Interesting article on GM's viability.


http://money.cnn.com/2009/02/25/news...look/index.htm

 

This does not look good for them....ouch




Goose

 

Fairly old news actually. Just a rehash of what everyone already knows about the car industry around the world, not just GM Ford and Crysler.

 

http://money.cnn.com/2009/02/26/news...ults/index.htm is this morning's news. Interesting point is that the annual statement due in two weeks stands a chance of a qualified auditor's statement, implying that they are no longer viable as a company.

 

I'm smelling the scent of liquidation. The courts will sell off the assets to fund the pension trusts so the PBGC won't go broke backing them up, but I'm seriously starting to think that the company is toast if the auditors declare a going concern. That's just too much money to burn through and not enough revenue to justify DIP financing.

If it doesn't get that far, they need to do some serious house cleaning up top. There is NO reason why this should have happened. They had better financials than Ford did just four years ago and they should have lined up the credit when they still qualified--just like Ford. Now everyone's too scared to buy GM because of this perfect credit storm and bankruptcy talk. It's unbelievable that they let this crap happen. They've absolutely destroyed the largest company in the world in the first decade of the 21st century. Bravo. Way to be, numbnuts.

 

Well crafty....you finally came around


I'm doing this by tired memory, but GM has been going down the financial tubes since the Estes/Smith era. Realizing that Balance Sheets and Profits and Lose Statements are a game in the "big" corporate world, but GM probably hasn't had more than 5-6 profitable quarters in 25-30 years. Hell, I think Wagner has only had 2.

As much as I would like to support GM, because of obvious self interests, it's pretty difficult when you watched monies "pizzed" away and nobody actually cared.

Man the stories I could tell would amaze you. Maybe I'll write a book.....but I'm sure there will be a lot of competition, in the near future, by more adept writers.

 

Didn't Wagner end up at GM after the previous company he was with went bankrupt too...

 

I don't believe so. If I remember correctly his first full time job was with GM right after he graduated from one of the Ivy leagues. He worked in the Financial Group as some type of "bean counter". Worked his way up from there.

 

Ya fairly old news in the sense its obvious they are in deep trouble.

I love my HHR, but the wages that the UAW have received is redonkulous, but they were able to negotiate it to those levels so certainly not their fault.

 

The reason why I figured the government wouldn't let them go bankrupt is because the avalanche would take out all of the suppliers and kill everyone else. Now it seems more likely to cost the government less money just to keep Ford and the suppliers who feed them and the transplants alive than to keep GM going. As I see it, the problem is that we really don't have ANY idea how much money it's going to cost to save them at this point. I think Chrysler may keep going, but they aren't going to be manufacturing their own vehicles for much longer. I'd bet they'll start importing or have the transplants build their cars for them.

What a freakin' mess. It'd be ironic if Saturn Holding Company was the only thing left of GM and they stayed in business buying rebadges from everyone else.