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General Motors is Head For Bankruptcy -- Again
Forbes ^ | 8/15/2012 | Louis Woodhill

Posted on 08/16/2012 3:55:24 PM PDT by Harley

President Obama is proud of his bailout of General Motors. That’s good, because, if he wins a second term, he is probably going to have to bail GM out again. The company is once again losing market share, and it seems unable to develop products that are truly competitive in the U.S. market.

Right now, the federal government owns 500,000,000 shares of GM, or about 26% of the company. It would need to get about $53.00/share for these to break even on the bailout, but the stock closed at only $20.21/share on Tuesday. This left the government holding $10.1 billion worth of stock, and sitting on an unrealized

(Excerpt) Read more at forbes.com ...


TOPICS: Business/Economy
KEYWORDS: duplicate; gmbankruptcy
Pensions have been a noose around GM’s neck for years, but the company is tying to address it. In June, GM said it will offer 42,000 white-collar retirees in the U.S. a lump-sum payment in lieu of their monthly pension check and will transfer pension responsibility for 76,000 others to a group annuity plan managed by Prudential Insurance. The company has yet to announce the results of the offer.
1 posted on 08/16/2012 3:55:30 PM PDT by Harley
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To: Harley

Should have been “addressed” as part of any bailout. Of course the purpose of the bailout was to shore up the union.


2 posted on 08/16/2012 3:57:11 PM PDT by morphing libertarian
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To: Harley

GM is dead.


3 posted on 08/16/2012 4:00:02 PM PDT by Dallas59 (President Robert Gibbs 2009-2011)
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To: Harley

This is a duplicate post. Sorry. My GM Bankruptcy search didn’t reveal it to me.


4 posted on 08/16/2012 4:02:09 PM PDT by Harley (Life is Tough, But it's going to get a lot Tougher if you vote for Obama in Nov.)
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To: Harley

is “head”?


5 posted on 08/16/2012 4:03:52 PM PDT by max americana (Make the world a better place by punching a liberal in the face)
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To: Harley
At least they are not waiting until the first Wednesday of November.


6 posted on 08/16/2012 4:05:52 PM PDT by Michael.SF. (Romney was right about the Olympics, but neither the Brits or the Dems will admit it.)
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To: Harley
General Motors is Head For Bankruptcy -- Again

They is be head for that?

You know, sources that fail to master English tend not to get too much credibility.

I be sorry dem suckas be head for dat, eberyone up in de gettho be sorry 2wo yo.

Who dey be head fo up in here?

7 posted on 08/16/2012 4:09:10 PM PDT by humblegunner (Pablo, being wily, pities the fool.)
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To: Harley

Whaaaaaaaaaaat? Thought the Chevy Volts were going gangbuster in sales. (”


8 posted on 08/16/2012 4:13:31 PM PDT by tflabo (Truth or Tyranny)
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To: Harley
This left the government holding $10.1 billion worth of stock

I think the government is going to do the same thing I did with my GM stock a couple of years ago.

And I think it was part of the plan all along. Basically they will be giving the remainder of the company to the union. I believe the corporation still has value such as real estate, patents, and other items that can be salvaged for the benefit of the union and it's sponsors.

We are watching a great american corporation being cannibalized by looters right before our eyes.

9 posted on 08/16/2012 4:13:39 PM PDT by oldbrowser (As long as Obama's records are sealed, any discussion of Romney's past is off limits.)
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To: morphing libertarian

When the government was buying GM I put my money in Ford at the same time for $1.76 a share. It sold on an auto sell order during a particularly volatile day at around $12 a share.


10 posted on 08/16/2012 4:15:37 PM PDT by USNBandit (sarcasm engaged at all times)
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To: Harley
Right now, the federal government owns 500,000,000 shares of GM, or about 26% of the company.

Photobucket

Cheer up sir, we'll give it another try!

11 posted on 08/16/2012 4:17:05 PM PDT by EGPWS (Trust in God, question everyone else)
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To: oldbrowser
We are watching a great american corporation being cannibalized by looters right before our eyes.

Isn't this what the libs accused Romney and Bain of doing?

12 posted on 08/16/2012 4:20:06 PM PDT by Malone LaVeigh
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To: Harley
I see no problem here?!


13 posted on 08/16/2012 4:21:37 PM PDT by Revolting cat! (Bad things are wrong!)
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To: Harley
I see no problem here?!


14 posted on 08/16/2012 4:22:03 PM PDT by Revolting cat! (Bad things are wrong!)
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To: Harley
GM died as a company 35 years ago ~ from that time onward about all they manufactured were the body shells for several cars and three types of SUVs. The parts were made by others towards the end.

The management, with the Board of Director's approval, was gutting the company and getting the last penny out of any productive capacity, but it wasn't being added to in any meaningful way.

Finally, it was a marketing division ~ for hire ~ by foreign auto makers.

The proper termination would have involved a sale of the assets and a total dissolution of every aspect of the corporation, right down to busting up the concrete in the parking lots for use in road building projects elsewhere.

Bond holders would still have been shorted because there simply wasn't enough to cover the debt.

The next bankruptcy is the end of the road. No more GM. And yet UAW will probably be sued by everybody and his brother over that multibillion dollar payoff they got.

They'll probably lose that too having obtained it under false pretenses.

15 posted on 08/16/2012 4:29:58 PM PDT by muawiyah
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To: Harley

GM, Solyndra, high speed rail, etc. All of Obama’s spending is to pad pockets. None of the projects are really planned to succeed. He probably wants them to fail. All part of what has to happen to lead to the big “transformation” of America.

He has to destroy the country before he can transform it. Obama and all of his buddies should be swinging from the yardarm.


16 posted on 08/16/2012 4:34:44 PM PDT by NewHampshireDuo
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To: muawiyah

QC took a nosedive in the early 70’s that’s for sure .


17 posted on 08/16/2012 4:35:11 PM PDT by sushiman
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To: Harley
Hey maybe they should produce nothing but Voltz!

Why give the sucker a choice? Make them buy Voltz!

With the upcoming war in Iran, it actually makes sense! Stockpile inventory, cause there's gonna be a big demand soon!

18 posted on 08/16/2012 4:37:02 PM PDT by rawcatslyentist ("The commands of the prophet may be performed alike, by fraud, or by force." J Q Adams)
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To: Harley
Heh.
GM is going under, and I helped - by buying a Ford instead.

My family has always driven GM products. My first vehicle was a GMC 4X4 truck.

No More! I helped put Government Motors down - I'm so proud.

19 posted on 08/16/2012 4:40:47 PM PDT by grobdriver (Proud Member, Party of No, Nobama, No Way, No How!)
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To: humblegunner
Dang! Yesterday, you didn't give Blog Boy even half what you gave common English here.

I was expecting a Texas Blogpimp Massacre. And here I find ya moonlighting as a 9th grade English teacher.

What is the world coming to?

20 posted on 08/16/2012 4:41:47 PM PDT by rawcatslyentist ("The commands of the prophet may be performed alike, by fraud, or by force." J Q Adams)
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To: grobdriver

I had an 83 K10 4wd that gave me about 212k miles. The 305 3 speed wasn’t a powerhouse but it did ok.

The rear shock mounts on the frame developed cracks and it rode like a covered wagon.


21 posted on 08/16/2012 4:47:58 PM PDT by wally_bert (There are no winners in a game of losers. I'm Tommy Joyce, welcome to the Oriental Lounge.)
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To: rawcatslyentist
Yesterday, you didn't give Blog Boy even half what you gave common English here.

Lack of oversight is the problem.

The blame is firmly landed upon management.

I was on a break, as per the schedule.

22 posted on 08/16/2012 4:52:08 PM PDT by humblegunner (Pablo, being wily, pities the fool.)
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To: Harley

Thats because their cars suck!


23 posted on 08/16/2012 4:57:11 PM PDT by TheGunny
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To: muawiyah
the parts were made by others towards the end.

So those dozens of GM engine and transmission plants were just decoys for Russian bombers?

I can't believe some of the stuff on FR....

24 posted on 08/16/2012 4:59:38 PM PDT by nascarnation
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To: Harley

The Corvette ZR1, Camaro ZL1 and the Cadillac CTS-V are decent vehicles. I do appreciate the Camaro ZL1 putting the pressure on Ford to produce the 662hp 2013 Shelby GT500.


25 posted on 08/16/2012 5:29:37 PM PDT by SVTCobra03 (You can never have enough friends, horsepower or ammunition.)
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To: Harley

Thug government + thug unions

What could go wrong?


26 posted on 08/16/2012 5:44:06 PM PDT by Walrus (Restoring America starts today! Let's roll!)
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To: nascarnation
you ever work in an engine plant? most of them are assembly operations. typical of the Big Three they got into contracting out rods, caps, crankshafts, blocks, etc.

"PARTS".

decades ago. I worked on a line that made PARTS for all the Big Three. transmissions are different. for a very long time the Big Tree made their own transmissions, then gradually phased out of that. even Ford gave up machine screws and began buying them on the world market. I grew up about 3 miles from that factory. today the blocks are rough cast in Brazil and Argentina ~ since they are the world's low cost producer AND they seem to have no clean air laws so you can just blow dust all the time.

you need to keep up on this stuff.

27 posted on 08/16/2012 5:47:43 PM PDT by muawiyah
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To: Revolting cat!

If they all had that as a seat cover they wouldn’t need sales people, just a cash register. LOL !!


28 posted on 08/16/2012 5:54:35 PM PDT by Ouderkirk (Democrats...the party of Slavery, Segregation, Sodomy, and Sedition)
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To: humblegunner

LOL


29 posted on 08/16/2012 6:02:24 PM PDT by rawcatslyentist ("The commands of the prophet may be performed alike, by fraud, or by force." J Q Adams)
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To: nascarnation
BTW, ICBMs started coming on line in the 1960s ~ that was JFK's argument ~ that Eisenhower had allowed a missile gap to happen and we were dreadfully behind the USSR.

At that time there were still several transmission plants in Indianapolis. Chrysler, Allison, Ford ~ still all there and smokin' day and night, and then gradually through the 1970s and 1980s their operations were minimized, work farmed out to newer, smaller, more automated plants, and finally just terminated or REMOVED entirely from building devices used in cars.

Today those plants are targets for ICBMs, just like they were 30 and 40 years ago. More recently - June 2007 in fact —GM announced that it was selling Allison Transmission to private equity firms. Still, it'd been a good 25 years since they'd made anything other than top of the line heavy duty commercial transmissions ~ with what looks like a worldwide lock on bus transmissions. They quit making anything for automobiles ages back.

BTW, GM had built a new facility in Indianapolis for transmissions ~ but in the end there were only 2500 employees there. Used to be FAR MORE employees.

American manufacturing has shifted, in general, to top end stuff ~ with a lot more mechanization, automation, computerization and robotics than factories making similar products in other countries. We still have the stuff, but we don't make the more labor intensive small stuff, and we don't need to hire on the employees like the old days.

General Motors was gutted by its management and its value dissipated in dividends.

30 posted on 08/16/2012 6:02:42 PM PDT by muawiyah
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To: Revolting cat!

Possibly the least annoying double-post ever.


31 posted on 08/16/2012 6:03:34 PM PDT by Gil4 (Progressives - Trying to repeal the Law of Supply and Demand since 1848)
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To: muawiyah

So GM isn’t making blocks, heads, transmission housings, etc? These are all decoys for Russian bombers?

Central Foundry Defiance Ohio
Cylinder Blocks, Cylinder Heads and Crankshafts
2010 5.8 million produced
http://media.gm.com/media/us/en/gm/company_info/facilities/powertrain/defiance.html

Bedford Indiana
Automatic transmission and converter housings
http://media.gm.com/media/us/en/gm/company_info/facilities/powertrain/bedford.html

Bay City Michigan

Piston Pins
Connecting Rods
Camshafts
Oil Pumps
Balance Shafts
http://media.gm.com/media/us/en/gm/company_info/facilities/powertrain/baycity.html

Saginaw metal casting
Aluminum engine blocks and cylinder heads
2.2L/2.4L L850 I4 blocks
5.3L/6.0L Gen IV V-8 blocks and heads
5.3L/6.2L Gen IV V-8 block pre-machine
2010 2,017,103 castings
http://media.gm.com/media/us/en/gm/company_info/facilities/powertrain/saginaw.html


32 posted on 08/16/2012 6:06:28 PM PDT by nascarnation
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To: muawiyah

You need to get over to Indiana.
The Chrysler transmission plants are in KOKOMO and are going strong.
And btw they make their own die cast cases.

Fords transmission ops have been in Cincy forever, not Indianapolis. Indy was the steering gear plant.


33 posted on 08/16/2012 6:11:53 PM PDT by nascarnation
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To: nascarnation

Little you know about the transmission business.


34 posted on 08/16/2012 6:20:56 PM PDT by muawiyah
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To: muawiyah

You post gibberish.
I post links to verifiable facts.


35 posted on 08/16/2012 6:24:02 PM PDT by nascarnation
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To: nascarnation
Just like to note for your information that final point of assembly is not where everything is made. The old Indianapolis International Harvester facility is still up and able to run blocks and build engines ~ for whatever you want ~ and they had what was called an automated line to build just about every part of a transmission except the case ~ but most of that facility was designed for medium and large V8 truck engines.

Still, during peak operations they contracted with the Big 3 to manufacture PARTS for every part of the drivetrain ~ but the only finished product counts you got out of that plant were ENGINES PRODUCED

Along the way I do believe I visited virtually every major manufacturing facility in Central Indiana and worked in some. The GM question focused on what happened to the company ~ and not it's assets ~ but the company, and the company was busy converting every asset it had into cash to distribute. Eventually (and I think "eventually" was something like 2009) they'd had to dissolve the company and sell most of their industrial base for the value of the land, steel, and reprocessed used brick facades.

36 posted on 08/16/2012 6:27:59 PM PDT by muawiyah
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To: nascarnation

Go ahead. Do whatever you want. I have dozens of first cousins ~ and virtually all of them spent years in the automotive manufacturing industry. Those still working are employed by Japanese parts companies. News gets out.


37 posted on 08/16/2012 6:30:51 PM PDT by muawiyah
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To: muawiyah

So you’re saying all those GM Powertrain plant links and manufacturing data are bogus?

cause you told us in #15:
“35 years ago ~ from that time onward about all they manufactured were the body shells for several cars and three types of SUV”


38 posted on 08/16/2012 6:37:10 PM PDT by nascarnation
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To: Harley

During the first GM bankruptcy there was a post comparing the bailout to what happened to British Leyland. The government saved the company only to later see it collapse anyway. The post said this is likely what would happen to GM as well.


39 posted on 08/16/2012 6:37:33 PM PDT by xp38
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To: nascarnation
Depends on whether you are talking about heavy duty commercial grade products or the light weight items for use in passenger cars.

Even then, the part's manufacturing is of greater importance than the assembly ~ and what you are giving out are assembly statistics. That's just a shell of the real activity of basic manufacturing parts which can be taking place in Korea, Japan, China, India, MExico ~ and you'd never know it.

40 posted on 08/16/2012 7:22:05 PM PDT by muawiyah
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To: humblegunner
You know, sources that fail to master English tend not to get too much credibility.

The title's correct on Forbes.

41 posted on 08/16/2012 7:28:22 PM PDT by cynwoody
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To: USNBandit

I bought ford in 2008 for right around a buck.. I still have the shares. I sure wish I had the big $$ to buy that day. 12 to 1 return on your money is nothing to laugh at.


42 posted on 08/16/2012 7:32:21 PM PDT by cableguymn
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To: Harley
bankruptcy

gm

43 posted on 08/16/2012 10:44:28 PM PDT by A.A. Cunningham (Barry Soetoro is a Kenyan communist)
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To: Dallas59

I hope it’s dead. We can’t afford to prop it or any other crap corporation up anymore.


44 posted on 08/17/2012 12:03:16 AM PDT by SaraJohnson
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To: humblegunner

My pie. Where it be?


45 posted on 08/17/2012 3:44:34 AM PDT by martin_fierro (< |:)~)
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To: USNBandit

nice return


46 posted on 08/17/2012 8:25:38 AM PDT by morphing libertarian
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