Posted on 03/31/2009 8:32:44 PM PDT by kcvl
Chrysler & GM both filing for Bankruptcy....
GM is filing Chapter 11....
Chrysler is going to be sold off in pieces..
Toyota is closing many plants in The USA...
This car industry revival brought to you courtesy of new CEO Barack Obama.
But...HEADLINE IS MISLEADING...as has been said all along...story is that bankruptcy is an OPTION.
Don't get me wrong...I hope they do declare bankruptcy. Actually, since Obama seems to think he knows how to be a CEO better than anyone else in America, I hope GM goes completely under...
...but...the headline of this thread is misleading...for now.
Define 'soar.' His negatives have doubled since his teleprompter was installed in office.
That is why there is a question mark in the headline!
Another 6 months? The pressure relief valves of the society are all going to explode before then.
GM going into Chapter 11 and Chrysler being sold off in pieces is the single greatest assault to the free market this nation has ever witnessed. The country is going to have a conniption over this, with emotions spread across the spectrum, from deepest apathy, to explosive rage.
We may not even get through Spring without widespread civil unrest, at this pace. Our country is literally being broken to bits by the Obama mis-administration.
A major chapter of American history will be written by this time next year. Mark my words.
I’ve been trying to verify as well and have come up with nothing......HOWEVER, I found this breaking this evening. The writing is on the wall, folks!
http://zerohedge.blogspot.com/2009/03/gm-is-36-short-of-march-sales-quota.html
There were some polls out today that Rush was talking about , think Rasmussen was one of them .. which said people (aka “the mob”) are firmly behind Obama’s economic policies.
Thanks for correcting that. I still believe he was correct in that statement.
The corollary, of course, is that what's bad for GM is bad for the nation. We know that the UAW is what's driven GM and the other big car companies close to oblivion. They'll do the same thing to the whole nation, if they're allowed to.
I can only hope that GM will come out stronger and leaner after Chapter 11 restructuring. It's anyone's guess though, with Obama at the wheel.
GM only has a cupla hundred billion in bond debt outstanding.
The $25B "loans"/"bailout" from The Obammunist let a lot of his comrades cash in. Even a loss will be a fortune compared to what the bonds will be worth in bankruptcy.
yitbos
GM is filing Chapter 11....
Chrysler is going to be sold off in pieces..
Headline had ?, yes...but your post body seemed to contradict....
Thanks for clarifying.
Ya, Obama can be the CEO of General Motors. He never ran any business, or had any management experience of any kind before he became president. He has had his management problems, shall we say, since he’s been president.
Yep, I know it strains believability that Obama knows what the heck do with GM and Chrysler. He has no clue about how business works, or any clue about how a business in trouble can turn around.
I do too, but I can’t belive BHO is going to let this happen...
Here we go.
Rumors of bankruptcy or going out of business entirely...and surprise...sales drop!
Who in their right mind would think of buying GM/Ford/Chrysler now?
If they aren't going to be around....why bother.
If the car breaks down, who really wants a gov't backed warranty program to fix it? It'll take twice as long and cost twice as much, IF it can be fixed at all.
You'll have to hire a private mechanic to fix the government mechanic's mistakes
Automakers and their union vampires brought this upon themselves.
Screw them and their new CEO...aka President Obama...
"IF IT AIN'T BROKE, FIX IT UNTIL IT IS" President Obama's new motto.
"IF IT AIN'T BROKE, FIX IT UNTIL IT IS" President Obama's new motto.
I used to laugh at that standard government joke...
...until I realized the joke (Obama) is on US.
‘Bout time.
“I can take a crap inside a box, and write guarantee on the the side of the box, but at the end of the day, you still have a box of crap”
Tommy Callahan
I can’t find anything else about it but this...
U.S. Plan Sees Easing of G.M. to Bankruptcy
The government is seeking to ease General Motors into what it calls a “controlled” bankruptcy, somewhere between a prepackaged bankruptcy and court chaos, by persuading at least some creditors to agree to a plan that would cleave the company into two pieces, according to people briefed on the matter.
G.M.’s new chief, Fritz Henderson, also said that the pressure from the government pushed the automaker closer to bankruptcy.
“By no later than June 1, if we’re not able to accomplish this outside bankruptcy, we’ll be in bankruptcy,” he said at a news conference in Detroit on Tuesday. “It’s pretty clear. The government was unequivocal.”
http://www.nytimes.com/2009/04/01/business/01bankruptcy.html?hp
Check the calendar people...
Under a plan being worked out by the administration, G.M. would file for prearranged bankruptcy, according to these people. It would then use a sale authorized under Section 363 of the bankruptcy code to quickly sell off the desirable assets to a new company financed by the government. These good pieces might include Cadillac and Chevrolet, as well as assets the company needs to run the business.
Less desirable assets, brands like Hummer and underperforming factories, would be left in the old company. Proceeds from the sales, including stock in the new company, would be given to the old G.M., helping to settle claims.
http://www.nytimes.com/2009/04/01/business/01bankruptcy.html?hp
The administration hopes to win support from some of G.M.’s creditors, notably the United Automobile Workers, which would be forced to pare its health care benefits and whose pension obligations would probably remain in the old company. But the bankruptcy code allows a judge to approve a sale even over creditor objections in an emergency under Section 363, legal experts say.
The government’s plan to dictate terms as the provider of G.M.’s bankruptcy financing — known as a debtor-in-possession loan — is not without risk.
“You’re introducing politics into the process,” said David A. Skeel, a law professor at the University of Pennsylvania.
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