GM and Chrysler owners - are you worried?

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how is the g8 so far. I was thinking about looking at one but then I remembered it snowed here. Well that and my dad has a rear wheel drive sts at the time and he got stuck getting into the drive way once this winter.


If GM goes down they are pulling so much others stuff down with them that it will be years until any of the auto industry is healthy. A lot of suppliers are already hurting and gm going down would absolutely kill them. Which would negatively impact the other manufactures as they scramble to get capacity or parts even made any where else.

Its not as easy as flipping a switch to start making new parts. It can take months to validate a new supplier and get them producing parts up to the quality that is demanded. It takes less time if the supplier is already on the list of okay suppliers but it still takes time to get the process setup. As not all supplier use the same manufacturing equipment or process for production. So each setup has to be tweaked a bit to make it work.
 
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There is NO law about producing parts for a certain time period. This is an old wive's tell. This is true for both OEM & aftermarket parts. I know this from working in the automotive business (GM & Napa) since 1982. It a myth like the old lady drying her cat in the microwave.

Dave
 
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In Canada we have a similar law that the parts for a car manufacturer bankrupt or not has to be available for 10 years after the last date of production. That being said, why wouldn't places like Napa, Autozone or Canadian Tire want to carry parts because an automaker has gone bankrupt. They are in the business of selling parts and so this would continue uninterrupted IMO.

Besides... You should go to Cuba, they have cars running around down there from the 40's and this is a 3rd world country with limited access to restoration parts from America due to strained relations between the US/CUBA and they still manage!
wink.gif
 
true when you think about it people will buy the original dies to popular cars as there will still be money to be made from repair parts.
 
No concern at all and I just bought in December. Bankruptcy is Ch 11, otherwise known as reorganization. Going out of business is Ch 7.
 
Some cars you can build pretty much from scratch with aftermarket parts (the old 60s mustangs come to mind, and old camaro/firebird/chevelles).Like I said, as long as you don't own a limited production car like the Ford GT or Pontiac Solstice, parts will be very easy to find. If there is market for the car, aka there are a lot of people who own them, there will be parts.
 
Sirius & XM are operating under Chapter-11 right now... And I'm not worried about my lifetime subscription just yet... Would be a shame if they go because it's awesome...
 
Originally Posted By: StevieC
Sirius & XM are operating under Chapter-11 right now...


No, they are not. Liberty Media sunk $530M into Sirius-XM. $250M was a 15% (!!!) loan funded yesterday, and due in 2012.
 
Originally Posted By: Win
Originally Posted By: StevieC
Sirius & XM are operating under Chapter-11 right now...


No, they are not. Liberty Media sunk $530M into Sirius-XM. $250M was a 15% (!!!) loan funded yesterday, and due in 2012.


I heard on the news that they are 3 Billion in debt and filing for Chapter-11. Where did you hear your information from? (Not being a jerk, just curious...)
 
No, not worried. My "Chrysler" product is a Jeep Cherokee, that still bears parts that are marked "AMC". With most actually off-road capable jeeps (no comment on the current line up), there is a boatload of aftermarket support for nearly anything one needs. There are parts that are "better" to get get from Chrysler, but there is more than enough to keep running for a long, long time...
 
Originally Posted By: StevieC
Originally Posted By: Win
Originally Posted By: StevieC
Sirius & XM are operating under Chapter-11 right now...


No, they are not. Liberty Media sunk $530M into Sirius-XM. $250M was a 15% (!!!) loan funded yesterday, and due in 2012.


I heard on the news that they are 3 Billion in debt and filing for Chapter-11. Where did you hear your information from? (Not being a jerk, just curious...)


Forbes.com 8K watch. Sirius-XM is deeply in debt and a chapter 11 would probably turn to a Chapter 7 very quickly.

I have three subscriptions that I renew annually in the Spring and I had held off on renewing to see if they would file.
 
Originally Posted By: Win
Originally Posted By: StevieC
Originally Posted By: Win
Originally Posted By: StevieC
Sirius & XM are operating under Chapter-11 right now...


No, they are not. Liberty Media sunk $530M into Sirius-XM. $250M was a 15% (!!!) loan funded yesterday, and due in 2012.


I heard on the news that they are 3 Billion in debt and filing for Chapter-11. Where did you hear your information from? (Not being a jerk, just curious...)


Forbes.com 8K watch. Sirius-XM is deeply in debt and a chapter 11 would probably turn to a Chapter 7 very quickly.

I have three subscriptions that I renew annually in the Spring and I had held off on renewing to see if they would file.


"Liberty's loan to Sirius XM will bear interest at a rate of 15%, and will be due in December 2012. It will be secured by the assets that secure Sirius XM's existing credit agreement."

ouch 15 percent loan.

http://money.cnn.com/news/newsfeeds/articles/djf500/200902171227DOWJONESDJONLINE000571_FORTUNE5.htm
 
Originally Posted By: oldmaninsc
Originally Posted By: Pop_Rivit
No, I'm not concerned.




I agree. I think the question should be NOT about getting parts - but about warranty service. If GM goes out of business, who is going to stand behind the manufacturers warranty?


The new GM will. They want to keep and attract new customers.
 
Originally Posted By: Win
No, I'm thinking about buying a G8 GXP to complement the G8 I got last November.

If GM goes down, what will happen to the cost of cars? I only see it going up, perhaps dramatically, to reflect the drastic cut in supply and lowered economy of scale for component parts. I don't expect a lot of altruism in pricing from the remaining companies.

People may scream now about tax dollars being loaned to these companies, what about if a plain jane Camry is $32K and a Yaris $22K after their wages have been cut to the bone? They will really holler then, and will still be cussing the politicians that let GM go away, long after the loan package is a distant memory.

I think the pols know this, and will act accordingly. Ford is mortgaged to the eyeballs, if GM tanks, they won't be long for this world, either.


Actually, if GM tanks, Ford will likely gain market share. Being the size of GM has its detriments. Like the time required to turn it around.....
 
Good comments guys - keep it coming!

I still contend that GM and/or Chrysler aren't coming out of this alive at all. Yes, Ch. 11 is for re-organization, but what if the whole thing is so unwieldly and unfixable that it can't really be done?

First, they will want to do away with the unions and the legacy costs. No UAW member is going to go for that, so they will all be out on their butt, and not willing to go back un-organized. So what - GM/Chrysler advertises several hundred/thousand positions to replace them? You can't! It would take years! You can't reorganize something as big as GM in enough time to have it still run.

Yes, a lot of parts suppliers don't supply the manufacturers directly, but they exist under the 'backdrop' of the manufacturers still pumping out cars. Once that stops, the demand for their parts will start to drop off precipitously. They'll move to start producing parts for makes that are still viable, and not make nearly as many for what GM/Chrysler vehicles are left, so those parts become more expensive and scarce.

Yes, maybe hoarding parts is silly, but I don't see my Cavalier being on the road 'economically' more than a year after GM goes under. I'd better get good at scrounging junkyard and taking stuff off....
 
Originally Posted By: Anduril

Also only ever had a warranty on one vehicle I've ever owned, and that one (a Toyota) has been the only one that's ever needed more than minor repairs.


I haven't had your luck, especially with my first GM product in the last 20+ years (2005 Trailblazer). It's been in the shop more times in the 4 years I've owned it than my other 3 vehicles COMBINED! (2 Fords, 1 Toyota).

Originally Posted By: Bill in Utah

The new GM will. They want to keep and attract new customers.



That's making the very big assumption that they STAY in business. I hope like many other companies they can survive with CH. 11, but I'm not optimistic!

Originally Posted By: OVERK1LL

Actually, if GM tanks, Ford will likely gain market share. Being the size of GM has its detriments. Like the time required to turn it around.....


Good points, I agree.
 
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The company that now calls it self "Chrysler" has nothing to do with my cars. I couldn't care less if they went under.
 
Originally Posted By: CrAlt
The company that now calls it self "Chrysler" has nothing to do with my cars. I couldn't care less if they went under.


I agree, I loved Chrysler products until the mid-late 90's. You can keep them now.
 
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