[Tstag]

Given the predicament of GM's situation I was trying to think of the most likely outcomes. 1 outcome that I hope happens is that GM turns things around, kick's Toyota's butt and we all live happily ever after.

But if it does'nt could the following occur either with a change of managment or in Chapter 11?

Possible outcome:

The new managment look to save as much as they possibly can and more importantly in their eyes save something for the shareholders/ creditors. So they carve up GM. Opel/ Vauxhal, Saturn and Saab are parcelled up loaded with some GM debt and then sold or floated on the stock Exchange. Same could happen let's say to Chevrolet/ Daewoo and Caddilac. This would then leave GMC, Pontiac, Buick and Hummer and the "new General Motors company". The money raised from the sale of the other brands would then go into a plan to try and save "New GM". New GM would be a much smaller company, but also more agile. The three businesses would work together and share development costs for a number of a years to cut costs.

Likely? Unlikey? What do you think? I think as a plan it may sound cold but it may be better for the consumer as brands can then compete with one another and it may be better for the brands as they are no longer costrained by global management.

Lots of issues such as re-organising the dealer network but in a credit crunch maybe it's a way to avoid Chapter 11?

 

[unkillsam]

Chevrolet and Cadillac are GM.

Every other division is expendable and does not have unique product, with the exception of the Pontiac/Saturn Kappa cars. A Chevy Kappa (nomad) was done in concept form packaging most of the divisions up and selling them off would not necessary shut down GM's Delaware plant.

So in conclusion, Chevrolet and Cadillac have the most brand equity and GM would have to be insane to spin them off to raise cash. They would have to spend more money on fixing Buick and Pontiac then they would get from the sale.

Better to make less money on selling off GM's lesser divisions and use that money to fix their two brands that are still (relatively) strong.

 

[Tstag]

Chevrolet and Cadillac are GM.

Every other division is expendable and does not have unique product, with the exception of the Pontiac/Saturn Kappa cars. A Chevy Kappa (nomad) was done in concept form packaging most of the divisions up and selling them off would not necessary shut down GM's Delaware plant.

So in conclusion, Chevrolet and Cadillac have the most brand equity and GM would have to be insane to spin them off to raise cash. They would have to spend more money on fixing Buick and Pontiac then they would get from the sale.

Better to make less money on selling off GM's lesser divisions and use that money to fix their two brands that are still (relatively) strong.

Of course that assumes the lesser divisions could be sold to someone. What if there are no buyers. Chevrolet and Cadillac could survive as one company but for the other brands to stand a chance then they'd probably need to be sold.

I think it's fair to say that if things worsen then Opel/ Vauxhall/ Saturn could go maybe...