GM on the verge of Bankruptcy

[NickD 202]

<h2 class="date-header">"Thursday, March 5, 2009</h2> <h3 class="post-title entry-title"> <a href="http://bloggingredneck.blogspot.com/2009/03/gm-is-on-verge-of-bankruptcy.html">GM is on the verge of bankruptcy </h3>

An auditors report indicates that GM will likely have to enter chapter 11 bankruptcy. It is highly unusual for an auditor to publicly publish that information. GM must be far worse off than thought. According to the report, GM would need a massive restructuring plan to survive. Whatever happens, the remaining company will not be the GM your parents knew. Since the UAW have only offered token concessions in negotiations, the best thing for them would be a structured bankruptcy. The taxpayers have put enough money down this rat hole.

GM's auditors raise the specter of Chapter 11

Mar 5 05:24 PM US/Eastern

By TOM KRISHER

AP Auto Writer

DETROIT (AP) - Of all the words in General Motors Corp.'s 402-page annual report, none is more jarring than two written by the company's auditors: "Substantial doubt."

The doubt, according to Deloitte & Touche LLC, is about whether GM can overcome its staggering losses and generate enough cash to stay in business, or remain a "going concern" as accountants would say.

GM concedes in the report filed Thursday that it's on the edge of bankruptcy and won't be able to avoid it unless it gets more government money and successfully executes a huge restructuring plan.

It's no surprise that auditors would question GM's viability. The Detroit-based behemoth lost $30.9 billion last year, is living on $13.4 billion in government loans, and is seeking up to $30 billion as it tries to survive the worst auto sales climate in 27 years.

But the auditors' comments are serious because the threshold for raising such concerns is tilted heavily in favor of companies, and often they can negotiate them away, said John Pottow, a University of Michigan Law School professor who specializes in bankruptcy.

"If you get a qualified going concern audit letter like this, that suggests you are in extreme financial distress and very likely may file for bankruptcy," he said. (excerpt) read more at

Breitbart.com"

http://bloggingredneck.blogspot.com/2009/0...bankruptcy.html

One factor with the increased cost of vehicles is the vast proliferation of components, what happened to mass production? In 1984, there was only 8 different types of voltage regulators that would cover about 90% of the applications. Just a electronic device that monitors the battery voltage to control the field current in an alternator to keep that battery voltage constant. Function is identical in ALL vehicles, but today with minor changes here or there, that 8 basic types has proliferated into over 3,000 types?

In 1927 Henry Ford used all off the shelve ball bearings in his Model A, a thrust bearing located on the top of a strut should vary with the weight of the vehicle, but again, minor variations in design, for no particular reason has expanded this to over several thousand different types. Before 1985, parts replacement catalogs were pamphlets, today, they are NY telephone directory size, what a madhouse. And yes, you can pay $156.00 for that voltage regulator that cost 69 cents to make. No wonder why the auto industry is going to hell! Not only the proliferation of the individual components, but the different models as well. GM and Ford are no longer mass producers of automobiles. just a series of short production runs with constant changes.

EPA requirements changing every year hasn't helped either, without the benefits of any statistics to show improvements in air quality.

Wouldn't mind seeing GM going bust with many thousands of smaller vehicle manufacturers like it was before the depression, where free market determines their success. Our automotive industry has become more political than technical, still the same four wheels on the ground, and the same internal combustion engine used over a hundred years ago, with seats and a steering wheel. Really, not much in the line of improvements.

[Mikkel 0]

Let them burn.

[EstebanTrabajos 7]

OMG!!!

We are going to be left without crappy cars!?!?!

HELP!! not really...

[DanielParul 50]

Just want my money back. Damn those shares!

[Jasman0717 9]

I was reading this yesterday. Ugh

[elkfarmer 4]

.

A friend of mine has loved GM all his life. Hated Fords. A week ago, he went in to have a turn signal put in a Suburban. The dealer supplied part was $380. He complained and they took off $50. He goes home and his son looks up the same part number, from Delco, New Old Stock, and finds the exact same thing for $90. He went back to the dealer, and told them he would never do business with them again. He is now shopping for a new Ford Excursion.

[Saddle Bronc 124]

GM concedes in the report filed Thursday that it's on the edge of bankruptcy and won't be able to avoid it unless it gets more government money and successfully executes a huge restructuring plan.

Does GM actually HAVE a viable restructuring plan at this point?

[Otto 83]

Best to let them go... let them splinter off their divisions that work (Corvette/Chevrolet, Cadillac, etc), kill off those that don't (or are redundant) and stop letting the giant mother-company drag the ship down...

Watch Opel split off in the coming weeks...

[Mr. Big Dog 10,747]

GM concedes in the report filed Thursday that it's on the edge of bankruptcy and won't be able to avoid it unless it gets more government money and successfully executes a huge restructuring plan.

Does GM actually HAVE a viable restructuring plan at this point?

Apparently not. For the lack of such viable plan, the Europeans seem to be prepared to let the GM subsidiaries there go into bankruptcy. Opel will soon be a thing of the past.

[Otto 83]

GM concedes in the report filed Thursday that it's on the edge of bankruptcy and won't be able to avoid it unless it gets more government money and successfully executes a huge restructuring plan.

Does GM actually HAVE a viable restructuring plan at this point?

Apparently not. For the lack of such viable plan, the Europeans seem to be prepared to let the GM subsidiaries there go into bankruptcy No they won't - but they won't give billions $$ to GM without ensuring it doesn't go to the US (but instead, remains in their country).. Opel _{as a GM subsidiary} will soon be a thing of the past.

[Craneman 2]

Bankruptsy is probably the best thing in the long run.

The market has decided, GM does not make cars that sell.

[Mr. Big Dog 10,747]

GM concedes in the report filed Thursday that it's on the edge of bankruptcy and won't be able to avoid it unless it gets more government money and successfully executes a huge restructuring plan.

Does GM actually HAVE a viable restructuring plan at this point?

Apparently not. For the lack of such viable plan, the Europeans seem to be prepared to let the GM subsidiaries there go into bankruptcy No they won't - but they won't give billions $$ to GM without ensuring it doesn't go to the US (but instead, remains in their country).. Opel _{as a GM subsidiary} will soon be a thing of the past.

You're not up to speed. You're quoting last weeks debate on Opel. Things have since turned sour.

Experten befürworten Insolvenz von Opel

Regierung fertigt GM-Manager ab

Opel und GM holen Insolvenzprofis ins Boot

[Otto 83]

GM concedes in the report filed Thursday that it's on the edge of bankruptcy and won't be able to avoid it unless it gets more government money and successfully executes a huge restructuring plan.

Does GM actually HAVE a viable restructuring plan at this point?

Apparently not. For the lack of such viable plan, the Europeans seem to be prepared to let the GM subsidiaries there go into bankruptcy No they won't - but they won't give billions $$ to GM without ensuring it doesn't go to the US (but instead, remains in their country).. Opel _{as a GM subsidiary} will soon be a thing of the past.

You're not up to speed. You're quoting last weeks debate on Opel. Things have since turned sour.

Experten befürworten Insolvenz von Opel

Regierung fertigt GM-Manager ab

Opel und GM holen Insolvenzprofis ins Boot

"Discussions are just really beginning in earnest," a GM representative said Friday [Today]

http://reviews.cnet.com/8301-13746_7-10185403-48.html (one source)

[Saddle Bronc 124]

GM concedes in the report filed Thursday that it's on the edge of bankruptcy and won't be able to avoid it unless it gets more government money and successfully executes a huge restructuring plan.

Does GM actually HAVE a viable restructuring plan at this point?

Apparently not. For the lack of such viable plan, the Europeans seem to be prepared to let the GM subsidiaries there go into bankruptcy No they won't - but they won't give billions $$ to GM without ensuring it doesn't go to the US (but instead, remains in their country).. Opel _{as a GM subsidiary} will soon be a thing of the past.

You're not up to speed. You're quoting last weeks debate on Opel. Things have since turned sour.

Experten befürworten Insolvenz von Opel

Regierung fertigt GM-Manager ab

Opel und GM holen Insolvenzprofis ins Boot

"Discussions are just really beginning in earnest," a GM representative said Friday [Today]

http://reviews.cnet.com/8301-13746_7-10185403-48.html (one source)

Translation from GM-execspeak: "we're right now going with the almsbowl to try to salvage some scraps".

[Mr. Big Dog 10,747]

GM concedes in the report filed Thursday that it's on the edge of bankruptcy and won't be able to avoid it unless it gets more government money and successfully executes a huge restructuring plan.

Does GM actually HAVE a viable restructuring plan at this point?

Apparently not. For the lack of such viable plan, the Europeans seem to be prepared to let the GM subsidiaries there go into bankruptcy No they won't - but they won't give billions $$ to GM without ensuring it doesn't go to the US (but instead, remains in their country).. Opel _{as a GM subsidiary} will soon be a thing of the past.

You're not up to speed. You're quoting last weeks debate on Opel. Things have since turned sour.

Experten befürworten Insolvenz von Opel

Regierung fertigt GM-Manager ab

Opel und GM holen Insolvenzprofis ins Boot

"Discussions are just really beginning in earnest," a GM representative said Friday [Today]

http://reviews.cnet.com/8301-13746_7-10185403-48.html (one source)

GM is still hoping. But what I've been reading is that they lack a turn-around strategy that manages to convince the European governments that funding such strategy won't be tossing money down a bottomless barrell. To be sure, the demise of Opel would be hard to swallow for the German economy in the short term. But if prominent politicians openly favor Opel to go bankrupt in an election year, you know that the odds of the gov't keeping the company afloat are not all that great.