GM Says Bankruptcy Would Mean Liquidation (More scare tactics from a failed business)

AP ^ | 3/17/09

[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.

[bestintxas]

It's obvious that the automakers wish to just keep on kissing the UAW's A__ and feed from the taxpayers' trough.

[sitetest]

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.

[WayneS]

Does that mean I’d have to suck my Silverado up off my driveway with a wet-dry vac?

[Kansas58]

Well
I cut GM some slack here -—
GM NEEDS to put some real fear into the unions, the Labor has been one of GM’s biggest problems.
Also, our government has tried to micro manage the auto business, with green legislation and the like, for so long, it had to hurt the business, eventually.
Also, our energy price fluctuations have hurt GM a great deal, and these fluctuations were caused by our government not allowing us to “drill here, drill now!”.

[CitizenUSA]

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.

[Nervous Tick]

>> it wouldn’t have the risk of scaring away customers

Yeah, they rely on their PRODUCTS for that task.

[jessduntno]

I hope they get a chance to crank out a few of the new Camaro models before they go under...

[jiggyboy]

Yeah ok.

I might have read somewhere that other car companies still have cars to sell.

[Republic of Texas]

Thanks GM, we already know what bankruptcy means. So what?

[jessduntno]

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...

[bigbob]

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.

[bestintxas]

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.

[brownsfan]

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?

[alloysteel]

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.

[TYVets]

I might have read somewhere that other car companies still have cars to sell.

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.

[gimme1ibertee]

GM Says Bankruptcy Would Mean Liquidation

And...?
Just shut up and take it.
Not to sound coldhearted,but....Sorry about all those good folks that will be out of a job,but it's no one's fault but GM's and the union's.It's a shame so many people's jobs will be sacrificed.

[BillT]

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?

[Kansas58]

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.

[EQAndyBuzz]

“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.”

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?

[bestintxas]

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).