GM Bankrupt?

[Simple6]

Looks like they've gone down following Chrysler...didnt read into it but heres an article..

http://www.guardian.co.uk/business/feedarticle/8535214

[Fairmont888]

was just on the news, expected to file for bankruptcy within hours

[brockefxr6]

mmm no gm means a downfall for holden ?

[Malakai]

No there will be little impact on Holden here in Australia. They are like Ford in that they are quite distanced from the US side of things.

[-jjM-]

will parts become gold over here aswell will we see ls2's or ls7 still finding there way into holdens or is it just full stop?

[rhys]

yer they have just declared it over night. they will be overhauled tho and will make smaller more efficient cars according to channel 10.

[skidder]

It has been inevitable for a while. I haven't really tuned in recently but other manufacturers have been buying in. I can't remember for sure but I thought Fiat was attempting to buy a majority stake in the company?

[Gozza]

I think the GOvernment owns 60% with the rest made up of creditors and stakeholders

[Rollin]

I just saw a presentation about this today actually.

GM is filing for a section 11 bankruptcy, which is entirely different to the bankruptcy we have here. Basically, they are allowed to continue trading as usual, and they've started a company called "New GM". Over the next 60-90 days "New GM" will be buying all the 'good' bits of "Old GM" and then continuing operations as it was before, but due to the dropping of a lot of bad debts and liabilities they will be able to run a cleaner and meaner operation which is more profitable and relevant. Because "New GM" is partially owned by the american government the govt has been able to 'suggest' that they look into smaller more fuel efficient cars, and alternative power sources, which will help in the future.

The reason they got in the shit so badly in the first place was because (among some other things, like building stupid gay-ass trucks) the unions over there (United Auto Workers) are extremely powerful.

Sometime around 20-30 years ago when GM was making money hand over fist the UAW organised a whole bunch of very very good pay schemes and benefits for its members - good pay structures, super etc and health insurance. Not only did GM become responsible for the health of its employees but also for their families as well!

The upshot of it is that GM had to charge around US$2000 per car extra just to keep up their part of the deal with the UAW. This obviously meant that it was much harder to compete with imported cars on price, if not quality of components/R&D etc.

Under "New GM" and apparently with the consent of the UAW quite a lot of the benefits the auto workers used to enjoy will be scrapped, which will free up a lot of cash to be spent on model development etc.

It's probably the best thing that has happened IMHO - reducing americas focus on big idiotic trucks and the removing the ridiculous demands of the unions.

[Mr_4.0]

couldnt have said it better.