consumers would not even > > consider buying a car or truck from a bankrupt manufacturer, one > > recent survey indicates. So once a bankruptcy proceeding got > started,> the company's revenue would plummet, leading it to > hemorrhage cash to > > cover its high fixed costs. > > > > That would thwart any attempt at reorganization, and the case would > > likely move inexorably toward liquidation under Chapter 7 of the > > federal bankruptcy code. Debtor-in-possession financing — which is > > what the bankrupt need in order to pay for the continued > operation of > > their business — would not be available in the vast amounts > required,> given the plunge in revenue. . . ." > > > > >
