Posted on 11/21/2008 5:20:01 PM PST by Sub-Driver
Bankruptcy Is Option to GM Board By JOHN D. STOLL
DETROIT -- Members of General Motors Corp.'s board of directors are willing to consider "all options" for the ailing auto maker, including an eventual filing for bankruptcy protection, a stance that puts them in rare disagreement with Chairman and Chief Executive Rick Wagoner, people familiar with the matter said.
As part of his push to win a federal bailout for the company, Mr. Wagoner told Congress this week that GM management believes bankruptcy protection is not a viable option for the company. Instead, GM is focusing on persuading lawmakers to provide financial help, Mr. Wagoner said. Skidding Auto Makers
The board, which in the past has publicly offered Mr. Wagoner its strong support, agrees that seeking government funding is the company's top priority. But it isn't willing to dismiss the possibility of a bankruptcy filing, say people familiar with the thinking of the board's outside directors.
In a statement provided to The Wall Street Journal on Friday, GM said the board had discussed bankruptcy but didn't view it as a "viable solution to the company's liquidity problems." The board "is committed to considering all options in light of circumstances as they may develop." A GM spokesman, Tony Cervone, said that management is considering doing everything in its power to avoid a filing.
GM said Mr. Wagoner declined to be interviewed. Several of GM's board members could not be reached for comment on Friday. It is unclear whether the board has hired independent advisers to help it evaluate options it may have to consider.
(Excerpt) Read more at online.wsj.com ...
i liked it when rush said today,
if the motor co’s had any guts,
they’d tell congress,
ok—here’s how we make cars.
and get rid of their excess labor costs, and cafe standards.
GM, Ford and Chrysler should meet with the rank and file and detail all the money going to the union bosses and officers.
Then offer them a better deal, along with giving the US a better deal on union built cars.
That way, the union has to choose between the citizens and their union bosses.
Economy 3.0 begins in January 2009, I hope that the economic stimulus of 1.50 gasoline primes the new engines. Frankly, I'm excited- and happy that the folks who lead us into these messes are being recognized.
Another question is “What are the unions willing to give up?” If the company goes into bankruptcy, they will have to reorganize also. Employees need to consider a pay cut also.....something around 30%. Everyone is going to have to give someplace. They can’t retool for new cars during these times. Everything needs to be cut back. Actually, we don’t need new cars right now.
These guys really need to step up, identify the problems loud and clear, go bankrupt to reorganize and get rid of the unions.
Then they need turn around their respective companies and show the American people that Capitalism is the answer to our economic woes, not the the f'n government.
Then perhaps they would show the idiots in this Country why they earn the big bucks and are worth it.
they’ve done some of what you say, according to the newspapers today.
ron gettlefinger, the uaw head, got some concessions from the rank and file.
rush was talking about gm’s hourly costs at $73 per hour and the japanese and so koreans in the $40’s.
also, there’s an article in the wsj today saying that the only big 3 ceo that should stay on is ford’s alan mulally.
This should be a mandatory business school case study, everywhere..... you run a Fortune 50 company that is losing billions, even tens of billions of dollars.
Do you
(A) Double down and act like nothing is wrong until everything goes “poof”
(B) Whine and wail about your problems but do nothing
(c) Vigorously slash costs, re-organize, optimize product lines, labor staff/pay/benefits and production facilities for your real-life business environment..... declare bankruptcy if necessary but do everything humanly possible to get your business enterprise on a sound footing
or,
(D) Go running to the federal govt. for a “bailout” that might at best push your problems a year or two down the road.
If you answer anything but (C) you get booted out of the MBA program instantly. If you answer (C) then you must present a detailed, comprehensive plan by the end of the course, showing exactly how you propose to save the company.
Let’s see...
The Dems replace a committee chairman who opposed much of what makes US cars expensive and replaced him with a man who wants to force us all to stop driving altogether.
Yeah, they want to save the auto industry.
So what if GM goes down the tubes?
A lot of great car manufacturers are also gone.
Duesenberg, Packard, Pierce-Arrow, Studebaker, Hudson, Kaiser, etc.
America still survived.
If we could only do that with the, ah, nevermind :(
I liked that too, but the UAW owns enough Congressional support to keep that from happening, UNLESS the rest of the voters go ape over the bailout of the UAW and their gold plated pensions, health care, and other benefits.
that’s exactly what i don’t like about unions.
i liked it when rush said today,
if the motor co’s had any guts,
they’d tell congress,
ok—here’s how we make cars.
and get rid of their excess labor costs, and cafe standards.
Better, Congress should tell them,
look at Toyota, Honda BMW cars built in America and good quality.
The message of this article is the Board of Directors are okay with it, but the top management will clearly lose their jobs and bonuses. That worry is why Rush’s “friends from GM” call him a lot these days and bitch about unions.
The unions would be taken care of the way they want in bankruptcy...but management will be out.
If Chrysler was smart they’d beat GM to the punch and do it first.
>The unions would be taken care of the way they want in bankruptcy...but management will be out.<
bingo! right on the money.
The only problem is that the Unions won’t got quietly. They would rather the companies go down then give up their current wages and benefits. Were they to go bankrupt, they would threaten anyone (union member or not) who would take their jobs for lower wages. Sadly, these companies are in a helluva box.
A friend and I were discussing the arrogance of the head of the UAW.Telling,not asking,about the option of not receiving bailout money.We were laughing at him,as he and his union not giving up anything!
Hmmmm?3 million out of work because....?
I recently purchased a Remington rifle that I had mistakenly,assumed was made in NY.Wrong,it was made in Kentucky.Much to my chagrin,as I assumed it was made in NY.
As far as autos go,We,as Citizens under the Constitution,are NOT under ANY legal obligations to subsidize any private enterprise.
If that were the case,we would all own our own business’s and not worry about foreclosure.
The Government is not in the business of being in business.
That is why we have a Constituion.
Good. But the concessions need to come from the UNIONS bosses and chauffeurs, not its workers.
There is ONLY ONE loser if GM goes bankrupt and that is the UAW.
The stockholders have ALREADY lost nearly heir entire investment.
It's time to reorganize this pig.
They make DAMN GOOD vehicles that cost too much...and even then they have to sell 'em at a loss. Thier cost of production is around 20% higher than any other manufacturer. What GM can sell for $20K, Toyota can sell for $16k.
However, Toyota sells for $18k and puts the rest in their pocket.
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