GM preparing for bankruptcy

[bigralph]

GM preparing for bankruptcy
A source close to GM said company still hopes to meet Obama's June 1 deadline to reach concessions with unions and creditors but that bankruptcy is an option.

http://money.cnn.com/2009/04/07/news...ion=2009040712

[Isshinryu]

I'm a GM employee.and this is not new info. GM has been saying all along that bankruptcy is an option. Thats why help was asked in the first place.

[diddiyo]

Originally Posted by Isshinryu

GM has been saying all along that bankruptcy is an option.

lol wut?

http://news.yahoo.com/s/nm/20090405/bs_nm/us_autos_usa

http://www.huffingtonpost.com/2008/1..._n_145773.html

http://www.cfo.com/article.cfm/12406026/c_12404957

[Isshinryu]

They want to avoid doing so but its still an option. Why do you think money was asked for in the first place? "Bankruptcy is not inevitable for General Motors Corp, said the automaker's new chief executive on Sunday" Not inevitable is not the same as not an option. He's saying its not going to happen but its still an option.

[Isshinryu]

"We are planning to get the job done. Our preference would be to do it outside of the bankruptcy process," Henderson said. "If it cannot be done outside a bankruptcy process, it will be done within it."

[GTAHVIT]

Originally Posted by aston70

If GM goes through bankruptcy, how will that affect its relationship with the UAW?

My personal opinion is that I hope it eliminates the current contract and allows for a new agreement to be reached that allows GM to be more competitive on the whole.

If this is indeed what happens in Bankruptcy this may be a good thing...

Nice to see ya back around Aston!

[SS 376]

Originally Posted by aston70

If GM goes through bankruptcy, how will that affect its relationship with the UAW?

My understanding is that UAW and its benefit obligations would be treated like a creditor. So the current bargaining agreement would be aggressively renegotiated, meaning the union would have major concessions crammed down their throat. Retirees would have their health care benefits slashed, current employees pay more for their health care, the generous work rules disappear, future pensions are drastically reduced, presumably wages are cut as well (to something probably somewhat below what Toyota, etc. pay their US factory workers). This will save GM a ton of money.

As for GM's relationship with the UAW, I imagine it would be something like living with your wife after you caught her in bed with another dude... so, somewhat testy and uncomfortable.

[JJ#48Racing]

Originally Posted by aston70

If GM goes through bankruptcy, how will that affect its relationship with the UAW?

I hope it means death to the UAW.

[Rallysport]

Originally Posted by JJ#48Racing

I hope it means death to the UAW.

Well, I doubt Mr. Prez will let that happen. The UAW contributed greatly to his campaign, so he is indebted to them so to speak. The way Mr. Prez is doing things these days, who freaking knows, but the UAW needs to wake the hell up. Not everybody in this country gets the bennies and hourly rates the union members do, and it makes it harder for companies with such powerful unions to compete with the foriegn scum. I support the American worker and the American Auto industry whole-heartedly, but these unions need to wake up. Seriously.

[FxsX24]

remember if we loose uaw (which im not entirely against) we may loose the experienced workers building your camaros

[Mattsack789]

I heard that if GM reorganizes, that all brands but Chevy, GMC, Cadillac, and maybe some Pontiac Models will die.

[FenwickHockey65]

Originally Posted by Mattsack789

I heard that if GM reorganizes, that all brands but Chevy, GMC, Cadillac, and maybe some Pontiac Models will die.

Core brands are Chevrolet, Cadillac, Buick, GMC, and some of Pontiac. Everything else will be gone...and Pontiac's not scheduled for any new product...

[Hylton]

Don't kid yourselves. If GM goes chapter 11, the UAW will still be holdng a pile of cards. They will be one of the largest creditors and as such, will have a say as to what the "new" GM will look like.

[CaptianSam]

i dont understand how stupid people are....
yea you need to slash brands and overlap
yea you need to cut labour costs.
yea you need to make better products.
yea you need to cut labour benefits
YEA YOU NEED TO CUT EXECUTIVE BENEFITS
.... hey the company my and my posse run is going bankrupt... LETS TAKE AN
INCREASED BONUS!!!!! YAY BONUSES FOR ALL!!!!!!!!
LETS CELEBRATE BUY FLYING OUR JETS EVERYWHERE!!!!!
LETS USE TAX DOLLARS TO ONLY HOLD US UP FOR 2 MONTHS!!!!! WOOO HOOOO!!!!
LETS BLAME EVERYONE ELSE EXCEPT FOR OUR STUPID SELVES!!!
ive said it once and ill say it again... Corporation = LIMITED LIABILITY FTMFL

gm needs new contracts, new products(coming) new...Everything.....
new panel of people who know not to take bonuses when they are losing MONEY
and THEN TAKING OUR MONEY....

we the people can only buy so many cars... WE want to buy north american... we want to support our economy
but how can we if out of every 100 dollars made 73 goes to the labourers..
how can they stay afloat

(heavy breathing)... end rant