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Discussion Starter #1
http://www.forbes.com/markets/2005/10/10/gm-automotive-bankruptcy-1010markets02.html?partner=yahootix

Banc of America Securities downgraded General Motors (nyse: GM - news - people ) to "sell" from "neutral" and slashed the price target to $18 from $32.

"We think GM's biggest supplier's [Delphi (nyse: DPH - news - people )] recent bankruptcy filing should raise GM's retirement liabilities by at least $6 per share," Banc of America said. "This, and our strong belief the UAW will be tougher on GM than Delphi, should get GM to more seriously consider bankruptcy protection."

The research firm raised the odds of a GM bankruptcy filing to 30% from 10% and added that it sees "more risks to our target then opportunities."
 

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The Solstice is niche car so if GM keeps getting in trouble this car may disappear.
 

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LatinVenom said:
The Solstice is niche car so if GM keeps getting in trouble this car may disappear.
I am not sure they would be so quick to axe a hot product at this point. If they were to file for bankruptcy protection, it would be in a move to void their current uion contract and force health care costs on workers, possibly force lower wages, and shed a lot of their legacy costs to the Federal guarantee corp. They could also use it to force the closure of plants they deem unnecessary. I doubt Wilmington would be a target at this point.
 

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GM is in financial trouble and Ford just won 240 millon ... hmmmmmmm ;)

Someone had to say it ... with no (Rodeo)other troll around! :(
 

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Discussion Starter #7
LatinVenom said:
The Solstice is niche car so if GM keeps getting in trouble this car may disappear.
GM has way too much PR hype invested in the whole "Solstice as a new direction" to even think of canceling it... yet. ;)
 

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Fformula88 said:
I am not sure they would be so quick to axe a hot product at this point. If they were to file for bankruptcy protection, it would be in a move to void their current uion contract and force health care costs on workers, possibly force lower wages, and shed a lot of their legacy costs to the Federal guarantee corp. They could also use it to force the closure of plants they deem unnecessary. I doubt Wilmington would be a target at this point.
Agree, they'd use it to lighten their load financially and then re-emerge couple years later.
 

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I do not disagree with all your input, but you can not discount the bean counters once you head down in that direction, these cars are not mass market like their other cars.
 

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IMO, I can't see this or any future administration allowing GM to go belly up. If the government bailed out Chrysler, they'll do something for the General as well. I could be wrong, ... but I don't think so.

--Chemist
 

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Chemist said:
IMO, I can't see this or any future administration allowing GM to go belly up. If the government bailed out Chrysler, they'll do something for the General as well. I could be wrong, ... but I don't think so.

--Chemist
:agree: You are absolutely right. I think we're a long ways from that, anyway. But if it happened, there's no way the government could stand by and let them fold. The employment that results from GM, either directly or indirectly, is an enormous number of people. Add to that the the manufacturing capacity is of strategic importance. During WWII the auto manufacturers ran around the clock churning out war machinery. I don't think we would want to be in the position of relying on foreign manufacturers for our national defense in such an event as that! So, GM may change, but they're not going away.
 

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LatinVenom said:
The Solstice is niche car so if GM keeps getting in trouble this car may disappear.
It may be a niche market in terms of actual ownership, but the Solstice is a HUGE marketing boon for Pontiac. The Solstice is a rolling advertisement for Pontiac and was meant to bootstrap the company reputation up. People see the car and ask "WHAT?! That's a Pontiac?" and will start wondering what other cars Pontiac has to offer. Also the Solstice is based on the Kappa line which will have at LEAST two other cars based on the same line.

I don't see GM dropping a vehicle which:

A. Is selling like hotcakes. Dealers can't keep them in stock. Come to think of it, what stock? Everything coming off line is pretty much pre-sold.

B. A Great marketing tool for Pontiac.

C. They would also be dropping off Saturn Sky and Opel. (drop a model that's selling very well and not dropping two models not even in production is moronic)

Unfortunately, I too think that the government will bail out GM, because of politics. We will continue to prop up an inefficient company to maintain jobs, and in the end it will hurt the taxpayers. The money will be coming out of our pockets. I dislike subsidizing greedy peeps. And yes they are GREEDY. People are in the thought mode of what can I get from the company. They never think what can I do to help keep the company afloat.

And that's the fault of the government. As long as Uncle Sugar is there to step in and bail them out, then unions and management will never truly bargain in good faith.

Same situation is happening in the airlines, although I think that everyone there management and workers realize that they will have to make sacrifices to keep the company afloat. The good thing there is there's a bankruptcy board and to be able to get bankruptcy protection, you have to file a plan to get out of bankruptcy. If the court finds your plan isn't going to fly (pun intended) the company has to go back and tweak the plan, which generally means more paycuts.

Many autoworkers have forgotten the good old days of the late 70's and 80's when car companies were folding left and right and there was a lot of consolidation and workers losing there jobs.

I've always wondered why Japanese cars are better built and cheaper than American cars. And the Japanese workers get paid more too. (Actually, I know the answer, but want to see if we can get a discussion going).
 
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