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Discussion Starter · #1 ·
This article http://biz.yahoo.com/ap/081107/earns_gm.html indicates that GM is having big financial problems and halted its talks to acquire Chrysler. Interstingly, they show a picture of an "unsold 2009 Acadia" next to the article.
 

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Saw the same thing and just posted a thread about it too. A very sad day. People running alot of companies today are just too greedy and out for themselves. They are also incompetent. If this doesn't stop, we are all doomed.
 

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Discussion Starter · #3 ·
I agree that news like this really hits home what a mess our economy is in right now. Putting aside the awful impact GM's potential demise would have on GM's employees and the economy in general, I also somewhat selfishly wonder what the impact would be on owners of GM cars in terms of resale value and servicing issues.
 

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Twindad said:
I also somewhat selfishly wonder what the impact would be on owners of GM cars in terms of resale value and servicing issues.
Don't think your concern is in anyway selfish. This is a sad situation to be in for our country and other countries as well. The most dangerous aspect of this situation is that it is like the proverbial snowball rolling down hill. I believe that resale will surely suffer if a manufacturer such as GM, or even the GMC brand, goes under. You also must consider that it is a SUV with very poor gas mileage compared to the cost of fuel. I think service would be affected as well because many GM dealers will be closing their doors. I do believe there are laws on the books that require a manufacturer to support a discontinued model for ten years but I don't know if the law considers the manufacturer going out of business.
 

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Local news here in Lansing, Mi. where the Acadia is built says 400 to be layed off at that plant by the first of the year and about that many at the local Cadillac plant. I wouldn't be surprised if it turns out to be more. Sad times.
 

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Folks, never fear, our government will bail out the auto makers with 200B!! All will be saved!!
 

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Bad enough some will lose jobs, and the ones that stay

The company also suspended its matching contribution for employee 401K plans, and suspended tuition reimbursement. In addition, salaried employees will not get incentive pay next year for their work in 2008, GM said.

Sad times, I hope it goes away soon, but doesn't look promising. :sosad:
 

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Sad times, I hope it goes away soon, but doesn't look promising. :sosad:
[/quote]

My prediction is the 3 will file bank rupt...... so won't have to continue paying all the retirees + large sums of medical insurance. I believe the UAW contract runs out 2010. I don't believe any more employee buyouts will be offered either with the present state of the 3. Yes, pretty sad, how our economy has turned 360 due to our many financial institutions lending to all those that could not afford! Sadly, we will be printing money for a long time.......I'm afraid welfare...etc..... will be at it's max in 3 more months. A lot of people to pray for. Because so many have lost jobs over the past 2 years at our GM local truck plant and closing Dec 22, plus effecting all surrounding satellite companies, all the retail and grocery stores have very little traffic these days. We still have some industry but our city is indebt some 88M. Hope they don't raise our property tax in 2009, but quite spending!!!!!
 

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It's sad to see it has come to this state, but maybe they need to rethink the entire GM structure. Think about our vehicles. GM is still trying to sell the pretty much the same vehicle across 4 different brands. I.E. Acadia, Enclave, Traverse, and Outlook. The foreign manufactures push it across two at the most that I can think of and usually the higher end one is pretty drastic in their styling differences. They do have quite a bit of duplication. Chevy and GMC trucks are another reason for overkill. I believe they are banking too much on the cross-overs and not enough on real world hybrids. Look at our gas mileages on the AWD models. It's basically the same as those "gas guzzling SUV's" with a smoother ride. My definition of a hybrid is at least 40 mpg. The malibu and and others are only gaining 2-5 mpg over their gas counterparts. GM is way off in this game.
 

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teetertotter said:
Folks, never fear, our government will bail out the auto makers with 200B!! All will be saved!!
Yeah, unfortunately you are probably right! What's another 200B added on to the national debt. The problem is that we have been writing checks we couldn't cover for decades. :banghead: Democrats, Republicans, it didn't matter. We were all intoxicated by the so called free money. I just have one thing more to say...

Can we please now have some serious consideration of the Fair Tax!!!? :thumb:

Dan
 

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[quote They do have quite a bit of duplication. Chevy and GMC trucks are another reason for overkill. [/quote]

How many years did it take to dump Olds? Maybe Buick 5 years ago been a good idea? Maybe Pontiac 3 years ago?
Saturn 2 years ago? GMC 1 year ago? Dealerships are closing by the hundreds and more on the way! Perhaps dealerships will be renamed: "Chevrolet/Cadillac/Misc" in 2009? If GM is still going to have a name, perhaps rid all the other car brands?? Sorry if means more layoffs, but this is the real world hitting us. GM with TOTAL Restructure. The good ole boys mentality is still lingering at corporate level?? If the Government loans these car makers money for bail out, I wish I was in charge of telling them where they are going to make cuts and how much pay the EXEC salaries will be WITH NO BONUSES!! Plus a lot of consolidation to remove duplication of effort to save the company MONEY!!
 

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So, if GM were to file for Chapter 11, would our factory and/or GMPP warranties be voided? I believe the original factory warranty is protected somehow by the goverment, but I was wondering if the GMPP has the same protection? I have purchased the GMPP on our Enclave and was debating it on the Acadia as I already have 8K miles on her. Any insight into this would be appreciated.
 

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ccaats said:
So, if GM were to fail for Chapter 11, would our factory and/or GMPP warranties be voided? I believe the original factory warranty is protected somehow by the goverment, but I was wondering if the GMPP has the same protection? I have purchased the GMPP on our Enclave and was debating it on the Acadia as I already have 8K miles on her. Any insight into this would be appreciated.
Chapter 11 means reorganization....etc. NOT going out of business, necessarily. Big problem is many dealershipsof all kinds are unable to survive and closing their doors. If a GMC dealer near you goes out of business, you will have to visit a Chevy dealer or vise versa for repairs?? At least we have a GMC/BUICK/PONTIAC/HONDA in Janesville......for now. Maybe the HONDA portion will keep them a float threw these hard times. :)
 

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The company also suspended its matching contribution for employee 401K plans, and suspended tuition reimbursement. In addition, salaried employees will not get incentive pay next year for their work in 2008, GM said.

I am not working for the auto industry but my company just kind of announced to not expect any incentive pay raise next year.

I also think they are overdiverisifed. Too many brands. Just look at the lambda, it's now across 4 different name plates.
 

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Their stock is taking a huge beating today- down like 25%. I sure hope they can recover.
 

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Discussion Starter · #16 ·
GM shares hit a 60 year low today! That is really incredible. It appears that those that have predicted a government bailout are likely correct:

"Before the markets opened Monday, Brian A. Johnson of Barclays Capital cut his rating on GM to "Underweight" from "Equal Weight" and slashed his price target for the Detroit-based automaker to $1 from $4. Johnson said that without additional funding, GM's gross cash will likely fall below minimum levels in the first quarter of next year. The analyst also said that while additional government assistance will likely decrease the likelihood of a bankruptcy protection filing at the nation's largest automaker, it also would likely significantly dilute its equity.

Separately, JPMorgan's Himanshu Patel said he expects GM to receive some form of federal aid, but advised investors to be cautious given the uncertainty." http://biz.yahoo.com/ap/081110/gm_mover.html
 

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It's over for GM. Even some form of bailout is not going to save them. They need too much money and that doesn't guarantee people will buy their products. No sales, no company. We gave it all to the idiots and crooks on Wall Street. That was real smart. The bonuses alone would go along way for GM support. Our congressmen our fools, crooks, and worse. And what did the American people do, they voted for a socialist. It' over folks.
 

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Just announced that GM's GMAC most likely will fail. More bad news for GM and the rest of us. Very sorry to see it happen. On a positive note, Paris Hilton was seen walking down the street. Welcome to the new America and the people that are more interested in that. That's the idiots that voted for Obama.
 

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Discussion Starter · #19 ·
An analyst actually set a target price for GM's shares of zero. Maybe I'm being irrationally optimistic, but I can't believe that our government would let GM (as well as Chrysler and Ford) fail.
 

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I find it hard to believe as well, but the political landscape has changed. I wonder if McCain would have tried to save GM. I inclined to think he would. Obama, is anybodies guess. I inclined to think he won't. But to be fair, it would take too much money to make a difference since you have to have people buying their products. You can't make the American people buy GM products. We'll see.
 
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