Quote:
Originally Posted by Foster26
No doubt this would be bad news to the general public and sales would most certainly decrease as a result. However, their biggest problem is not sales, its profitability. They do not have to regain market share that they once had back in the 70's and 80's to be a viable company. They do however have to restore profitability. Simple economics here I know. But, filing C-11-B will allow them to reorganize and get out of ridiculous union contracts that are sucking the life right out of them.
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Just a forward: I see your points...and get where you're coming from.
But...
#1: Profitability means nothing if you don't have sales. GM isn't a BMW...a small-scale motor company. And they don't have the luxury of sensible people buying from them. Bankruptcy = instant death because nobody besides the most hardcore loyalists will want to buy from them.
#2: There was an article recently showing how simply filing for Chpt. 11 wouldn't be as easy as many people are making it out to seem. It could, and probably would hurt them more than not.
#3: The Union contracts have just been renegotiated to significantly increase their competitive edge....then the economy took a dump. The unions are virtually a non-issue at this point. According to themselves, and various 'experts', the best approach for GM right now is to get cash, and
people to buy their cars...