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      10-17-2008, 09:06 AM   #1
Palbay
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Ouch!!!!!

FYI. Thanks! PalBay http://www.greenvilleonline.com/apps...310170001/1003
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      10-17-2008, 10:06 AM   #2
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Unhappy

These types of cuts are "Blanketed" throughout the Car industry now, in fact throughout "Industry in general", whats to do?, the main cause IMO has been the banks with there "Lend anyone any amount of money" regardless of their security status. This has killed all markets now and we the Tax Payer will have to pay for it again!!!

Rough times ahead for at least 18 Months I fear.
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      10-17-2008, 10:15 AM   #3
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Quote:
Originally Posted by Palbay View Post
It was to be expected! Sooner or later with the shutdown of the Z4 line and the current market conditions!
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      10-17-2008, 10:57 AM   #4
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Note they are laying off contract workers. That's exactly why they use contract workers -- so they don't have to lay off full-time staff unless things get really bad.

This whole mess was triggered by federal policies that encourage lending to low-income people for mortgages, on the grounds that home ownership is "a good thing" regardless of whether or not everybody can afford to buy and maintain a home. As soon as the risk of default was removed from the lender's shoulders, the fast boys and crooks moved in and milked the system for all it was worth. Couple that with the fact that in the US and UK mortgage interest is tax deductible and the Fed has maintained artificially low interest rates for several years now, and you have a situation where everybody is so over-leveraged that if one of the cards falls -- which has happened with mass mortgage defaults (doh, what a surprise!) -- the whole house comes tumbling down. The mess is being aggravated by the government bailing out financial institutions that should be allowed to fail and by the Fed keeping interest rates even lower than they were even though that was one of the main contributors to the disaster. So nobody knows what will happen going forward from here but it's likely to be ugly, particularly since it looks like a left-leaning interventionist presidency is in the cards.

But I am old enough to have seen similar crises before and to know that anything could happen, even a resurgence in sales of gas guzzlers if oil prices continue to fall. An old Chinese curse says: "May you live in interesting times". We sure do.

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      10-17-2008, 11:01 AM   #5
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Not Surprised , with the credit market shrinking (it will never be as it was) BMW will most likely sell less cars and 4x4 thingys. Guess that means we can expect to see prices bump up. Of course if you keep whacking jobs the consumer is never going to feel optimistic enough to go spend, vicious cycle.

Last edited by dmlgc; 10-21-2008 at 08:04 PM..
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      10-17-2008, 11:21 AM   #6
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Quote:
Originally Posted by Suzie's Dad View Post
Note they are laying off contract workers. That's exactly why they use contract workers -- so they don't have to lay off full-time staff unless things get really bad.

This whole mess was triggered by federal policies that encourage lending to low-income people for mortgages, on the grounds that home ownership is "a good thing" regardless of whether or not everybody can afford to buy and maintain a home. As soon as the risk of default was removed from the lender's shoulders, the fast boys and crooks moved in and milked the system for all it was worth. Couple that with the fact that in the US and UK mortgage interest is tax deductible and the Fed has maintained artificially low interest rates for several years now, and you have a situation where everybody is so over-leveraged that if one of the cards falls -- which has happened with mass mortgage defaults (doh, what a surprise!) -- the whole house comes tumbling down. The mess is being aggravated by the government bailing out financial institutions that should be allowed to fail and by the Fed keeping interest rates even lower than they were even though that was one of the main contributors to the disaster. So nobody knows what will happen going forward from here but it's likely to be ugly, particularly since it looks like a left-leaning interventionist presidency is in the cards.

But I am old enough to have seen similar crises before and to know that anything could happen, even a resurgence in sales of gas guzzlers if oil prices continue to fall. An old Chinese curse says: "May you live in interesting times". We sure do.

Good points.BTW...the permanent BMW employees don't feel worried...... yet.There are still things like temp Factory shutdowns like they are doing in Germany...and the traditional 2 week Holiday Factory shutdown is coming up.The holiday shutdown might actually help soak up some inventory this year.Thanks! PalBay
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      10-17-2008, 11:23 AM   #7
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yes..everybody has problems these days.
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      10-17-2008, 11:34 PM   #8
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Laying off 750 workers is not big deal (well, I feel sorry for them, but) . .Other major car makers are being sold to India, others are just near bankruptcy. . .so BMW felt the need to show to the public that they are also affected by the crisis. ..But, inside their org. .they sleep very well at night. .
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      10-21-2008, 10:12 AM   #9
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Thanks for always giving us the news PalBay. You rock.
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