Do you think that General Motors will pull a trick out of their hat and avoid bankruptcy?

Question

What are we as Americans going to do if we lose our American car plants and companies of General Motors? This was what got our economy booming back in the 1940's folks. Isn't scary, we need another bread and butter portion for our economy to hold us afloat.

Answer 1

possible

not probable, but possible

Answer 2

Companies have a bell curve for life, it is approximately 100 years, sound familiar? Was it a good company, yes, is it now, no.



If they cannot support themselves then free markets should run them out, like they have done. Let the next Henry Ford take part of that miserable company and create a powerful new one instead of continuing with failure.

Answer 3

No.



They deserve to die along with the unions which act as leeches on what could otherwise be successful companies.



G.M. failed and deserves the fate that the market would provide for it, without government intervention (ooops, too late).

Answer 4

No, I don't. As long as the the UAW and the government cut in line in front of bond holders who are rightfully first, they will not agree to the deal they're being offered, and that will result in bankruptcy.



If we lose our auto industry we could actually take our billions and invest them in something....I don't know...productive!

Answer 5

If by "trick out of their hat" you mean "get another bailout from the U.S. and Canada" then yes, I do think GM can avoid bankruptcy.

Answer 6

Probably, Obama will help him, otherwise his union buddies will lose their lucrative contracts and be out on the street after GM restructures without all the union fat.

Answer 7

They don't want to. They easily fooled Obama who lost 19 billion of our money. They intended to go bankrupt and restructure to begin with.

Answer 8

GM is running on empty.



They lost their edge a long time ago. They can get it back in restructuring IF IF IF wages are under control and in-line with the rest of the auto industry, (pref ridding the UAW would be the best thing for the auto industry. We have labor laws to protect workers. However socialist Obama will have no part ridding the UAW, so we shall see how this goes.



With the US Gov slated to control 50-70% of GM in and after bankruptcy, I'd say Obama IS the auto industry.



Also can they (GM/ Cry.) produce cars that are not overpriced, or depreciate 20-40% when you drive them off the dealer lot. What dealer lot? Oh ya, I forgot, they are closing some 1000-3000 private dealers so they won't have a place to sell cars, but they need to sell cars, and how is this helping GM sell cars again?



They also need to produce cars to match what people want.

Previously predicted the Chevy Volt in current form:



1. Over priced - est $35,000

http://www.treehugger.com/files/2008/02/chevrolet_gm_volt_price_goes_up_wipers_stereo.php



The Volt is about $13,000 more than the Toyota Prius which you can actually go someone where in that car. Looks? - what looks, but it’s cheap and gets mileage.

http://www.newsoxy.com/hybrid-cars/2010-toyota-prius/article11967.html



The Volt is about $15,000 more than the Toyota Camry Hybrid which looks better than the Prius, has more room, and more affordable.

http://www.toyota.com/camry/



More on the Volt:

2. Not practical. - 40 miles one way on electric driving. That's it. We'll, that might work if you live on an island.



3. Looks nice. I hope it doesn't break down.



Hmmm, So how do you think the public will react to this?



No wonder Toyota is124x the size of GM.



GM Curr market cap: $702 Million

http://finance.yahoo.com/q?s=GM



Toyota (TTM) Curr market cap: $124.89 Billion

http://finance.yahoo.com/q?s=tm&.yficrumb=IF19GSGQNJl



***



"GM: Under The Hood"

(like that?)

They have been losing money at least over the last 3 years.

LOOK at their net tangible assets on their balance sheet!



FY 2006 ($6,559,000)

FY 2007 ($38,160,000

FY 2008 ($86,419,000) HOLY HYBRID BATMAN!

http://finance.yahoo.com/q/bs?s=GM&annual

That's $86 Billion in negative equity.



GM is currently losing $56.85 per share. With a stock price just over $1.00 and change, I would say that stock is history.

http://finance.yahoo.com/q?s=gm



I don't know a single professional who thinks GM can avoid bankruptcy AND who thinks that the stock will NOT be wiped out either way.



05-28-2009

"Obama expected to discuss GM restructuring Monday"

http://www.reuters.com/article/marketsNews/idCAWAT01150920090528?rpc=44



05-28-2009

"AP Source: GM to announce 14 plant closures Monday"

http://finance.yahoo.com/news/AP-Source-GM-to-announce-14-apf-15369617.html;_ylt=AlzZJ45zCJr_HGBBbYHcvsW7YWsA?sec=topStories&pos=7&asset=&ccode=



05-28-2009

"GM says bondholder panel supports sweetened offer"

http://finance.yahoo.com/news/GM-sweetens-offer-to-apf-15369753.html;_ylt=AktrJx02gNKcVq._7JBVaU.7YWsA?sec=topStories&pos=main&asset=&ccode=



What are stockholders getting?

They should get a spanking for still owing this stock.



The smart money is out of this stock. All that is left are the speculators, day trade speculators, and the "Hope Traders."



05-28-2009

Obama has effectively warned people about GM stock:

"GM Is Expected to Not Be Publicly Traded for a Period - Obama Aide"

http://blogs.wsj.com/autoshow/2009/05/28/gm-is-expected-to-not-be-publicly-traded-for-a-period-obama-aide/#mod=yahoo_hs



05-28-2009

"Why Are GM Shares Trading Above Zero?"

http://blogs.wsj.com/marketbeat/2009/05/28/why-are-gm-shares-trading-above-zero/#mod=yahoo_hs



05-28-2009

"Why is GM stock even worth 1.23 today when everyone expects it to go bankrupt?"

https://answersrip.com/question/index?qid=20081211092038AA6F9v2&show=7#profile-info-lZK3splwaa



05-28-2009

"Mean Street: Brand New General Motors, Same Old UAW"

http://blogs.wsj.com/deals/2009/05/28/mean-street-brand-new-general-motors-same-old-uaw/#mod=yahoo_hs



This is my GM Post#35

(see post history for more details on GM over the last 11 months.)

Answer 9

They are too far gone now and bankruptcy will actually help, at this point more then hurt.

Answer 10

you must mean Government Motors, huh..