What if GM goes bankrupt?

What if GM goes bankrupt?
Nov 24, 2008 02:07
DREAMLIFE Points: Join Date: Sep 5, 2007 Status: offline	Due to the financial turmoil, US auto industry is in danger too. It is said that GM board has considered all of possible choices, even filing bankruptcy. Meanwhile, GM and other auto producers are trying to convince parliament, hoping getting aid from the country. GM made an announcement on Wall Street Journal on Nov. 21th, saying that the board did talk about bankruptcy but bankprutcy can't bring them huge amounts of capitals. And GM is trying its best to avoid bankcruptcy. What if GM really goes bankrupt? Will it trigger Domino Effect?

Nov 24, 2008 02:07

DREAMLIFE
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Join Date: Sep 5, 2007
Status: offline

Due to the financial turmoil, US auto industry is in danger too. It is said that GM board has considered all of possible choices, even filing bankruptcy. Meanwhile, GM and other auto producers are trying to convince parliament, hoping getting aid from the country. GM made an announcement on Wall Street Journal on Nov. 21th, saying that the board did talk about bankruptcy but bankprutcy can't bring them huge amounts of capitals. And GM is trying its best to avoid bankcruptcy.

What if GM really goes bankrupt? Will it trigger Domino Effect?

Nov 24, 2008 04:29	#1
GARYKINKADE Points: Join Date: Jan 8, 2008 Status: Offline	If GM came out with a new model vehicle and called it "bankrupt", I wonder if it would sell?? After all, most of their current models denote luxury, power, machismo, etc., etc., etc. This new model would be antithetical to all the previous concepts By the way, Ford ain't doing so hot either, I believe their shares were below $2 as of Friday. Yikes....how about $1.43/Share

Nov 24, 2008 08:52	#2
DODGER Points: Join Date: Jul 15, 2007 Status: Offline	Perhaps the Septics should have stuck to producing Zippo's…they use less gas and mine still works after 20 years of abuse. Dodger.

Nov 24, 2008 19:59	#3
COOLSPRINGS Points: Join Date: May 19, 2008 Status: Offline	It's unlikely that GM is be be gone as an industrial pillar. It is stuck on high piled inventory. If you love America, just buy made in USA instead of made in Japan or Germany. Outside cash injection is urgent to keep it from death. In the long-run, re-engineering will be a must.

Nov 24, 2008 20:49

SHESGOTTOBE
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Join Date: Nov 23, 2007
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Companies go brankrupt all the time. After 9/11 some airlines filed bankruptcy but now they are profitable.

Coolsprings, contrary to popular belief, many Americans do not subscribe to patriotism when it comes to cars or other goods. They want value for their money, meaning good quality cars. Also, 'green' cars or fuel efficient cars are status symbols right now. You are considered cool if your car is 'green'.

Many Americans are against the bailout. They want the auto companies to opt for bankruptcy and then restructure. They also see this as a chance to get their acts together and start making more green cars. That, or they get bailed out by the oil companies since they are the ones who benefitted the most.

Nov 24, 2008 21:25

MARRIE
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Join Date: Jan 7, 2008
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Part of 25 billion was budgeted for fuel efficient or hybrid which could be formally put into production in 4 years. Sales crunch leads to short term liquidity but the biggest potential crisis of bankrupcy is scary meltdown in payroll that could cause social turmoil. Booting Union, lowering salary and benefits, R&D for 'green" and expanding market share are a long-term strategy. Short term restructuring beat employees' morale but seems inevitable because huge amount of pension debt could be wiped off through lump -sum severence payments via termination or layoffs.

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