MercedesBenz00Z
MercedesBenz00Z
This is, the German engineering.
View My AgentPage

Print this Page | Digg It | del.icio.us

Tags: GM, bankruptcy

Tag Links: GM, bankruptcy

Merrill says GM bankruptcy possible
DETROIT (Reuters) - General Motors Corp (NYSE:GM - News) will need to raise as much as $15 billion in cash to shore up liquidity and bankruptcy is "not impossible" if the U.S. auto market continues to slump, Merrill Lynch said.

Other analysts have suggested GM, whose shares fell to a new 54-year low on Wednesday, needs to raise funds to ride out the downturn in the U.S. auto market through 2009.

But Merrill's estimate of GM's financing needs is the highest yet. It also carried the most stark warning of the bankruptcy risk for the largest U.S. automaker.

GM declined to comment directly on the Merrill Lynch report but it believes it has sufficient liquidity for 2008 despite lower volumes and could take more steps to cut costs if sales conditions worsen.

"If conditions continue to deteriorate, we would consider other operating measures," GM spokeswoman Renee Rashid-Merem told Reuters. Read Article



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://agent004.myautospies.com/users/150/Sample-Gallery/sample1.JPG[/img]
Agent63Agent63 - 7/3/2008 9:50:04 AMView My AgentSpace
-3 BoostDrop the Boost Up the Boost
They should get rid of some GM brands to cut cost. Maybe even selling one or two to partner Toyota. If that is the case Toyota could benefit from using an existing brand to be used as an all-out hybrid brand. In turn it could save them some money.

A long shot but just a thought.

reply to this comment
wooodwoood - 7/3/2008 10:50:33 AM
+3 BoostDrop the Boost Up the Boost
Very Very long shot.


SteedPubSteedPub - 7/3/2008 11:49:28 AM
+2 BoostDrop the Boost Up the Boost
What brand should GM sell to Toyota to use as an "All Hybrid" Brand?

Hummer?


dumpstydumpsty - 7/3/2008 1:05:34 PM
+4 BoostDrop the Boost Up the Boost
I don't think they should sell any of their brands (some sell very well in other countries). In the US, GM should just stop making 2 or 3 of the "underperforming" brands instead. And only focus on core vehicles in its key brand portfolio (Chevy, Cadillac, Saturn).

Every Chevy SS model would what future Pontiacs were GOING to be...performance, excitement, power. Top-of-the-line Chevys would be near-luxury like Buick. Chevy trucks & SUVs should have street-, off-road- & professional-grade build options. Cadillac would be focused on more luxury appointments in each model offered...no questions asked. Saturn can continue to offer the European flare for the niche-like categories.

GM can operate and better adjust to market demand with fewer brands to constantly update and spread funding to. It can benefit for having to differentiate so many brands from each other and having to explain why their different (when they're 80% the same). Marketing only Chevy, Cadillac, Saturn would be a 1000x easier for auto shows and special events.

And think of the "buzz-factor" if GM provided concepts for Hummer, GMC, Buick, Saab, etc every couple of yeas to showcase limited production runs.

I must be a deep (optimistic) dreamer...b/c I really think GM would be better off this way.


damikcodamikco - 7/3/2008 1:35:32 PMView My AgentSpace
+1 BoostDrop the Boost Up the Boost
The best ideals are like yours longshots and compleately out of the box, i think it would be a great ideal or maybe toyota would buy chrysler instead inded an all hybrid company would have a huge customer base and insantly have a favorable customer base.


WhelanWhelan - 7/3/2008 10:43:48 AM
+6 BoostDrop the Boost Up the Boost
This probably is going to kick up the talk about GM ditching a few brands. Possibly Pontiac since they have not yet come out with any really new models other than the G8. The G8 could get it's powerplant moved to a new Saturn model upsize from the Aura/G6.

GMC most likely will be on the block given that it offers just more luxury heavy duty versions of Chevy trucks and SUVs.

Most people say Buick, GM at first was trying to aim Saturn at the Acura market, but it seems they are sticking to their guns on recreating the brand to go against Cadillac, we shall see how that pans out. Produce that new Riviera and sales could be better.

Saturn is moving away from GM in terms of American rebranding. They use almost all Opels for their current lineup and if they kept with that it could benefit them in the long run.

I also feel the government would possibly step in with this and help GM bail out a bit. Such a large US company would be detrimental if lost in our economy.

reply to this comment
91z4me91z4me - 7/3/2008 11:19:44 AM
+3 BoostDrop the Boost Up the Boost
To clear up a few things. The G8 (a version of the Holdven VE chassis) shares only its 3.6 V6 w/ the Epsilon based G6.

GMC offers light duty and heavy duty trucks, just like Chevrolet. It will go away eventually but since it is the #2 volume brand, has very little development costs, and sells are high margins probably won'tbe going away.

Pontiac is GM's #2 car brand in volume. I really can't see just giving up your 2nd largest car market (which will surely cost billions of dollars) at this point.

Saturn wasn't rebranded GM North American cars prior to the Ion. GM has publically stated it will become rebadged Opels so that is nothing new. The only problem is that the 1st of these, Astra, isn't selling that well.

The bigger risk for GM at this time is being bought out.


Maverick2020Maverick2020 - 7/3/2008 11:27:28 AM
+2 BoostDrop the Boost Up the Boost
If GM were ever going to do what we all know needs to be done--a radical restructuring of its brands/divisional structure--this is the time to do it.

GM's share dipped below $10--the first time since 1954.

If that isn't a wake-up call, I don't know what is. Wall Street and Main Street would welcome a radical surgery of this once-great company.


auto001auto001 - 7/3/2008 11:13:35 AM
+1 BoostDrop the Boost Up the Boost
With over $70 billion in longterm pension and medical liabilities, I'm amazed GM lasted this long. They need to downsize and specialize ASAP.

reply to this comment
w209w114w209w114 - 7/3/2008 11:43:14 AMView My AgentSpace
-1 BoostDrop the Boost Up the Boost
GM wouldnt be a surprise. But consider this: Toyota and Bankruptcy. Its not so far fetched after all. Big car makers are more vulnerable, the more liabilities you have spread out the easier it is to fall into debt and generate huge losses

reply to this comment
Maverick2020Maverick2020 - 7/3/2008 12:18:23 PM
+1 BoostDrop the Boost Up the Boost
Toyota has $38B in cash. I don't think it's going out of business anytime soon.


w209w114w209w114 - 7/3/2008 12:25:44 PMView My AgentSpace
+4 BoostDrop the Boost Up the Boost
Maybe not. But its not impossible. It seems to be heading down that old and well traveled road GM has known.

Just look at what is going on with their production at the Tundra and SUV plants. And at how much they are backtracking their overly ambitious sales goals. Clearly at least the people who set those goals did so to wrongfully inflate stock prices and mislead the public and investors.

I can almost guarantee Toyota is going to be declaring huge losses by the end of this year.


Threepoint1415926Threepoint1415926 - 7/3/2008 2:40:12 PM
+5 BoostDrop the Boost Up the Boost
"Toyota has $38B in cash." Where did that number come from? By my counts its about 10 billion too much. Not too long ago, GM had that very same problem. Too much money.


DieselRulesDieselRules - 7/4/2008 11:52:51 PM
+1 BoostDrop the Boost Up the Boost
Toyota may not be a bunch of car-lovers, but they are certainly a bunch of very shrewd business people.
I'd bet huge sums that Toyota is not going out of business!
How can you when you scam the best technology from other companies and put your "engineering" into making it reliable and cheap to produce?
A lot of people dislike them for that, but its a formula that works extremely well!


damikcodamikco - 7/3/2008 1:38:30 PMView My AgentSpace
+6 BoostDrop the Boost Up the Boost
all in said in done GM is heading in the right direction most folks dont think so but dont forget the entire industry took a dive and really GM faird better than Toyota sales.

reply to this comment
damikcodamikco - 7/3/2008 1:42:51 PMView My AgentSpace
+2 BoostDrop the Boost Up the Boost
One might say GM cars arnt green enough but if you compare them with toyota, GM both offer hybrids bothe are working on hydrogen cars but GM offers Flex fuel cars and have cars with cylinder deactivation, also Gm has more cars that 30+ mpg than toyota and GM has a longer warranty than Toyota.

reply to this comment
85bmw745i85bmw745i - 7/3/2008 7:15:56 PMView My AgentSpace
+2 BoostDrop the Boost Up the Boost
Because GM has 8 different brands Of course they do. If toyota had 8 different brands, they would murder GM in fuel economy. I don't think its a big accomplishment to have a company with 8 brands beating a company with only 3. and one of those GM cars (Pontiac Vibe) is actually a toyota.


damikcodamikco - 7/4/2008 12:05:26 AMView My AgentSpace
+2 BoostDrop the Boost Up the Boost
Forget about the numbers for a second my point is GM has the cars that hit todays benchmark of 30mpg they have a longer warranty than toyota so they are heading IN THE RIGHT DIRECTION, its not a numbers game.


StickShiftCamryStickShiftCamry - 7/4/2008 10:51:19 PM
+1 BoostDrop the Boost Up the Boost
What good is long warranty when they BS w/ u when u try to take it in for warranty service and talk most ppl out of free service. I know this girl that bought a 100k warranty Elantra - the brand new car started stuttering intermittently or something - they just gave her BS...


85bmw745i85bmw745i - 7/5/2008 12:29:38 PMView My AgentSpace
+1 BoostDrop the Boost Up the Boost
I agree Damikco, they do have a better warranty, my only question is why 100,000 miles but only 5 years? they advertise 100,000 miles as a marketing gimmik so they can say well we have 100,000 mile warranties like hyundai. GM has improved trmendously, I give them that, and I feel bad that they are still losing despite their improvements. I didn't feel the same when they were making those cheaply engineered poor interior cars of the 80's and 90's.


DieselRulesDieselRules - 7/4/2008 11:58:30 PM
+2 BoostDrop the Boost Up the Boost
GM's cars are improving dramatically (Malibu, the Chevy A6 clone) and trucks (the new interiors don't look like they're from the 1970's anymore! :)
However, it may be too little too late.
They've had cash problems, union problems, lack-of-direction problems, top-heavy organization, etc. for too long.
You can only go so far into debt, and eventually the overheads of servicing the debt prevent you from ever digging out.
Too bad. The cheapest (North American built) Chevies have better brakes than the high-end Toyotas, and they're quality is way up....

reply to this comment
c36amgc36amg - 7/7/2008 6:59:13 AMView My AgentSpace
+1 BoostDrop the Boost Up the Boost
goodbye gm...
the japanese will be laughing at you just like you laughed at them...

reply to this comment
To post a comment for this story, you must first Login.

If you do not have an account, you will need to Register (It's Free!).

Most Recent Stories
Renntec Mercedes C63 AMGFerrari Enzo Replacement SpiedSarah Palin Opens A Can Of Alaskan Whoop-Ass On Obama And Democrats-But What Does She Drive?Recall Issued for 2009 Jaguar XFCONFIRMED: Chevrolet Volt to be revealed this monthStudy: Women get ’turned on by engine sounds of MaseratisLamborghini Gallardo LP560-4 gets diamond wheels and pink brakesWill Buyers Be Willing To Settle For A 4 Cylinder BMW, Or It That Just Too Far Of A StretchUpcoming Beetle Design Will Inject More TestostoroneRumor: Ferrari working on a 430 Scuderia Spider2010 Chevrolet Camaro orders start next monthHyundai to show Santa Fe hybrid concept in ParisIs Imitation The Sincerest Form Of Flattery? Honda Releases Their Own Prius Look Alike!2009 Mazda MX-5 FaceliftCitroen reveals new hybrid conceptEarly look at America-bound Ford C-MaxSpies Become MythBusters When It Comes To Your Options If You Think You've Bought A LemonIs BMW The Company Actually Behind The Audi A4 Driving Experience App?NHTSA Sides With Toyota On Unintended Acceleration Issues Claiming 400 Owners Had No CaseChrysler Still Sits In The Basement, Sales Down 34% For AugustHow Low Should It Go? Analysts Predict Oil To Plunge As Low As $80 A Barrel!The Bottom Falls Out Of Audi Sales In August, Down 16% For The MonthHyundai May Be Fuel Economy Leader By Meeting Standards 5 Years Ahead Of DeadlineGM Employee Pricing Program Fails To Limit Sales Losses - Sales Down 20.4% In AugustHyundai Stumbles Down 8.8% For AugustBMW Sales Dip 4.1% In August - Mini Remains Strong Up 34.1%Honda Stumbles 7.1% In August - Acura Makes Progress Down 8.2%2008 Mercedes Brabus Bullit Black ArrowMazda Tightens The Belt With a 4.4% Decrease In August SalesNissan Rebounds With Sales Up 14.2% - Infiniti Up 8.0% For AugustToyota Drops 9.4% In August - Lexus Year End Clearance Event Curbs Losses To 9.1%Volkswagen Rides The TDI To A 2.9% Increase August SalesMercedes Benz Sales Drop 11.8% In August - SMART Sales Remain StrongFOMOCO Stuns No One With A 26.6% Shortfall In August SalesBMW 135i Outpoints Its Competitors to Become Consumer Reports' Top-Rated Sporty CarGerman Car Market Sales Fall 10.4% For AugustInfiniti M35 to get 303-hp V6 VQ35HR engineHot News: Mercedes CLT2009 Lexus IS Facelift Spurts Out On The Net$200 Spy Tool Allows You To Track Your Errant Children Or Spouse's Every MoveConsumer Reports Analysis: Best Money Saving HybridsChrysler working on electric cars and plug-in hybrids$2 million Bugatti Veyron crashed againHonda's Prius rival to be revealed on ThursdayKia Soul to debut at Paris Motor ShowHummer H3T on sale in Middle East this NovemberBMW pure electric 1-series in the worksAudi working on R3 roadster with 4-cylinder engineWho Is Going To Be The First to Fall And How Soon?Honda To Debut New Hybrid Thursday - To Be Priced Same As Conventional Models