14 Votes

Boost it!

GM May File Chapter 11 Bankruptcy And Form New Company

Agent009 submitted on 2/16/2009 Official Bell & Ross Timestamp: 10:04:29 AM

24 user comments | Category: Misc News | Source: | SOURCE: www.reuters.com

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."

Remember the EASIEST way to send and add photos at AutoSpies.com is by emailing them to mobile@AutoSpies.com

2009 Chicago Auto Show Photo Gallery



Read Article

GM May File Chapter 11 Bankruptcy And Form New Company

About the Author

Agent009

"If everything seems under control, you're just not going fast enough."

— Agent009 (View Profile)


User Comments

91z4me

Just curious: Would this please any of the domestic haters on the board?

— 91z4me (View Profile)

Posted on 2/16/2009 1:42:29 PM | reply to this comment | Votes: 3   

downtoearth

Why should it have anything common with hating? Good companies survive. Wrong ones fall. These are basics of realistic economy, not emotions.

— downtoearth (View Profile)

Posted on 2/16/2009 1:58:00 PM | | Votes: 6   

91z4me

The question was to those who hate the domestic companies, those who have called for their downfall for years. It wasn't aimed at people who think they should fail because of poor management or all the very bad decisions they made.

Perhaps you fit into a different category than you would have put yourself if you took offense to what I said.

— 91z4me (View Profile)

Posted on 2/16/2009 2:39:33 PM | | Votes: 3   

Doukas

I would like to see the brands go their own ways.....Chevrolet be its own company/brand...Cadilac be its own company/brand...etc....build their own identity, and then you'll see the weaker brands go away and the strong brands rise..They would all have their own designers, engineer's, platforms, engines. etc. Thats the biggest criticism that Toyota/Lexus, Honda/Acura & Nissan/Infiniti have..they share instead of being individual like Europeans.

— Doukas (View Profile)

Posted on 2/16/2009 2:36:21 PM | reply to this comment | Votes: 0   

91z4me

If GM goes under the likely scenario is that Chevy and Caddy get bought up by one of the many other car manufacturers (Toyota/Honda or anyone with the money), Corvette would likely be sold to a group of private investors (like Chrysler is trying to do with Viper). The part of GM outside the US would likely continue with operations without to much problems (in fact it may allow them to start marketing their cars in the US under their own brand) they would hit a financial wall BUT would be much more autonomous and profitable overall.

— 91z4me (View Profile)

Posted on 2/16/2009 2:42:25 PM | | Votes: 1   

fatandsassy

Good Bye GMC, Buick, Opel, Pontiac, Saturn, SAAB!
1.) Cadillac to be upscale american luxury and take on the BMW, MB, LEXUS, and Audi
2.) Chevy becomes the car of the American People. VOLT, Camaro, Corvette, Malibu (rename is please), Impala (take on Avalon, and the truck divison
You dont need all the same versions of one car. Build one style make it RIGHT, and sell it.

— fatandsassy (View Profile)

Posted on 2/16/2009 3:42:59 PM | reply to this comment | Votes: 5   

vladyxa

Nice move. ))) First take few billions in bailout funds, and then go belly up.

— vladyxa (View Profile)

Posted on 2/16/2009 3:56:30 PM | reply to this comment | Votes: 4   

veyron1001

This is great and what should have happened last year.

— veyron1001 (View Profile)

Posted on 2/16/2009 3:57:41 PM | reply to this comment | Votes: 0   

vwrules

Dead Bang rite on the money.

— vwrules (View Profile)

Posted on 2/16/2009 8:35:43 PM | | Votes: 0   

tylerdurden13

The problem that I have with GM is that I feel that they must have been in a cave for the last 20years. You have to have someone who is sitting on that board that was like hey!! I got an idea. Why dont we copy some of the companies that are making money. Instead of buying other crappy companies maybe we should slim our down to some core products and make them the best that they can be. Its just infuriating that I could sit as a salesman at a toyota dealership and just watch how different 2 companies operate. One of them becoming increasingly profitable and the other just continuing to make poor decisions.

— tylerdurden13 (View Profile)

Posted on 2/16/2009 4:27:22 PM | reply to this comment | Votes: 3   

91z4me

You do realize this only has a chance of happening and even then it is only likely IF GM doesn't prove viability, right? Everything stated so far is mere speculation and rumor, nothing concrete.

— 91z4me (View Profile)

Posted on 2/16/2009 10:50:06 PM | reply to this comment | Votes: 1   

91z4me

Sailor, sure GM could have gone straight to Chapter 11 but they do have a duty to attempt to stay alive (without bankruptcy) to the shareholders. Those share holders are at the back of the pack when it comes to reclaiming lost funds in chapter 11 (the taxpayers are 1st in line). If GM files bankruptcy there will be YEARS of lawsuits and fighting before the company is stable. During those times what will happen to buyers for the products of the factories, will the factories still be open, what happens to warranty claims? LOTS of big questions that need to be answered.

I don't have the answers but I do know the management team shouldn't have filed in December just like they should be trying to make things work now without filing.

— 91z4me (View Profile)

Posted on 2/17/2009 10:42:15 AM | reply to this comment | Votes: 1   

tylerdurden13

whats going to happen? One of two things. Either A. They are going to use the money to create a better product and a more efficent manner in which to build it. or B. just blow the money!!! Which giving their history is exactly what they are probably going to do. These big boss men are already rich. I would love for them to build GM into a powerhouse of a company to which all other auto mft companies would envy. Dreaming.....

— tylerdurden13 (View Profile)

Posted on 2/16/2009 4:58:56 PM | reply to this comment | Votes: 1   

Ricks2Dogs

Absolutely agree with others here...Chevy and Caddy period. Dump everything else and then there will be no stoppin' The General!...That's assuming things perk up in not too distant future.

— Ricks2Dogs (View Profile)

Posted on 2/16/2009 8:18:00 PM | reply to this comment | Votes: 2   

vwrules

Chevy and Caddy and roll with it control labor cost.

— vwrules (View Profile)

Posted on 2/16/2009 8:38:24 PM | reply to this comment | Votes: 2   

jonmartin

GM should die finally. They've been making crappy cars for the last 30 years If they made cars of above average quality it would be different for them.

— jonmartin (View Profile)

Posted on 2/16/2009 10:31:40 PM | reply to this comment | Votes: -2   

91z4me

If GM made such crappy products then why did BMW use their transmissions for what a decade of the last 30? GM does have several of it's brands above average in quality and reliability, Hummer is noticeably not one of them.

But then again you aren't informed and interested in discussion, you are here to BASH because you are blind and brand loyal (like a 12 year old). When you grow up and understand that several problems exist within GM and product isn't the paramount one, then you will be able to have a reasonable discussion on the matter.

— 91z4me (View Profile)

Posted on 2/16/2009 10:52:41 PM | | Votes: 1   

Badgewhore

America should file for bankruptcy and reform into a new nation where we all adopt budhism or something similar and live off the land like the Indians. It's obvious Christianity and capitalism is a combination leading everyone straight down the toilet. Our new constitution will say "Never take more than what you give".

— Badgewhore (View Profile)

Posted on 2/17/2009 1:32:48 AM | reply to this comment | Votes: 0   

jonmartin

All that would be great for GM if they were just a transmission manufacture but they're not so Just because they made 1 part for a car that BMW used at one point doesn't erase the fact that majority of GM cars are poorly built with interiors made of tupperware /mattel grade plastic. Besides not all BMWs use the GM tranny(which were mostly lower end Autos) I don't even think they use them at all anymore. My last few BMWs had a ZF or Getrag tranny. I don't see how I'm blind when I sit in new GM cars and shake my head at the awful quality. I thought that was just my observation. And yes I love BMW's but that doesn't mean I think they're the end all be all greatest ever auto manufacture. But GM is obviously not in the same league if they were they wouldn't be talking about bankruptcy.

— jonmartin (View Profile)

Posted on 2/17/2009 6:02:49 AM | reply to this comment | Votes: 1   

91z4me

BMW has a LOT of different conditions than GM. GM competes in a different market, work with me here and you will see. GM works on volume and has an absolute crap ton of overhead (pension funds et al). Their philosophy of move enough metal to cover the overhead was great when they had 50% of the US market, but times change and they didn't adapt quickly enough. When GM hired Bob Lutz to improve quality and materials things began to change on the product end. But things didn't change on the decision making side. And that is the problem with GM. It seems the only way to change their corporate structure is though a radical move like bankruptcy.

The reason I mentioned the GM transmissions is to show that even BMW recognizes that GM produces some quality units. Their powertrains are VERY high quality, while the interior quality wasn't always up to par. Surely even you can admit that GM has produced some world class cars over the years (Corvette, 1st and 2nd generation CTS, current generation Malibu). And even if all of its products weren't world class it doesn't mean they were complete crap. FWIW BMW still uses a GM 6 speed auto in the 328i and possibly the 128i (not sure about that).

Also if you could hit the Reply to comment in your the post above mine it will create a post under my own and it makes things easier to follow.

— 91z4me (View Profile)

Posted on 2/17/2009 10:36:29 AM | | Votes: 1   

Add your Comments

Images hosted in your AgentSpace can now be posted in the comments section using the following syntax (case matters): [img]IMAGE URL[/img]
Example: [img]http://agent001.myautospies.com/images/sample.jpg[/img]