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GM headed for BK again?

Discussion in 'The Okie Corral' started by Mr981, Aug 17, 2012.

  1. Mr981

    Mr981

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    http://www.forbes.com/sites/louiswoodhill/2012/08/15/general-motors-is-headed-for-bankruptcy-again/

    I don't think the writer makes a compelling case for it happening anytime soon, but he does site a product failure in a key car market where Chevy at least seems to be going the wrong direction.
    I can vouch for the new Passat being a good car having helped a friend buy one. I was really impressed with the interior room and what you get for the $, although the 2.5L 5 cyl isn't much on power or mileage.
    Likewise he talks about the GM CEO as a bit of an auto industry newbie, but you could say the say thing about for former Boeing guy more at Ford a while back and now he's seen as a genius.
    All things considered, they need to come up with better products, especially to compete with the Koreans which seem to be the dominant force in their price range.
    Who would have ever expected the Koreans to be the dominant car maker in the market segment that GM owned for years. Things change I guess..
     
    Last edited: Aug 18, 2012
  2. vikingsoftpaw

    vikingsoftpaw DEPLORABLE ME!

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    GM has the unenviable task of paying their employees union wages and benefits from their sales revenues.

    The era of high profit SUV's is long gone. GM is attempting to sell smaller and mid sized passenger cars to the public that has become accustomed to quality and price points, set by transplanted auto makers, GM can't meet.

    If they think things are bad now, wait until the UAW wants all of the wage/benefit concessions back...and them some.
     
    Last edited: Aug 18, 2012

  3. JBnTX

    JBnTX 2 Timothy 2:15

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    This is what happens when you bail out a company with bad management and bad leadership, BUT you then leave that same bad management and bad leadership in charge.

    Duh?....:faint:

    ..
     
    Last edited: Aug 18, 2012
  4. Dennis in MA

    Dennis in MA Get off my lawn

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    Can't happen. Uncle and the UAW can't lose money. Lol
     
  5. Huaco Kid

    Huaco Kid

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    I found it telling that every US union worker received ~$7K in profit sharing this year.

    Pretty easy to show a huge profit when they still have ~$25B to repay from the bailout.

    I've been a lifelong Chevy owner. Won't happen again.
     
  6. Restless28

    Restless28

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    Prediction:

    GM will eventually become a Federally operated motor company within 10 years.
     
  7. CAcop

    CAcop

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    I think you are close. It will be heavily subsidized to the point that it will be difficult to say if it is a nationalized company or just very dependent on governement money.
     
  8. JBnTX

    JBnTX 2 Timothy 2:15

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    Prediction:

    I predict you're right.


    Along with a long list of other major national companies.
    (That's the Obama/Socialist plan.)

    ..
     
    Last edited: Aug 18, 2012
  9. FFR Spyder GT

    FFR Spyder GT Ex-Gunslinger

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    That's what happened when Lil' George bailed out GM the first time. Only problem was he left the same management in charge and they awarded themselves HUGE bonuses and perks with the bail out money then they "retired".

    When Obama bailed out GM he made the current CEO step down. If you'll do a search on GT you'll find 100's of post about Obama being wrong about forcing the CEO to resign.
     
  10. RonS

    RonS Millennium Member

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    Forcing the CEO of a company the size of GM to resign is like removing one cancer cell from a body. GMs corporate culture is toxic. They will never be a world class company again as long as the top management is made up of finance people instead of manufacturing people. You can only spin a poor product for so long, people get wise.

    Many friends and family in the Dayton area worked for GM, some hourly, some salary. All hated the way the plants were run and it is not all the unions fault, mostly it is just bad management. Unions hurt, but they aren't a death sentence, a well run company can do well despite them, but it takes leadership.
     
  11. czsmithGT

    czsmithGT

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  12. vart

    vart

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    It's George Bush's fault...

    Wait, aren't we finally past that?

    Nope, I guess not...:rofl:
     
  13. FLIPPER 348

    FLIPPER 348 Happy Member

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    The Fox News sheep don't like these sorts of facts as they would rather revise History.
     
  14. Dennis in MA

    Dennis in MA Get off my lawn

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    I guess I would agree to that in part. GM leadership got weak during a period where the American public was anti biz and pro union. When the fat cat benefits began, the union was powerful enough to stuff them down GMs throat. Then they were stuck with it. And the bailout, the union did not make concessions that would turn the company around. Nope. We'll suck on that dying teat as long as possible.