Running on empty, GM's fate is debated (No debate here, NO BAILOUT!)

MSNBC ^ | 11/12/2008 | Kendra Marr and Sholnn Freeman/WASHINGTON POST

[tobyhill]

As General Motors burns through cash, edging its way toward possible financial collapse, a growing number of analysts have said bankruptcy might be inevitable. GM insists such a move is out of the question, and as the debate roils, people on both sides point to two past scenarios for lessons.

One is a story of success. Several major U.S. airlines have operated under Chapter 11 bankruptcy provisions. United Airlines has been through it. US Airways and Continental Airlines filed twice. Both Delta Air Lines and Northwest Airlines, which are in the process of combining operations, emerged from bankruptcy court protection last year. Labor contracts were renegotiated, and everyone, from baggage handlers to pilots, took pay cuts. Yet through it all, travelers continued to book tickets to fly.

But another was a disaster. Daewoo Motor -- South Korea's equivalent of Chrysler -- could not stay afloat during the Asian financial crisis. In 2000, burdened by $16 billion in debt, it filed for bankruptcy. About 7,000 workers lost their jobs, and many suppliers buckled. Daewoo was sold off in pieces to other automakers, including GM. Because GM's purchase did not include Daewoo's U.S. distribution network, many dealers lost their franchises. Its global brand all but disappeared.

[Cringing Negativism Network]

If GM were to truly fail, that would be the end of American manufacturing.

We’ve already sent most all our manufacturing to China.

(cheered on by “free trade” so-called conservatives)

We now increasingly make nothing, save nothing, and pay foreigners for what we need.

[End Times Sentinel]

Maybe if they didn't spend so many years producing a large stable of generally crappy cars, they wouldn't be in this mess.

Owl_Eagle

“When the stock market crashed,
Franklin Roosevelt got on the television
and didn’t just talk about
the princes of greed, he said,
‘Look, here’s what happened.’"
-Slow Joe Biden

[ken21]

it was only a few months ago that i was attacked by a fellow freeper and reported to jim robinson for criticizing gm!

i made the point that all three auto makers ignored w edwards deming. later the japanese auto makers absorbed his advice and became what they are today.

[tobyhill]

I just heard on Fox that other car companies in the US, like Toyota, are doing very well because they're not union.

[Old Retired Army Guy]

This all about the UAW which along with bad management is responsible for this mess.

[Old Retired Army Guy]

DUHHHH!

[Rappini]

I have mixed feelings about helping them out as I presently hold stock in Ford and GM which at the time isn’t worth a
pinch of goose $hit.

[tobyhill]

I've been criticized every time I post an anti-bailout thread. I'm sure the “abuse” button has been used plenty of times on me but I keep in mind that to some “Conservatives” the truth hurts.

[Lucius Cornelius Sulla]

Most folks are not talking about shutting down operations of the auto companies, just reorganization under bankruptcy. The result would be the removal of management and the loss, maybe total, of stockholders value. Contracts which are not supportable, basically labor agreements, would be voided and renegotiated at an affordable level.

[Lucius Cornelius Sulla]

Pardon me for doubting your description of this matter.

[Old Retired Army Guy]

Give up on your stock. When AIG got a bailout their stock went to zero. Same will happen to GM and Ford if they get one.

[Tigercap]

I support American-made, NON-UNION, vehicle makers. Honda, Toyota, Nissan.

I would love to see the UAW die!!!

[org.whodat]

Pelosi and Reid want will use our money to keep their Zombies alive.

You watch the number of republicans that back this, the first one will be Insane Mccain.

[org.whodat]

When AIG got a bailout their stock went to zero.

It was a worthless gambling joint to start with.

[Glacier Honey]

(Pelosi and Reid want to use our money to keep their Zombies alive)

You got it. They are just trying to make good on their promise to the unions for supporting the demorats and encouraging the steeple to vote for their ticket.

Here's and idea. Let's have every democrat congressman, every Hollywood liberal actor, liberal musician and overpaid MSM news anchor donate 1 to 5 million each toward the bailout. After all they love the idea of spreading the wealth. P. Diddy, the Dixie Chics, Brad Pitt, Ellen, Oprah, Nellie, Chrissy Matthews, Catie Couric, George Clooney, Tim Robbins, Bruce Springstein, Barbara Streisand, Justin Timberlake, Jessica Biel......

The list goes on and on. Brad Pitt donated a easy million to stop Prop 8 in California so why not have all these BHO lovers open their wallet to help the failing US auto makers. Unless they only really support the tax payer spreading the wealth around.

[Ouderkirk]

I would have no problem helping GM if the unions were willing to accept concessions on job security, wages, and benefits.

But, since they will not concede one inch on anything, then let them go bankrupt.

The unions seem to forget that their members need to have jobs in order to have a union. But the UAW has negotiated a program where their members don’t even need to have jobs.

Bye-Bye GM.

[Red Badger]

But the UAW has negotiated a program where their members don’t even need to have jobs.

Good work, if you can get it!............

[captnorb]

The UAW should loan the money to GM; they have more than enough money in their pension fund to assure continued operations for a period of time. The union, with GM management is culpable for the majority of the problems; with the government regulations and the economy accountable for the rest.As you suggest, the best course of action would be bankruptcy allowing the reorganization, if feasible.

[kitkat]

***If as a business you think the governement will bail you out when things get tough then you never really have to manage the company to make a profit.***

YEP! But, tell that to the unions.

[ken21]

so, you’re a union guy

and you want us to bail out your jobs and health care?

or, you work for cerebus?