Democrats press for car industry rescue

[PAULSTS1]

Originally Posted by wescoent

Bankruptcy is a bad idea, but it is NOT inevitable. There are creative ways to get around it.

One is my corporate breakup concept. Spin GM's vast organization off into a confederacy of limited liability corporations.

Sell GMAC to Cerberus, and start a new finance company from scratch.

Sell all of GM's brands to a new company, GM Asset Management.

Sell all of GM's vehicle development ops to a new company, Fisher Design and Engineering.

Pool the manufacturing plants and labor contracts into a renamed corporate entity, GM Assembly, which will be the same corporate entity as the current GM Corporate. Then, have this entity declare bankruptcy, have a new LLC buy all of the assets at firesale prices from the bankruptcy court, and we go from there.

I think there was some benefit in taking that route, months ago, when the Corporation had more money to maneuver. How with "minimum operational cash" could GM even get this started?

[wescoent]

Originally Posted by PAULSTS1

I think there was some benefit in taking that route, months ago, when the Corporation had more money to maneuver. How with "minimum operational cash" could GM even get this started?

Outside investment. In theory, there should be a lot of upside potential to this new entity, so I'm sure a private equity partnership could be hustled for a few dollars to get things moving.

[Archangel]

Some GM divisions are percieved as "damaged" and are not selling well. If GM goes bankrupt then GM will be percieved as "damaged" and not many will buy their products. I think GM has a lot going on and as the econimic health of the country gets better, GM will get better. I say give them a chance and bail them out.

[96_impala_ss]

Originally Posted by gmparts

How ironic is it that democrats are now calling for a federal bailout of an industry they don't even support! More import owners are dems, maybe they should try buying an American vehicle for a change. Lay off the Accords and Camrys!

Technically, they werent going to help at first. I think this is more of a save the union jobs type of deal than to actually wanting to save the corporations themselves. I think if every Accord was replaced with a Fusion, every Camry with a Malibu, and every Maxima with a Charger, the big 3 wouldnt be in the situation that theyre in.

[nadepalma]

Originally Posted by wescoent

Bankruptcy is a bad idea, but it is NOT inevitable. There are creative ways to get around it.

One is my corporate breakup concept. Spin GM's vast organization off into a confederacy of limited liability corporations.

Sell GMAC to Cerberus, and start a new finance company from scratch.

Sell all of GM's brands to a new company, GM Asset Management.

Sell all of GM's vehicle development ops to a new company, Fisher Design and Engineering.

Pool the manufacturing plants and labor contracts into a renamed corporate entity, GM Assembly, which will be the same corporate entity as the current GM Corporate. Then, have this entity declare bankruptcy, have a new LLC buy all of the assets at firesale prices from the bankruptcy court, and we go from there.

That's an interesting idea - though that would also assume that the shareholders of the new "split-up" GM would remain consistent no? If that were to happen, what's to say that one side would get alone with the other sides? Would all these LLCs be under an umbrella organization or corporation of some kind to coordinate efforts?

I think we are beyond this right now - but it certainly is interesting...