Heard Rumor From Usually Reliable Source That GM Plans

[mhr]

To file bankruptcy this week.

Has anyone from auto country heard the same rumor?

[okieinpain]

1. I guess they better before the new bankruptcy bill kicks in.

[mhr]

3. Same Source Says That GM Plans to Welch On Retirement Benefits

Just like United just did.

As well, the Union contracts will be voided.

If true this could have a devastating effect on the economy.

[Cobalt Violet]

4. That bill is just for us little people. Not the corporations.

They'll still be be able to access OUR courts.

[okieinpain]

15. and to add insult to injury, I hear a report on NPR this morning

that gm is planning to increase advertisting to try and move the SUV's and the new Hummer. do these guy's take crack with their coffee in the morning.

:~)

[Poiuyt]

21. LOL. I guess GM got too many credit card applications!

[Gloria]

2. I just read two stories in the Japanese press that GM and Toyoto

are working a deal for more technology collaboration...here's one

http://www.yomiuri.co.jp/index-e.htm


Top GM, Toyota execs eye technology deal

The Yomiuri Shimbun

Executives from U.S. car manufacturer General Motors Corp. and Toyota Motor Corp. met in Toyota, Aichi Prefecture on Saturday to discuss sharing advanced car technology, company sources said.

Richard Wagoner, GM's chairman and chief executive officer, met with Toyota President Fujio Cho and Executive Vice President Katsuaki Watanabe after visiting 2005 World Exposition Aichi, in Nagakutecho in the prefecture. Wagoner visited Japan en route to a conference in China. .

[benburch]

5. Right. Bankruptcy does not mean out of business entirely, usually.

But it does mean that the Workers are going to get fucked.

[Yellow_Dog]

7. No it means the employees get it in the.....

ass.

They will get to raid pension accounts, void labor contracts, and probably many more benefits, all that will certainly screw over the little guy.

Executives will still get fat.

[cruadin]

8. The workers will get screwed if the pension plan is an unfunded...

liability--they'll be lucky to get pennies on the dollar for their years of work.

[benburch]

11. This is all about the political destruction of the UAW.

Bush will allow all domestic auto makers to fail because the UAW is too dangerous to him.

[cprise]

9. People don't just buy big sheetmetal things on wheels

...although that is part of the appeal. Consumers are just as interested in paying for technical credibility. And what kind of credibility do GM and Ford have if they cannot even build a small hybrid car on their own?

They have made themselves look incompetent to auto buyers.

[Skip Intro]

6. tell me bush don't know how to run a country

or fuckin lemonade stand, for that matter.

yee-haw.

[AP]

10. I think they'd start selling pieces of the company before they did that.

They definitely have a lot of things to sell, and I wonder if they'd think the price would be better if they did it outside of bankruptcy proceedings.

Or maybe they want to sell off the pieces at bargain basement prices to insiders (and screw creditors and shareholders).

[benburch]

12. They already have!

GM sold off their division that makes locomotives and very large engines for ships and power plants. And several other smaller divisions have been spun off already.

[ewagner]

13. Agreed

I did see an article about Delphi, which is owned by GM being on the verge of bankruptcy but not GM itself..... I think this is the source of the rumor....

[alcibiades_mystery]

14. The reduction of their debt to non-investment grade (junk) status

May have set off a number of triggers in their previous agreements.

Many debt securities agreements will stipulate that should ratings agencies downgrade a borrowers ratings, the entire debt must be paid in full at that time or shortly thereafter. If this happened with enough agreements, GM may well have to file for bankruptcy or face a cash crisis and cascading payments. It doesn't mean GM will cease to exist; it just means that they need time to work out new arrangements with those lenders.

[onenote]

16. I hate this "usually reliable source" crap

If you heard this with someone who is a position to know, tell us how they are in a position to know. Otherwise, its just noise.

onenote

[mhr]

20. That's Why I Did Not Quote The Source

I am skeptical as well.

I was hoping someone on DU would have corroborating evidence to share.

[ChiciB1]

17. The AX-MEN Commeth!!!

The more of this stuff, the closer we are to MELT-DOWN!!

It can't go on FOREVER!!!

[Zynx]

18. If this rumor was out, GM would be down 30% at least today

I don't buy this. Sorry.

[Justice]

19. Heard on Meet the Press that Companies view bankruptcy

as way to shed "legacy" costs, which gives them a strategic advantage in the marketplace. So GM and many many other companies will look at bankruptcy as an option. Once one company in an industry does it, others in that same industry will do it - just to keep competitive.