(NPR.org) - Apparently, General Motors wasn't too big to fail. Once
the largest automaker in the world, GM filed for bankruptcy in
2009. It remains uncertain when — or whether — the company, propped
up by $50 billion in government loans, will stage a comeback.
In "Sixty to Zero" (Amazon.com: http://xrl.us/60Zero ), Alex Taylor
III, a senior editor at Fortune magazine, uses "fly on the wall
reporting," including in-depth interviews with a half-dozen GM CEOs
with whom he got pretty chummy, to provide a cogent kick-the-tires
account of a disaster that was 40 years in the making...
On 10/05/2010 9:46 AM, firstname.lastname@example.org wrote:
When you work out how much GM is losing for each vehicle sold, GM is
inevitably doomed even with the bailout and NHTSA favors.
Posting a $4.3 billion dollar loss after all that bailout money and
after all that $120++ billion of bond/loan/preferred shares were
litterally burned.... (GMAC extra)
GM is doomed. And the real cost to us is far higher.
If Obama had the balls, he would not allow companies like GM to operate
so long in a bankrupt state. Really, the crime was allowing GM to
operate so long and cause so much defunct debt in the first place.
There is a sucker born every minute, liberals and our politicians are
counting on it.
I don't think GM is actually losing money on the cars they build now,
if you only include current expenses. And since they have dumped a lot
of the overhead, they probably will be profitable soon (not that that
does much for the former owners or creditors)
The 4.3B loss was relating to accounting requirements to cover the
restructuring of the company. GM's cash on hand actually increased
during the fourth quarter of 2009 (mostly thanks to the US
Government). Accounting is such a murky art I am not sure anyone knows
how much GM actually lost during the period.
Well that remains to be seen. I am not a betting man, but at best I
give them a 70% chance of staying out of bankruptcy for a second time.
I contend things would have been better if the US Government had not
nationalized GM. GM should have been allowed to go through the normal
bankruptcy process. This would have allowed them to dump the UAW
contracts, the pension obligations, and much of the "old" overhead
that is dragging down the current company. But the US Government was
not willing to let the UAW get hung out to dry and the Government
defiitely didn't want to have the pension obligations dumped on the
Pension Gaurantee Agency.
I don't think Obama allowed GM to operate in a bankrupt state. It was
not his call. The creditors (supplier, bond holders, etc.) did not
press the issue until things were really bad. If the suppliers had
called GMs bluff earlier by refusing to keep shipping parts until they
were paid, GM would have been forced into bankruptcy sooner. The
Government was negligent in letting GMAC make bad loans etc. just like
many other finacial institutions, but since GM dumped most of GMAC a
few years back, that is an unrelated problem. If anything, you should
blame the Bush administration for ignoring the ridiculous loans
practices of financial institutions like GMAC.
GM almost went bankrupt before early in it's history. They were saved
back then by the DuPonts.
The biggest criminals are often friends with powerful rich people and
they do not like to have been involved with prosecuted and convicted
criminals so those kind of criminals are most often just paid off and
told to leave.
The whole culture of CM is full of rich laid back people who just want
money poring in and when the customer do not want to buy the product
they turn to the politicians and ask for taxpayer bailout.
There were a lot of clever people working for GM but they were not
allowed to do good job.
Those people have left or are leaving but they go away from areas were
there are a lot of ordinary people and they have no hope for the
future, uneducated and they turn in many cases to drugs and crime and
turn former prosperous areas to slums as we have seen in many
Motorsforum.com is a website by car enthusiasts for car enthusiasts. It is not affiliated with any of the car or spare part manufacturers or car dealers discussed here.
All logos and trade names are the property of their respective owners.