GM's looming bankruptcy

May 29, 2009
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So, three decades of decline has come to this for General Motors: a Chapter 11 bankruptcy petition expected to be filed Monday.

Lots of problems contributed to its downfall, but now the carmaker faces an extremely steep climb.

The bankruptcy will winnow its model line to vehicles consumers like best, but that doesnâ??t mean consumers will buy the cars. The brands might be suffering from fatal damage, particularly in such influential markets as California and much of the East Coast.

Do you believe GM will make it? Or is bankruptcy the next-to-last nail in its coffin?
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  • I think they will make it. They make a very good car, just to many makes and models. It should be Cadillac, Chevy, and Saturn and that should be all of the makes. Each line should feature about 5-7 models. Cadillac should lose the SUVS and focus on cars. Saturn could be the economy line with Chevy having a economy model as well. Trucks and SUVS should be under the Chevy brand. This is my non-expert opinon however. By the way, if GM is looking to move from Detroit, Indy should try to lure them downtown. The unions here are very weak. Probably a plus for them.
  • I don't believe GM or Chrysler will make it over the long term. I think the way the bankruptcies are being handled by the Federal Government will alienate a large percentage of future car buyers and their future sales will decline even more.
  • Know how many car companies were around when the Big 3 formed? 90 years ago there were close to 1000 car companies.
    Take the money we're using to bail and set up a fund for emerging companies with technologies that help with performance, mileage etc.

    GM and Chrysler won't and shouldn't keep going, they pooped in their own nest a long time ago with bloated managment and arrogance.
    It's going to be painful and tough but after the internet bubble burst we've seen wonders and breakthroughs we couldn't imagine.
  • I'm with Kris. For one thing, many of the smaller suppliers who worked with GM and Chrysler are currently and will continue to be closing due to the lack of business. Needless to say, the lack of material can only serve to drive up prices.

    This in turn, will have a negative effect on Ford, who like Chrysler and GM is saddled with union issues, pension issues, etc..

    I think what we will see is a long-term flight to similarly priced, but higher quality, foreign autos.

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  1. How can any company that has the cash and other assets be allowed to simply foreclose and not pay the debt? Simon, pay the debt and sell the property yourself. Don't just stiff the bank with the loan and require them to find a buyer.

  2. If you only knew....

  3. The proposal is structured in such a way that a private company (who has competitors in the marketplace) has struck a deal to get "financing" through utility ratepayers via IPL. Competitors to BlueIndy are at disadvantage now. The story isn't "how green can we be" but how creative "financing" through captive ratepayers benefits a company whose proposal should sink or float in the competitive marketplace without customer funding. If it was a great idea there would be financing available. IBJ needs to be doing a story on the utility ratemaking piece of this (which is pretty complicated) but instead it suggests that folks are whining about paying for being green.

  4. The facts contained in your post make your position so much more credible than those based on sheer emotion. Thanks for enlightening us.

  5. Please consider a couple of economic realities: First, retail is more consolidated now than it was when malls like this were built. There used to be many department stores. Now, in essence, there is one--Macy's. Right off, you've eliminated the need for multiple anchor stores in malls. And in-line retailers have consolidated or folded or have stopped building new stores because so much of their business is now online. The Limited, for example, Next, malls are closing all over the country, even some of the former gems are now derelict.Times change. And finally, as the income level of any particular area declines, so do the retail offerings. Sad, but true.

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