happen,
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scenarios! Any
Boy, I hope your crystal ball is faulty. I, along with 1000's of other GM retirees will have it tough if your scenario would come even half true. Good thing for us GM won't part with GMAC any more than they would part with Chevrolet.
Between you and I, I hope it's faulty too. But that is what came up as making the most sense from my perspective when looking at the options (with limited data, admittedly). The bond holders would get the shaft with this deal as well, don't forget. Retirees will likely have the government cover their pensions, so may not be hurt too much. But, financial hardship makes for strange happenings. It's the old preverbal cut off the limb to save the life scenario. And remember, the board of directors is working only for the stockholder. If spinning off GMAC makes sense from a stockholder value perspective, that could be all that really counts. Time will tell.
An optimist might suggest that GM and its union will simply alter their pension and health care systems. I was, after all, the UAW that basically saved Chrysler. They where the ones that agrees to contract changes and loaned Chrysler a lot of the money they needed ;)
mike hunt
"James C. Reeves" wrote:
That would be a good outcome...for sure. It also took government guaranteed loans in Chrysler's case as well though.
True but the loans never defaulted and the government got to keep the Chrysler bonds on which it made a tidy sum.
mike hunt
"James C. Reeves" wrote:
Yes, which turned out better than anyone really thought it would...thankfully. (Well, until Daimler bought Chrysler much later...a sad day there). Chrysler needed those government loans initially though or it wouldn't have worked.
I will be interesting in this case since we're actually dealing with both GM and Ford at the same time. Not sure the same sort of deal is even possible this time around. We can keep our fingers crossed though!
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