GM bankruptcy
if only it were that simple. i agree about the union, but the chance of it coming back from a collapse i would say is slim. i believe chevy and cadillac will emerge as either 2 separate or 1 new company with a new name, new management, new everything.
but it will be a SMALL operation with NO guarantee of survival. the good news, they have some good products done and in the works.
the bad news, the union crippled their manufacturing process so badly that a 'new' company may not be able to build anything profitably.
but it will be a SMALL operation with NO guarantee of survival. the good news, they have some good products done and in the works.
the bad news, the union crippled their manufacturing process so badly that a 'new' company may not be able to build anything profitably.
Lexus Fanatic
Joined: Aug 2006
Posts: 7,468
Likes: 0
From: Vancouver, BC
Not even funny.
Bankruptcy / Ch11 doesn't mean close the doors though, it means BIG CHANGE and somewhat drastic actions but it doesn't mean end of the line.
I agree with Bit on the Caddy & Chev though, because really, what else has GM really got?
Pontiac: hasn't made monet for ages (and the cars are all dups of other cars anyhow)
GMC trucks: are Chev trucks w. dif badging (and maybe slightly dif trim),
Saturn: it's too bad about because they're not a disaster, but no body wants them anyhow
Buick: ok keep them around for Asia market
Hummer: uh, yea
did I miss any? see, too many brands with large over lap ...
Bankruptcy / Ch11 doesn't mean close the doors though, it means BIG CHANGE and somewhat drastic actions but it doesn't mean end of the line.
I agree with Bit on the Caddy & Chev though, because really, what else has GM really got?
Pontiac: hasn't made monet for ages (and the cars are all dups of other cars anyhow)
GMC trucks: are Chev trucks w. dif badging (and maybe slightly dif trim),
Saturn: it's too bad about because they're not a disaster, but no body wants them anyhow
Buick: ok keep them around for Asia market
Hummer: uh, yea
did I miss any? see, too many brands with large over lap ...
Lexus Champion
Joined: Oct 2002
Posts: 11,204
Likes: 11
From: The Woodlands, TX
on the matter of principle, I dont see how anyone can every buy a GM again. Government Motors will screw it up harder than GM could.
the money was wasted, since the end was the same, they still had bankruptcy. They should've declared it one year ago instead of burning through taxpayer money delaying the inevitable.
the money was wasted, since the end was the same, they still had bankruptcy. They should've declared it one year ago instead of burning through taxpayer money delaying the inevitable.
Last edited by 4TehNguyen; May 28, 2009 at 07:48 AM.
Lexus Champion
Joined: Dec 2002
Posts: 3,474
Likes: 2
From: Tennessee
I've heard some people say that if GM goes under (and by under I don't mean this supported bankruptcy, I'm talking about after that if they just disappear) that it will have a crippling impact on the rest of the economy and the rest of the auto industry similar to how a failed major bank would have done to the economy and other banks.
For that reason I hope GM makes it.
But at the same time I'm angry that Obama forced the bond holders to take the financial raping while allowing the union to keep right on plundering away at GM with their ridiculous contracts and labor rates that spit in the face of the free market.
Welcome to the USSA... United Socialist States of America.
For that reason I hope GM makes it.
But at the same time I'm angry that Obama forced the bond holders to take the financial raping while allowing the union to keep right on plundering away at GM with their ridiculous contracts and labor rates that spit in the face of the free market.
Welcome to the USSA... United Socialist States of America.
Pole Position
Joined: Nov 2007
Posts: 2,794
Likes: 0
From: Lake Country, WI
LIFELINE for GM???
Please God... SHOOT this thing already....
http://www.foxnews.com/politics/2009...r-bondholders/
http://www.foxnews.com/politics/2009...r-bondholders/
GM: Bondholders Support Sweetened Offer
The company said in a statement that it offered bondholders 10 percent of the stock in a newly formed GM, with warrants to buy up to 15 percent if the bondholders agree to support selling the company's assets to a new company under bankruptcy court protection.
AP
Thursday, May 28, 2009
A person familiar with the deal said that it is probable GM will file for bankruptcy protection. The person asked not to be identified by name because discussions are still under way with the U.S. and Canadian governments and there is a small chance that the company could avoid a Chapter 11 filing.
The company said in a statement that it offered bondholders 10 percent of the stock in a newly formed GM, with warrants to buy up to 15 percent if the bondholders agree to support selling the company's assets to a new company under bankruptcy court protection.
The company made the disclosure in a filing with the U.S. Securities and Exchange Commission.
The filing says if the bondholders don't agree to support the sale, then the amount of stock and warrants they get would be substantially reduced or eliminated.
Under the proposal, which has a deadline of 5 p.m. Saturday, GM would at some point enter bankruptcy protection and its good assets would be separated from bad ones.
The U.S. Treasury would get 72.5 percent of the new company's shares, while a United Auto Workers' retiree health care trust fund will get 17.5 percent and the old GM would get 10 percent.
The bondholders' stake would presumably be additional shares that would dilute the first batch issued by the new company. The UAW trust and others would get warrants for additional shares that would further dilute the stock.
Trading of GM shares was halted for a short time Thursday morning, but resumed to rise 18 cents, or 15.7 percent, to $1.33.
The company said in a statement that it offered bondholders 10 percent of the stock in a newly formed GM, with warrants to buy up to 15 percent if the bondholders agree to support selling the company's assets to a new company under bankruptcy court protection.
AP
Thursday, May 28, 2009
A person familiar with the deal said that it is probable GM will file for bankruptcy protection. The person asked not to be identified by name because discussions are still under way with the U.S. and Canadian governments and there is a small chance that the company could avoid a Chapter 11 filing.
The company said in a statement that it offered bondholders 10 percent of the stock in a newly formed GM, with warrants to buy up to 15 percent if the bondholders agree to support selling the company's assets to a new company under bankruptcy court protection.
The company made the disclosure in a filing with the U.S. Securities and Exchange Commission.
The filing says if the bondholders don't agree to support the sale, then the amount of stock and warrants they get would be substantially reduced or eliminated.
Under the proposal, which has a deadline of 5 p.m. Saturday, GM would at some point enter bankruptcy protection and its good assets would be separated from bad ones.
The U.S. Treasury would get 72.5 percent of the new company's shares, while a United Auto Workers' retiree health care trust fund will get 17.5 percent and the old GM would get 10 percent.
The bondholders' stake would presumably be additional shares that would dilute the first batch issued by the new company. The UAW trust and others would get warrants for additional shares that would further dilute the stock.
Trading of GM shares was halted for a short time Thursday morning, but resumed to rise 18 cents, or 15.7 percent, to $1.33.
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Lexus Test Driver
Joined: Oct 2005
Posts: 8,809
Likes: 143
From: MA
All the money we wasted on GM, all it did was delay the same outcome by 3 months. When does a company get so big that it cannot fail, when does a company get so big that the government should subsidized it financially if it fails to make a profit. The best the government can do now is just to let GM die slowly, so it will be less of a shock to the economy.
Lexus Champion
Joined: Dec 2002
Posts: 3,474
Likes: 2
From: Tennessee
All the money we wasted on GM, all it did was delay the same outcome by 3 months. When does a company get so big that it cannot fail, when does a company get so big that the government should subsidized it financially if it fails to make a profit. The best the government can do now is just to let GM die slowly, so it will be less of a shock to the economy.
Unfortunately Obama is keeping the dead weight on the union on board and only screwing the banks, individual investors, suppliers, and dealers.
Pole Position
Joined: Nov 2007
Posts: 2,794
Likes: 0
From: Lake Country, WI
on the matter of principle, I dont see how anyone can every buy a GM again. Government Motors will screw it up harder than GM could.
the money was wasted, since the end was the same, they still had bankruptcy. They should've declared it one year ago instead of burning through taxpayer money delaying the inevitable.
the money was wasted, since the end was the same, they still had bankruptcy. They should've declared it one year ago instead of burning through taxpayer money delaying the inevitable.
.....
But at the same time I'm angry that Obama forced the bond holders to take the financial raping while allowing the union to keep right on plundering away at GM with their ridiculous contracts and labor rates that spit in the face of the free market.
Welcome to the USSA... United Socialist States of America.
But at the same time I'm angry that Obama forced the bond holders to take the financial raping while allowing the union to keep right on plundering away at GM with their ridiculous contracts and labor rates that spit in the face of the free market.
Welcome to the USSA... United Socialist States of America.
Thank you
I will ask the SAME question again: Why are more people not SCREAMING and trying to do something about what is happening in Washington??
... Detroit is just a blip compared to where this country is heading... what happened to standing up and saying,
"I'm mad as hell, and I'm not going to take it anymore!!!...
Sorry about thread hijack... HAD to be said as GM is just ANOTHER example...
if you can't see it....
Lexus Fanatic
Joined: May 2003
Posts: 7,864
Likes: 0
From: Massachusetts
It's really tragic that this is happening now when GM is emerging as a great automaker with truly some great cars and many more in the works.
They are better now than they were in their glory days but it's so many other factors that are destroying them, it's not their cars.
Just look at these superb cars.....
They are better now than they were in their glory days but it's so many other factors that are destroying them, it's not their cars.
Just look at these superb cars.....