Gm Bankrupt....your Thoughts

SnakeEyeSS · December 5, 2008

Look around the internet and check out the different business articles on a GM bankruptcy "what if", it's almost funny to read some: CNN Money seems to think their prices for cars will go UP

Where did they find that guy?

Anyway, any word on what will happen to warranties? BusinessWeek says in all probability GM will still honor them.....but in "all probability" who thought the USA would buy out and own most the big independent banks in world? So it is possible they would void them. My brother is excited at that aspect, a .25 on the dollar hummer sounds like a great deal to him, they are already selling chryslers at .50 on the dollar locally

I recently looked at a 2008 shortbed reg cab Z71 4x4 with everything but leather, 31K marked down to 26.6K, but they wasn't enough....a local dodge dealer had a Ram quad cab Hemi 4x4 marked down from 37K to 18K.....NO JOKE, the salesman told me (well the chevy's are better so we can sell them for more......then I wanted to ask why I was the ONLY person on the entire lot at 6PM on a Saturday and why there wasn't an empty space in any of the new vehicle lots(dealership....not joking there either)

A relative that works on a Nissan lot told me their sales are down over 60% from average

I told the salesman I'll watch the news and prices and I'll be back when the deals get better

Zembonez · December 5, 2008

Any bankruptcy would only mean reorganization. Warranties would be unaffected.

The problem with the Auto industry right now is lack of demand. People aren't buing cars. Selling for less than it costs to build them is idiotic and does nothing but drive the companies deeper in the hole... but it is happening.

Be careful what you wish for.

DofD · December 5, 2008

There was an article in a local paper a couple weeks ago with an interview with the general manager from my dealership. He was say the sales so far this year are on par with sales from last year. So it seems that sales figures are very much dependent on region. Also from looking at the turn over of new vehicles in their lot that their sales have been okay.

SnakeEyeSS · December 5, 2008

There was an article in a local paper a couple weeks ago with an interview with the general manager from my dealership. He was say the sales so far this year are on par with sales from last year. So it seems that sales figures are very much dependent on region. Also from looking at the turn over of new vehicles in their lot that their sales have been okay.

That's exactly what doesn't add up....you talk to people at the dealers as a customer and they say nothing is bad(had a Chevy and Toyota dealer tell me that, but they are NOT moving cars, they just keep piling up)......but you look at the Nov. sales numbers:

Toyota: down 34%

Ford: down 31%

GM: down 34~

Nissan: down 41

Chrysler: down 47(!)

they are just saying that to save face. GM isn't closing 1800 dealers down for normal sales(announced a day or two ago)

SnakeEyeSS · December 5, 2008

browser error: double post

Zembonez · December 5, 2008

There was an article in a local paper a couple weeks ago with an interview with the general manager from my dealership. He was say the sales so far this year are on par with sales from last year. So it seems that sales figures are very much dependent on region. Also from looking at the turn over of new vehicles in their lot that their sales have been okay.

That's exactly what doesn't add up....you talk to people at the dealers as a customer and they say nothing is bad(had a Chevy and Toyota dealer tell me that, but they are NOT moving cars, they just keep piling up)......but you look at the Nov. sales numbers:

Toyota: down 34%

Ford: down 31%

GM: down 34~

Nissan: down 41

Chrysler: down 47(!)

they are just saying that to save face. GM isn't closing 1800 dealers down for normal sales(announced a day or two ago)

Sales are dismal for everybody. I don't doubt that there are pockets where it is OK but mostly the news isn't great.

GM actually doesn't close anything. Dealerships are individually run businesses. BUT without sales, they won't all last long. I do agree that a lot of smaller or poorly run dealerships will go away though. Much like all of us, they are run with varying degrees of professionalism and some are on the edge while others have not overspent and will survive the downturn.

My buddy's Chevrolet store just laid off a percentage of their personnel and relocated their body shop to reduce costs. Even though sales are at an "acceptable" level right now, they are feeling The pinch in a plenty big way. They are a large store that has been in business for many decades too. I don't think they will go away but if somebody that established can feel the slowdown, those smaller stores must be about to give up.

It sucks.

faisal · December 5, 2008

thats all i can say

but our GM dealers rised up the price by 10% and most of us stoped buying...we have to take this chance and buy them cheap

our dealers sell them with a 10% before mor than U.S. drealers and now this

bigdogxx · December 5, 2008

There was an article in a local paper a couple weeks ago with an interview with the general manager from my dealership. He was say the sales so far this year are on par with sales from last year. So it seems that sales figures are very much dependent on region. Also from looking at the turn over of new vehicles in their lot that their sales have been okay.

Like most other car salesmen he is most likely feeding a line of bs because he does not want the public nowing that they can barley even give cars away right now. That add posted up says it all, cars are being sold like freakin pants, buy one get ones. I feel bad for anyone who owns a ram because deals like this will destroy any value they might of had.

Chrisj · December 5, 2008

The Dealers located where there isn't mass public transit are about the same sales as last year. A vehicle here is a necessity to get around. I'm sure the big Dealers in Metropolitan areas are hurting bigtime.

NFSGamerUSA · December 6, 2008

I do hope GM goes bankrupt so Rick Wagoner and his money-hungry cronies will be kicked out and GM will be restructured. Otherwise, we're just giving more and more money to a never ending debt. Bob Lutz should be kept around, though; I think he has a little sense.

shocktrp · December 6, 2008

I think they will still honor warranties - otherwise it would be the death of the company.

If something broke on your current vehicle and they wouldn't warranty it - would you ever buy another vehicle from them?

Not a good idea to piss off your existing customers - without them you have nothing.

Dana_15 · December 6, 2008

Warrantys would be honored but the damage to the company image would take quite some time to repair. And customers would be less likely to purchase from a company that has filed for bankruptcy, especially such a large purchase as a vehicle. There would definately be a lack of confidence from the customer, what would be next a complete shutdown and then warrantys are out the window?

takevin · December 6, 2008

Just like Circuit City, those places were dead on Black Friday, CC needs to go away. Who's going to buy a product when they're going bankrupt.

bigdogxx · December 8, 2008

Just like Circuit City, those places were dead on Black Friday, CC needs to go away. Who's going to buy a product when they're going bankrupt.

Which is why i hate to say it but all American manufacturing of vehicles is about to die off, really who will buy a gm product while the company is filing for chapter 11? You can be a homer and say yeah me, but really now would any of you spend 30+ grand on something from a company who is running into debt and is very likely to be shut down if severe changes are not met.

And if they are handed our free money, because lol at anyone who thinks this would actually get paid back, they cant even pay the bills they have now. It's like buying a Porsche while working as a paper boy, they don't make enough to pay it back. So it's basically a temp life line to sustain operations for another year or so while them and the UAW argue back and forth about who should make what and instead of solving the problem it will most likely get worse.

They are basically doomed either way IMO, you will not convince any people who feel foreign makes are better to switch anytime soon especially with a bankruptcy hanging over their heads, and giving them the bail out will stall any important changes that are needed to be made.

Zembonez · December 8, 2008

Just like Circuit City, those places were dead on Black Friday, CC needs to go away. Who's going to buy a product when they're going bankrupt.

Which is why i hate to say it but all American manufacturing of vehicles is about to die off, really who will buy a gm product while the company is filing for chapter 11? You can be a homer and say yeah me, but really now would any of you spend 30+ grand on something from a company who is running into debt and is very likely to be shut down if severe changes are not met.

And if they are handed our free money, because lol at anyone who thinks this would actually get paid back, they cant even pay the bills they have now. It's like buying a Porsche while working as a paper boy, they don't make enough to pay it back. So it's basically a temp life line to sustain operations for another year or so while them and the UAW argue back and forth about who should make what and instead of solving the problem it will most likely get worse.

They are basically doomed either way IMO, you will not convince any people who feel foreign makes are better to switch anytime soon especially with a bankruptcy hanging over their heads, and giving them the bail out will stall any important changes that are needed to be made.

Not sure I understand or even begin to agree with your angle.

DOOMED?

GM still builds and sells more vehicles worldwide than anybody else. Sure, Toyota is now neck and neck with them but we are talking in MILLIONS of vehicles here. Some instability in their cash flow brought on by drooping sales due to worldwide financial instability is certainly going to hurt for a while... Their costs are catching up with them and they will have to be adjusted (along with their union commitments) in order for them to prosper again...but they aren't going anywhere.

THE SKY IS NOT FALLING