Ad Age: What Bankruptcy Could Mean for GM, Chrysler

[buyacargetacheck]

I agree with the overall theme: bankruptcy could have a positive outcome for GM and Chrysler. The key is setting expectations and eliminating uncertainty about warranties, brands, dealers, etc.

http://adage.com/article?article_id=134959

[longtooth]

If either chose that route, especially GM, most of the nastiness gets lost in the background clutter attending the collapse of the economy anyway.

GM's going to be smaller and starting from near bottom as most will.

I would say: Advantage: GM.

[daves87rs]

If either chose that route, especially GM, most of the nastiness gets lost in the background clutter attending the collapse of the economy anyway.

GM's going to be smaller and starting from near bottom as most will.

I would say: Advantage: GM.

[turbo200]

they would need to spend lots of effort and time convincing people they would make it out of Chapter 11, it would need to be gov't financed, the media would need to have a focus on the idea that the cars would be safe to buy still becuase everything would be guaranteed. it would not be easy, there's plenty of reason not to buy a car from a company that is perceived as going under. especially when the competition is strong.

[gmcbob]

It would be a disaster. GM needs to convince the Obama Auto Panel that CH 11 is not the way out of this. It sounds good (to some) and looks good on paper, but I truly think their sales would drop at least 75%, if not more. They'd never make it out.

Edited March 3, 2009 by gmcbob

[Oracle of Delphi]

It would be a disaster. GM needs to convince the Obama Auto Panel that CH 11 is not the way out of this. It sounds good (to some) and looks good on paper, but I truly think their sales would drop at least 75%, if not more. They'd never make it out.

Even the talk about loans and shutting down brands, drives customers away ...

[gm4life]

If GM files chapter 11 all I see is a stronger GM with less gov't hoops to jump through, because now that the gov't has a hold of GM they will want to make GM build more and more and more hybrid and green cars. Before we know it cars like the CTS, G8, Camaro, Corvette, Solstice will all be a thing of the past. Next will come Sierra, Yukon, Silverado, Tahoe, Suburban you just wait. They ain't even started yet. That is what I fear so enjoy these great cars like the ZR-1, Camaro SS, CTS-V and G8 GXP even Solstice GXP while we have them, if the economy didn't kill demand for products like this the government will. Along with all the "green people" of Al Gore ilk. Just what I want to have happen. The word eight or even six cylinder along with turbo or supercharger will not be in anyones vocabulary anymore. If you think the cars we have suck now, and we bitch and complain about the next DTS/STS being a DT7 and Ep. II based you just wait, because the worst part is not over yet. You wonder why my son or I will be getting a new Camaro SS before they are gone? **There won't be ANOTHER ONE!** 68 someone I thought to be crazy orginally just might be right who needs new cars? Honestly a day will come like it has for 68 for the most part that he won't even consider nor desire current cars out on dealers lots. That day could come for me sooner rather than later. Leave it to Uncle Sam to "fix" Detriot like they have so many over things.

My plan file chapter 11, fire all UAW, blue collar and white collar workers, then hire them all back with reasonable pay and no Union. Sales will suck for a while but then GM would actually have a fighting chance to beat Toyota, because all this bailout is about is saving the Union's ass. I don't think one politican in Washington save for a few really give a rat-ass about the Big Three, if you think they do then your easily fooled. They care about the UNION, and that is what is a large part of GM's problems. GM let the Union have to much and GM must make it right, or sadly they will die.

I am already collecting badges and parts for my SLE so it can be repainted and kept for a classic, I have no doubt I'll do the same for a Camaro. That is how bad I fear it is, my Bonneville will be considered a "gas hog" and harmful to the world. Get ready boys because sales will keep slipping in the industry and we will be in for a load of $h!, what better time for GM to file chapter 11 and loose a few more sales when sales already suck? This bad economic time gives GM a chance for that and not to piss away tons of sales. I promise a stronger and more well balanced GM if chapter 11 is filed, then slam the door on Uncle Sam, government has proved to me they can't run a buisness well and why would I want them to run or "help" GM. Might as well push them into the ground. Thats my view.

Edited March 3, 2009 by gm4life

[hyperv6]

With the economy crashed right now and so many other companies in trouble the Chapter 11 deal is not seen in as bad of light as it woulf have been 8 months ago.

Times and the economy has changed enough to make this acceptable to many. Also the public may see this as a more positive move now after they took the goverments money and not have to ask for more.

[hyperv6]

If GM files chapter 11 all I see is a stronger GM with less gov't hoops to jump through, because now that the gov't has a hold of GM they will want to make GM build more and more and more hybrid and green cars. Before we know it cars like the CTS, G8, Camaro, Corvette, Solstice will all be a thing of the past. Next will come Sierra, Yukon, Silverado, Tahoe, Suburban you just wait. They ain't even started yet. That is what I fear so enjoy these great cars like the ZR-1, Camaro SS, CTS-V and G8 GXP even Solstice GXP while we have them, if the economy didn't kill demand for products like this the government will. Along with all the "green people" of Al Gore ilk. Just what I want to have happen. The word eight or even six cylinder along with turbo or supercharger will not be in anyones vocabulary anymore. If you think the cars we have suck now, and we bitch and complain about the next DTS/STS being a DT7 and Ep. II based you just wait, because the worst part is not over yet. You wonder why my son or I will be getting a new Camaro SS before they are gone? **There won't be ANOTHER ONE!** 68 someone I thought to be crazy orginally just might be right who needs new cars? Honestly a day will come like it has for 68 for the most part that he won't even consider nor desire current cars out on dealers lots. That day could come for me sooner rather than later. Leave it to Uncle Sam to "fix" Detriot like they have so many over things.

My plan file chapter 11, fire all UAW, blue collar and white collar workers, then hire them all back with reasonable pay and no Union. Sales will suck for a while but then GM would actually have a fighting chance to beat Toyota, because all this bailout is about is saving the Union's ass. I don't think one politican in Washington save for a few really give a rat-ass about the Big Three, if you think they do then your easily fooled. They care about the UNION, and that is what is a large part of GM's problems. GM let the Union have to much and GM must make it right, or sadly they will die.

I am already collecting badges and parts for my SLE so it can be repainted and kept for a classic, I have no doubt I'll do the same for a Camaro. That is how bad I fear it is, my Bonneville will be considered a "gas hog" and harmful to the world. Get ready boys because sales will keep slipping in the industry and we will be in for a load of $h!, what better time for GM to file chapter 11 and loose a few more sales when sales already suck? This bad economic time gives GM a chance for that and not to piss away tons of sales. I promise a stronger and more well balanced GM if chapter 11 is filed, then slam the door on Uncle Sam, government has proved to me they can't run a buisness well and why would I want them to run or "help" GM. Might as well push them into the ground. Thats my view.

While things may look bleak for perfromance to some of us here to the majority of the public the car is just a way to get to work and the mall.

This is not the last, first, second or third time performance has been under attack. Even if all we have are electric cars someone will have more powerful motors and bigger batteries. We will get throught htis one way or another.

In real life as we age you eather adapt or die. I am too young to die so I plan to adapt. That is why I now drive a 300 HP 4 cylinder, adapting can still be fun.

In time many will tire of the present administration as they will drive cost up with their energy plans and the green movement will not have as much drive. People are good with things till they take a hit in the wallet. Just like truck sales tanks when gas was up. They still love trucks but will abandon them if they have to pay more.

Edited March 3, 2009 by smallchevy

[vonVeezelsnider]

I am already collecting badges and parts for my SLE so it can be repainted and kept for a classic, I have no doubt I'll do the same for a Camaro.

Wow and here I was thinking I was the only one going to do that (with my Impala). All I need is a nice rock-solid, inexpensive second car to drive in the winter and the equation is complete.

[turbo200]

Even the talk about loans and shutting down brands, drives customers away ...

exactly

[Z-06]

You have a broken arm which the doctor gives two options:

1. Go to his office twice a week and put a temporary plaster on it till it heals which may be at least a year and pay $15 copay everytime.

2. Have one surgery at $500 copay and get it over with it.

While it is not as simple as that and there are other factors involved too, bankruptcy is not a bad option. The third time GM goes begging for money people will definitely say Big FU.

[G. David Felt]

I for one being a very strong GM supporter have looked long and hard at both options. On the Chapter 11 side, it would be nice to dump a ton of baggage including the UAW and start over with just 3 name plates for entry (Chevy), Middle Level (GMCBP) and Luxury (Cadillac). Yet could the company really survive world wide? That is a big question.

On the loan side, I think with the proper business plan, clearing out a ton of middle mgmt and over the hill executives, GM could turn the ship and actually move inthe right direction, protecting their SUV / Truck business at the same time of building up an expanded exceptional line of high milage and hybrid auto's.

The big question is will the Gov look long term and loan GM the money with the conditions of dumping the fat middle layer mgmt and even some of the out of touch executives to give the company a surviving chance?

[Z-06]

On the loan side, I think with the proper business plan, clearing out a ton of middle mgmt and over the hill executives, GM could turn the ship and actually move inthe right direction, protecting their SUV / Truck business at the same time of building up an expanded exceptional line of high milage and hybrid auto's.

Yeah but in terms of your field it is not a clean reinstall. You are not cleaning the registry, old components, memory cache, unused dll's, etc.

[gm4life]

While things may look bleak for perfromance to some of us here to the majority of the public the car is just a way to get to work and the mall.

This is not the last, first, second or third time performance has been under attack. Even if all we have are electric cars someone will have more powerful motors and bigger batteries. We will get throught htis one way or another.

In real life as we age you eather adapt or die. I am too young to die so I plan to adapt. That is why I now drive a 300 HP 4 cylinder, adapting can still be fun.

In time many will tire of the present administration as they will drive cost up with their energy plans and the green movement will not have as much drive. People are good with things till they take a hit in the wallet. Just like truck sales tanks when gas was up. They still love trucks but will abandon them if they have to pay more.

I understand your point, but what they will be building will have no desire to me. I am starting to sound like 68!

[gm4life]

Wow and here I was thinking I was the only one going to do that (with my Impala). All I need is a nice rock-solid, inexpensive second car to drive in the winter and the equation is complete.

Nope because cars like ours with real motors and OHV's will be long gone someday. It will be worth something just you wait, because not everyone will want a Pri-Ass wanna-be.

[hyperv6]

I understand your point, but what they will be building will have no desire to me. I am starting to sound like 68!

They are just trying to sell to the majority in the present not just to the few who live in the past.

I rather see 2- 4 good strong independent Pontiac models based on Holdens and Opels not shared with Chevy vs what they have had over the last 25 years.

It is either evolve to the present or die. In todays green age Performance will only be in small pockets till people get bored with it and move on to the next cause.

I thinkyour still stable just disapointed as you have not gone off the deep end with endless rants of b pillars LOL!!