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GM considering Chapter 11 filing, new company: report

Discussion in 'Economics and Financials' started by DonShula84, Feb 14, 2009.

  1. DonShula84

    DonShula84 Moderator Luxury Box

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    http://news.yahoo.com/s/nm/20090214/ts_nm/us_gm_plan
     
  2. Desides

    Desides Well-Known Member

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    Should've done this in the first place. Instead they government gave them our money, and we'll probably never see a dime in return.

    I really hate being right.
     
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  3. UCF FINatic

    UCF FINatic The Miami Dolphins select

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    The real reason the Government gave them the money was to keep the factories working and updated. It sounds stupid, but we really need to keep them open because god forbide, but if we go into a HUGE World War or something those factories can be turned into Tank making factories in a matter of hours.

    This is not my own thoughts, but is probably the real reason we keep them open. My International Business Teacher mentioned that in class a few days ago and it really made sence to me...
     
  4. Desides

    Desides Well-Known Member

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    The issue is that we gave them bailout money without a guarantee of its effectiveness... as proven by the article. What was the point of giving them money if they're going to declare Chapter 11 anyway?

    Chapter 11 bankruptcy doesn't mean GM will disappear, either. It means they're court-protected from debt while they restructure. Filing for Chapter 11 will keep GM around a hell of a lot longer than a handout will.
     
  5. daphins

    daphins A-Style

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    And they'll probably be able to keep the money we gave them.


    As I said when this who debacle started make them file for bankrupcy, kick the unions out and restructure. This ENTIRE bailout is aimed and keeping bloated systems stable when we should let the bloated systems deflate.
     
  6. UCF FINatic

    UCF FINatic The Miami Dolphins select

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    Agreed 100%
     
  7. azfinfanmang

    azfinfanmang Premium Member Luxury Box

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    With all due respect, I can't agree with any of it.

    It would take more than a couple of hours (I understand it was hypothetically said), in fact, to make Abrahms A-1 Tanks, a retrofit could possibly happen in a few months I imagine...but yes it could be done.

    Even if the Plants were to shut-down (GOd forbid), the equipment and mechanical infrastructure needed to turn it into a Weapons Depot arent going anywhere.


    IMO the real reason we need to keep them around is to keep our very slim existence in the actual Auto Market open....and of course, lets not forget the 10's of thousands of US jobs involved here.
     
  8. cnc66

    cnc66 wiley veteran, bad spelur Luxury Box

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    Kenny, I am with UCF on this one bro. The ability to ramp up war products, and the consequences of not being able to do that is a very serious question to consider. As far as I am concerned they should have filed BEFORE they stole our money but the dems had to protect the union vote. (this being bidness as usual for the party in power)
     
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  9. azfinfanmang

    azfinfanmang Premium Member Luxury Box

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    Trust me, I understand what goes on in a War Factory better than most, and I am not doubting that. It is indeed an ideal place for a War-machine to rise from the ashes, and of course we have always done that in the past.

    I am just stating that the bailout doesnt really touch that scenario for the reasons I stated.

    Now, selling it off to an over-land Country, THAT would be really bad....


    EDIT: PS, Good morning Marty.
     
  10. cnc66

    cnc66 wiley veteran, bad spelur Luxury Box

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    and top o the morning to you too!
     
  11. texanphinatic

    texanphinatic Senior Member

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    Have to agree with AZ on this one. The technical aspects of building modern war machines like the M1A1-A2 Abrams tanks require more than "a few hours" of conversion. This isnt quite WW2 where our strategy was just to mass produce the Germans and Japanese to death. Any future major war will come likely against China or Russia, which we wont be able to outproduce on a massive enough scale. We need to rely on staying technologically ahead.
    And even if GM did go 11, as long as we keep the infrastructure around, it would all be ready to go anyway. The bailout was about keeping a bloated and ineffective system going for the sole reason that congress arrogantly thougt it could. Now we are back at square one, down a load of taxpayer money wasted.
     
  12. jdang307

    jdang307 Season Ticket Holder Club Member

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    Yup. And they were worried about how disorganzied a BK would be, yet it was offered that they do what's called a pre-planned Chapter 11, which means it wouldn't have been disorganized. In essence the government and courts would have done what they normally do during the BK, before it started, to make it organized and a a known quantity.

    How many of us were so right (no pun intended lol) a few months ago?
     
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  13. jason8er

    jason8er Luxury Box Luxury Box

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    Forget GM, I would rather our government commandeer Toyota in Kentucky, or BMW here in South Carolina. I want our boys in a tank that works. :shifty:
     
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  14. Eshlemon

    Eshlemon Well-Known Member

    If that's the case, it's in the interest of the government for GM and Chrysler to go bust and have General Dynamics, who purchased GM's and Chrysler's defense divisions, take over.
     

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