Bad news for GM

[ctfan]

I saw this over at dieselplace.com Definitly not good news for the general and the owners of his trucks.

 

http://quote.bloomberg.com/apps/news?pid=1...id=a8ENDuudqUMQ

 

William

[Truckman031]

I'm not worried. All of the big three have been in financial crisis before. DC in the 70s, and Ford lately. The General will be fine.

[odoh]

I saw this over at dieselplace.com  Definitly not good news for the general and the owners of his trucks.

 

http://quote.bloomberg.com/apps/news?pid=1...id=a8ENDuudqUMQ

 

William

 

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Suppose for those planning to buy ~ It'll mean less features like spare rim instead of spare wheel/tire etc. warranty denial for current owners etc Gotta tighten the ol' belt

[Wingnut]

They need to quit paying people $25 an hour to snap a headliner in place.

[Chevy Tough]

Im not worried about the crap they write, GM's been bashed, tortured, humilated, mock by the press, taunted by the competition and yet its still here and still kicking butt. Like what Truckman said every company has its breaks, Ford and Dodge doesnt matter.

[facn8me]

The general will pull thru. The goverment will not let this happen,way too much oil money involved. Just like they won't let the airlines that continually need bailing out. But let my but be late with an income tax and they will try to destroy me.

[Elwood 2000]

Mark Gilbert  is a columnist for Bloomberg News. The opinions expressed are his own.

 

Yes, the are his opinions, but they sound like it could happen and would be a smart solution for GM. While I don't like bankruptcy protection, another quote that is a fact will make them look hard at that option.

 

If General Motors, Ford Motor Co. or DaimlerChrysler AG's U.S. unit ``went into Chapter 11, several others would be forced into it from a competitive standpoint,''

 

If anyone here is a businessman, sadly it makes sense. Lower your costs and you can be more profitable. Basic business. The only way for them to lower costs right now is bankruptcy protection. They can not abandon all those retirees, health costs and trying to lower current labor costs vs. the unions is like finding a winning lottery ticket in a ticker-tape parade.

 

 

 

I personally hope it does not happen, but I can see it being a possibility.

[oldredhat6]

As a studier of finance and economics, I would say it is a good time to start looking at buying GM stock. Come on, Uncle Sam will not let them fail. Look at what they did for Lee Iacoca back in the day. You are talking world wide repercussions, most of the parts come from overseas. Gm also owns foriegn car makes.

Ford made a great rebound after the tire fiasco and their stock plumeted.

Thing we need to worry about is the overinflation of the housing market that is going to cause stagnation of the market as soon as the prime rises. Well started this week wth a 1/2 point increase. Here on the east coast houses went through the roof due to the ability of purchasers to finance more with the low rates. Hope most if you bought got a fixed rate instead of the interest only loans running around in the market.

Just my thoughts, do not worry about GM they will survive. Might be a great time to look at a new truck, cause I can see great rebates and percentage rates to bring up sales. Too bad I love my truck and have done too much to it to change it now.

[GM GIMP]

Their stock will probably get lower as more people get more bad news. I'll wait awhile then grab some stock. Uncle Sam can't afford to lose GM. They'll be bailed out eventually.

[02 Blue Thunder]

I actually work for the "General", and cutting salaries as someone suggested is not the answer. One thing to look at is if our salaries and benefits get cut then other non-union facilites tend to follow suit. There is also supposed to be legislation being brought to keep companies like GM from filing bankruptcy just to get out of there union contracts. Maybe they should look at the top instead of the bottom to make cuts, and not be the last ones to market with new products. Just food for thought.

[Truckman031]

I think all the top execs. should take a pay cut also if they cut salary/benefits for the other employees.

[ctfan]

I think all the top execs. should take a pay cut also if they cut salary/benefits for the other employees.

 

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Yeah right, nice thought but like that would ever happen.

 

William

[mcreyaufmiller]

IMO the forst thing that needs to happen is the union back off and let the pay rates fall to a normal level. $60 an hour to watch an assembly line go by is a little to much. The unions have taken the big three by the virtual balls with outrageous pay rates. This is the primary reason that trucks are now over $40k to buy new. that is redicilous and the reason a lot of people are keeping their old cars or buying used instead of new (like myself).

[BlackSilver]

Might be bad for stockholders, but would have little effect on vehicle owners like us. Filing for chapter 11 isn't equal to closing the doors.

[02 Blue Thunder]

IMO the forst thing that needs to happen is the union back off and let the pay rates fall to a normal level.  $60 an hour to watch an assembly line go by is a little to much.  The unions have taken the big three by the virtual balls with outrageous pay rates.  This is the primary reason that trucks are now over $40k to buy new.  that is redicilous and the reason a lot of people are keeping their old cars or buying used instead of new (like myself).

 

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I sure wish that I made $60.00 an hour. You read the paper too much. I don't make near that much and unfoutunatley I don't get to watch the line roll by. In 8 hours I shoot 2000 bolt with a 15lb gun. You can try if you like. As for salaries being the reason trucks so high, parts get eliminated every model year and base price on cars goes up 1500.00. You do the math. My salary does not go up every model year the same amount as the price.