View Full Version : GM Bankrupcy bet (come and place your bet!)
those of you who haven't heard, GM is now gearing towards a "possible" bankrupcy after the firing of Wagnor. they now are working on a contingency plan for chapter 11 according to their CFO, which will split the company into two, one retaining the more profitable brands like Chevy and Cadillac, the other taking the rest of the brands like Pontiac, saturn, buick, sabb into liquidation. it'll also give them the benefit of wiping out more than 2/3 of their liability on their book. the goal of the plan is so that the profitable brands like Chevy and Cadillac can continue to operate without debt.
i thought this might be an interesting time to put up a bet..... as it seems now that Bankrupcy is more likely, (as oppose to before where no one at GM or the creditors believe bankrupcy is an option).
so in 55 days, it should be interesting to see how the reality turns out in relation to our forum poll.
EDIT: here are some news clips that should tell you more about what just happened last few days.
http://www.msnbc.msn.com/id/21134540/vp/30095684#29981036
http://www.msnbc.msn.com/id/21134540/vp/30095684#29975547
Comixion
04-07-09, 09:54 PM
Nooooooooooooooooooo!!!!!!!!!!!!http://i39.photobucket.com/albums/e155/Comixion/emoticons/NONONO.gif
i kinda feel bad for Pontiac, just when they finally struck a hitter with the new G8 GXP, (after all the unsuccessful trials and errors and hundreds of unsuccessful models) they might never even see it live pass year 2 because of this.
might be a good time to grab a G8 GXP when you can.
Comixion
04-07-09, 10:17 PM
I mean dam!
What about parts for my truck? Will they still sell 'em?
I planned on trading it in about a year on a new one.
I mean dam!
What about parts for my truck? Will they still sell 'em?
I planned on trading it in about a year on a new one.
what do you have?
Obama has promised to stand behind all warranty and services despite any possible outcome of the two auto makers. that means it won't effect your car even if GM goes into bankruptcy, you'll still get your warranty and services. you just won't have a very good resale value unless if it's something that's saught after by collectors.
Chrysler has found itself a buyer, so i don't see them going away anytime in the near future. they're only finalizing the deal at this moment. but that doesn't mean they're out of the woods. their R&D for their future portfolio still looks weak.
jdrom17
04-07-09, 10:37 PM
unless if it's something that's saught after by collectors.
Comixion will have passed away by then ;)
Comixion
04-07-09, 11:03 PM
2002 GMC shortbed I recently sold--gas guzzling V8
1994 GMC shortbed-stepside in exc. cond. V6 auto--gets me to work and back and paid for. But I hate it. No power in the V6.
I'm gonna go buy me an old truck, 67-72 Ford 3/4 ,fix it up and not worry about state inspections and all that communist BS. Plus I can register it as a classic. And they are simple to maintain and repair. I don't need this new crap. It costs money. And all I do is drive to work and back.
Comixion
04-07-09, 11:15 PM
I was kinda sad when Oldsmobile went belly up. I kinda liked the Aurora. But it was overpriced. But nice to drive. I rented one to drive to West Virginia.
GM has already said that Saturn and Hummer are being disbanded. As well as Pontiac is being stripped down to just two models.
So I think they will continue to trim the fat. But not go under.
GM has already said that Saturn and Hummer are being disbanded. As well as Pontiac is being stripped down to just two models.
So I think they will continue to trim the fat. But not go under.
this was true two months ago, however, since the firing of Wagner, the new CEO Fritz Henderson has made public announcements that settling through bankruptcy has become a foreseeable option, and he is not at all opposed to it. this is supported by another following announcement by their CFO Ray Young stating that a contingent plan of bankruptcy is already at work. They pointed out during an interview that all but two of the most successful brands (chevy and Cadillac) will be preserved, while the rest of the brands will be incorporated into a separate entity for an ongoing liquidation and sell-off of assets provided the deadline comes in June and they still can't reach all the required agreements with UAW and suppliers.
this was true two months ago, however, since the firing of Wagner, the new CEO Fritz Henderson has made public announcements that settling through bankruptcy has become a foreseeable option, and he is not at all opposed to it. this is supported by another following announcement by their CFO Ray Young stating that a contingent plan of bankruptcy is already at work. They pointed out during an interview that all but two of the most successful brands (chevy and Cadillac) will be preserved, while the rest of the brands will be incorporated into a separate entity for an ongoing liquidation and sell-off of assets provided the deadline comes in June and they still can't reach all the required agreements with UAW and suppliers.
So Chevy is going to be liquidated? No more Vette!?
So Chevy is going to be liquidated? No more Vette!?
not Chevy and Cadillac, but Saturn, Sabb, Pontiac, and Buick will. provided if they enter bankruptcy.
Chevy and Cadillac are actually two profitable businesses, they're just infected with the heavy debts and liabilities caused by the less profitable brands, top that with the gigantic overhead by UAW.
you can't compete when you're paying twice more to your worker than what your competitors do; especially when your business model relies heavily on extreme high volume low price sales.
Avid6eek
04-08-09, 08:23 AM
I'm hoping GM files for bankruptcy so that they can finally get their act together. There is too much red tape in place (contracts) to prevent them from doing everything they need. They have so many different models that are similiar, it would do them good to consolidate. I would like GM to move the Pontiac G8 and Pontiac Solstice over to the Chevrolet division. If they do that, they can surely drop Pontiac, Buick, GMC, Saturn, Saab, and Hummer.
Chrysler lucked out teaming up with Fiat. If it wasn't for the Hemi engine and the Jeep brand, they are pretty worthless.
:Dcomixion will have passed away by then ;)
lmao!! :D (10)
Hate to hijack this thread, but do all the shooting that happened in the U.S had anything to do with the GM going down under?
Avid6eek
04-08-09, 02:34 PM
Hate to hijack this thread, but do all the shooting that happened in the U.S had anything to do with the GM going down under?Nope. The economic issues have taken their toll on people and may have some part in the recent shootings, but no specific references have been made to GM.
Hate to hijack this thread, but do all the shooting that happened in the U.S had anything to do with the GM going down under?
Which shooting are you talking about. We have a lot of shootings going on here. We have suicide maniac shooting, gang banger shooting, robbery shooting, country side shooting. What kind of shooting you want?
Comixion
04-08-09, 02:55 PM
You forgot road rage shooting.
What happened to the days of just duking it out and go your merry way. Nowadays there are too many cowards. They solve issues with bullets instead of words or fists.
You forgot road rage shooting.
What happened to the days of just duking it out and go your merry way. Nowadays there are too many cowards. They solve issues with bullets instead of words or fists.
yeah!... what happened to the good old days of John Wayne and High Noon, or Shane. then of course, most people now adays won't even know what these are.
Comixion
04-08-09, 04:30 PM
yeah!... what happened to the good old days of John Wayne and High Noon, or Shane. then of course, most people now adays won't even know what these are.
That's before my time. Check with AK. ;)
looks like the wind has changed.
Chrysler now faces serous bankruptcy. The treasury department has notified Chrysler to prepare for possible chapter 11 bankruptcy as its deadline approaches next week.
i have a feeling that neither of the two automaker's debtors and union will cave until one of them goes into bankruptcy. by then they'll know that bankruptcy is real and not just a bluff and cave into the settlement demand. and since GM is the one who has a longer deadline here, looks like Chrysler might be the lab rat.
http://dealbook.blogs.nytimes.com/2009/04/24/chrysler-lenders-respond-with-new-counteroffer/?ref=global
if i were the debtor, i'd take the losses and grab the billion that i still can, as oppose to trying to get your money from the bankruptcy court. that's like knocking on a 6ft thick door.
EDIT: GM will likely announce tomorrow that they'll either sell Potiac, or Liquidate it. http://www.msnbc.msn.com/id/21134540/vp/30387853#30389092 :( a funeral is in process.
There goes pontiac.
The real question is, will the death of pontiac result in massive layouts?
Those are the real problem here. Massive layouts will boost the unemployment rates, and would saturate the current job market, resulting in :
(1) Employers would willing to pay less, since the job pool had blown up :p
(2) Jobless people would defaulted on their loans, which means sh*t for banks and financial institution
(3) They would put more burden into the welfare system. Good luck with that :p
with its headquarter already more than half empty (4500 employees VS original 10,000). GM is to enter bankruptcy tomorrow http://www.msnbc.msn.com/id/21134540/vp/30999293#31027567
http://www.msnbc.msn.com/id/21134540/vp/30999293#31016782
what did i tell ya ;)
with its headquarter already more than half empty (4500 employees VS original 10,000). GM is to enter bankruptcy tomorrow http://www.msnbc.msn.com/id/21134540/vp/30999293#31027567
http://www.msnbc.msn.com/id/21134540/vp/30999293#31016782
what did i tell ya ;)
There goes GM.
Guess GM does mean Goes Missing :p
No buyer to take over GM? I'm sure one of China's conglomerates are looking at GM (GM kinda big in China. Really)
OFFICIALLY BANKRUPT!!!
dan dan dan....... (music)
i win :D
Avid6eek
06-02-09, 10:05 AM
And the winners are....
My money is on Chapter 11 - Avid6eek BAM! Devils00Champs Nova
Nah... that'll never happen, i have an uncle named "SAM", he'll never let it - Comixion Nataku Zefram
And the winners are....
My money is on Chapter 11 - Avid6eek BAM! Devils00Champs Nova
Nah... that'll never happen, i have an uncle named "SAM", he'll never let it - Comixion Nataku Zefram
I admit defeat.
Uncle Sam let me down again. :p
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