GM to Shut Down most Plants for 9 Weeks in the Near Future
Thread Starter
Senior Member
Joined: 07-05-2008
Posts: 5,464
From: Akron Ohio
This I feel it the prelude to the Surgical Bankruptcy that we will learn more about as June arrives. GM is not expected to pay the bonds off on June first.
GM is making a lot of moves right now to head for this. Opel looks to be up for sale and GM looks like it may be split up in North America.
Look for Chevy Buick, Cadillac and GMC to be put into good GM and the rest including Pontiac, Saab, Hummer and Saturn into bad. At this point they would be sold off or closed. Many other liabilities like closed plants and dealers etc would also be written off.
The Good GM would require 7-8 Billion and 2-3 weeks to make it thorugh the proceedings. At this point they would stand to be pretty clean.
Much of this is un named people who have leaked this so I figure 70% accurate and 30% fiction. Also we still have a month to go and all things are subject to change.
Either way I suspect some of these plants may not restart.
Also most other MFG also have many cars in storage and I expect most others will cust production, close plants for a few weeks and stop imports. Even Toyota and Honda have way to many day supply of cars so they will have to stop something. I do not expect car sales to recover anything soon this year.
GM is making a lot of moves right now to head for this. Opel looks to be up for sale and GM looks like it may be split up in North America.
Look for Chevy Buick, Cadillac and GMC to be put into good GM and the rest including Pontiac, Saab, Hummer and Saturn into bad. At this point they would be sold off or closed. Many other liabilities like closed plants and dealers etc would also be written off.
The Good GM would require 7-8 Billion and 2-3 weeks to make it thorugh the proceedings. At this point they would stand to be pretty clean.
Much of this is un named people who have leaked this so I figure 70% accurate and 30% fiction. Also we still have a month to go and all things are subject to change.
Either way I suspect some of these plants may not restart.
Also most other MFG also have many cars in storage and I expect most others will cust production, close plants for a few weeks and stop imports. Even Toyota and Honda have way to many day supply of cars so they will have to stop something. I do not expect car sales to recover anything soon this year.
Platinum Member
Joined: 05-09-2006
Posts: 6,805
From: "Upland" Mesa, Arizona
Bankruptcy is the only way for GM to exist ON A TEMPORARY BASIS. They WILL NOT be able to do it on Federal Government "loans". Which brings me to.......
How does any intelligent person believe GM can pay back the loans. I don't think they have had a profitable year in 10-15 years. Understanding the P&L's and B sheets are exactly that, BS, how can you make payments from what you do not have (maybe over 20 years, if they last that long). It's basic math, that nobody has challenged.
And much of this is from un-named sources who have not "leaked" information BUT publically stated it.
How does any intelligent person believe GM can pay back the loans. I don't think they have had a profitable year in 10-15 years. Understanding the P&L's and B sheets are exactly that, BS, how can you make payments from what you do not have (maybe over 20 years, if they last that long). It's basic math, that nobody has challenged.
And much of this is from un-named sources who have not "leaked" information BUT publically stated it.
Thread Starter
Senior Member
Joined: 07-05-2008
Posts: 5,464
From: Akron Ohio
Bankruptcy is the only way for GM to exist ON A TEMPORARY BASIS. They WILL NOT be able to do it on Federal Government "loans". Which brings me to.......
How does any intelligent person believe GM can pay back the loans. I don't think they have had a profitable year in 10-15 years. Understanding the P&L's and B sheets are exactly that, BS, how can you make payments from what you do not have (maybe over 20 years, if they last that long). It's basic math, that nobody has challenged.
And much of this is from un-named sources who have not "leaked" information BUT publically stated it.
How does any intelligent person believe GM can pay back the loans. I don't think they have had a profitable year in 10-15 years. Understanding the P&L's and B sheets are exactly that, BS, how can you make payments from what you do not have (maybe over 20 years, if they last that long). It's basic math, that nobody has challenged.
And much of this is from un-named sources who have not "leaked" information BUT publically stated it.
This is a no pain no gain deal.
When a company fails to address problems for the last 40 years there is a big price to pay all at one. THis is going to be painful but it is the only way to save GM.
I will feel better if they can get out from the goverment influance. I hate to see people in goverment calling the shots. Now if the goverment had brought in proven automotive experts to handle it I would feel better but the group they have have not been the best people they could have brought in. Most have little idea of product let alone how GM even works or does not work.
Senior Member
Joined: 03-28-2008
Posts: 1,115
From: Oshawa
There will be no stoppages at the Camaro plant in Oshawa. There is also news of Honda in Ontario Canada that they will resume working overtime at that plant.
Last edited by Cokeybill; Apr 23, 2009 at 09:25 PM. Reason: xtra info
Senior Member
Joined: 03-27-2008
Posts: 471
From: Blue Springs Missouri
On Tuesday the 21st they terminated their entire field engineer staff. These are the tech guys who are called in to dealers that have a problem car that they can't get fixed.
Now EDS is going to supply the employees for this service.
Yeah I guess it will save GM money but EDS? What the hell will they know about fixing autos??? I feel sorry for the small town dealers that really need these guys.
Now EDS is going to supply the employees for this service.
Yeah I guess it will save GM money but EDS? What the hell will they know about fixing autos??? I feel sorry for the small town dealers that really need these guys.
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