GM to File for Bankruptcy in Next 5 Days

[ScionDriver]

I am on my way out the door, so don't have time to say much other than here is the link.

From Article:

General Motors said Wednesday it has fallen far short of the bondholder support it needed for its proposed debt-for-stock offer, virtually guaranteeing that the nation's largest automaker will be forced to file for bankruptcy court protection within the next five days.

The bondholders were not satisfied with the prospect of owning only 10% of the company when the U.S. government would own nearly 70% and a union-controlled trust fund up to 20%.

[IBrake4Rainbows]

Sigh....I don't know why some of these bond holders hold off on these things...they're stock is worth less than nothing anyway....

Another Great US company needing to downsize....

[Dino Scuderia]

The bondholders will come out better via bankruptcy...the gov't will end up owning 70% of GM and a huge deal was struck with the UAW passing them a lot of stock. The gov't will continue to float billions to GM to keep the stock viable...so in effect it's a bankruptcy cloaked in a giant bailout.

[pimento]

It was a bit inevitable.. and mostly what GM needed to become viable in a reasonable timeframe.

[Canam fan]

Couldn't GM have gone straight to BK without the billions in bailout? What exactly did Obama accomplish with billions of our dollars? Oh that's right he transferred ownership to the unions.

[cargirl1990]

this is depressing...

[LeonOfTheDead]

Originally Posted by cargirl1990

this is depressing...

I think now and for the previous years it has been depressing, in 5 days it could only get better or finally ends. Now if it ends a lot of people will loose their jobs and so on, not really a nice scenario...as if in the last years no one lost his job or the company didn't burn billions.

[Ferrer]

Originally Posted by pimento

It was a bit inevitable.. and mostly what GM needed to become viable in a reasonable timeframe.

The first part of this.

[switters78]

It's sad that people will lose their jobs, but there's no point in employing people to churn out crap that no one wants. They've spent the last several years spreading themselves far too thin and creating jobs that shouldn't have been created, and now it's caught up. It's like trying to get a watermelon vine to produce grapes and cherries too, and hiring people to harvest them. GM has a few good products, and by downsizing they'll hopefully be able to build on that and turn into a more streamlined, efficient company that's more in touch with what's appropriate in the current market.

[Buen]

Honestly I'm not really all that sad to see them go. (When not thinking of the lost workforce involved)

The only think i actualy feel myself fear for is the Corvette and Opel branches. Allthought i feel that someone will proberly swoop in and buy thoose.

I'm a little torn as to what to feel.

[LeonOfTheDead]

Originally Posted by switters78

It's sad that people will lose their jobs, but there's no point in employing people to churn out crap that no one wants. They've spent the last several years spreading themselves far too thin and creating jobs that shouldn't have been created, and now it's caught up. It's like trying to get a watermelon vine to produce grapes and cherries too, and hiring people to harvest them. GM has a few good products, and by downsizing they'll hopefully be able to build on that and turn into a more streamlined, efficient company that's more in touch with what's appropriate in the current market.

Originally Posted by Buen

Honestly I'm not really all that sad to see them go. (When not thinking of the lost workforce involved)

The only think i actualy feel myself fear for is the Corvette and Opel branches. Allthought i feel that someone will proberly swoop in and buy thoose.

I'm a little torn as to what to feel.

They are filling for bankruptcy, not closing down.
Not all the employs will lose their jobs, probably just a minor part of them as a lot have already been dismissed.
Opel is surely sold already, we just have to wait (tomorrow) to know if Fiat or Magna will be the new owner.
Corvette is safe, Buick is safe, GMC is safe, Chevy, cadillac are safe. Pontiac is gone and Saturn is going to be independent soon.

Without bankruptcy GM would have surely close down for real. Now it could be late to save it even under controlled administration, but whatever will happen, it won't be due to filling C11, but to what happened up to now.

[Buen]

Well, I've never been one for economics.

But that surely sounds nice. I honestly hated that the newer Opel allmost allways shared models with a few other brands and never really just was it's own. I hope this will start a new line of cars, with some exciting innovation.

[clutch-monkey]

lol, is the UAW in charge now if they hold a lot of stock? that will end in failure

what happens to holden i wonder

[LeonOfTheDead]

Originally Posted by Buen

Well, I've never been one for economics.

But that surely sounds nice. I honestly hated that the newer Opel allmost allways shared models with a few other brands and never really just was it's own. I hope this will start a new line of cars, with some exciting innovation.

Opekl will built its own vehicles probably only if sold to Magna, as if the owner will be Fiat the two brands will likely share components and platforms. Something that they already do btw, since Corsa=Punto=MiTo, or Vectra=Croma=159, more or less.
I also have my personal opinion that the now just replaced Opel Astra was based on the Fiat Stilo, but I never found facts to prove it.

Originally Posted by clutch-monkey

lol, is the UAW in charge now if they hold a lot of stock? that will end in failure

what happens to holden i wonder

The UAW should own about 18% of GM, and looking forward to sell it once it will be worth of something (same with the stake in Chrysler). The US Government will be in charge at GM as it will own 70% of it, but it will sell it too sometimes in the future.

[baddabang]

Originally Posted by clutch-monkey

lol, is the UAW in charge now if they hold a lot of stock? that will end in failure

what happens to holden i wonder

As far as I know they only get 1 seat on the board of directors with their 17% ownership.