GM in Bankruptcy????
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Yep they will go under, they will file chapter 11 and YEP they will continue after breaking away from the UAW. They then wil compete wage wise with Toyota and Nisson. People will lose jobs and will be offered jobs at less pay! The Bennys and retirements will be down the tube so look what they save there. :boring: :boring:
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If they go under, then i can imagine it will effect " Holden" down under. I gave some of our local news articles a perusal. The american bosses at GM, and our government are doing the sweet talk thing.
Trying my best to read between the lines. It has all happened before. The ' Mitsubishi ' car factory workers in adelaide, were told not to panic. The new model ' Mitsubishi 380 ' was supposedly meant ,to get the adelaide firm out of a tight spot. :lol: Unfortunately it was not a good market tactic. The sales figures were absolutely hopeless.
The japanese bosses must have done calculations. They came to a decision. All of the adelaide ' Mitsubishi ' people were retrenched, plus the car factory was closed down. As of this current moment, the " Tonsley Park " ' Mitsubishi ' factory does not exist. Not sure how many acres, this site covers but it is quite vast. There are all these incredibly huge buildings, gone to waste and not being utilised.
Our politicians and the GM hierarchy are basically, telling the holden workers not to worry. They have retrenched some holden employees. As for the others, they have their hopes pinned ,on the upcoming production of a new model four cylinder holden. I do respect that it will be economical.
But the thing that gets me, is people can not afford a new car. Some firms have gone into receivership. Other places have performed severe restucturing. Certain industries will not be employing new people. Their current employees will be expected, to just tolerate some inconveniences. Basically this will be multi tasking, that does not agree with some of them. Also they will have to share the work load. Yes, i have noticed some citizens being disgruntled because of this.
We are experiencing this at my current work place. Yes! It is a pain, but this must be tolerated if someone desires to keep their job. I just can not see this new four pot holden, as eliminating the current problem. Sales figures for new holdens are not promising over here. There is a glut of new models in the holding yards. The dealerships are offering, all types of incentives to move stock.
If GM goes for receivership, and the australian division of GM which is" HOLDEN" in adelaide manages to survive, well then i will be very surprised. My guesses may be way off base. Will the holden factory, in the suburb of ' elizabeth ' continue for a number of years? Or will ' Holden ' suffer the same fate as the former ' Mitsubishi' factory?
Trying my best to read between the lines. It has all happened before. The ' Mitsubishi ' car factory workers in adelaide, were told not to panic. The new model ' Mitsubishi 380 ' was supposedly meant ,to get the adelaide firm out of a tight spot. :lol: Unfortunately it was not a good market tactic. The sales figures were absolutely hopeless.
The japanese bosses must have done calculations. They came to a decision. All of the adelaide ' Mitsubishi ' people were retrenched, plus the car factory was closed down. As of this current moment, the " Tonsley Park " ' Mitsubishi ' factory does not exist. Not sure how many acres, this site covers but it is quite vast. There are all these incredibly huge buildings, gone to waste and not being utilised.
Our politicians and the GM hierarchy are basically, telling the holden workers not to worry. They have retrenched some holden employees. As for the others, they have their hopes pinned ,on the upcoming production of a new model four cylinder holden. I do respect that it will be economical.
But the thing that gets me, is people can not afford a new car. Some firms have gone into receivership. Other places have performed severe restucturing. Certain industries will not be employing new people. Their current employees will be expected, to just tolerate some inconveniences. Basically this will be multi tasking, that does not agree with some of them. Also they will have to share the work load. Yes, i have noticed some citizens being disgruntled because of this.
We are experiencing this at my current work place. Yes! It is a pain, but this must be tolerated if someone desires to keep their job. I just can not see this new four pot holden, as eliminating the current problem. Sales figures for new holdens are not promising over here. There is a glut of new models in the holding yards. The dealerships are offering, all types of incentives to move stock.
If GM goes for receivership, and the australian division of GM which is" HOLDEN" in adelaide manages to survive, well then i will be very surprised. My guesses may be way off base. Will the holden factory, in the suburb of ' elizabeth ' continue for a number of years? Or will ' Holden ' suffer the same fate as the former ' Mitsubishi' factory?
Saw this on Bloomburg.
John McCain says GM should be allowed to go into Bankruptcy.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aO9XkeRhiFLo&refer=worldwide#
Congress Should Stop Giving GM Funds, Republican Lawmakers Say
By Nadine Elsibai
March 8 (Bloomberg) -- Republican lawmakers said Congress should stop providing General Motors Corp. with federal aid and let the company file for bankruptcy if necessary.
"The best thing that could probably happen to General Motors, in my view, is they go into Chapter 11," Senator John McCain said on the "Fox News Sunday" program today.
The automaker could reorganize and renegotiate its labor contracts to come out "stronger, better, leaner," McCain, from Arizona, said.
GM is cutting executive pay and will eliminate 47,000 jobs this year as part of a restructuring required to keep $13.4 billion in U.S. loans. GM's Chief Executive Officer Rick Wagoner is seeking to persuade the U.S. Treasury to lend the carmaker as much as $16.6 billion more to survive.
The largest U.S. automaker has lost $82 billion since its last annual profit in 2004 and has been fending off speculation about bankruptcy for more than two years.
U.S. auto sales plunged 18 percent to a 16-year low in 2008, affecting GM, Ford Motor Co. and Chrysler LLC.
Senator Richard Shelby, the top ranking Republican on the Banking Committee, said on ABC's "This Week" program that "subsidization of anything for very long never works."
"The automobile business -- those companies, Chrysler, Ford and General Motors -- they're in deep trouble," Shelby, of Alabama, said. "I've suggested they go into Chapter 11. That's where they belong. And they could reorganize."
A Viable Company
House Minority Leader John Boehner said the government shouldn't give GM any more money "until General Motors shows that they can be a viable company for the long term."
"Anything short of that is just throwing good money after bad," Boehner said on CBS's "Face the Nation" program today.
A voicemail left seeking comment from GM today wasn't immediately returned.
The Federal Reserve's Term Asset-Backed Securities Loan Facility program, or TALF, may help struggling automakers raise cash to make loans to consumers.
TALF's aim is to bring investors back to the market for bonds backed by auto loans, credit cards, student loans and small businesses.
The Fed will start disbursing TALF funds March 25 to prop up the market for consumer and small business loans, the central bank said on March 3. The program was originally set to start in February.
'Not Life Support'
"Any money we give to the auto industry must be a lifeline, not life support," House Speaker Nancy Pelosi told reporters at a weekly press briefing March 5, saying the ultimate decision remains with the administration. "This isn't endless. But there has to be a sign of viability. And this needs to happen, and it needs to happen soon."
In a statement released two days ago responding to a Wall Street Journal report, the automaker said that "GM has not changed its position on bankruptcy."
"As we've demonstrated through a series of actions, GM is moving quickly and aggressively to restructure the business, and achieving that outside of court remains the best solution for GM and its constituents," spokeswoman Renee Rashid-Merem said in a March 6 interview.
John McCain says GM should be allowed to go into Bankruptcy.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aO9XkeRhiFLo&refer=worldwide#
Congress Should Stop Giving GM Funds, Republican Lawmakers Say
By Nadine Elsibai
March 8 (Bloomberg) -- Republican lawmakers said Congress should stop providing General Motors Corp. with federal aid and let the company file for bankruptcy if necessary.
"The best thing that could probably happen to General Motors, in my view, is they go into Chapter 11," Senator John McCain said on the "Fox News Sunday" program today.
The automaker could reorganize and renegotiate its labor contracts to come out "stronger, better, leaner," McCain, from Arizona, said.
GM is cutting executive pay and will eliminate 47,000 jobs this year as part of a restructuring required to keep $13.4 billion in U.S. loans. GM's Chief Executive Officer Rick Wagoner is seeking to persuade the U.S. Treasury to lend the carmaker as much as $16.6 billion more to survive.
The largest U.S. automaker has lost $82 billion since its last annual profit in 2004 and has been fending off speculation about bankruptcy for more than two years.
U.S. auto sales plunged 18 percent to a 16-year low in 2008, affecting GM, Ford Motor Co. and Chrysler LLC.
Senator Richard Shelby, the top ranking Republican on the Banking Committee, said on ABC's "This Week" program that "subsidization of anything for very long never works."
"The automobile business -- those companies, Chrysler, Ford and General Motors -- they're in deep trouble," Shelby, of Alabama, said. "I've suggested they go into Chapter 11. That's where they belong. And they could reorganize."
A Viable Company
House Minority Leader John Boehner said the government shouldn't give GM any more money "until General Motors shows that they can be a viable company for the long term."
"Anything short of that is just throwing good money after bad," Boehner said on CBS's "Face the Nation" program today.
A voicemail left seeking comment from GM today wasn't immediately returned.
The Federal Reserve's Term Asset-Backed Securities Loan Facility program, or TALF, may help struggling automakers raise cash to make loans to consumers.
TALF's aim is to bring investors back to the market for bonds backed by auto loans, credit cards, student loans and small businesses.
The Fed will start disbursing TALF funds March 25 to prop up the market for consumer and small business loans, the central bank said on March 3. The program was originally set to start in February.
'Not Life Support'
"Any money we give to the auto industry must be a lifeline, not life support," House Speaker Nancy Pelosi told reporters at a weekly press briefing March 5, saying the ultimate decision remains with the administration. "This isn't endless. But there has to be a sign of viability. And this needs to happen, and it needs to happen soon."
In a statement released two days ago responding to a Wall Street Journal report, the automaker said that "GM has not changed its position on bankruptcy."
"As we've demonstrated through a series of actions, GM is moving quickly and aggressively to restructure the business, and achieving that outside of court remains the best solution for GM and its constituents," spokeswoman Renee Rashid-Merem said in a March 6 interview.
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it might give my brother in law 6 more months of income to feed my sister and their kid. and perhaps find a new job.tok said:
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From what I understand, if they go bankrupt, it will be Chapter 11, meaning no control over the company, sell the assets and that's the end of GM right? I think what they might be trying to do is going into some type of controlled bankruptcy, where they can reorganize all their debts and products under gov't supervision and emerge with competitive products and employees. Normally I'd say let em go down (after all, big airlines have died like Pan Am and TWA) but there are too many jobs on the line. I'm guessing over 100,000 direct GM employees right? I don't really know how to feel about this. (Chrysler is in the same boat I believe).
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I find it hard to believe that President Obama will let GM or any of the Big Three go down without a significant fight to save them with Congress, with the amount of money he's already put into the "bailout" which, for the most part, is trying to keep and create American jobs, not lose 100,000...
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its at least 10,000 GM jobs in Ontario, not counting all the guys who feed the places. and the companies that all those employees buy from, and so on goes the evil circle of economics eh.
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I have mixed feelings about what should happen with this. I don't even know what to say anymore...
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