GM could declare bankruptcy, split up as early as this week.

Discussion in 'Politics, Religion, Social Issues' started by Unspeaked, Apr 7, 2009.

  1. Unspeaked macrumors 68020

    Unspeaked

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    #1
    LINK

    News just out this afternoon that GM seems to be abandoning any hope of saving itself from bankruptcy and is starting to prepare for it, possibly declaring as early as this week and beginning to split up the profitable components from the unprofitable ones.

    Moody's puts the chances at 70% and growing...
     
  2. Schtumple macrumors 601

    Schtumple

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    #2
    That's what happens when you (as a company) stick with the same product line and don't update with the rest of the world, I know they were an iconic company of the USA but good riddance I say, maybe that'll teach the rest of the US auto makers that they should keep up rather than try to force ideologies onto the american people (4x4s being family vehicles, terrible MPG ratings etc)

    I expect full flaming, as it's PRSI, but I'm not trying to start a flame war/trolling, I really dislike GM, Ford and Hummer for their general disregard for keeping up with the rest of the world, look at Ford (EU/EK) and Ford USA lineups, they're dynamically different, it's almost as is the EU/UK Ford was listening to it's market, and the USA one was dictating what the american people want.
     
  3. Unspeaked thread starter macrumors 68020

    Unspeaked

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    #3
    One thing I totally forgot to add, that I found a little amusing, is that just this morning GM had a grand press release about a new alliance with Segway and a product they've co-developed:

    GM, Segway to Make Vehicle
     
  4. 11800506 macrumors 65816

    11800506

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    I think this will be very good for GM. It will allow them to drop their unprofitable brands (something which I have said they should do for years) and focus their resources on making their better brands great. GM has taken many missteps recently, but their newer vehicles put them on the right track (Cruze, CTS, SRX, Equinox, Volt, etc) as they seem to have gotten the picture that a better product actually does sell better. Ultimately, I think bankruptcy is what GM has needed. Hopefully when they emerge from it they'll have dropped down to only 2-3 brands in the process and will be much better off.
     
  5. nick9191 macrumors 68040

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    Agreed.

    Best thing Ford can do is get the Fiesta and the new KA into the United States with an excellent marketing campaign.

    The economy is junk and oil is still reasonably high, people want cheap economical cars, and I'm sure they would be prepared to pay more to know they are helping their ailing car industry.

    Please correct me if that was a lot of crap, I know little on car culture in the United States.
     
  6. 11800506 macrumors 65816

    11800506

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    Bringing the new Fiesta is definitely a smart move for Ford, however oil prices have dropped substantially and are now around 1/2 of what they were last summer. However in combination with the poor economy and the fact that automakers have seemed to switched gears to more economical cars, small cars are still in demand.
     
  7. Unspeaked thread starter macrumors 68020

    Unspeaked

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    I think the trouble is American's aren't unhappy with the alternative.

    I mean, it's not like we're looking for an excuse to buy Ford and GM vehicles; we seem to be perfectly happy with Honda, Toyota and company.

    Even if the US automakers introduced some of their more exciting products, I don't think it would help. Sure, a few people would jump on them, but the rest would all be going "And...??"
     
  8. Sun Baked macrumors G5

    Sun Baked

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    #8
    Ford is ahead of the game, but this'll hurt if they get a parts supplier issue, which may happen.

    The Ford Ka is interesting especially with Fiat looking at Chrysler ... do Fiat and Ford split the cost so they can sell the same car as a Ford and Chrysler, or is Ford devious enough to wait to see how it sells through Chrysler before importing it.
     
  9. Cave Man macrumors 604

    Cave Man

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    This will allow the unloading of lots of baggage - and probably tip the socialized medicine scale...
     
  10. yg17 macrumors G5

    yg17

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    Oil prices have dropped, but if any automaker is naive enough to believe this drop is permanent and oil prices won't be going back up, and continue to build gas guzzling SUVs, then they deserve whatever they have coming to them. Ditto for consumers who still buy gas guzzlers because gas is cheap right now.
     
  11. gkarris macrumors 604

    gkarris

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    Yes, gas is a lot more affordable but people don't have the money for expensive new cars... :eek:

    People are like "The Poor Auto-Industry..."

    But I don't see Honda, Toyota, and Nissan (all of which have factories here in the US) asking for US Government bail-outs...
     
  12. godmachine12 macrumors member

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    #12
    This was unavoidable and was merely delayed by our idiotic government wasting untold billions on a company—and industry for that matter—with byzantine practices.
     
  13. rdowns macrumors Penryn

    rdowns

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    #13
    Many auto makers are receiving some form of govt assistance.

    http://www.wkbw.com/news/local/41327187.html
     
  14. andiwm2003 macrumors 601

    andiwm2003

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    #14
    so did they just fire the CEO with a 20 Mio dollar golden parachute and then go chapter 11 instead of going chapter 11 and then fire the CEO without a bonus or golden parachute?

    Thank you Obama&Co :rolleyes:






    (btw. I am a Obama supporter most of the time but this bank and car company bailout stuff...)
     
  15. SactoGuy18 macrumors 68020

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    Actually, I do think that GM has been quietly working with Obama Administration officials on a Chapter 11 filing that could be announced within the next 2-3 weeks. This filing will have the full blessing of the Federal government, and it will allow GM to finally shed itself of its excess and concentrate on its most viable product lines: Chevrolet, Cadillac and GMC in the USA and Chevrolet and Opel/Vauxhall in the rest of the world.

    I actually think the stock market will welcome this move, because it shows that GM is taking the tough, but necessary steps to make itself viable again. :)

    As for Ford, the enormous success of the Fiesta in Europe bodes very well for the success of the Fiesta in the USA when that arrives early in 2010. Indeed, the US model could be actually better than the European model, since the US model will use the Powershift six-speed dual-clutch transmission for excellent fuel economy.
     
  16. quagmire macrumors 603

    quagmire

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    As I said in another thread, I am sure GM realized they needed to shed brands as well, but due to laws protecting the dealerships and other things it would be very costly. Oldsmobile cost $2 billion to shut down. Imagine what Saturn, Hummer, Saab, and Pontiac would cost( Saturn and Pontiac are definite kills, but if there are no buyers for Hummer and Saab, you can say goodbye as well).
     
  17. n8236 macrumors 65816

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  18. Malfoy macrumors 6502a

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  19. Cave Man macrumors 604

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    I just need them to survive for about 5 more years so I can get me a 'vette...
     
  20. 11800506 macrumors 65816

    11800506

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    Oh I know that the cost would be prohibitive. However, it doesn't mean that they can't sell some of their less desirable brands (even though companies such as Pontiac/Saturn don't have much to be sold - mostly the right to brand name) or even try to focus them better and stop with the badge engineering. They did try to do that, although evidently they didn't try had enough.
     
  21. quagmire macrumors 603

    quagmire

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    Well GM was actually on the right track on restructuring the brands before the new CAFE rules went into place. Saturn was supposed to equal Opel, Hummer being Jeep's competitor, Saab being their usual quirky self, and Pontiac being performance and pretty much being Holden's US arm. Pontiac already had the Solstice and upcoming G8. The G6 was going to go RWD as well. But, then CAFE came along and killed that. Then the credit crisis the the financial trouble that ensued killed Saab, Hummer and Saturn.
     
  22. Lord Blackadder macrumors G5

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    Bankruptcy is actually not the dissolution of a company, but rather a means to protect it and prevent it from being dissolved when it is no longer able to pay its debts. So GM's declaration of bankruptcy could be cast as a move to keep the some of very people who ran it into the ground in their jobs.
     
  23. Abstract macrumors Penryn

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    Yeah, they're probably filing for Chapter 11, which means they're still going to operate. I'm actually kind of surprised it took this long. Perhaps this is better for them.

    Anyway, if they disappear, I won't really care either. Ford and Chrysler (if they exist later) will pick up some of the marketshare that GM lost, some ex-GM employees may get some of the extra jobs created from this (but lose all their benefits and pension and such, while Japanese and European automakers get the rest and hopefully employ more people in North America as well. I can see Ford benefiting a bit from this. Ford and Hyundai seem to be getting all the positive press coverage these days in all the major car magazines, and the attention on Ford will have a positive effect on sales in a few years when people start looking for cars again.

    I guess the problem for Ford (and Chrysler) is sticking around until the positive press translates into increased sales.
     
  24. FrankieTDouglas macrumors 65816

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    #24
    So... if they go bankrupt, what happens to all of their retirees?
     
  25. quagmire macrumors 603

    quagmire

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    #25
    To be even more specific, Chap 11 bankruptcy is not dissolution. Chap 7 is total liquidation.
     

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