GM files for Bankruptcy today...

Microdizzey · #1 06-01-2009, 01:23 PM

http://www.bizjournals.com/phoenix/s...01/daily2.html

Quote:

GM files for bankruptcy

General Motors, once the world’s biggest automaker, filed for Chapter 11 bankruptcy protection early Monday, setting up a scenario under which the U.S. government will become GM’s largest shareholder.
Filed in U.S. Bankruptcy Court in Manhattan, it marks history's largest filing of its kind for a U.S. manufacturer. It follows months of speculation that the 101-year-old company might have to restructure through the courts, despite desperate attempts by management to avoid the move.
As it turned out, though, bankruptcy was the only way GM could get its hands on the government money it needs to survive. In its filing, GM lists $82.3 billion in assets and $172.8 billion in debts. The New York Times reports that the company's largest creditors are Wilmington Trust Co., representing bondholders holding $22.8 billion in debts; and United Auto Workers affiliates, representing $20.6 billion in employee obligations.
The U.S. government already has injected $20 billion into GM, and will provide an additional $30 billion to keep the company going as it works through bankruptcy. The investment will buy the government a 72.5 percent stake.
That will give government officials more power to name members of the GM board, though they have said they don’t want to get involved in the daily operations of the company.
That may prove to be quite a challenge, given how much government money is involved.
"It's not forever," Bruce Belzowski, associate director of the Automotive Analysis Division at the University of Michigan Transportation Research Institute, told bizjournals in a telephone interview. "If they had a choice, it would be a short period of time. The longer that it stretches out, the more of a political liability it becomes.”
Still, it could take more than a year before GM emerges once more as a publicly traded company.
While most public attention is focused on GM, the automaker's many suppliers are certain to be affected as well.
President Barack Obama is slated to talk about the auto industry shortly before noon. General Motors CEO Fritz Henderson will follow with a news conference of his own.
Obama administration and GM officials have said they want a much smaller, more competitive GM to emerge from the bankruptcy within 60 to 90 days. GM plans to sell or close such brands as Saturn, Saab, Hummer and Pontiac, and will shed 2,600 dealerships. The company will close 11 U.S. manufacturing facilities by the end of 2010.
Plants throughout GM's system will be idled as the company downsizes. The list of facilities GM said will be closed and include two assembly plants -- Pontiac, Mich. (October 2009), and Wilmington, Del. (July 2009) -- and three stamping plants: the previously announced closing in June of Grand Rapids, Mich.; Indianapolis (December 2011); and Mansfield, Ohio (June 2010).
The company will be split into a new GM and an old GM. The new GM will be owned by the U.S. and Canadian governments, the UAW and current bondholders in the company.

So, how much government interference are you guys willing to take?

"Bend over America, we aren't finished!"

:h ump:

AKRevo47 · #2 06-01-2009, 01:32 PM

who cares, no one is going to buy GM vehicles anyways

wyteberrywidow · #3 06-01-2009, 01:38 PM

I own 2 gm vehicles.Chevrolet Tahoe and impala.So i care to be honest.

AKRevo47 · #4 06-01-2009, 01:42 PM

a horrible investment if i do say so myself

wyteberrywidow · #5 06-01-2009, 01:54 PM

At the time it was good but i see so now.At least my warranty is still covered.

10poitrma · #6 06-01-2009, 01:57 PM

my uncle works a GM/Pontiac dealership and just lost his job from those greedy fuckin CEO's cutting them selves MASSIVE paychecks. so ya i care to.

Microdizzey · #7 06-01-2009, 01:58 PM

Quote:

Originally Posted by AKRevo47

who cares, no one is going to buy GM vehicles anyways

I think the 20,000+ people who are going to get the pink slip care.

Dankdude · #8 06-01-2009, 02:07 PM

I own a GMC Jimmy and have had no trouble with it.
But I will say they should have let them go under to start with instead of sticking the tax payer with the bill for something that was going to fail in the end.

The Auto Makers for years have ignored the consumer. They kept making large inefficient trucks and SUVs even when gas prices were going up over $4.00 a gallon.
Not to mention that they are way over priced for what you get.
Let's face it, the Auto industry has gone the way of real estate by pricing themselves out of the market.
The people need to start buying smaller cars and quit buying large trucks trucks and large SUVs as Status symbols. It's time to get real folks.

Then GM decides to cut Saturn of all things. This is like cutting ones nose off to spite their face.
I say let them go under and good riddance.

Time for fuel efficient, more affordable cars.

medicineman · #9 06-01-2009, 02:52 PM

My only concerns are for the thousands that will be unemployed. Not only will GM employees be effected, but thousands more that work for affiliates, dealerships and parts manufacturers. I'm guessing well over 100K will be effected. I've been a Chevy man for most of my life, having owned a few classic chevy cars, and trucks. Went to Chrysler for my last vehicle and am very happy with it, an '04' dodge 1500. I actually get between 18-20 MPG on the highway. Had to modify it a bit, but even in town, If I pussyfoot it I get 14MPG. not bad for a 6,000 lb behemouth.

max420thc · #10 06-01-2009, 03:28 PM

Quote:

Originally Posted by 10poitrma

my uncle works a GM/Pontiac dealership and just lost his job from those greedy fuckin CEO's cutting them selves MASSIVE paychecks. so ya i care to.

the dealership he works for probable gave five bucks to the republican party or a candidate.

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