GM Bankruptcy Thread

T

The Kin

The company has been given 3 months to live. GMAC has over $57 billion in subprime mortgages to write-down sooner rather than later.

Soaring gas prices can't be good for sales either. Plus unions make it extremely difficult to get rid of excess capacity, at least not cheaply anyway.

3 months.

Next earnings report will make it painfully obvious just how fast the $20 billion cash balance is burning.

Bankruptcy will be the only way to shove it to the unions and make needed reforms however it will be too little and far too late.

There will not be a government bailout since there are hundreds of large companies on dire-straits also lobbying the government hard.

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Merge the 3 automakers, only way to have a american automaker left. If all 3 remain separate they will all go down.

Quote from Thermactor:

I don't believe GM will be allowed to fold completely. I've been plenty wrong in the past, however.
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Think Amtrak. Do they lose money? Do they get govt. bailouts? Are they still in biz?

Chrysler is putting wireless internet in cars? WTF? How about about a well built fuel efficient car. Oh that's right that's why I own 2 Toyotas.

To GM's credit they are moving in the right direction. If I was going to buy American it would be GM. Recently ranked #2 in reliability in front of Nissan. Down but not out by any means.
 
Quote from dandxg:

To GM's credit they are moving in the right direction. If I was going to buy American it would be GM. Recently ranked #2 in reliability in front of Nissan.
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There is a huge difference between INITIAL reliability and LONGTERM reliability

Cars I had:

GM
Bonneville - needed to replace gaskets at 110,000 - $800
6 months later, engine blew out - 120,000
Olds Cutlass Supreme - bought used with 45,000 miles. Over next 6 months, stalled couple hundred 100 times - dealer could not fix, often stalled at intersections and high speeds. Dealer took it back and gave credit on a TBird.

Ford
Probe - replaced tranny at 90K and engine blew out at 110K
TBird - engine blew out at 90K

Volvo
Very good shape - bought for $4000 with 90K miles. Over next 2 years put in $8000, including $4K for a German tranny. Rack went - $800, etc. etc.

Giving up on American cars, I then got:

Honda
Now on my second Civic. first was totaled by someone who plowed into the back of it during heavy traffic. But it was an excellent vehicle. Second vehicle (06) is best car I ever had - Was Motor Trend car of year. Has great mileage, comfy, very safe accident record, airbags everywhere, very good price, can probably exceed 200K lifetime miles, very low depreciation, etc.

BTW, all cars I ever got had followed all the regular fluid and service times. They were well cared for. But American cars always died way too early.
 
Quote from TraderZones:

BTW, all cars I ever got had followed all the regular fluid and service times. They were well cared for. But American cars always died way too early. [/B]
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Put German cars in there too. They are great to drive but have big problems after the warrantees goes. I would take a Mercedes from the 80s any day but wouldn’t touch a BMW, Mercedes, Audi or VW built in the last 7 years.
 
Quote from Mr Pain:

Put German cars in there too. They are great to drive but have big problems after the warrantees goes. I would take a Mercedes from the 80s any day but wouldn’t touch a BMW, Mercedes, Audi or VW built in the last 7 years.
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Agree. My brother got a good deal on a BMW 733i many years ago. But every little repair (and it often needed them) was expensive, A great car to drive, though.
 
Gm will survive. They are just being downgraded by GS this last week because they need to retool and suffer through the lack of gunboat gas sucking SUV's and pickemup truck sales.

Roger Smith, GM CEO at the time (going back a few years ) once said: The auto business is a cash burning business when sales are down regardless of the reason, but when hitting on all cylinders in right conditions the auto business generates more cash than any business out there.

GM caused many of own problems by being SLOW on the gas pedel to see the changes and dependent on the overpriced gas hogs. Typical for American companies to put profits before brains.

GM can burn through a BILLION or more a month before they get it right. Plants, grunt workers, engineers, design staff, etc, etc.

Who besides me will be a buyer around 9.00 a share? This would not be a trade, it would be a hold. Should i/have i put in order at $9.25 to be a step ahead of the crowd?

Chrysler will be toast unless as banjo said either it or Ford gets bought out by a Chinese company. I would not bet a dime on Chrysler, Ford as a Chinese buyer can produce a Ford Cherry. :)
 
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