Posted on 11/14/2008 11:27:11 PM PST by 2ndDivisionVet
In recent months, General Motors has been burning through about $3.1 million an hour, or $52,000 - the price of a well-equipped Chevy Tahoe sport utility vehicle - every minute.
How much longer can this go on? And perhaps more important, can GM hang on until President-elect Barack Obama and the new Congress can come to the rescue in January?
With an auto industry bailout running headlong into Republican opposition in Congress, GM's best hope of avoiding collapse might lie with the incoming Democratic administration. But the automaker is practically running on empty already, and analysts and others warn that it might be out of business by the time Obama is sworn in on Jan. 20.
The largest U.S. automaker said it had $16.2 billion in cash at the end of September, raising the possibility that GM will fall below the minimum of $11 billion to $14 billion needed for day-to-day operations by the end of the year.
If that happens, GM will be unable to pay some creditors, which could seize assets that were pledged as collateral or even try to force the company into bankruptcy.
Worse yet, some suppliers could simply stop shipping parts unless they are paid cash on delivery, said Douglas Baird, a professor who specializes in bankruptcy at the University of Chicago Law School.
"That's the nightmare scenario they're worried about, and we don't know how far off that day is," he said.
Without parts, GM can't build vehicles, make money and pay its creditors.
Eventually some creditors might try to push the automaker into bankruptcy.
"According to the bankruptcy code, it only takes three creditors to go into court and say this company is bankrupt in an involuntary manner.
(Excerpt) Read more at pasadenastarnews.com ...
***$52,000 - the price of a well-equipped Chevy Tahoe sport utility vehicle***
There’s one of the problems. A gas-guzzler for $52,000? No wonder they’re circling the drain.
Their white-collar employees might also be a problem as well...
Unless they are going to completely change their business plans, there is no reason to bail them out. Nothing will change.
Can someone here explain why they are so reluctant to file for reorganization? Then they can use the courts to unload a lot of union obligations and become more competitive.
I’m trying to remember when GMC ever came to my aid, nope never did. Any of you business owners ever get help from GMC?
Oh the false blame game and diversions start already. With a heavily dem senate and house the can do it by themselves. The dems play this hard ball so much better than republicans.
The sad thing is the public will buy it all as it is spoon fed by the MSM and incoming bHo.
Nope, they refused to help me with the POS, I bought from them.
Plus, as long as I'm ranting... this would only bail out the UAW and keep it a strong, militant ally of Obama. We have a chance to let the UAW crater. This bail out will do nothing to help the big three build cars that people would actually buy. Plus, with them out of the way, foreign car factories in the USA could expand and hire many more NON-UNION workers, as domestic demand increases for these Made in America cars.
Let it slide!
Yes, and most of those factories would be in the South, in RED STATES!!
Well Hey Auto Workers Union folks... you can always get a job in the lucrative coal industry!
Good Luck!
Wouldn’t bankruptcy allow them to get out of the ruinous benefit and pension plans the negotiated when times were good? You would think GM would welcome that, I don’t understand why they are begging for money when they could end up more efficient in the long run if they don’t beg for money. Perhaps it’s just a publicity ploy for GM execs to play CYA with the unions?
You are not kidding. Republicans are sitting here and GLADLY getting the boot for these failures.
Nobody, not even Palin, is coming out and saying ‘this is a business, this is not government’
What has happened to this country?
Are there any Republican leaders than can take advantage of this and say ‘STOP THE MADNESS OF BAILOUTS NOW’? I guess not!
I also agree totally. Why are Republicans letting this be a democrat issue?
This is nonsense from the top down.
Me thinks the unions pay the top brass at GM and the demorats big money to leave them alone
Oh the false blame and diversins......
You are so right! I find it incredible that the libs and other BHO voters who have no clue about what is going on, blame the republicans/Bush for GM’s problems.
The big 3 auto makers are seen as victims in a down economy and we need to bail them out, yet oil companies who obviously run their business much better. are seen as evil, greedy republican run empires out to destroy America.
The big 3’s over head, union’s cost and benefits along with mis-management have driven them into the ground.
It is so frustrating. I’m glad Sarah is out there telling th truth
That is why when my ford truck dies, I’m buying a toyota truck. Not ever going to support a union company again
Barely above average and don't you expect more out of our elected officials?
And yes, the automakers bail out is as tainted as the “”top 25 wealthiest ceo’s retirement pay and bonuses)/financial institutions”” bail out was.
The really stupid thing was how much unnecessary junk and earmarks were in the bill. The pols are like mafia dons, they get a cut of everything that crosses their desk's. The Republicans had a beautiful chance to put Barney Franks, Dod, etal who had gotten so much money from the financial institutions on the hot seat.
Maybe even jail after the investigations that would start as a result were concluded. That would have been a faster trip back to dominance in congress than the next 8 painful years will be.
Ever notice how wealthy most congress critters get while “serving the public”??? It is a true road to riches for even he “average man or woman with little education or training.” Even more special, they don't need to rehab or sell any foreclosures. Heck they don't even need to hold any “no money down, get rich using other people's money seminars!
Life is so wonderful for the politically anointed class.
And that concludes my late night rant.
I am not laying that blame on them right, people paniced when gas prices got high, gm was building SUVs because they were selling, sure cobalts sold but not so much, one of the reasons why the camaro/firebird were canceled, people were not buying them. I think most of gM's problems is UAW
These are the thousands upon thousands of good jobs he proclaimed during the election.
But he never said how much these jobs pay. I don't know about you but most of the men I see doing the manual labor in the construction zones speak spanish.
So the auto union folks might have to compete with the illegals for these great jobs. After all, how many foremen can you have on these projects? These are the people who usually pull in a good salary while the others make much less.
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