In what may be the most anti-climatic major bankruptcy ever, General Motors officially entered Chapter 11 bankruptcy this morning. From the official statement:
"Pending approvals, the New GM is expected to launch in about 60 to 90 days as a separate and independent company from the current GM ("GM"), with two distinct advantages: it will be built from only GM's best brands and operations, and it will be supported by a stronger balance sheet due to a significantly lower debt burden and operating cost structure than before.
The New GM will incorporate the terms of GM's recent agreements with the United Auto Workers (UAW) and Canadian Auto Workers (CAW) unions and will be led by GM's current management team."
So there you have it, a "new" GM is on the way. Stay tuned for further details.
stovt001 says:
10:52 AM, 06/ 1/09
The likeliness of "way better" depends on how much restraint the government shows and how quickly they sell off their share, if ever. If they hold on too tight, this could be British Leyland again.
billt9 says:
01:48 PM, 06/ 1/09
Oh I thought they were going to fire the UAW leadership and replace them with puppet figures.
"The members of UAW has voted, and we demand a 70% pay cut!"
corvairguy says:
07:10 PM, 06/ 1/09
I personally think that this is a sad, sad day in the U.S. My gut feeling is that the government will continue to dictate what GM can do and build and the once mighty auto giant will cease to exist. I know Obama keeps saying 'hands-off' but history has shown that once the government gets involved, it usually mucks things up worse and they never leave.
This coming week-end in St. Paul is the all GM car show. It will be bittersweet this year, especially for the guys showing Pontiacs (Saturns and HUMMERs rarely make an appearance). Black arm bands all around.
zoomzoomn says:
04:43 AM, 06/ 2/09
This IS all GM's fault you know. Mismanagement and too many cycles of poor product over the years has led to this. Honestly this day was bound to come. Sometimes you have to die and be reborn. For GM this was the only way to shed it's past so that it could even have a shot at a future.
ermikeyk says:
08:52 AM, 06/ 2/09
GM's fault...Yes! Big Greedy CEOs..More so. It's like a lot of other big companies that give these guys big contracts and no matter how well or how poorly they do, they get a big pile of money when they walk away. Look at Chrysler's Nardelli...He walked away from Home Depot with a small country's net worth and then went into the car business. He knew what he was doing.
The problem is now, we all as tax payers have a steak in GM. I wasn't truely in favor of a bailout. But now, I hope GM can pull up and get going again so we can get some money back. So as I see it we need to support GM and hope that there will be some return cash.