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Posted: 7/14/2008 9:10:18 PM EDT
GM will file for bankruptcy. Frankly its the only way it can compete.

I'm just guessing but I would give it 4-5 odds of it happening.
Link Posted: 7/14/2008 9:10:54 PM EDT
Lay down the pipe.
Link Posted: 7/14/2008 9:12:14 PM EDT
They're re-introducing the Chevette.
Link Posted: 7/14/2008 9:15:16 PM EDT

Originally Posted By Zardoz:
They're re-introducing the Chevette.




Well at least it didn't catch fire like Ford's Pinto.
Link Posted: 7/14/2008 9:16:16 PM EDT
That's what we need, a retro Chitvette. Wonder if they could bring back the K car too.

Honestly, how many people would go out and buy a 2009 retro of a 1968 Firebird or GTO repro.

Honestly I don't know how GM can lay a GTO label on their current offering. It's kinda like the post 1996 Impala. WTF happened? Impala meets Corolla?
Link Posted: 7/14/2008 9:32:41 PM EDT
I heard something about GM selling Buick to China. Whatever the announcement, they won't be opening champagne bottles afterwards.
Link Posted: 7/15/2008 5:22:23 AM EDT
I know I was wrong but I don't see any way out of their mess except for bankruptcy.
Link Posted: 7/15/2008 6:00:59 AM EDT

Originally Posted By dragongoddess:
I know I was wrong but I don't see any way out of their mess except for bankruptcy.


Yep, you were wrong....for now.
Link Posted: 7/15/2008 6:23:04 AM EDT

Originally Posted By HK91_Tool:
That's what we need, a retro Chitvette. Wonder if they could bring back the K car too.

Honestly, how many people would go out and buy a 2009 retro of a 1968 Firebird or GTO repro.

Honestly I don't know how GM can lay a GTO label on their current offering. It's kinda like the post 1996 Impala. WTF happened? Impala meets Corolla?


There won't be another GTO for the time being. They were last made from 2004 to 2006 and were/are a pretty damn neat car. Rear wheel drive, 400hp in the 05/06 model, available 6 spd manual and an interior made with much better material than other GM product.
Link Posted: 7/15/2008 6:29:28 AM EDT
Purportedly ...

GM is selling HUMMER and others but keeping Chevrolet...

AND...

Chrysler is selling JEEP and the Dodge Ram Truck line...

Ted...
Link Posted: 7/15/2008 6:36:31 AM EDT
I turned 40.
Link Posted: 7/15/2008 6:38:52 AM EDT
In related news the Chevy Vega Owners Club of America will meeting in Detroit this week. Attendees are asked to register their envelopes full of Vega rust at the Welcome Table.
Link Posted: 7/22/2008 1:55:52 PM EDT
[Last Edit: 7/22/2008 2:11:42 PM EDT by Alacran]

Originally Posted By dragongoddess:
I know I was wrong but I don't see any way out of their mess except for bankruptcy.



GM, Ford `On the Verge of Bankruptcy,' Altman Says (Update2)

By Greg Miles and Caroline Salas

July 22 (Bloomberg) -- General Motors Corp. and Ford Motor Co., the two biggest U.S. automakers, have about a 46 percent chance of default within five years, according to Edward Altman, a finance professor at New York University's Stern School of Business.

``Both are in very serious shape and the markets reflect that,'' Altman, the creator of the Z-score mathematical formula that measures bankruptcy risk, said in an interview with Bloomberg Television. The model shows that these companies are ``on the verge of bankruptcy,'' he said.

The Z-scores for GM and Ford give both a bond rating equivalent to a CCC ranking, though GM is in slightly worse condition than Ford, Altman said. GM reported a $38.7 billion loss in 2007, the biggest in its 100-year history, and hasn't posted a profit since 2004. The scores are based on the companies' finances at the end of the first quarter.

Moody's Investors Service said July 15 it may cut GM's Caa1 senior unsecured debt rating because the Detroit-based automaker's plan to raise at least $15 billion by suspending its dividend, cutting management payroll by 20 percent and selling assets may not be enough to offset losses. Standard & Poor's also said in June it may lower GM's B rating. Altman said the plan to raise $15 billion may improve GM's outlook.

Ford, based in Dearborn, Michigan, is rated Caa1 by Moody's and B by S&P, which said in June that Ford's rating may also be cut.

Ability to Refinance

``The thing that triggers a default in almost all cases is running out of cash and not being able to refinance,'' Altman said in an interview prior to his television appearance. ``You're not going to go bankrupt as long as you can refinance short-term liabilities. You will go bankrupt if you can't.''

In 2005, Altman said GM had a 47 percent chance of default within five years.

GM Chief Executive Officer Rick Wagoner said in an interview July 15 that the company has the ability to raise cash, and he called bankruptcy ``a bad idea.'' Ford has said it had access to $40.6 billion in funds as of March 31, including credit lines.

GM's $3 billion of 8.375 percent bonds due in 2033 rose 0.5 cent today to 58.5 cents, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The debt yields 14.6 percent, or 994 basis points more than similar-maturity Treasuries. A basis point is 0.01 percentage point.

``I would not put money with GM right now because the downside is so great relative to the upside, relative to the yield,'' said Altman, speaking in New York. ``Your downside is probably 60 percent on the debt. The risk reward ratio is pretty poor.''

www.bloomberg.com/apps/news?pid=20601087&sid=asXjYQuEUW4Q&refer=worldwide
Link Posted: 7/22/2008 2:46:08 PM EDT
What I would really like to know, is how in the blue motherfuck can a company with 181 billion dollars of revenue per year, the ninth largest revenue stream in the WORLD, be headed toward bankruptcy? They must be the most colossal financial fuckup in the history of colossal financial fuckups.
Link Posted: 7/22/2008 2:53:39 PM EDT

Originally Posted By Frost7:
What I would really like to know, is how in the blue motherfuck can a company with 181 billion dollars of revenue per year, the ninth largest revenue stream in the WORLD, be headed toward bankruptcy? They must be the most colossal financial fuckup in the history of colossal financial fuckups.

they also have mortgage companies

Link Posted: 7/22/2008 2:54:02 PM EDT
Link Posted: 7/22/2008 3:04:31 PM EDT
Yay!!!!!!


but it wont improve
Link Posted: 7/22/2008 9:05:58 PM EDT

Originally Posted By Frost7:
What I would really like to know, is how in the blue motherfuck can a company with 181 billion dollars of revenue per year, the ninth largest revenue stream in the WORLD, be headed toward bankruptcy? They must be the most colossal financial fuckup in the history of colossal financial fuckups.




UNIONS
Link Posted: 7/22/2008 9:14:25 PM EDT
[Last Edit: 7/22/2008 9:15:06 PM EDT by Frost7]

Originally Posted By dragongoddess:

Originally Posted By Frost7:
What I would really like to know, is how in the blue motherfuck can a company with 181 billion dollars of revenue per year, the ninth largest revenue stream in the WORLD, be headed toward bankruptcy? They must be the most colossal financial fuckup in the history of colossal financial fuckups.


UNIONS

Oh yeah, I forgot about UAW.

Is there a reason they can't just cut them loose? I mean, FFS. Either the Union goes away or the company goes down. It's obvious it's going to be one or the other; this particular cake cannot be had and eaten too.
Link Posted: 7/23/2008 4:58:16 AM EDT
I really don't know but bankruptcy is the way most companies deal with them. They also have a lot retired employees for whatever thats worth.
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