Buffett says automakers need bailout or bankruptcy

[NoGOPZone]

Source: Associated Press via Yahoo! News

Billionaire investor Warren Buffett says U.S. automakers need a new business model to better compete, whether it takes bankruptcy or a government bailout to achieve.

Buffett also says he would never serve as U.S. Treasury Secretary. The Berkshire Hathaway Inc. CEO is a member of President-elect Obama's Transition Economic Advisory Board.

Buffett says any automaker bailout package should include a business solution, and be negotiated by the president, not Congress. Buffett spoke to Fox Business News in an interview scheduled to air Friday afternoon.

Buffett says the government should insist top executives at Ford Motor Co., General Motors Corp. and Chrysler LLC invest a significant percentage of their own net worths in the Detroit-based companies, ensuring both executives and taxpayers would share in any profits or losses.



Read more: http://news.yahoo.com/s/ap/buffett_economy

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I think Buffet nails it with his proposal mentioned in the fourth paragraph.

[msongs]

1. buffet can buy GM outright - let his "private" sector $$$ save the taxpayers for a change nt

[closeupready]

2. That's actually what he's good at.

buying up inefficient companies and cutting fat.

[Dover]

7. As I understand it, he usually looks for well run 'efficient' companies that are undervalued.

And he often keeps the companies intact, including management and higher positions.

I think he probably looks at companies like the big 3 and just shakes his head in wonder
that they're still breathing.

If I remember correctly, I think Buffett is an advocate for the big 3 unloading their pensions
and other 'baggage' that he and others claim are impediments to global competitiveness. In that
regard "Bankruptcy" would be one strategy to unload them. Personally, it seems the problems are
much deeper than pensions...ie. a problem of effective leadership/vision.

[liberal N proud]

5. At this point it would be pocket change for him

He must not see any pay back in it or he would have done it by now.

[Winterblues]

3. Why no Business Solution or "Plan" for Goldman Sachs or Morgan Stanley

Or AIG. Why do we not expect the same from those giants that we demand from Auto makers? Why do we just hand off 700 Billion to ??? no one even knows who, and expect nothing in return?

[pampango]

4. Good questions, but are they being effectively "nationalized"?

If we were going to do that to the auto industry, we wouldn't need much of a "plan" ahead of time.

[Winterblues]

10. Except they aren't being Nationalized, in fact we don't even know

what companies are getting any money and how much. AIG is not Nationalized, nor is Goldman Sachs or Morgan Stanley. There has been no ownership transferred that I am aware of. There has only been a huge money give away with no real benefit..

[nbcouch]

6. Buy them. Nationalize them all.

Start the green industry revitalization NOW.

GM's current market cap is $1.73 billion. Ford's is $3.15. Why should the taxpayers fork over $25 billion to these assholes when we could buy them outright for far less, install a board and top execs who have more than half a brain between them, and get Obama's new economy show on the road right now?

[vinylsolution]

8. With all of Detroit's engineering and production know-how....

.... Motor City should be reconfigured to produce millions of wind turbines and solar panels.

Producing cars is 20th century thinking. We should be addressing the needs of the 21st century.

Detroit could become the world center for the green energy economy.

Our generation's 'New Deal' should be the 'Green Deal'.

President Obama should appoint Al Gore to oversee the whole project.

[WriteDown]

9. You still need demand for that type of stuff....

Sadly, it just isn't there yet.