- Nov 12, 2006
- 5,334
- Boat Info
- 1999 Sea Ray 330DA
Twin 7.4 MPI (310 propshaft HP) V-drives
- Engines
- Twin Mercury Marine marinized 7.4L L-29 V8s
Cast iron block w 4-bolt mains
I am going to chime in here one last time and then you won't here from me on this subject any longer. I have read so much mis-information and negative postings on Detroit on this forum and elsewhere that I am thru trying to discuss it.
I'll leave you guys with one last thought. Peter De Lorenzo is one of the most respected Auto Jounalists in the Nation.
He may be a very respected auto journalist, though I've never heard of him and I do follow autos. However, he seems to be not much of a bankruptcy attorney or accountant. Chapter 11 does not mean dead forever. It means reorganization. Why is that concept so hard to grasp? People spend hundreds of dollars to buy tickets for themselves and their families on bankrupt airlines that might not honor those pre-paid tickets on departure day. Why would these same people suddenly recoil in terror from a car company? There are several accounting and financial methods that can be implemented to ensure that everyone's warranty will be honored. The only real losers are going to be the execs, (can't earn a big bonus in bankruptcy), the unions, some marginal suppliers, and some marginal dealers.
Entrepreneurs will fill the gap.
I doubt it. The cost of entry to auto manufacturing is far, far too high. I don't think it can be done. It certainly cannot be done in this environment. Who would provide venture capital? It costs over a billion dollars to bring a new car platform to market. The only start-up that I know of with startup cost even remotely close are bio-pharmaceutical startups. But they are very different. Auto startups burn their cash in engineering and design. You need a billion before you have anything to show. Biopharms can do their science much more cheaply. Then, once they have something promising, that's when they need to raise almost a billion dollars for clinical trials. But once past a successful phase I clinical trial, money is pretty easy to come by. There are no such milestones in engineering a new car. Don't see any auto entrepreneurs in the near or far future. Look at the history. Very few startups since the 1920s. Those few that have tried, failed. Would you want to invest in such a venture with that kind of record?
Best regards,
Frank