GM considering Chapter 11 filing, new company

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CHICAGO (Reuters) - General Motors Corp, nearing a Tuesday deadline to present a viability plan to the U.S. government, is considering as one option a Chapter 11 bankruptcy filing that would create a new company, the Wall Street Journal said in its Saturday edition.

"One plan includes a Chapter 11 filing that would assemble all of GM's viable assets, including some U.S. brands and international operations, into a new company," the newspaper said. "The undesirable assets would be liquidated or sold under protection of a bankruptcy court. Contracts with bondholders, unions, dealers and suppliers would also be reworked."

Citing "people familiar with the matter," the story said that GM could also ask for additional government funds to stave off a bankruptcy filing.

http://www.reuters.com/article/topNews/idUSTRE51D1Q120090214?feedType=RSS&feedName=topNews

Anyone remember the movie Blazing Saddles? I'm reminded of the sheriff holding a gun to his own head while threatening to kill the sheriff...
 
They're going to go bankrupt; it's just a matter of time. Throwing more government money at them will only delay the inevitable. We've experienced about 1/10th the length of this economic downturn (I hope - could be 1/100th). GM won't be able to survive on it's own or with more bailout money.

Ch. 11 should have occurred last year before the 1st bailout.

Why throw money at an entity that's essentially not a going concern?
 
"US brands and international operations"

That sounds to me like all UAW facilities get shuttered. Sounds viable to me, but Ouch.
 
Originally Posted By: Drew99GT
They're going to go bankrupt; it's just a matter of time. Throwing more government money at them will only delay the inevitable. We've experienced about 1/10th the length of this economic downturn (I hope - could be 1/100th). GM won't be able to survive on it's own or with more bailout money.

Ch. 11 should have occurred last year before the 1st bailout.

Why throw money at an entity that's essentially not a going concern?


Agreed on all points.

Think if enough of us keep saying it that someone will finally listen?
 
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On second thought, maybe that's all just a game. Playing hard ball with union.

"give us all the concessions we want, or we're voiding our contract in chapter 11 and walking away from all of you"
 
There is no hope if people like Wagner and his failure board stay in charge. I have felt for the last 20 years that GM was a poorly run company. Always remember that the GM management are the ones who created the strong unions then gave into unreasonable demands.
 
Originally Posted By: jsharp
Originally Posted By: Drew99GT
They're going to go bankrupt; it's just a matter of time. Throwing more government money at them will only delay the inevitable. We've experienced about 1/10th the length of this economic downturn (I hope - could be 1/100th). GM won't be able to survive on it's own or with more bailout money.

Ch. 11 should have occurred last year before the 1st bailout.

Why throw money at an entity that's essentially not a going concern?


Agreed on all points.

Think if enough of us keep saying it that someone will finally listen?

+1
thumbsup2.gif
I think this is the only way they can get away from the bad "brand name" of the past and the UAW that's killing them. It will be a fresh start IMO, and help them really start putting out excellent quality vehicles that are cost effective in terms of production. The only answer IMO. Just sad that they threw so much cash at them before realizing this...
 
If GM does go Chapter 11 that should get the UAW out of there and help them in becoming a solvent company with lower labor costs. Sad state of affairs if an American Icon closes shop.
 
Originally Posted By: rszappa1
I think that they are really in bad shape this time....I cant see Chrysler coming out of this at all....


+1, i just dont see any of their products as really standing out that you cant get from another manufacturer. out of the big 3, ford seems the best positioned.
 
i hope they m ake, my companies makes seals and does a lot of business with them
 
Originally Posted By: chet2
i hope they m ake, my companies makes seals and does a lot of business with them


i would expect GM to pull off what California is doing and paying their bills with pixie dust and IOUs.
 
Removed from the torturous UAW contracts and the horrendous legacy costs, Detroit can and will build cars equal to or better than the foreign competition. They simply cant afford to do it now.
 
Originally Posted By: Bamaro
Removed from the torturous UAW contracts and the horrendous legacy costs, Detroit can and will build cars equal to or better than the foreign competition. They simply cant afford to do it now.


Ummm, Ford has been doing it for a number of years now.....
 
Last edited by a moderator:
Originally Posted By: Bamaro
Removed from the torturous UAW contracts and the horrendous legacy costs, Detroit can and will build cars equal to or better than the foreign competition. They simply cant afford to do it now.


I feel the same way as you do, and we share the same opinions. I don't want to see an American Icon fail, but the UAW is not helping an already bad situation. Filing Chapter 11 might be the only answer for GM.

That's coming from a Ford lover.
 
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