What if GM bankrupts ?

[WrightDetail]

The repercussions throughout the industry will be a massive shock.

Will any dealers survive ?
Will they honor warranty ? If they have no money, then not much standing behind you !

I dont agree with bankruptcy, too many companies take easy way out to erase years of bad debt and no fiscal responsibility.

IMHO GM too big....too many dual lines, get rid of GMC, Hummer, Saab and Pontiac.

Let Saturn be its own company, it was fine till GM took them over.

In my city alone, there are 6 Chevy dealers within a 50 mile area....thats just insane !

Being owner of 2 Chevy's hope they think this thru...as the confidence rebuilding will take a decade at least for us to trust....which sadly will push more to the Hondas, Hyundai and Toyotas.

[Markus Kleis]

Re: What if GM bankrupts ?

Just remember folks, no politics, and no personal attacks. We encourage a healthy discussion but just be mindful of our Forum Rules.

[Carfire]

Re: What if GM bankrupts ?

I really hope GM does not go down.
I am not a GM fan nor do I dislike GM.
It is a lot of cars and people to lose jobs on all the different steps of car making such as glass makers and lock makers.
Although I wish they would have came out with more smaller hybrids earlier and other cars etc.

[new2detailing]

Re: What if GM bankrupts ?

Just a reminder, If GM declares bankruptcy, it does not necessarily mean that the company will go away. In contrast, the company will need to restructure to show a viable business plan. GM is already exploring the option of selling Hummer (no takers yet), Saab (done), canceling Saturn and merging other lines. The problem with GM is that they have a poor business model ( ironic considering that they are making their most reliable models now). However, they became a customer financing/mortgage/credit business that just happened to make cars. They have too many model lines and dealerships competing for a smaller market share. And they are sill trying to lure scorned buyers back from the days when they made substandard vehicles (late 1970's to early 90's) . Unfortunately, during that long period GM alienated many loyal buyers and the the imports (especially Japanese) were much better in terms of long term reliability and value.Many buyers now will trade in their old Accord for a new one sight unseen do to reputation of Honda. Now the automobile landscape is crowded with many competing brands and the reliability gap has effectively shrunk between the manufacturers ( but changing the perceived reliability gap is much harder). The problem persists that GM makes fine cars but the cost to make a car is much higher than the Japanese/Korean and eventually Chinese brands. This has to be addressed in order for GM to remain competitive.

[ColonelCash]

Re: What if GM bankrupts ?

Personally, I say let the fall and rebuild from the ground up. That is all I will say about this situation....I'm sure we have some GM employees (or former employees) on the forum and I don't want to offend anyone.

[Larry A]

Re: What if GM bankrupts ?

Their use to be a saying" as GM goes so goes the country", or something like that.

[Michael Stoops]

Re: What if GM bankrupts ?

Some companies file Chapter 11 and emerge stronger than before, others file Chapter 11 and eventually fail anyway. If a department store files Chapter 11 and you purchase a pair of jeans from them, how concerned are you about the possibility of something going wrong with those jeans and whether that store will be there to help you with the problem later on?

If GM files will you have that same attitude toward something possibly going wrong with your car? There really is no historical data to look back on, but the general consensus is that a car company operating under Chapter 11 will have a very difficult time convincing potential customers that they will indeed be around long enough to service that new car. Speculation is that if you think sales have tanked already, let 'em file and you'll watch the sales spigot get turned off completely.

[spence82]

Re: What if GM bankrupts ?

it's BS all together with all they are keeping for now is chevy and caddy.i can understand saab, hummer for sure.but buick and pontiac.buicks are still great cars,yes pontiac has gone down hill the past 7 yrs or so.the G8 was about the best thing they built since the Trans Am.and they really really blew it with the GTO.it was ok.stretched out caviler with a little grand am and grand prix in it.it was what people wanted just way to plain and bland looking for the money, power, and the leganary name.and my dad is a retired from GM and now they are cutting is medicare and life insurance.and now i am layed off too (work construction).it's tough out there.

[spence82]

Re: What if GM bankrupts ?

and saturn gone to understandable,but ***** they have built some really good looking cars now.compared to what they used to be.and all them big wigs knew this would happen one day.they should have never built hummer and got rid of saturn a long time ago and should of tried a lot harder with pontiac.and now with the new Camaro will be interesting what will happen.I know that they have to sell so many units the first 2 yrs (cant remember exact number) are they are gonna dump it.

[Robby144]

Re: What if GM bankrupts ?

I agree. Ch 11 can be the best thing to happen to GM. They can either roll over and die (hope not) or they can simply restructure and kill of the brands they don't need like Saturn, Saab, Hummer, GMC, Pontiac, Buick. If you want a good American car get a chevy. If a chevy is not enough get a caddy. Their Union contracts will be declared void by a bankruptcy judge, and those employees who are willing to part with the unions will have a job working at another factory. Then GM should use some of that Bailout money to help pay for the relocation expenses. And those who aren't willing to part from their unions will simply have to look for a job elsewhere. They can liquidate the factories where the other cars are made and use the steel from inside those factories as material for new cars. It is sad to me that Pontiac may die because I am in love with the G8, especially now since they dropped a manual gearbox in it. Maybe they can save pontiac, but the rest of those brands have to go.

[07g5gt]

Re: What if GM bankrupts ?

they just need to dump brand thats all they have to much out there right now. out of all the other car companys gm has the most brands. they just need to keep chevy caddy pontiac buick. the rest can go.

[J. A. Michaels]

Re: What if GM bankrupts ?

My family was always GM loyal. I sort of broke that mold. I still can't believe we could be a country without GM products.

Even if they do emerge from this. I believe the government will have to continue to give them money so the consumer realizes that they are not going any place. It will take along time to rebuild the company.

[Mike Phillips]

Re: What if GM bankrupts ?

When World War II started, what did the big 3 do?

[drculinarian]

Re: What if GM bankrupts ?

They built airplanes, amd other military vehicles.
It may not be such a bad idea for GM to restructure. Years of bad budiness practices would be wiped out.

[Michael Stoops]

Re: What if GM bankrupts ?

When World War II started, what did the big 3 do?

They built tanks, jeeps, planes and other things for the military.



Edit to add: you beat me by nanoseconds, drculinarian!!