No surprise - GM limping its way towards chapter 11

[BuffaloBill]

Even if our freespending government throws cash at GM one more time it is likely that the decline in auto sales and the expected length of the ongoing economic downturn are likely to leave GM with no choice but to go into chapter 11 bankruptcy. WNY is one region likely to be negatively impacted by this situation if it happens. UAW contracts will be ripped up, facility closures (including dealerships), perhaps further cutbacks in brands and further job losses are to be expected.

 

Personally, I think if this can help WNY finally break its ties with its industrial past and to move forward beyond a "blue collar" mindset all the better. Heavy industry is not going to make a comeback in the US. Technology, services and "thought industries" are / will be growth areas.

 

GM auditors raise possibility of chapter 11

[IDBillzFan]

QUICK! Someone throw more money at them!

[ricojes]

Even if our freespending government throws cash at GM one more time it is likely that the decline in auto sales and the expected length of the ongoing economic downturn are likely to leave GM with no choice but to go into chapter 11 bankruptcy. WNY is one region likely to be negatively impacted by this situation if it happens. UAW contracts will be ripped up, facility closures (including dealerships), perhaps further cutbacks in brands and further job losses are to be expected.

 

Personally, I think if this can help WNY finally break its ties with its industrial past and to move forward beyond a "blue collar" mindset all the better. Heavy industry is not going to make a comeback in the US. Technology, services and "thought industries" are / will be growth areas.

 

GM auditors raise possibility of chapter 11

"UAW contracts will be ripped up"

 

Huge reason for the filing...

[BuffaloBill]

"UAW contracts will be ripped up"

 

Huge reason for the filing...

 

 

While I am strongly against unions the sad reality here is that pensions and retiree benefits "earned" over the years may be valued at pennies on the dollar or even less. If this happens we as taxpayers will likely end up being screwed again as the PBGC has to cover the pensions - although not likely at a fully funded level (like they did in steel and airline industries). Healthcare costs are also likely to be shifted somehow - likely through increases in state medicaid costs or Federal medicare costs. I believe the potential impact of these costs are part of what drove the feds to throw money at the situation to begin with. The hole has just become too deep.

 

Sad but you and I - or worse yet your kids (I do not have any) or grandchildren will be paying for this mess for years to come. People just do not realize that all of this Federal debt has to be paid for at some point or at least continually refinanced at an ever increasing interest burden as investors (many of them from outside the US) demand higher returns due to perceptions (reality?) of higher risks.

[KD in CA]

"UAW contracts will be ripped up"

Let's hope. Perhaps if we have sensible labor contracts, we can avoid this:

 

the sad reality here is that pensions and retiree benefits "earned" over the years may be valued at pennies on the dollar or even less.

which is a travesty and hugely unfair to those individuals. Of course, what is a certainly to happen is this:

 

we as taxpayers will likely end up being screwed again as the PBGC has to cover the pensions

and once again, an incompetent company that has no business promising benefits that it couldn't afford and a greedy union system that extorts them, will combine to screw the most innocent of victims of all....taxpayers. And naturally, our government has sanctioned each step in this screw job and doomed us to even worse financial disaster in exchange for the holy grail of re-election. them all.

 

 

It's time to let these pathetic failures disappear and let someone else who a) knows how to build a decent car and b) knows how to run a friggin business come in and fill the void. We heard all the chicken little stories every time an airline went bankrupt too, but somehow people still fly.

[Fan in San Diego]

Assuming GM closes, will anybody that is still working be a non government or fast food job?

[KD in CA]

Assuming GM closes, will anybody that is still working be a non government or fast food job?

 

Hopefully it won't come to that. Chapter 11, reorganize with fewer products, fewer admin staff, lower labor costs and lower dealer costs. It ain't that hard. You make a conservative estimate of sales and then create an expense budget that caps at that amount.

 

It's beyond absurd that an 80 year old business would need TENS OF BILLIONS of dollars to survive in a country that has more automobiles than people. Auto companies all over the world manage to make a profit. It's not that GM can't do it, it's that we refuse to make them do it.