Im for it :rockon:
What happens if GM files for bankruptcy?
- Thread starter blueovalfan
- Start date
Im for it :rockon:
A lot of people are saying that even if GM does get the bailout money, 6 months down the road they're going to file bankruptcy anyways. Just cut out the first step and let them do it.
:rockon: I predict good will come of this...I hope.
its impossible. all 3 share 80% of their suppliers with each other. does anyone know what bankruptcy(11) does? it basically tells the people who the company in bankruptcy owes money to to **** off. suppliers have a very small profit margin. why? because they must compete with each other for product contracts, and to lower the price at which they make the product, they take a hit on the profit margin of said product. if your telling them that they aren't gonna get the money you owe them, then they will go down. what happens when they go down? the other 2 automakers go down as well, because they are no longer getting the parts they need(dont tell me that they will "just find another supplier", because you gotta take into account the amount of time it takes a supplier to tool up to produce a part, and the assembly lines at the factories are at a standstill until they get that part).
someone correct me if im wrong, because thats how i understand.
someone correct me if im wrong, because thats how i understand.
Bottom line is this is only the beginning more money will be needed to survive the rest of 2009 some say on the order of 125b+. I wonder if unemployment for a few million would cost less I mean 125 billion would be roughly 60,000 for 2 million people
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Whatever auto companies survive, they'll get the supplies they need from whatever suppliers are in business - or they will just go bcak to making their own. I'm aware of this "contention" that if any one company goes down, they'll all go down because all three auto companies have interrelationships with various suppliers. If this indeed were to happen, you'll find this a "bogus" argument! Although it's true that all three compnaies often use the same suppliers for same/similar parts, whatever company or companies that survives will find away to get/manufacture whaever parts it needs to produce a product. I worked in the auto industry for several auto companies and suppliers for over 40 years and I can tell you one thing about auto manufacturing and those who work in it: when "push" comes to "shove" and when something absolutely "has" to happen - it does! Whatever one supplier discovers it "cannot" do - another will be found that "can" do. And people familiar with the auto industry know that it currently has the technology and tooling to manufacture just about anything on it's own. And what it can't, I'll gurantee you a "supplier" will surface to do so. If there's a "void" in the marketplace some supplier will step up to fill that void. And in a tight tough competitive economy, it's the "can do" companies that survive and do well, and there's a bunch of them out there. I can guarantee that if GM stopped auto production and filed bankruptcy, Ford and Chrysler will continue on. If Chrysler falls, Ford and GM will move on. Etc. People may chose "not" to buy cars, but it won't be because they won't be available.
Oh it will!
GM employs millions around this country...
It wouldn't be very good for the economy at all!
Think I'm joking? Imagine what the burden of a few million unemployed people will place on the rest of the country...
Especially once the businesses they support and buy food and stuff from get hit due to lack of customers...
Not that it's likely, but if Ford also goes down the tubes...
We can nearly double the impact.
But despite what some may think, Ford will be fine for awhile.
They have actually stepped up quality alot!
It's just getting people to realize that thier once godly Camry is now inferior to the Fusion.
So pretty much if GM goes bankrupt, it will screw alot of honest hard working people.
Thats what the bailout is about and why conditions are being attached to any plan.
I personally think Wagoner needs to go. He's done nothing for GM except make things wayy worse!
Mullaly should opt for a $1 per year salary.
Of course again, ford is only in washington to show support for GM and Chrysler because they understand, just as toyota does, without competition the market really hits the shitter!
If that's how they could handle it, I would be for it.
But since it's a good idea, it isn't happening.
I don't think so!
Since GM doesn't own that vette...
the bank does!
GM sells the cars to the dealer, the dealer sells it to you (the bank really), and then you pay the bank back the money they loaned you. And untill the car is paid off, the bank owns the car.
I know, I was just joking lol
I certainly wish people would actually understand what Bankruptcy actually entails before speaking about it. While you are technically correct that their contracts could become void, it hardly that easy to just start back up.
Who are all these people that are actually going to buy from GM if they file BK? How are they suppose to make money if there sales tank? The way you describe BK makes it sound like it's good for every compnay to do this. Why do you think they are doing everything they can do avoid it? Is it maybe because it ISN'T desireable?
Lot harder to do than that. I work for a steel company that has filed bankruptcy numerous times under different chapters. There are clauses in most(I'm not saying all) union contracts that don't allow this to happen so easily. Usually a place has to be shutdown completely for a specific amount of time to accomplish this. I think are time frame was 2 years. It could happen though. With the economy so screwed up anything is possible.
+1
look what the Auto industry effects/supports inderirectly...
1. employees/retirees
2. schools
3. Grocery stores/malls(Wally World)
4. Hospitals
5. Steel mills/rubber factories
6. Coal mines/coke plants
The list goes on. Each one of those things effect and support each other also. It is a huge "trickle down" effect. An auto plant going under can affect a steel mill in Mississippi, rubber plant in Texas, and local hospitals,malls stores, and schools. Something def. needs to be done on the lines of mergers and reorganizations. I agree that just handing them money is not going to cut it. The union needs to give some to. Whether it's wage cuts, and paying some of the health benefits. Management salaries also need to come down a tad/jk
We can dream....
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