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What Does the Next GM Bankruptcy Looks Like
Townhall,com ^ | August 8, 2012 | John Ransom

Posted on 08/08/2012 1:59:12 AM PDT by Kaslin

It’s not too early to start thinking about how the next great crisis in the auto industry will shake up the world.

With the general economic slow down worldwide, declining auto sales and uncertainty surrounding the future direction of the automotive market, another automaker meltdown isn’t out of the question.

And because the high profile federally-financed bailout for GM has generally gotten poor reviews from politicians, voters and Wall Street, General Motors is a good place to start to look at what the next automotive bankruptcy could entail.

Already there is at least one suit pending that threatens to undo the work of the first bankruptcy.

“The new General Motors Co. (GM) could be undone by a lawsuit that pits general creditors against hedge fund,” reports Bloomberg, “including Elliott Management Corp. and Fortress Investment Group LLC (FIG) over $3 billion, the car company said in a lawsuit that went to trial today.”



(Excerpt) Read more at finance.townhall.com ...


TOPICS: Business/Economy; Editorial
KEYWORDS:

1 posted on 08/08/2012 1:59:15 AM PDT by Kaslin
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The bondholders, dealers, and taxpayers got hammered the last time around. Who’s next? Whoever they are, maybe they deserve what they get.

If I had cash, I wouldn’t spend it on GM. But definitely on Ford or Toyota.


2 posted on 08/08/2012 2:11:10 AM PDT by Gene Eric (Demoralization is a weapon of the enemy. Don't get it, don't spread it!)
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To: Kaslin

The pending CAFE standards and green automotive technology “investments” address the wants of a few while the overall progress of the American automotive industry should suit society as a whole.

Granted that access to newer domestic sources of fossil fuels is still limited. However, the love affair with renewable energy seems to be on the wane.


3 posted on 08/08/2012 2:32:08 AM PDT by equaviator (There's nothing like the universe to bring you down to earth again.)
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To: Kaslin
Obama already transferred 40% of GM Ownership to the UNIONS. Therefore, the Unions can sell their shares to make up for shortfalls in their expensing. This was more of the redistributist tactics the socialists use before complete Nationalization of Wealth.

Follow the stocks (Money) and see if it is reported the Unions are selling their shares; this will mean that with both a 40% allocation of all GM Ownership, and with the Obama Carz, that GM is failing faster than "hope and change" had counted on, e.g., before Obama's second term.

4 posted on 08/08/2012 2:39:28 AM PDT by Jumper
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To: Gene Eric

I used to say I would buy another Ford. After finding out what the Ford foundation donates to, I’m not so sure anymore.


5 posted on 08/08/2012 3:13:19 AM PDT by CommieCutter
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To: CommieCutter
I used to say I would buy another Ford. After finding out what the Ford foundation donates to, I’m not so sure anymore.

"CC", the Ford Foundation has been divorced from the Ford Family, the Corporation, Board of Directors etc for so long it isn't funny. They have become diametrically opposed to everything old Henry believed in as a businessman.

FWIW, many of the Ford Employees I know are Conservative, many I don't know post here ergo "CSM" for starters.....

6 posted on 08/08/2012 3:19:23 AM PDT by taildragger (( Palin / Mulally 2012 ))
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To: Kaslin

Probably a lot like the next bank bailout.


7 posted on 08/08/2012 3:32:44 AM PDT by Wolfie
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To: Kaslin
For the longest time I have saying without relish, that my gut tells me GM is in trouble and it may not make it and go Chapter 11 again.

The conservative websites / thinkers are looking at it and sending out a warning much like George Will did in 2003/2004 when it was on no one's radar screen...

8 posted on 08/08/2012 3:42:53 AM PDT by taildragger (( Palin / Mulally 2012 ))
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To: Kaslin

I just hope the next GM bankruptcy comes soon. After the massively corrupt GM bankruptcy of 2009, where GM stiffed the rightful claimants on their assets to pay off those with political connections, anyone connected with the “new” GM as a customer or investor deserves what they get. I am boycotting GM forever. I will not buy a new or used GM or even rent one of their cars. That corrupt company is dead to me and to all decent Americans.


9 posted on 08/08/2012 3:44:42 AM PDT by Pollster1 (Freedom is never more than one generation away from extinction. - Ronald Reagan)
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To: Kaslin
(Lifted from another FReeper a while back) :

"If you gift a Chevy Volt, you may be charged with arson."

10 posted on 08/08/2012 3:51:29 AM PDT by jmax (Ahhhh...life is so frigging good in the obama nation.)
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To: Pollster1

Who would be stupid enough to buy GM stock after seeing the way stockholders got shafted the last time?


11 posted on 08/08/2012 4:10:25 AM PDT by Venturer
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To: Pollster1
Last year, my 2001 GMC Sierra was due for a trade and I tried my best to do a deal with my local Ford dealer on an F-150. The Ford was priced over $3500 more than the comparable GMC.

It was obvious that either the Ford dealer didn't want my GM truck on his lot or, he believed he could get the bigger paycheck based on my desire to avoid GM.
I bought a 2011 GMC Sierra and have been satisfied with the truck.

12 posted on 08/08/2012 4:18:26 AM PDT by Eric in the Ozarks (I didn't post this. Someone else did.)
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To: CommieCutter

Toyota, Honda, Nissan, and Hundyai(spelling) all have great models and many of which are built in the U.S. Unless you are needing a 3/4 ton truck, you should be able to find what you need.


13 posted on 08/08/2012 4:39:28 AM PDT by MachIV
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To: Eric in the Ozarks

As far as American vehicles go, I always use to be a die hard Ford fan, but I admit I have heard numerous stories simiiliar to yours. Ford dealers nationwide seem to have a history of pricing Ford trucks higher than GM, and the quality difference between the two is marginal and in many cases the GM trucks out-horsepower most Fords. They must be pricing the trucks based upon sales history which has typically been better than GM trucks, generally speaking. I think Ford tries to squeak more fuel economy out of their trucks, which is part of the horsepower comprimise.


14 posted on 08/08/2012 4:47:54 AM PDT by MachIV
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To: MachIV

I went back to the Ford dealer this past January and traded our ‘04 Taurus for a ‘12 Fusion AWD Sport. I was able to negotiate a better price (I think I did, anyway) based on last year’s pickup sale.


15 posted on 08/08/2012 5:29:51 AM PDT by Eric in the Ozarks (I didn't post this. Someone else did.)
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To: Kaslin
It will result in strikes, threats of the end of the world by the media and then a slow shutdown and buyout by competent competitors. Maybe China...

The union will whine until it goes silent.

People will rejoice.

Unless obama is still in charge and they will simply print more money.

16 posted on 08/08/2012 5:51:33 AM PDT by Caipirabob (I say we take off and Newt the site from orbit. It's the only way to be sure...)
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To: Gene Eric
If I had cash, I wouldn’t spend it on GM. But definitely on Ford or Toyota.

Does Toyota have to hire UAW goonion thugs? Ford does. That would make my decision for me.

17 posted on 08/08/2012 6:08:49 AM PDT by ROCKLOBSTER (Celebrate Republicans Freed the Slaves Month.)
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To: taildragger
my gut tells me GM is in trouble and it may not make it and go Chapter 11 again.

Bailouts are like that. Wasn't Chrysler bailed out at least once (maybe twice) before, several decades ago?

18 posted on 08/08/2012 6:12:38 AM PDT by maryz
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To: maryz
Wasn't Chrysler bailed out at least once (maybe twice) before, several decades ago?

Yes, it was saved by Lee Iacocca, who invented the VW Rabbit (Onmi/Horizon) and the VW bus (mini-van). < /sarc >

19 posted on 08/08/2012 6:22:44 AM PDT by ROCKLOBSTER (Celebrate Republicans Freed the Slaves Month.)
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To: equaviator

...The pending CAFE standards and green automotive technology “investments” address the wants of a few while the overall progress of the American automotive industry should suit society as a whole.

What are you talking about?
Are you aware that the standards mandated to come are higher than the MPG of my motorcycle?


20 posted on 08/08/2012 6:23:57 AM PDT by bill1952 (Choice is an illusion created between those with power - and those without)
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To: bill1952

You took the first part of my post out of context.


21 posted on 08/08/2012 9:13:26 AM PDT by equaviator (There's nothing like the universe to bring you down to earth again.)
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