GM enters bankruptcy protection

[Biggles]

http://news.bbc.co.uk/2/hi/business/8077255.stm

"Car giant General Motors (GM) has filed for bankruptcy protection, marking the biggest failure of an industrial company in US history."

Wow...this is pretty bad, huh?

[SteamWake]

So hows all that bailout, hope and change workin out for ya ? :shifty:

[Jimbuna]

I shudder at the thought of up to 20,000 people losing their jobs :nope:

[GoldenRivet]

So hows all that bailout, hope and change workin out for ya ? :shifty:

Yay socialism!!! Three Cheers for glorious leader Comrade Obama

Obama is going to introduce a new national anthem since ours no longer describes our nation.

here are the lyrics... hope you recognize them

Verse 1

Soyuz nerushimy respublik svobodnykh
Splotila naveki velikaya Rus'!
Da zdravstvuyet sozdanny voley narodov
Yediny, moguchy Sovetsky Soyuz!

Chorus:

Slavsya, Otechestvo nashe svobodnoye,
Druzhby narodov nadyozhny oplot!
Partiya Lenina — sila narodnaya
Nas k torzhestvu kommunizma vedyot!

Verse 2

Skvoz' grozy siyalo nam solntse svobody,
I Lenin veliky nam put' ozaril,
Na pravoye delo on podnyal narody,
Na trud i na podvigi nas vdokhnovil!

Chorus

V pobede bessmertnykh idey kommunizma
My vidim gryadushcheye nashey strany,
I krasnomu znameni slavnoy otchizny
My budem vsegda bezzavetno verny!

http://3.bp.blogspot.com/_JGyMlGQKTSM/SiPxoRM0IvI/AAAAAAAAAWs/Req1bouDmkc/s320/new+flag.jpg

[Biggles]

Was bound to happen eventually if you ask me...no matter the leadership...

[SteamWake]

Was bound to happen eventually if you ask me...no matter the leadership...

Problem is that with the bailout 'attempt' the federal goverment became the major share holder (along with the UAW) and are now running the show.

[GoldenRivet]

Problem is that with the bailout 'attempt' the federal goverment became the major share holder (along with the UAW) and are now running the show.

Bingo

[AVGWarhawk]

Bail out, bankruptcy, or not...the writing is on the wall. GM will still fail. American's are not going to rush out a buy GM products. Some will not because they bungled a bail out that was crap to begin with. The GM products still have the stigmata of being crappy cars and quite frankly, not very good looking. Furthermore, most Americans believe once the factory closes there will be no parts for their car if the car breaks down. Not true but that is the thought if the factory closes. Also, they think 'what if' GM blows this also, what of my warranty? It is a big bungled mess and GM will not survive.

[SteamWake]

Bail out, bankruptcy, or not...the writing is on the wall. GM will still fail.

Well no kiddin, look whos running it.

Again name me one federal goverment entity that is run profitably, and efficently.

You think GM made crappy products in the past wait till they have to meet the mandates and 'controls' placed on them by their major shareholder.

Barry says he has no interest in running this company yet he fires the ceo, puts someone else in his place, demands they re-tool, streamline and produce eco friendly cracker boxes.

"I dont want to tell you what to do but here is what your going to do." paraphrased of course but thats it in a nutshell.

[ReallyDedPoet]

Yay socialism!!! Three Cheers for glorious leader Comrade Obama

Obama is going to introduce a new national anthem since ours no longer describes our nation.



Don't forget that bailouts also started with the previous administration.

[Kapitan_Phillips]

Not only that, but GM contribute to, or own many European car makers too. Vauxhall for example, is rather nervous, but I believe the German company Magnum might make a move to buy them out before long.

[AVGWarhawk]

Even if left to their own devices...GM will still fail. GM does not need the government to help in their failings but it will certainly speed up the process.

As they say, 'It is good enough for government work.' :yeah:

[SteamWake]

Don't forget that bailouts also started with the previous administration.

Well I dont think they planned on the largest financial debacle in the history of mankind.

[ReallyDedPoet]

Well I dont think they planned on the largest financial debacle in the history of mankind.

I am sure they had a pretty good idea but just did not want to say to much at the time, especially with an election looming, just look at what the bank bailouts did. They were in spin mode then, just like what is being done now. But that's par for politics right :doh:

[SteamWake]

I am sure they had a pretty good idea but just did not want to say to much at the time, especially with an election looming, just look at what the bank bailouts did. They were in spin mode then, just like what is being done now. But that's par for politics right :doh:

Perhaps a grain of truth in that but it was never originally intended to be a hostile takeover as it is now.

As to the bank bailouts, where did that money go? They sure as hell aint loaning any out.

Remember these 'stress tests' ? Take my word for it the current administration has their sights set on the banks as well.

[longam]

Looks like were giving them another 30 billion. Must be to pay out the bonus to everyone before they roll over and die.

[mookiemookie]

Well no kiddin, look whos running it.

Again name me one federal goverment entity that is run profitably, and efficently.

HOLC turned a profit by the time it was phased out in the 50s and the prison system is run pretty efficiently.

[mookiemookie]

Well I dont think they planned on the largest financial debacle in the history of mankind.

Nope, they didn't plan at all. They dug up the corpse of Reagan and kissed his dessicated hand and deregulated for the sake of deregulation all while chanting "the free market will take care of everything, the free market will take care of everything..." with glazed eyes and dopey smiles.

Fat lot of good it did us.

[SteamWake]

Nope, they didn't plan at all. They dug up the corpse of Reagan and kissed his dessicated hand and deregulated for the sake of deregulation all while chanting "the free market will take care of everything, the free market will take care of everything..." with glazed eyes and dopey smiles.

Fat lot of good it did us.

Yes if only they had taken that advice and let the free market take care of things.

[mookiemookie]

Yes if only they had taken that advice and let the free market take care of things.

It sure wasn't excessive regulation that repealed Glass Steagall and allowed investment banks and depository banks to merge in an unholy alliance of risk. It was precisely that deregulatory attitude that removed leverage limits from investment banks, allowing them to go from 12-1 leverage to 40-1. It was deregulation in the form of the CFMA that allowed for the derivatives market to grow unchecked. It was a lack of regulation that allowed for loans to be made without regard to the borrowers ability to repay.

Deregulation just to say you deregulated something without regards to the consequences can be just as harmful as excessive regulation.

[AVGWarhawk]

The decline of GM is a testament to how poor strategic decisions over the course of decades will ultimately lead to collapse. The United States has followed the GM model of failure for the last three decades. The U.S. has too much debt, too much bureaucracy, too many government supported industries, too many agencies, too many employees, and $53 trillion of unfunded future liabilities. See any similarities to GM? Can the U.S. avoid the fate of GM, or is it too late? If we can learn the important lessons of the GM decline, it may not be too late to reverse our course. Or we can continue on the current path and follow the advice of Will Rogers.




American carmakers have seen their market share drop from 85% in 1985 to 43% today. GM’s market share peaked at almost 50% in the 1960’s. It reached a historic low of 19.5% in January. Their sales plummeted 49% from a year ago. GM has too much debt, too much bureaucracy, too many plants, too many car lines, too many employees, and too many future healthcare and pension obligations. Of course, the only way a company can be in such a disastrous position is through decades of mismanagement. The only logical solution is for GM to enter a pre-packaged bankruptcy with financing provided by the U.S. government if bank financing is unavailable. Shareholders and bondholders will be wiped out. They made a bad investment. Plants will be closed, UAW contracts restructured, management replaced, employees fired, debt written off and future obligations reduced. A much smaller viable company that can compete in the 21st Century would exit bankruptcy in a year or two. A profitable, low market share is preferable to a high market share with billions in loses.



Simple....GM ran GM into the ground. There is no one to blame but themselves.

[SteamWake]

Simple....GM ran GM into the ground. There is no one to blame but themselves.

Well goverment mandates and standards and guidlines and cafe regulations and so on dident help much.

[mookiemookie]

Well goverment mandates and standards and guidlines and cafe regulations and so on dident help much.

You mean the same ones that Honda, Toyota and Nissan have to adhere to? Why aren't they in dire financial straights?

[longam]

Simple....GM ran GM into the ground. There is no one to blame but themselves.

we'll you could blame one organization ... UAW, Unions killed themselves and so many companies in this country.

[Aramike]

You mean the same ones that Honda, Toyota and Nissan have to adhere to? Why aren't they in dire financial straights?A huge lack of legacy costs.

I think SteamWake's point was that the COMBINATION of poor decisions by the automakers and government regulation is what brought this on. The foreign companies aren't facing the same combination. His post said that the regulations "didn't help" - he didn't say that the regulations are what brought them to their knees.

[Aramike]

we'll you could blame one organization ... UAW, Unions killed themselves and so many companies in this country.Damned right! :salute:

[AVGWarhawk]

Well goverment mandates and standards and guidlines and cafe regulations and so on dident help much.


And Toyota, Nissan, Honda, Scion, are doing well because......:06:

[AVGWarhawk]

we'll you could blame one organization ... UAW, Unions killed themselves and so many companies in this country.

To a degree, yes, unions can crush a company. I believe the UAW is one of them.

[Platapus]

Again name me one federal goverment entity that is run profitably, and efficently.



Office of the Comptroller of the Currency.

[CastleBravo]

Trying to make a silk purse from a sow's ear. new GM add to begin airing Wed. June 3.

http://adage.com/article?article_id=137010

[FIREWALL]

And Toyota, Nissan, Honda, Scion, are doing well because......:06:


And FORD :yep:

[SteamWake]

And FORD :yep:

Indeed now what do all those companys have in common?

I heard today that GM is going to sell off its Hummer division to... guess who ! I know you can guess it.

[Zachstar]

Yes China gains Hummer. And they can have it as far as I am concerned.

[AVGWarhawk]

Yes China gains Hummer. And they can have it as far as I am concerned.


I rather have a Jeep CJ7 anyway:D

[AVGWarhawk]

And FORD :yep:

How in the hell could I forget Ford? I own two of them! I know how I forgot..they are not in the news! :yeah:

[Tchocky]

Barry says he has no interest in running this company yet he fires the ceo, puts someone else in his place, demands they re-tool, streamline and produce eco friendly cracker boxes.

"I dont want to tell you what to do but here is what your going to do." paraphrased of course but thats it in a nutshell.
They're hardly going to get however many billion dollars and also a free hand in running the business. Cash comes with conditions. The government wants to know that the money won't be wasted. Hence, changes.

It was clear that he meant long-term, regarding running the company.

Gotta hate those government controls, too. I miss the smell of lead in the air.

[SteamWake]

They're hardly going to get however many billion dollars and also a free hand in running the business. Cash comes with conditions. The government wants to know that the money won't be wasted. Hence, changes.

It was clear that he meant long-term, regarding running the company.

Gotta hate those government controls, too. I miss the smell of lead in the air.

Sure just a temporary take over till they get back on their feet. Kind of like they did with Amtrack..... oh wait.