The New GM or should is it Government Motors

Filling for Chapter 11 is what they were looking for, the government won’t let them falter because they have too much invested and a good portion amount of the population is part of their workforce or tied to that industry.

Chapter 11 in this situation means they can ditch their bad debts and keep their good assets.

Hello:

  • Chevrolet
  • Cadillac
  • Buick
  • GMC

Bye bye:

  • Hummer
  • Saab
  • Saturn
  • Pontiac

Ownership of the company, split very nicely. The Government won’t interefere but they will check up on their progress, I wonder how they plan on doing that.

The government is basically giving GM about $50 Billion but because of the bankruptcy they will agree to dropping that figure to $6.7 Billion

The Labor people or UAW, instead of $20 Billion pay out which GM owed them they took a 17.5% stake of the new company. I have a feeling its not going to be worth the same amount.

Dealers are out, only 3,605 by 2010

When GM is in chapter 11 they can pretty much restructure what ever they want without any litigation risks. Even the UAW is accepting less pay, job cuts, and plant shutdowns for the sake of keeping what jobs they do have.

Lets think about this way, a GM worker makes twice the amount Toyota Worker does in the US while only being 25% as productive as the Toyota worker. Seems GM is gonna be trimming some fat and cutting back on the feed.

Will GM survive, I think they will, but it shall grow to be a different creature.

Link: Autoblog

A guy who is just trying to enjoy life!

3 Comments

  1. I guess no more patriots to buy American cars.
    The Jab revenge ;-)

  2. BOLDR

    At last detroit went bankrupted… A lesson to be learnt for everybody

  3. tartooob

    Thanks for the post, very informative

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