IF GM goes bankrupt...
 

how cheap are their cars going to get? Im wondering about the new corvettes and cadilacs that are out specifically.

Am i going to see a significant price drop?

If anything the prices could go up. Bankruptcy doesn't me closing up shop, it means a government restructured business is going to emerge. If that happens, they might freeze discounts and raise prices to MSRP.

which means GM's cars will really sell like hotcakes :haha:

if GM goes bankrupt, then its assets will be dissolved to pay creditors. most likely they will hire new management to reorganize the corp. chances are, the new guys will still keep the name GM to retain some residual name association, but with the revamp, may just come an overal better company. Im sure there will be new investments and investors.

Im more interested in all the other companies that GM has stakes in, all their side companies, and how this will affect them.

I seriously doubt that the US government will allow GM to die.. and the cars will never be 'cheap' so if you really want one, better go buy one while they're still being made ;)

there is no way they can live if they don't. people were saying this 4 years ago well before the resession hit.

I read somewhere that if every worker worked for free, they'd still lose money, as just the pensioners alone are paid more then the company makes, let alone trying to pay the current workers too.

the union destroyed the company.


the pensioners will probably get the cars... "sorry buddy, you worked for 30 years but your million dollar pension is now canceled, but here have a Cadillac instead"

If the reports about one in seven of US citizens being involved, in some way, with one of the three big US automakers... if the US government lets any of the three die, that would screw up their economy worse than it already is.

I'm interested to see where this goes..

When people say "bankrupt" and "die", what exactly do you guys mean?

Chapter 11 bankruptcy allows for a breaking of all contracts, a full reorganization with control given to all debtholders proportionally, and a continuance of operation.

Even if they do die, it's entirely possible that their manufacturing capacity will be purchased by other companies; free of the contractual obligations of so-called "legacy costs" and under no requirement to keep current union contracts or pay/benefits.

Man, that would suck for all the pensioners who paid into their funds, and lose it all.

I predict mass senior-citizen suicides!

They're not going to lose their contributions. Pension assets are held under a separate trust. If GM goes bankrupt, the existing pension assets are safe; however, GM may or may not have to make up any deficits depending on where employee pensions are in the bankruptcy order.

QFT Unfortunately.

so cars wont be cheaper?

no they won't. prices have already started going back up, actually.

GM is still a viable business. They do sell a lot of cars, not to mention their truck/fleet sales. They will not disappear. They will just hire new management and do a lot of restructuring. They'll still be around.

China wants into the north american market, their cars are not ready for the north american market yet. Buying one of the ailing US car companies would make a lot of sense.

I am sorry but when you take billions and billions of Government's money that says lot how viable GM's business is. Even if are able to bring all stakeholders together (close to impossible), now that's a BIG IF but in what shape and form is the future GM is going to look like? Don't count on the VOLT to save the entire company.

chinese auto makers have told the press 10million times, they are not interested in spending money on a a company like GM or chrysler.

the last thing you want to do in an acquisition is get saddled with all the bullshit unions and entitled workers that come with the big three.

Where was a rumor that Chery Auto (China) is interested in supplying vehicles for sales under Saturn, that did not go through.

Chinese automaker has a long way to go in terms of
- Safety rating
- Copycat styling (that shit just won't fly in N.A)
- subpar performance
- quality control (the curse of executing cost cutting to perfection)

Chinese automakers aren't too interested in N.A. with its market saturated with cars, they got their eyes on their own backyard, China.

Chevy was the second best selling brand behind Toyota (the brand, not the car company) last year. They don't need the Volt, they need to prevent the unions from taking all their profits (that's where the bailout money is going, retired former workers retirement funds).

are BC transits and the canadian government follow the whole union program?
maybe that's why BC transits is always short of money....

when a guy who changes fare boxes makes $17/hr. You bet.

good read on a GM buying experience.

http://www.cnbc.com/id/30213398/

The problem is that the Chinese market is changing also. They're no longer pumping out dozens of ships an hour, as their exports have dropped significantly. As NA and European consumers go back to a desire to not use poorly made products that are destined for the trash, we'll see an even bigger drop in Chinese exports.

That said, if they can go the route of Tata with their nano, Chery could have big gains in their backyard. As long as they don't promote Cadillac pricing in a Lada market.