We should be beholden to pure capitalism. This is America. GM is a flaming POS as a company. They should go under and the CEO and entire board should be shot in a public square . lol

 

Thanks for that thoroughly thought out gem.

 

Bankruptcy scenarios are currently being seriously considered by GM execs, Treasury and Obama administration.

 

A brief recap of GM over the last few yrs:

In 2007 = #1 Automaker
In 2008 = #2 Automaker
In 2009 = Bankrupt!!?

I'm proud to be a lazy American once in awhile.. but not every damn day.

(PS - That's my new quote.. don't steal it, lol)

 

bankruptcy is the only option for gm, screw all these damn loans going to all these large corporations it will only prolong the bleeding of the american society. the us auto manufacturers need to file chapter 11 so they can get rid of the ridiculous compensations to the union's/workers. they want 30+ hour wages to put on doorpanels and trim that require little skill and they want complete health care (i'm not a hater of that but with this socialization of healthcare by OBAMA there won't be the need for it provided by the company) not to mention ridiculous pension plans for these same employees. what's wrong with a 401k and the commonsense to save some cash yourself! i'll save the ranting about how this obama house is lame for the clubhouse. so basically to gm, RESTRUCTURE, REMOVE UNIONS, AND REHIRE PEOPLE AND PAY THEM ACCORDINGLY.

 

Fire all the workers and hire scabs.

Read up on Frank Lorenzo.

What a delusional idea.

 

You are correct in stating that the US gov't is likely the only institution large enough to cover their impending Chapter 11.

Are you kidding? Sales have already fallen off over a mountain peak never mind a cliff? How do you justify providing a company that is bleeding profusely a further $30 BILLION dollars?

You would then have a company that is over $60 BILLION dollars in debt. How would they ever repay that kind of debt when they wouldn't have turned a profit in 8 years?

You have repeatedly challenged the disparity in labor dollars spent between domestic and import manufacturers. While you are, again, correct in stating that domestics and import manufacturers pay very similar hourly wages....what you fail to acknowledge is that the domestics (and GM) specifically carry an enormous burden with pension costs. The $70/hr number that you hear floated around regularly for GM, is of course not what the average employee receives, but what GM actually spends on their income statements per employee.

To argue that the UAW is not, and has not been a primary factor in the demise of the American auto industry is naive at best. Of course, the execs made some terrible decisions but the union has essentially been the final nail in the coffin.

I don't think anyone has suggested that GM fail out of spite.

In fact, it seems that most are suggesting a way that GM can find a way to restructure and find the path back to their glory years.

 

It's starting to look like GM and the federal government see possible bankruptcy scenarios as the way to actually get the necessary concessions from all parties, including unions, debt holders, vendors, dealers and shareholders.

 

AND the gov't is the only entity that has the power to facilitate the impact Chapter 11 will have on those swollen pensions... you WILL see an announcement by Wednesday

 

you'll get the bill for all the old GM pensions once the govt takes them on.

 

they couldn't assemble a car any worse than the current employees.

 

I agree. GM is on the same playing field as all the other automakers and GM failed bigtime. GM in the past made the wrong moves and they have no one else to blame but themselves. It is not the Government's responsibility to save GM. The Government is trying to help GM and that's fine but GM is in so deep that it's beyond help of any kind except the last and final option of bankruptcy.

GM is a dead corporation walking...RIP

Today, GM's stock got as low as $1.27/share

http://finance.yahoo.com/q?s=GM

 

Nor is it the taxpayers responsibility to pay for poor management decisions, exacerbated by union contracts that pay for workers not working, and not producing. I’m sick to death of seeing my hard earned paycheck being siphon off to bail out industry that has been stuck in a morass of their own making. One look at the DOW (now known as the Obama daily tracking poll) is enough to make one realize that government is not the answer either, since they surely haven’t a clue.

 

Actually, I'll take part of my own statement back. Some German and Sweedish automakers HAVE indeed had to grapple with enormous European wages and benefits in their home countries, but, that is not the case in the Ameerican South where they produce vehicles far more cost-effectively than they do (or can) in Europe.

 

I'm guessing that above posters mean selling into the "same marketplace as their competitors", especially as it pertains to North American auto market.

A huge part of the strangulation of GM is due to what's commonly called "legacy costs" resulting from numerous poor management decisions made over the years. Contractual relationships with UAW are only some of the many significant problems that GM has. Only some of these costs and burdens have been identified above.