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Been reading several articles today about the state of GM and the other American auto companies. Most are predicting the demise of GM sometime next year. Even if the govt. loans money to them, the auto industry as we know it, will change drastically. Even though shares of stock are trading very low, they don't recommend people buy. The stock could go to zero even if the govt. decides on helping because it would only allow them to keep certain aspects of the company going and it wouldn't relate to making cars. People that I follow who study and research the economy are mostly saying we have not seen the worst yet. I do know one thing. If this country cannot support and maintain our auto industry, it's over for this country. Things are broken due to many factors and it's going to come back and bite us in the butt.
 

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Yes, today's state of economy is certainly not the best for auto makers as a whole as is the second most expensive item to have next to a home. Then with more loss of jobs coming over the next three months covering all manufacturing sectors, we certainly are not in the best of health. The auto industry will certainly be down sized like most will be. Directly related to auto is the tire industry which we will be hearing more about too by Christmas time. Today the gov't says 6.6% unemplyment and should be reported as 13% if they included those whose benefits expired.

My advisor friend told me to get out of stock 401K market and move money into retirement savings this past early Sept. Glad I listened to him!!
 

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Anyone know what the impact might be on warranties if GM files for bankruptcy? I know with gift cards, you are out of luck if the company files. I don't know what the rules are about extended warranties. I don't want to get in line with the other creditors. May be worth cashing in my warranty if there is a chance it may become worthless.
 

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Luxeries always get hit the hardest in a frail economy.
Even Starbucks closed a lot of stores across the country.
Things will eventually adjust, but I'm sure it will be very painful. :'(
If our economy starts to turn around within 3-5 years I would be surprised. :blob:
A full economic recovery may be 10 - 15 years off. :eek:hno:

IMO
 

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jseck2 said:
Anyone know what the impact might be on warranties if GM files for bankruptcy? I know with gift cards, you are out of luck if the company files. I don't know what the rules are about extended warranties. I don't want to get in line with the other creditors. May be worth cashing in my warranty if there is a chance it may become worthless.
If I am correct, I believe the warranty is under a 3rd party. I don't know that it would be affected.
 

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i am interested in knowing what happens to the standard warranty in GM declares bankrupcy. i am literally about to pick up an acadia this saturday. i just sent a note to the sales guy looking for something in writing that would help me sort this out, i want the car and i think the gm might survive or merge but my warranty has to survive no matter what
 

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bonk1313 said:
If I am correct, I believe the warranty is under a 3rd party. I don't know that it would be affected.
bonk, I am inclined to believe you are correct. GM's standard and extended warranties have several layers
of protection to the consumer. GM, insurer and reinsurers of the warranties.

If GM declared for bankrupcy, the insurers of the warranties would step in when claims are made. However the assumption here is that the premiums are being paid to the keep that protection from the insurers in place.
 

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Glass 1/2 full said:
bonk1313 said:
If I am correct, I believe the warranty is under a 3rd party. I don't know that it would be affected.
bonk, I am inclined to believe you are correct. GM's standard and extended warranties have several layers
of protection to the consumer. GM, insurer and reinsurers of the warranties.

If GM declared for bankrupcy, the insurers of the warranties would step in when claims are made. However the assumption here is that the premiums are being paid to the keep that protection from the insurers in place.
As long as the insurer stays afloat too ;)
 

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The Washington Post had an interesting article today which states that GM insists it will not file for bankruptcy
. It also reports that the House will convene next week to vote on a plan to rush $25 billion in loans to the auto industry.
 

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I can't understand why Japanese imports are such the rage. Their cars are small and less roomy for the average American. Just for the minor savings of gas consumers are willing to forgo comfort and safety.

Unfortunately, North American auto have been heading down this slippery slope for a couple of decades already. A cleansing of sorts is what is needed to adjust the exorbitant cost structure (i.e. pension and current workers). I do pray for government to leave alone to the invisible hand to guide what is the right path.

Regardless of government incentives, people will buy what they see fit. GM must realize that. Governments most of all must understand that before pissing billions of your (i.e. taxpayers') money down a bottomless pit.
 

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bonk1313 said:
Glass 1/2 full said:
bonk1313 said:
If I am correct, I believe the warranty is under a 3rd party. I don't know that it would be affected.
bonk, I am inclined to believe you are correct. GM's standard and extended warranties have several layers
of protection to the consumer. GM, insurer and reinsurers of the warranties.

If GM declared for bankrupcy, the insurers of the warranties would step in when claims are made. However the assumption here is that the premiums are being paid to the keep that protection from the insurers in place.
As long as the insurer stays afloat too ;)
Very true, I'm exercising my 1/2 full outlook that the insurer stays afloat. ;D

19inches said:
Regardless of government incentives, people will buy what they see fit. GM must realize that. Governments most of all must understand that before pissing billions of your (i.e. taxpayers') money down a bottomless pit.
Very true also, government incentives may just be a short term fix and will not stimulate consumer demand for GM's cars, nor will it fix GM's high lagacy costs factored into each unit cost.
 
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