Posted on 11/14/2008 11:27:11 PM PST by 2ndDivisionVet
“Can someone here explain why they are so reluctant to file for reorganization?”
A GM exec interviewed on Detroit radio said that surveys show that 85% of car shoppers would not consider buying a car from a company in bankruptcy.
From what I have heard, companies going into bankruptcy are having trouble gaining financing to reorganize due to the credit crunch. So perhaps GM is being told from its bankers (who are their biggest sharehodlers (Barclays, etc.)) that they will not get this financing.
Yeah, why buy a car that you don’t know if you can get future parts for. Daewoo anybody?
Exactly right. They got in that fix because of Unions. Let the Unions bail them out. There is no cause for taxpayers to do without so that union employees can retire in comfort. It is like the other bailout top execs worrying about their bonuses. WTF? They got the companies in that mess, they deserve no bonuses. The unions got the car companies in that mess, let them find a solution within their own ranks or eat crow.
I think they were building modern new plants and upgrading others outside the US, but dragging their feet in the US. They did upgrade the one here in Arlington, TX to modern standards.
I don’t see them shutting down the tahoe production line and firing white collars so they can circle the drain.
EXACTLY! An that is how it needs to be presented to Americans. Republicans need to get ahead of this issue now if they are going to block the bailout, otherwise Odingo will castigate Repubs as uncaring about the American worker.
I believe that even if GM ceases to exist, there will be suppliers for almost all parts for their vehicles. The only thing is that none of those parts will say GM on them. My biggest worry is that the warranty will be effectively null and void from the day they file for bankruptcy, not a big encouragement for getting a new car. While their build quality is now equal to or better than most of their competitors, problems still crop up.
You assume their is backing most people don't want to bailout the 'Union of Detroit".
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...
These fools forgot Henry Fords advice, you have to price the auto where the people can buy them. At the time he was talking about his employees. Today the union people are the only ones that can afford them. Just like homes, the bankers should have had sense enough to know that the fake price run up was pricing the majority out of the market.
Those big salaries and bonuses and travel junkets would go.
This proves they care more about big business than small business.
Why is GM going bankrupt? In 1994, I bought a Chevy Lemon. When I demanded, after 5 major repairs in its first year of life, that they take it back, they only wanted to know where I financed it (not with GMAC - too bad).
I talked to the VP for Customer Service in Detroit. I said, “You promised that the pride and quality was back in American autos, and you didn’t deliver.”
His response, I kid you not, “If you wanted quality, you should have thought about that before you bought a Chevy.”
THAT’S why GM is on the verge of bankruptcy. I’ll NEVER EVER buy another GM product. In MY driveway at this moment: A Toyota and a Hyundai, both of which I own, outright.
GM needs to be bought out by a company like Hyundai that will get them back to making quality cars and stop producing vehicles no one wants. At out local dealerships I see rows of unsold large sized pickups with gas guzzling V8 engines. American car makers have the knowledge and technology to produce high mileage quality cars, but just no the leadership.
we are arguing the wrong target.
the bailout is NOT about GM.
not a single bit.
The bailout is ONLY about union POWER, period.
If it were about the company we would have done Ch 11 debtor in posession financing.
a 52,000 dollar truck WITHOUT 52,000 dollars worth of amendities.
The white collars are to blame for not standing up to the unions for fear of hurting the SHORT TERM balance sheet seen by stockholders.
The “finance paper” traders KNEW their paper would eventually become worthless.
That is why they build a sell mechanism in the process for themselves.
They bailed and left the suckers holding the bag.
(contrast this with the “written off credit card” market where lawyers buy up bad credit card debt for 2-10 cents on the dollar and sue expecting to collect on enough of them in bulk)
I wonder if it would be cheeper for the gov to bifurcate teh union contract from GM.
Offer all union employees 5 year salary buyout, the fed assumes the health insurance cost.
Then GM is free to continue.
Why should there be a bailout for an employee whose nut screwing job has been replaced by a robot?
Here’s a list of several hundred US car manufacturers that were never bailed out by the government:
http://en.wikipedia.org/wiki/List_of_defunct_United_States_automobile_manufacturers
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