my friend keeps telling me that GM is going bankrupt, is it true???
my friend keeps telling me that GM is going bankrupt, is it true???
they have been losing huge amounts of money, but i doubt they are going bankrupt, they own sooo many companies and have sooo many cars, and they are everywehre
He came dancing across the water
With his galleons and guns
Looking for the new world
In that palace in the sun
On the shore lay Montezuma
With his cocoa leaves and pearls
So once was Burroughs and Sperry ( they come to my mind more than an American auto company does at the mo' )Originally Posted by my porsche
IF they don't maintain cash flow the banks will force their closure.
If they don't maintain profit the share holders will crucify them.
Neither of these are driven by how widespread they are
"A woman without curves is like a road without bends, you might get to your destination quicker but the ride is boring as hell'
but with the amount of money that these major auto companies possess, I'm sure it would take a long time of them to run out of money?
"We first fought the heathens in the name of religion, then Communism, and now in the name of drugs and terrorism. Our excuses for global domination always change." - Serj Tanikan
"Dusting is a good example of the futility of trying to put things right. As soon as you dust, the fact of your next dusting has already been established." - George Carlin
banks and shareholders never want to be stuck with a company when the money runs out.Originally Posted by lithuanianmafia
At the point CONFIDENCE runs out is when they bale.
That could happen at almost anytime.
Look how quickly ENRON collapsed ( it did have other reasons accelerating the downfall tho' )
EDIT: Just checked their stock ratings. GM currently has over $280B ( yes two hundred and eighty BILLION dollars ) DEBT !!!! And $16B in cash. Net tangible assets are only $10B. SO they are up to their necks in debt ( I'm a cautious balance-sheet guy developed over the years working in HP !! )
Both Ford and GM have just been down-graded. THe US is losing $1B per quarter, so the cash coudl last them a long time. BUT that's not how it's looked at. The debt ratio is huge for a company that is in a fairly dormant market
Last edited by Matra et Alpine; 09-04-2005 at 08:51 PM.
"A woman without curves is like a road without bends, you might get to your destination quicker but the ride is boring as hell'
If GM colapsed it would be a huge blow to the economy and US job market. I think they would get incredible help from the government.
Yes GM will get govt. aid.Originally Posted by ScionDriver
FIAT are also getting it.
they would have to because GM is one of the major driving forces of the economyOriginally Posted by ScionDriver
"We first fought the heathens in the name of religion, then Communism, and now in the name of drugs and terrorism. Our excuses for global domination always change." - Serj Tanikan
"Dusting is a good example of the futility of trying to put things right. As soon as you dust, the fact of your next dusting has already been established." - George Carlin
American people will ALWAYS buy Chevrolet.
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Debt per se isn't bad, but that's just TOO MUCH! But we have to keep in mind that a lot of money is also owed to GM, but hardly enough to cover the debt into reasonable numbers. You're right that how big the company is doesn't affect it's downfall, when shareholders and banks lose hope, it's over. GM will probably not go "fight to the bitter end" so to say, when there's no way out owners will change.Originally Posted by Matra et Alpine
So communistic measures are ok as long as it helps the US? I'm not too sure if it's a good idea in the long run though, just because GM would fall doesn't mean chevy's etc would dissapear, neither the jobs in the long run. Government backing in this case is like trying to fill a broken bottle with water, no matter how much you pour into it it will still eventually go empty.Originally Posted by lithuanianmafia
http://www.ultimatecarpage.com/forum/showthread.php?t=31695
- Are YOU listed? -
may be if they start bringing European GM products to the American markets, which are already geared to the current fuel prices (which will no doubt continue to rise) there is a chance that they may increase their cash flow. Of course given the employee rebate to all customers is surely leading downhill.
"I find the whole business of religion profoundly interesting, but it does mystify me that otherwise intelligent people take it seriously." Douglas Adams
A company as big as GM, even if it goes bankrupt, it will just change ownership and go on.
In any case, I don't think that your friend has any inside information. He just heard it from his friend who heard it from his.
Let's get serious, shall we?
http://www.detnews.com/2005/insiders.../A01-56205.htmOriginally Posted by lightweight
it's been in the open for AGES !!
and looks like little has really improved
"A woman without curves is like a road without bends, you might get to your destination quicker but the ride is boring as hell'
If it happens at all , it will take the MG-Rover path the company has so much potential it will never go bankrupt and they can always seperate certain loss-generating parts of the company from the profitable ones(Corvette is doing pretty good) and sell the the less profitable or make the profitable ones compensate the loss making ones
for sure R34.Originally Posted by R34GTR
The first thing they would do would be to declare Chpater 11 and then be permitted to operate without some of the legal and financial constraints of a business responsible to it's creditors What comes up every time though is the theory that if ONE fo the big US auto makers files Chapter 11 then all the rest will to to make it a level playing field for them !!!
"A woman without curves is like a road without bends, you might get to your destination quicker but the ride is boring as hell'
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