Skip to comments.General Motors Is Headed For Bankruptcy -- Again [Flashback to 8-15-12 ]
Posted on 11/06/2012 7:41:23 AM PST by tobyhill
President Obama is proud of his bailout of General Motors. Thats 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 loss of $16.4 billion.
(Excerpt) Read more at forbes.com ...
an Executive Order giving the Chevy Volt a monopoly on the US passenger auto market should do the trick...
How can this possibly be? President Ocarter just said the other day, “the US auto industry is back on top”!
And an EO forbidding any rains or hurricanes...........
With Zero it’s not what he says. It’s what he does not say.
GM is back on top! (of the likely to go tits up list)
I am going to cut the deficit in half! (and add that half back on top)
Chevy has a horrible overpriced line up of cars, and took most of the dealer “mark-up” (invoice to window sticker) away from the dealers.
a $40,000 CAMARO has a 900 markup.
A 30,000 Equinox has an 800 markup.
A friend of mine owns (inherited) a Chevy store, and he showed me the numbers.
“....the US auto industry is back on top!”
Yeah, if Toyota is part of the US auto industry.
GM has become a major player in the Chinese auto industry, that is for sure.
Why doesn’t the US Treasury transfer the GM stock held by the Federal Government to the Chinese in exchange for part of the debt we now owe them? And UAW retirees get preferential relocation to China as part of their retirement package?
That way China could keep the payout on the retirement plans and their earnings from GM in their own country.
Excellent article explaining the dynamics of car sales.
The mileage mandates will finish them off.
President Mitt loves a well-run bankruptcy. “Well-run” being the definitive term here. Get the gov and union off the company’s back.
they want mo money.
” They couldn’t compete in the first bankruptcy and they won’t be able to compete heading into the second.”
” That is no margin to carry the note, pay the staff, turn on the lights etc.”
Without the service dept, and used cars, he would be bankrupt.
Just imagine if GM had been allowed to go bankrupt and instead of being bailed out by the government had been bought out by Toyota or better still Hyundai. Under Hyundai leadership VW would not be number one in the D car class.
The only way GM is even doing what it is doing is Ally financial, GM’s captive finance arm (formerly GMAC) will pretty much finance anyone that will fog a mirror.
It is run exactly like the financing that caused the housing bubble. Over finance collateral and finance folks who have no/poor record of paying back their obligations.
This house of cards will soon fall. I’ve seen it many times over the past 21 years. Usually takes about 2 years. Maybe longer in this case since the Government is backing them.
Ultimately, it is management’s responsibility. The problem with what’s going on now with GM is that they won’t learn from their defeats. They’ll just ask for more taxpayer money. It’s much easier to get taxpayer money than it is to compete with Volkswagen and Toyota. The sad part is that GM could once again become the biggest car company with tremendous products. They have to fight with Volkswagen and Toyota and the environmentalists and the unions and the media and the Democrats. Too much fighting.
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