Quote:
Originally Posted by UCF w00t
GM would require DIP financing to make it through Ch. 11. They forecast a need for around $100bil will be needed to emerge from Ch. 11. Part of this is because their sales forecasts show (and I wholeheartedly agree) that sales will tank even more if they were to enter bankruptcy. The average consumer has a stigma when it comes to "bankruptcy" that GM will not be able to avoid. Why would they buy a car if they believe their warranty will be meaningless? In order to combat this, GM and/or the fed will have to take some sort of measure to guarantee the warranty of vehicles purchased while GM is under Ch 11. This alone is an expensive proposition.
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That ship has already sailed. People who are worried about warranties are already staying away from GM cars because of the companies financial state. With proper marketing, GM could instill confidence to the general public during a CH11 re-org.