Skip to comments.GM Says Bankruptcy Would Mean Liquidation (More scare tactics from a failed business)
Posted on 03/18/2009 8:09:49 AM PDT by bestintxas
General Motors Chief Executive Rick Wagoner says the automaker would end up being liquidated if it enters Chapter 11 bankruptcy protection.
Wagoner says restructuring out of court would accomplish 99 percent of what could be achieved in bankruptcy. But he says it wouldn't have the risk of scaring away customers or the huge expense of Chapter 11.
Wagoner made the statements Tuesday at a breakfast in Washington, D.C., sponsored by the Christian Science Monitor.
General Motors Corp. has received $13.4 billion in federal loans and is seeking another $16.6 billion. The company faces a March 31 deadline to finish its viability plan and show the government it's worthy of the money.
(Excerpt) Read more at foxnews.com ...
The dirty little secret (or not-so-secret) is that GM is already bankrupt. Filing Chapter 11 merely will protect the company from its creditors while it reorganizes.
Does that mean I’d have to suck my Silverado up off my driveway with a wet-dry vac?
Then it’s time to liquidate, eh? I’m sure there are many other companies that can make better use of the factories, machinery, and personnel than GM.
>> it wouldn’t have the risk of scaring away customers
Yeah, they rely on their PRODUCTS for that task.
I hope they get a chance to crank out a few of the new Camaro models before they go under...
I might have read somewhere that other car companies still have cars to sell.
Thanks GM, we already know what bankruptcy means. So what?
I hope they get a chance to crank out a few of the new Camaro models before they go under...give me that body and I’ll trust the aftermarket and local machine shops for parts...
That may be the price for running a business poorly.
If not now, it’s only a matter of time unless GM becomes cost-competitive.
I don’t buy the premise that that GM is being all that hurt by govenment interference.
The big mistake for the UAW: The howls during the 80’s by the Unions to limit foreign imports caused foreign companies to locate manufacturing plants here in the US.
It is now blatantly obvious to all that the reason why GM is non-competitive is due to Unions, because the US plants foreign-owned and run by American workers are doing fine, and they are subject to the same government influence.
Wagoner is an idiot. GM’s management team is a bigger problem than the UAW ever was.
Ford managed to cut a deal that puts them on par with foreign manufacturers, (those that manufacture here). Ford didn’t need to be bailed out.
Ford can do it, and GM can’t, so it’s the UAW’s fault, right?
Perhaps liquidation is what should happen. There will probably still be “Chevrolets”, but they might end up being manufactured in China or Indonesia. There might even be “Saturns” and “Cadillacs”, but they could end up being manufactured in Germany or England. “Buicks” are already being manufactured in China, no change there.
Pontiac disappears, and GMC/Chevrolet trucks get farmed out to somebody like BMW or Volkswagen.
Upshot, UAW is left out in the cold, with nobody to administer their pensionors. Solution, unionize the Federal, state and local government employees, get those numbers of dues-paying members recruited up to strength.
No one makes Dussenburgs or Nash Ramblers these days, but some one else must be making autos.
I was stuck in a line of traffic a half mile long just 2 hours ago.
Let’s see, they sell off he individual car divisions, like Saturn, to someone else and sell off the plants no one wants.
Then the new owners build a different or modified car for sale. We still have cars to purchase for transportation.
Outside of a landmark business going under, what is the down side?
The foreign owned plants are doing better.
They are not “doing fine”.
Also, Detroit was always the leader in larger vehicles, which our government does not like.
“Then its time to liquidate, eh? Im sure there are many other companies that can make better use of the factories, machinery, and personnel than GM.”
Yeah, but only if it is broken down and sold to companies across the country, primarily in right to work states.
Who in their right mind would open a factory there knowing that it will have to be unionized?
It’s a shame so many people’s jobs will be sacrificed.
Always a shame with a failed business.
Hitching a ride to a business that has reimbursement unsupportingly high is doomed for early retirement.
People should base career decisions on rationalizing a growth business vs a shrinking one (don’t be a typewriter manufacturer or buggy-whip salesman).