Quote:
Originally Posted by War Eagle
Kylepo,
I will let you decide. I have a BS and Masters degree. I worked for a major corporation for 38 years in executive management and retired at age 60 with a very nice pension and a fat 401K. I fully understand operating and legacy costs. I was smart enough to move all of my money out of stocks before the crash and lost none. I am a SEL pilot with instrument rating, but the main thing that may sway you is that I am smart enough to love the new Camaro and what an outstanding car it is.
Everyone should be able to offer information and voice an opinion within limits.
Now you can write a couple of things down because I feel strongly that they will indeed happen.
1. Wagoner will be gone by Summer
2. Car sales will stay down for 2009 after a brief up spike in Jan maybe due to the incentives. Wagoner and GM are counting on more sales in 2009 to leverage the costs that they have and the sales will not be there. The recovery will take longer than expected.
3. Without the UAW concessions and the sales below expectations GM will need far more operating capital than the short term loans they have received. There is a good possibility that Congress will not be willing to pony up the massive amount of money they will need to survive (Public Opinion).
GM will finally file Chapter 11 by the end of the year and be able to reorganize, downsize and start a slow recovery to a smaller and more efficient Company. There is no way they can continue the way they are going now, not after the latest information we have. That is why I said you can put a fork in them. They will have to end up filing Chapter 11 to save the Company and that will be a good thing.
When you hear of Wagoners resignation you can reply to this post, be patient it may take a few more months.
Best Regards
Steve
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While I'm sure you think this will happen, there are many people who do not share the same sentiment.
Chapter 11 could conceivably help GM, but there are many people (myself included) who believe that option could potentially doom GM. If you're an everyday consumer shopping for a car, you're less likely to buy from a company that has filed for Chapter 11. After all, GM might have to file for Chapter 7, and then you're left with a car that's out of warranty.
Now, it's unlikely that GM will have to file Chapter 7, but I'm sure you know that the public perception of reality is more important than reality itself. As long as people THINK that GM is in any danger of bankruptcy, it will put a huge dent in sales.
GM could file for Chapter 11, but they would have to compensate for it by slashing prices on ALL their cars (and probably tacking on a hefty warranty as well); it would have to make the Red Tag deal look like a rip-off.
Also, you may want to take the whole "I have an advanced degree and job experience" thing down a notch. If that's true, then you probably do have a better leg to stand on than most people here, but you're still going to come across as arrogant when you start throwing around your educational history. I'm sure you weren't doing that on purpose, but that's how a lot of people are going to take it.