General Motors going under

Question

Do you believe that GM will die due to it's enormous debt? I don't think it's going under. Too much history with the company. What do you think?

Answer 1

There must be a reason why customers think they are bad ! ! !

Answer 2

I Don't Think Gm Will Ever Die

I Do Believe That They Will Always Have Problems. If They Sell The Hummer And The New Chevy Volt Sales That Might Help Them.

Answer 3

A company the size of GM would almost certainly go through two bankruptcy reorganizations before a judge would order a general liquidation. And in a bankruptcy reorganization, the judge has the power to convert some or all of GM's debt into (worthless) equity securities and declare any and all warranties theretofore issued null and void. (This may leave both the stock holders and the bond holders with rather worthless paper and GM owners may not particularly appreciate having to foot new car repair bills, but Consumer Reports has been warning investors and consumers of GM's low quality now for well in excess of 35 years.) Consequently, one reorganization should do the job, unless consumers continue to flee GM products at the accelerated pace of the past 5 years.

Addendum:

I should add that even a bankruptcy reorganization is unlikely. If GM threw itself into a Chapter 11 bankruptcy, 10s or 100s of small companies would likely be at or past the brink of insolvency. Some of these would disappear, but many of these would file for reorganization as well. This would impose a huge burden on the judicial system, likely one that it would find difficult to handle. Consequently, a government bailout seems far more likely. This is what the Michigan congressional delegation is pushing. Also, many public pronouncements by GM personnel and directors seem to be trying to paint a picture of GM executive comptetence, suggesting an attempt to make a bailout more politically palatable. Another persuausvie argument for a near-term bailout is that even if GM is in the same predicament 2-to-5 years hence, at least its suppliers will have more time to adjust.

The arguments favoring a government bailout will almost certainly overshadow the argument that a bailout now means that there will be limited resources for all 3 of the Big 3 (GM, Ford and Chrysler) to improve quality with the result that all 3 may suffer a slow, lingering demise, while a demise, or practical demise (such as one that may be occasioned by a Chapter 11 bankruptcy), of one would give the remaining two a big boost in resources.

In such situations, two things may be safely said:

(1) There is no good solution.

(2) You will likely be asking the same question in the not-too-distant future.

Answer 4

Not a chance.

Many manufacturers are suffering but GM is actually doing better than most of the others.  Hummers and Silverados aren't selling, but Cobalts and Aveos are flying off the lot as fast as they can deliver them.

Answer 5

No, they will restructure, they should never have allowed the top end of their corporate structure to take such huge retirements. We should not have been willing to pay such huge prices for cars and trucks.

Again, a victim of selling America out for profit.

Answer 6

I AGREE WITH U THEY WOULDNT LET THAT HAPPEN

Answer 7

I don't think it will go out of business. I do believe if sales do not change, they will have to cut production of certain companies such as Saab, and Hummer. But, they are the second largest automotive producer in the World. Currently is Asia GM is doing great. I am not saying they do not make good cars in the US. They have cars like the CTS, Malibu, Tahoe Hybrid, Silverado, Enclave, Acadia, Astra, Sky, Solstice, and plenty more wonderful cars. It is not GM's fault that sales are down, it is the consumer he fails to look at American Cars because they think they are bad.

Answer 8

Natalia your statement about Consumer Reports warning about Gm quality for 35 years is just plain stupid. Do you ever notice that all of your answers have at least 1 thumbs down? I do have to admit though I am extremely surprised that you didnt plug that incredibly bias and untrue site you are always plugging.  

Answer 9

That would be the seventh sign of the apocolypse....I am a DEVOUT die-hard Chevy fan....my life would be over....don't even ask questions like that man....badbad....

Answer 10

Its not going to die.  They have $21 BILLION in cash.  They will be fine once they stop bailing out suppliers.  The government wont let them go under either.  Millions of Americans would lose their jobs.

Most of their losses last quarter were due to bailing out Delphi (again) and American Axle, American Axles 3 month strike that shut down 30+ GM plants, UAW strikes at any GM plant that was doing well to force them to bail out American Axle, and restructuring.

Answer 11

it might cut back a lot but go under i think not the goverment will help keep them going if they have to