GM considering filing for chapter 11..

PittSpeed Automotive
1

http://news.yahoo.com/s/nm/20090214/bs_nm/us_gm_plan

GM considering Chapter 11 filing, new company: report

Sat Feb 14, 4:03 pm ET

CHICAGO (Reuters) – General Motors Corp, nearing a Tuesday deadline to present a viability plan to the U.S. government, is considering as one option a Chapter 11 bankruptcy filing that would create a new company, the Wall Street Journal said in its Saturday edition.

“One plan includes a Chapter 11 filing that would assemble all of GM’s viable assets, including some U.S. brands and international operations, into a new company,” the newspaper said. “The undesirable assets would be liquidated or sold under protection of a bankruptcy court. Contracts with bondholders, unions, dealers and suppliers would also be reworked.”

Citing “people familiar with the matter,” the story said that GM could also ask for additional government funds to stave off a bankruptcy filing.

GM declined to comment, the story said.

General Motors and Chrysler LLC face a Tuesday deadline to file restructuring plans to the government in exchange for receiving $17.4 billion in federal loans.

Automakers have struggled as U.S. auto sales have tumbled amid a recessionary economy. U.S. auto sales in January tumbled to a 27-year low.

GM has been in talks with bondholders and the United Auto Workers union to get an agreement on a restructuring that would wipe out about $28 billion in debt for the auto maker, sources have told Reuters. However, it appears unlikely a deal could be reached by the Tuesday deadline, they said.

GM has already announced plans to cut 10,000 salaried workers worldwide, or 14 percent of its staff, impose pay cuts for most remaining white-collar U.S. workers and has offered buyouts to its 62,000 U.S. workers represented by the UAW.

In addition, it is trying to sell its Hummer SUV and Swedish Saab brands and is reviewing the status of its Saturn brand.

Its about damn time, Selling SAAB off would be a smart move, as well as just getting rid of Hummer(keeping only plants open for what the armed forces need would be way better IMO, no one wants gas guzzlers like that anymore) and Saturn.

/getsreadyformorebeatingadeadhorse

2

Ron Gettelfinger is killing of the american car manufactures. the Union have come and gone

3

File for bankruptcy. Receive funding from private investors instead of the government. If the company has value, investors will provide the money for what the company is WORTH, not what they WANT from the government, who shouldn’t be managing businesses anyway (this applies to other businesses as well). Axe Saturn (and Hummer as mentioned), make Pontiac a specialty division (too much overlap with Chevy), consolidate a lot of the models of cars - you can’t have that many models when you don’t have the equivalent share of the market. Higher a CEO/CFO/management with long term incentives, so they manage with the future in mind, not quarterly. Renegotiate with the union (even though it will go nowhere). If (when) they don’t accept reasonable terms, start looking at other states and bargain for the best deal like some of the foreign car companies (who received incentives from the state to build their plants where they did).

4

So they are planning to file Chapter 11, after getting their bailout checks, then eliminating misguided ventures. Fuck, gotta love the system.:finger2:

5

no it was a loan

6

^^ I understand, but I cannot figure out why the restructuring didn’t come before the loan, or the bankruptcy protection for that matter. Backwards…

7

why do you not ask the same question about Sirius/xm. I am sure there are reasons that’s why they have some big price attorneys.

I feel the reason is cause they union is being such pricks that they will not make any consignments. this might be the only way to restructure the salaries and employees under the contracts

8

fuck em, let them collapse. If they can’t run their company good enough they should not be in business.

9

the unions are going to sink this ship just like the steel industry did and then they will come out crying about not having any jobs anymore.

10

If GM is smart, they will move to better states that will crush the Unions. When your workers don’t give you a bone to save the company, then they deserve working at a fast food place…

11

do you really have a avatar with a threesome including two dudes?

12

Laborers deserve a fair wage. Making $35/hr to install a single bolt in the same place on cars all day is not a fair wage, its absurd. The unions have gone waaay too far…this has been building for quite some time.

13

I am now on day 13 of having my 2008 Trailblazer. It’s a v8 2wd model.

It’s a loaner because my crown vic was hit in front of my house. All i can say is, I know why GM is going under and it has nothing to do with how much they pay their people. The trailblazer is by far the biggest hunk of shit I have ever been in. It has less seat room than my Fusion ( my 3 kids fit easier in the fusion than they do in the trailblazer), it rides completely horrible, gets horrible gas mileage, takes too long to warm up, etc… I would not buy one if it was $10 for a brand new one.

If other GM vehicles are even remotely close to as shitty as this thing is, I know why they are failing.

I just cannot stress enough how retarded that trailblazer is, I FUCKING HATE THIS POS I HAVE TO DRIVE AROUND IN. I can’t wait to get my crown vic back.

/rant

14

Eh, keep in mind it’s a rental vehicle right…they’re not exactly the best maintained/best treated vehicles and probably doesn’t represent their respective brands that well.

15

I had an Impala last week in Baltimore for a rental car… What a hunk of shit, nothing about that car makes me want to get in it everyday and drive. My biggest complaint was the climate controls. They were two dials of a sort that went up for warm, down for cold. while driving it would start to bounce around.

16

Just like any business, you can have the biggest name out there, but if the thing you’re selling isn’t worth shit, then you’re going to have problems.

You can see it just in the designs of these vehicles how shoddy they really.

17

http://www.wheels.ca/articlecategory/article/512356

General Motors posted a 9.8B loss.

18

It wasn’t beat on, it had 18K miles on it. The interior wasn’t beat on, it was just shitty. The location of everything was in the wrong place, the seats were uncomfortable, and the back seat for the kids was about the size of the seats in a honda fit.

The only positive is that it had the rear seat heater for the kids, other than that I hated everything about the vehicle.

My wife wants to start looking at suv’s and get rid of the crown vic, I know for a fact that GM is not on my list to even go look at. My wife and I both said that the trailblazer could be $5K less than the competitor and we still would not even consider it.