GM bankruptcy becoming more likely, CEO says

[CaddyXLR-V]

I just disagree, 100 percent. That is okay I know what it will take for a sucessful GM, and government and unions owning/running isn't it. The next generation of cars is really going to suck either way.

Well if GM knew how to run the company for the past 30 years, they would have never needed to go to the govt begging for money. The problem started with GM management.

[gm4life]

...Oh...and silver ain't bad either. I took the day off of work to take my son in for a medical appointment, and we dropped by the local Chevy dealer on the way home.

It looks great in silver also...

Chris

I know but I still like white alot. The reason none of my recent cars (the last two Pontiac's) were the color they are is because that is what the dealer had. My wife wanted the purple on the Torrent, go figure. Cranberry on my SLE was my second choice after white-gold. When I got my Impala I had a white GP and did not want another white car that is why I picked gold. So the Camaro is do to be white again and it will be. But the SIM and RJT is hot too.

Edited May 13, 2009 by gm4life

[Drew Dowdell]

I just disagree, 100 percent. That is okay I know what it will take for a sucessful GM, and government and unions owning/running isn't it. The next generation of cars is really going to suck either way.

[gm4life]

Don't say it. I hope GM doesn't become that boring.

Edited May 13, 2009 by gm4life

[Robert Hall]

CONRAIL. Consolidated Railways. http://www.conrail.com/. And the relevance to GM is???

[Justin Bimmer]

It's not greed, it's gettig a fair shake in this deal.

The bond holders have the most invested and want a larger chunk of GM than the govt or UAW.

They have said they WOULD GO ALONG with a deal that gives them 58% of GM with the UAW at 41%. They would probably compromise in the upper 40% range.

The Feds, however, have told GM they will not let the bond holders, the biggest investors, hold more than 10% of GM , just about forcing a bankruptsy. This is what is REALLY complicating the efforts.

This is what happens when we have Soviet style control of industry!

Investments are a GAMBLE! Especially if you are unsecured! Too bad, so sad, goodbye! If you didn't want to lose the money, you shouldn't have put it on unsecured debt.

[Justin Bimmer]

If the UAW has a genuine interest in running both GM and Chrysler for their financial benefit, you don't think that will help things? Lots of successful companies are employee owned.

[evok]

I just disagree, 100 percent. That is okay I know what it will take for a sucessful GM, and government and unions owning/running isn't it. The next generation of cars is really going to suck either way.

I am sure you know best.

GM Bonds Plummet to Record Lows on ‘Near-Certain’ Bankruptcy

GM’s $300 million of 9.4 percent bonds due in 2021 fell 4.3 cents to 4.4 cents on the dollar as of 11:46 a.m. in New York, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The debt yields 196 percent, Trace data show.

[Drew Dowdell]

CONRAIL. Consolidated Railways. http://www.conrail.com/. And the relevance to GM is???

Conrail was primarily the Penn Central Railroad that went bankrupt and was taken over by Congress <Conrail is sometimes referred to as Congressional Rail>. It returned to profitability in about 10 years and eventually became the most powerful carrier in the eastern US until it was privatized and sold off in about equal share to the Norfolk Southern and CSX.

It's relevant because people keep saying that GM being taken over by the government lead to certain disaster. Conrail is an example of that being untrue.

Every time someone posts that the government taking over GM will lead to certain disaster, I will post the Conrail logo. Sure it's annoying, but maybe some people will learn something and expand their minds.

[Drew Dowdell]

If the UAW has a genuine interest in running both GM and Chrysler for their financial benefit, you don't think that will help things? Lots of successful companies are employee owned.

Here's why I don't mind the UAW owning a large portion of GM.

For the first eighty years, Okonite was a privately held, limited investor owned company. In June 1976, Okonite became the largest company in the United States owned by its employees through an Employees' Stock Ownership Trust. In this unique ownership structure, the Okonite's employees, whose seniority averages over twenty years, have become intimate participants in the prosperity and future of the Company.

My Great-Grandfather pioneered the idea on a large scale.

[CaddyXLR-V]

Unline Conrail, the auto industry is highly politicized currently due to global warming. The auto industry is also much more crowded with too much capacity. GM also has a perception issue to fight as well. The two situations are not the same.

[evok]

The UAW will not own stock in GM, F or New Chrysler. Let me repeat, The UAW will not own stock in GM, F or New Chrysler.

It has been misreported at times in the press and certainly by many people.

A trust fund that runs the healthcare for the UAW established as part of the 2007 contract will have the shares. The UAW will have no say in how the shares are exercised or say in the company.

[Drew Dowdell]

Unlike Conrail, the auto industry is highly politicized currently due to global warming. The auto industry is also much more crowded with too much capacity. GM also has a perception issue to fight as well. The two situations are not the same.

You think the federalizing of the largest railroad in the US wasn't highly politicized? The move allowed Conrail to abandon unprofitable lines.... lines that run through congressional districts. The Penn Central was formed from the Pennsylvania Railroad and New York Central railroad. These two behemoths had been in direct competition for well over 100 years. When they merged there was instantly duplicated capacity. The Penn Central was never able to fully merge the two systems. As such the whole network suffered. The Penn Central was considered a run down and out of date. Millions of pensions were at stake when the railroads collapsed.

There was a lot of heated debate because we helped France rebuild her rail network after WWII yet we allowed our rail network to fail.

It was just a different era... it wasn't less politicized.

[A Horse With No Name]

...and now our rail systems are much better off. Wondering what a post bankruptcy GM would look like?

Chris

[Z-06]

You think the federalizing of the largest railroad in the US wasn't highly politicized? The move allowed Conrail to abandon unprofitable lines.... lines that run through congressional districts. The Penn Central was formed from the Pennsylvania Railroad and New York Central railroad. These two behemoths had been in direct competition for well over 100 years. When they merged there was instantly duplicated capacity. The Penn Central was never able to fully merge the two systems. As such the whole network suffered. The Penn Central was considered a run down and out of date. Millions of pensions were at stake when the railroads collapsed.

There was a lot of heated debate because we helped France rebuild her rail network after WWII yet we allowed our rail network to fail.

It was just a different era... it wasn't less politicized.

+1. I had read a nice book on final years of Conrail and the efficacy of federalization.

[MRDETROITMETAL]

I just got the "inside scoop" from several of my buddies in Detroit :

GM WILL FILE CHAPTER 11 NEXT WEEK.

[Drew Dowdell]

My understanding is May 31st.

[A Horse With No Name]

...it's gonna happen.

Question is, what will the automotive world be like a year from now for the domestics?

Chris

[Z-06]

I just got the "inside scoop" from several of my buddies in Detroit :

GM WILL FILE CHAPTER 11 NEXT WEEK.

As always GM is late to the party.

[ZL-1]

What is important is that the good assets carving out (the birth of New-GM) is done as quickly and as smoothly as possible. Old GM, i.e. the bad assets will be rotting away for years to come.

[gm4life]

What is important is that the good assets carving out (the birth of New-GM) is done as quickly and as smoothly as possible. Old GM, i.e. the bad assets will be rotting away for years to come.

So how exactly does that work? And will this be a pre-packaged deal or how is this going to work and save GM money?

Edited May 15, 2009 by gm4life

[gm4life]

I just got the "inside scoop" from several of my buddies in Detroit :

GM WILL FILE CHAPTER 11 NEXT WEEK.

ABOUT DAMN TIME, I have been saying this since LAST FALL. I just hope the chapter 11 will help GM become competitve and without a Pontiac, Saturn or Hummer, they certainly should be able too. I am just praying for that, and also that my small town dealer with 25 new GM cars doesn't get cut.

Edited May 15, 2009 by gm4life

[G. David Felt]

Sad as it is a true end of a dynasty.

Happyness as it is a birth and start of a new GM that hopefully will finally not repeat the mistakes of the past.

[2005 EquinoxLS]

One thing GM does have the Chrysler doesnt is good product. Maybe now though somebody can go through and get rid of the poor product that GM does still have and focus on the good stuff. And there is good stuff there. The new Malibu,Camaro,the new full-sized trucks. Call the Impala old but I love mine Most people I talk to that have one love it too.

[Drew Dowdell]

Impala is still selling decent retail... so what if it also goes to police fleets.

[trinacriabob]

Impala is still selling decent retail... so what if it also goes to police fleets.

In bucket seat and console form, with alloy wheels and a decent color, it is affordable, economical (up to 33 mpg) and reliable.

I could live with one, but a few other GM cars would be ahead of it.