[DetroitWonk]

Here, commence flame-war in 3, 2, 1...

GM Will Go Bankrupt: Why That May Actually Be Good For The General

Ray

 

[CamaroCrazy]

I agree Ray, great post. Could you take it one step farther and explore what exactly GM could do if it did go bankrupt? More specifics? How would this effect the dealer network? Factories? Brands?

Could this be the best way for GM to get in shape quick? A crash diet to slim down?

I am on board that this might not be such a bad idea.

 

[fp115]

Its too bad that Jal has to twist the facts to make the article. Oh well, keep up the false posts.

 

[lio45]

More importantly, just like the airlines, it'll give them the time to continue selling their ever-better vehicle lineup. True, many folks may be scared of buying vehicles from a company that's declared bankruptcy but of course, that didn't stop people from piling into Northwest planes after the airline did the same. And that's where they and we, have got some hope.

^ That's the crux of the problem. Your analogy is completely flawed.

If GM was selling ~$500-$1,000 single-use items (you use it once, shortly after having purchased it, and after having used it successfully you don't care if the company that sold it to you goes belly up) instead of selling $20k-$30k long-term use items (which will quickly drop in resale value if there's no company around to service it/honor the warranty/sell you spare parts in a few years) then yes, I would agree with your analysis.

 

[lio45]

Its too bad that Jal has to twist the facts to make the article. Oh well, keep up the false posts.

Feel free to bring up your corrections to any info that you believe is "false".

Saying something isn't true without offering any explanation will never win you any converts to your point of view...

 

[2002 Caddy]

Feel free to bring up your corrections to any info that you believe is "false".

Saying something isn't true without offering any explanation will never win you any converts to your point of view...

You've noticed that too...
I do think that fp115 has some inside info that he is not able to share...

But based on the fact that he owns a block of GM shares that cost a fortune and are now worth... Nothing... (sorry dude)
I think his insider knowledge might be a little "tilted"

 

[calgaryhhr]

Could this be the best way for GM to get in shape quick? A crash diet to slim down?

I am on board that this might not be such a bad idea.

I think this "crash diet" could be very good in the short term but it's extermely important for them to become "healthy" and not fall back on the ways of the past that led to all this "fattening."

 

[sigma]

There is one other option that has to be looked at besides bankruptcy. Government bailout/partial nationalization of the automakers. Government assumes a large portion of the pension/healthcare obligations and in exchange for a golden share in the automakers.

Another option to reliquify the company would be to arrange for emergency concessions with management and the UAW to turn GM into an ESOP company. That would lower operating costs and would protect GM from a hostile takeover.

 

[fp115]

Feel free to bring up your corrections to any info that you believe is "false".

Saying something isn't true without offering any explanation will never win you any converts to your point of view...

They are assuming that bankruptcy means having $11b cash on hand. But the truth they are twisting is that GM said would like to keep at least $11b in order to keep investors and suppliers thinking they are in good shape.

 

[tamatt27]

There is one other option that has to be looked at besides bankruptcy. Government bailout/partial nationalization of the automakers. Government assumes a large portion of the pension/healthcare obligations and in exchange for a golden share in the automakers.

Another option to reliquify the company would be to arrange for emergency concessions with management and the UAW to turn GM into an ESOP company. That would lower operating costs and would protect GM from a hostile takeover.

I'm intrigued. Can you explain this?

 

[Smaart Aas Saabr]

There is one other option that has to be looked at besides bankruptcy. Government bailout/partial nationalization of the automakers. Government assumes a large portion of the pension/healthcare obligations and in exchange for a golden share in the automakers.

Yeah do like what happened to Renault after WWII I don't think so good idea