Posted on 11/12/2008 5:58:26 AM PST by 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.
(Excerpt) Read more at msnbc.msn.com ...
The best thing to do is let them fall. If they were horses, we’d have to shoot them.............
The union’s chickensssssss, are coming home,..... to rooooooosssssssst.
HEH HEH HEH.........
the airlines offered a service- flying for business or pleasure. The cost of that service was a couple hundred or couple thousand dollars
GM offers an expensive product line, it takes many people 5 years or more to pay for it - and there are far cheaper alternatives known as “used cars”, or even “mass transit”
big difference
Pelosi and Reid want to use our money to keep their Zombies alive.
Nasty Nancy has to pay them back for the obama votes
Bailing out just delays the inevitable.
Let them reorganize and get some concessions from the union which will help them have a chance to actually be a profitable enterprise.
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.
Have the UAW Bail them out.
Kill the unions - NOW !!!
JUST SAY NO TO MORE BAILOUTS.
The last one worked out so well...
Let them go Chapter 11. It will force them to make the cuts they haven’t had the stones to do up until now.
Especially owners of the Vegas and Gas-Diesel conversions and the 8-6-4.........
maybe they can also renegotiate the CAFE standards that helped put them here right along with the unions and poor management....
Yeah, but we got a really good contact....
Email congress members to let them KNOW that we are against any bailout.
Have the UAW Bail them out.
.. ... .. ... ..
How much did they contribute to B Hussein and other Dems this campaign?
What a waste, complete waste. This money should have gone towards saving their industry.
JUST SAY NO TO BAILOUTS.
They want the money to pay for pension and health care obligations.
This is just not fair. Our 401K has lost about 30% in the past year and our health insurance just creeps up and up. And what’s going to happen is O is going to raise our taxes to bailout the irresponsible. How are we going to put money in our own pensions and buy our own health care?
There are getting to be way too many people in the lifeboat - way too many people.
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