This is the date the UAW forced GM to sign it's first labor contract.
Posted on 06/01/2009 8:58:24 AM PDT by Deek
NEW YORK – General Motors filed for Chapter 11 bankruptcy protection Monday as part of the Obama administration's plan to shrink the automaker to a sustainable size and give a majority ownership stake to the federal government.
GM's bankruptcy filing is the fourth-largest in U.S. history and the largest for an industrial company. The company said it has $172.81 billion in debt and $82.29 billion in assets.
"The General Motors board of directors authorized the filing of a Chapter 11 case with regret that this path proved necessary despite the best efforts of so many," a company statement said. "Today marks a new beginning for General Motors. ... The board is confident that this New GM can operate successfully in the intensely competitive U.S. market and around the world."
(Excerpt) Read more at news.yahoo.com ...
GM was just short of a stall.
The govern-loons said, “all we need to do is pull back on the stick just a bit more, and we can start gaining altitude again.”
So they took the controls and pulled back.
I await the GM spin and subsequent crash.
Ref: See British Leyland
We need to fire the Federal Government big time.
It so surreal..
Please note everyone... according to the news I heard this morning GM will be 60% owned by the U.S. Government, and 16% owned by the CANADIAN GOVERNMENT as well!
Well, at least the auto-workers will still have their jobs, right? I wonder where they think they’ll find customers for their GOVERNMENT MOTORS cars (same with Chrysler).
And all the talk last fall was that we CAN’T let them file bankruptcy! We just CAN’T we’re ALL DOOMED if they do! Yeah, and this is SO MUCH better isn’t it??? Where did those BILLIONS go? To “settle” their books before they went to court or something?
I don’t suppose we’ll hear much from those who were pushing for all the stimulus bills coming on this thread apologizing either...
>...the Obama administration’s plan to shrink the automaker to a sustainable size <
Is Ford still American-owned?
I think what we’ll be doing is only buying used classics from here on out, unless we NEED something new, and then we’ll look at foreign brands, that assemble their cars and use parts suppliers from HERE in the U.S..
Or is it a flight from bonds to stocks because bonds have lost their appeal? The main point of bonds is that they are senior, secured debt. Now that obama has declared that part of fundamental business law to be ignorable, there's no point in buying bonds.
BTW, I can no longer imagine an outcome in which GM continues to exist. They blew through $20B in our tax dollars in two months. They have another $30B in our tax dollars, but their net worth is about negative $90B. With bankruptcy calling their survival into question, college educated liberals buying 70% of their cars from Europe and most of the rest from Japan, and conservatives offended at the fascism of a nationalized company, I don't see much future demand for their product. As for future voluntary investments to keep them afloat, no sane person would loan them money via corporate bonds after they chose to default for political reasons, and no sane person would buy stock in a company with such a severe negative net worth problem. Once the fascist in our White House realizes that we won't tolerate his stunts any more, they're dead. [Good!!!]
You can still buy a Ford.
The sad part is that some people on the board likes the idea of the Government propping up dead companies. In a sane world GM and Chrysler would have gone into bankruptcy. Then a leaner and meaner GM and Chrysler would have emerged or a new car company.. In a sane world that is..
I will do everything in my power to avoid paying taxes. I’ll cut back, take less money, barter when we can, take every deduction I can possibly find, I will structure it so that they get as little as possible. I will not ever buy a GM car. Read my lips, NEVER. In fact, they won’t even get a dime for parts or repairs. We are selling the last 2 GM’s this week and we have replaced all with Fords.
“It so surreal..”
I’m 45 years old...
I NEVER, EVER, thought I would see this happening in my lifetime.
NOW I begin to understand how my Grandfather and his brothers felt while this SAME, EXACT THING was happening in 1930’s Germany. And they, too, felt as powerless to stop it from happening as I do, with the media triumphantly trumpeting everything the Messiah is doing.
The Brothers decided to flee to America, and my Grandfather was lucky to survive the aftermath.
WE haven’t got anywhere to flee to.
I’m sorry, but listening to this GM CEO in the presser leaves little doubt as to why this company is in the toilet.
Now that Obama is head of a corporation and we the people own the government; can we fire him?
Obama is going to mandate fleet purchases to GM?!
in his speech the man is 100% nutso.
The only thing missing is the greek columns and obama playing a violin.
Trabant, Iclci, GAZ, YUGO, ZAPOROZHETS, GM
One of these is now just like the others...
Looks like Ford could get a big boost. All Ford has to do is offer a good deal if you turn in your old GM or Chrysler car and buy a new Ford!
I’m glad to see the National Tea Party, but Sept. 12 may be too late. The Dems will no doubt come back from August recess ready to rubber-stamp with breathtaking speed.
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