Skip to comments.What Does the Next GM Bankruptcy Looks Like
Posted on 08/08/2012 1:59:12 AM PDT by Kaslin
Its 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 isnt 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 ...
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.
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.
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.
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.....
Probably a lot like the next bank bailout.
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...
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.
"If you gift a Chevy Volt, you may be charged with arson."
Who would be stupid enough to buy GM stock after seeing the way stockholders got shafted the last time?
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.
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.
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.
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.
The union will whine until it goes silent.
People will rejoice.
Unless obama is still in charge and they will simply print more money.
Does Toyota have to hire UAW goonion thugs? Ford does. That would make my decision for me.
Bailouts are like that. 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 >
...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?