GM worse off than I thought....

I just saw where GM is trying to sell off 25% to 50% of Opel. This can't be a good sign. Opel has been fully owned by GM for 80 years. I wouldn't be much more shocked if they said they were going to sell 25% of Chevrolet....

If I was running Toyota, I'd try to buy 50% now....

Ed

Reply to
C. E. White
Loading thread data ...

Don't be too surprized. Even bigger annoucements like this may come.

For example, I would not doubt breaking up GM into GM-Asia, GM-Europe and GM-NA is a real possibility. GM-Europe could easily go it's own way as a profitable company, as could Asia. The proceeds of such sales go to GM-NA debt reduction and paying out delinquent bonds and the like. Might even leave GM-NA with enough operating cash for 6-8 months to get earnist about a real turn around.

Spliting GM up actually solves some tacky legal issues with governments and banks that have already given GM billions in cash. Plus why handicap profitable operations with supporting the dogs. Maybe leave GM-NA as the fal guy for the big debts.

Conjecture, perhaps. But I believe all options are being looked at for a chapter 11 packaged deal. That is, make the decisions and plans now, then enter chapter 11 with a plan. Breakup could be part of it. But at least GM's days as a taxpayer leach are limited.

Reply to
Canuck57

GM wants to sell off European brands because it costs much more to make cars in Europe because of the socialist governments there. If BO keeps getting his way we are headed down that sorry road as well

Reply to
Mike Hunter

I also believe that the "great leader" has proposed twiddling with profits earned by off-shore subsidiaries, so even more reason for US companies to move their headquarters to where they see the greatest returns. Wonder if we will see GM-Tobago or some such?

R i I

Reply to
ron

I think Toyota would handle such an acquisition the way Southwest Airlines handled airlines that it bought. They sold the planes and kept only the gate rights. So I'd expect Toyota to keep only the factories and maybe not even any of the machinery inside.

Reply to
larry moe 'n curly

Come on Ed. Is cross-posting this to GM and Toyota groups necessary? You have managed to start several flame wars, why do you feel the need to start more?

Reply to
80 Knight

I dont see there needs to be a flame war. This is deadly serious for everybody.

Reply to
HLS

If that is true why are the European GM's so much better than the "all american" ones?

nate

Mike Hunter wrote:

Reply to
Nate Nagel

I don't know the answer to this one, but can tell you it has been that way for a very long time. In the early 80's I was working in Europe and drove the best GM I ever drove, a Europe GM-Vauxhaul Cavalier.

When I got back to Canada, I was told a Olds Firenza was the closest to it and bought one. Certainly very much inferior to the European GM-Vauxhaul but the shape was the same. But after shape, it was poor in fit and finish, cheaper materials, gutless engine and for a 4 cyl. a hog on gas. Not the same as the European version that is for sure.

Reply to
Canuck57

Bluh bluh, socialism bluh bluh socialism Yadda yadda socialism. You are stuck in a stanky groove. What facts can you give us comparing GM US workers with GM Euro workers with Japan auto workers.

============

Allow me to predict Uncle Jemima's response:

"BACARDI!!! LMAO ROFL!!!"

Reply to
JoeSpareBedroom

One big problem though. The socialists haven't figured out how they are going to pay for it. Seriously. Even the government can't afford to "buy" the whole economy. And if they tried, most employees would just walk in the next day to find no jobs, something like 90% unemployment.

All this bailout crap is just to fortify tax servitude for the next generations to come.

But GM will not be saved, they cost too much.

Reply to
Canuck57

Doubtful GM will go right out of business, in fact it is almost assured they will not. But what will happen in chapter 11 is a wild cold dose of reality will hit unions, management, suppliers, bond holders, retirees and in a way where the BS will abruptly end.

Out of the ashes will arise a new GM without the management, union and debt baggage. Abet a smaller GM, one that can make money and survive.

Reply to
Canuck57

Why *should* GM be saved? They made mistakes for 30 years. There's no reason to reward them. Let the company vanish like so many other badly run businesses.

Reply to
JoeSpareBedroom

Lol, apparently

Reply to
80 Knight

I totally agree that this is very serious. My point is Ed has a way of sparking a flame war between the GM and Toyota group, and I honestly don't see a need for it. All it does is cause the two groups to go to hell for a few weeks.

Reply to
80 Knight

Hell's Bells man. It's not on the horizon, it's HERE!!!

Reply to
Retired VIP

Environmental what? WTF are you talking about? Environmental regs had absolutely nothing to do with GM producing shitty cars.

Reply to
JoeSpareBedroom

In the 70's, when the environuts starting yapping, Chrysler screwed up its

318 motor by adding on those crappy charcoal canisters, guaranteeing poor wet/cool weather operation.
Reply to
Sharx35

"Mike Hunter" wrote in news:49a83470$0$12272$ snipped-for-privacy@news-radius.ptd.net:

Mike you are full of it. The reason they are trying to sell it is because they don't have the money to keep it, pure and simple. I read where the German government wants to keep Opal as a German operation. It will be interesting to see if they take it over.

Reply to
tango

"Mike Hunter" wrote in

The cost of making cars does not matter if the selling price can cover the expenses. I'm sure other manufacturers face the same costs as far as the socialist government.

Reply to
Ed Pawlowski

MotorsForum website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.