01-20-2009, 07:21 PM | #1 |
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BMW may apply for aid from the German government
American carmakers recently secured a multi-billion dollar loan guarantee from the federal government but their counterparts across the pond haven’t been so lucky. Late last year the European Commission approved plans to provide up to $6 billion to its automotive industry, far short of the $55 billion in loans Europe’s carmakers had been hoping for, and since then no aid package has been finalized.
According to a new report, BMW is now considering applying to the German government for a state guarantee to back up its borrowings. The news was first reported by Bild Zeitung, which claims BMW Group – which includes the sales of BMW, Mini and Rolls-Royce - is reeling after its sales worldwide dropped 4.3% for 2008. Late last year, Volkswagen also approached the German government seeking guarantees for its financial divisions to cover refinancing of car loans in December. Incidentally, BMW was one of the most vocal carmakers to criticize the aid package being offered to the Detroit 3. The German carmaker said the aid package would only serve to “distort competition” in the industry and that it should be offered to more companies. Other countries around the world to start offering state aid to their local automotive industries include Australia, Canada, Spain, and the UK. Meanwhile, BMW announced today that it would reduce the working hours for more than 26,000 German employees as part of efforts to slow production. The cuts will be limited to facilities in Dingolfing, Regensburg, Landshut and Berlin. Source: http://www.motorauthority.com |
01-20-2009, 07:26 PM | #2 |
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Wow, they would be hypocrites if they went thru with it.
Well, if a financial giant like BofA is going thru the pains, not surprising that BMW is not immune.
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01-20-2009, 08:21 PM | #3 | |
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01-20-2009, 09:13 PM | #4 |
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WTF is going on!!! We heard all kinds of good stuff, including the sales of M3's, though they aren't the bread and butter, but who the hell isn't hurting right now. Cut the extra fat and slim down through the tough times, don't ask for a lending hand when you know you truly don't need it.
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01-20-2009, 09:38 PM | #6 |
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lln does say that december sales were off 40.2%
http://www.leftlanenews.com/bmw-slow...g-workers.html |
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01-20-2009, 09:45 PM | #7 |
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This is all due to going from NA to FI on the //Ms. Word got out, everyone knows BMW is selling out, so no one is buying BMWs anymore
Cheers, e46e92
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01-21-2009, 02:52 AM | #9 |
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Interesting news... But if you look on reputable news paper sites like (in my case) spiegel-online, faz.net, financial times germany there are no such news. But super reliable Bild has it? Are you kidding me? Wait for serious news published in a reliable newspaper and then we can start complaining.
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01-21-2009, 11:20 AM | #12 |
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when you read it carefully, they're not asking the German gov't for a loan, but "for a state guarantee to back up its borrowings."
what the "Big 3" asked for was a loan, because they didn't have enough cash on hand to support themselves, and were unable to secure a loan from any other lender (their credit is piss-poor). sounds to me like BMW is being (a) cautious, in not having to beg for a bailout if things really go south, and (b) latching onto the bailout bandwagon, in order to get some share of the pie, before it's all gone!
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01-21-2009, 03:42 PM | #14 |
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01-21-2009, 03:50 PM | #16 |
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the reason for them wanting the aid is not the drop in sales. it's the fact that no borrowers will give them money. the credit market is fucked up, and if they are not backed by government to guarantee the borrowing, then they cannot borrow and they cannot function. that would still be the case even if their sales went up 50%
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01-21-2009, 05:23 PM | #17 | |
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01-21-2009, 05:31 PM | #18 |
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I think we need to put this in perspective. BMW are only asking for a "state guarantee to back up its borrowings". The Big 3 american car makers got a hand out. Two totally different things. I heard the 3 american car makers all arrived to the hand out meeting in private jets. Maybe they should sell the private jets and limit travel to domestic airlines traveling economy class.
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01-21-2009, 06:00 PM | #19 | |
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01-21-2009, 11:47 PM | #20 |
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No it's not a joke sadly. Shareholders must be kept happy. There are some companies who will absorb the blow and keep employees but there are far more who will not.
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01-21-2009, 11:53 PM | #21 |
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01-22-2009, 03:16 AM | #22 | |||
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Webasto e.g. is a privately owned corporation, where all stocks are in the hands of the Baier family. Those stocks are not traded on the stock exchange. Quote:
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