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General Motors Bankrupt

Discussion in 'The Pub' at netrider.net.au started by vic, Jun 1, 2009.

  1. GENERAL Motors has filed for bankruptcy at the Southern District of New York court today, in a plan for the ailing US auto giant to reemerge as a new, leaner company within 60 to 90 days.

  2. If they took some of the ridiculous wages and payments of the management and put it back into the company, they would more than likely still be viable.

  3. they took advantage of the boom and didnt prepare for the recession, the big boys will leave with semi trailer loads of cash and leave the shit to others, the world got to greedy, now the greed are crying
  4. Means lots of people out of a job, and I bet only the top few will get paid out.

    Anyone know what it will mean for Holden or Saab here? Can't be good for Daewoo or Hummer, but who really cares?
  5. tens of thousands of workers will care

    yet again, businesses are encouraged by the money lenders NOT to make a profit, heavens, NO, just continue to fund your operations on debt :roll:.

    new from Europe last week was no better; the story is that Porsche is about to fold, "owing billions of dollars and needing billions more to continue in operation". You'd think with the price of those things it would be possible to sell at a profit, but obviously not....
  6. I have heard a whisper that HSV are shutting its doors sometime very soon..

    Not sure how true this is but not good
  7. Announcement from GM/H here is that it's all business as usual and that the restructure of GM (US) will not affect operations here. Given the close ties between the two that seems a bit hard to swallow, though the local company has been trying to do a "stand alone" thing for quite a few years now.

    Proves yet again the old saying, "The bigger they are, the harder they fall."
  8. I thought the vast bulk of Porsche's profits came from it's cash investments, rather than sales of cars
  9. As employee's of Holden, we have been receiving emails and SMS messages from the communications people since Saturday regarding this announcement. For the first time, full credit to them for keeping us informed so we don't have to learn this shit from the media first.

    We have been told from as early as two months ago, that a Chapter 11 will not impact the operations at Holden and HSV or the engine plant in Victoria. If HSV decide to close the doors, that will not be because of anything done in the United States. HSV are an aftermarket company, and as such, the decision is up to them regarding any such business.

    A year ago we were shown data regarding the operating cost per employee in the GM operations around the world. From as little as a few dollars per head per hour in India, to 30 something in Australia, (Korea's costs were higher than Australia's believe it or not.) The United States operations If I recall topped the graphs at somewhere in excess of $60 per hour per head.

    Now we are told this is caused by a lot of the R&D being done there, the fact that the Business operations are run from there, leading to more executives, the massive amount of perks such as health care etc, the infrastructure costs involved with non production locations, and other various things that can cost a business.

    We are told to see this as an opportunity for the company to have "thrown out" the wage and salary agreements, the fringe benefits, the overheads and a lot of other costs deemed "excessive" under the guidance of the US govt. and the appointed court. Without the chapter 11, a lot of these things that are costing them the most would have remained in place. We are told to see it as a time for restructuring, and rebuilding as a leaner, more cost effective company. No doubt, in the US jobs will go.

    Here in Australia, we are told that in the immediate future, our jobs are safe. The main reason for the downturn at Holden that people have been seeing in the media, which at times has been a sideways media backhand, is the fact that up to 70% of the vehicles produced at times, had been for export. In the face of the global economic turkey shoot, our export sales were reduced by up to 90%. You can see this is a fair chunk of our business. Locally, the car still sells strongly, and there is no fear that it will continue to do so.

    The small car will come into production here in the 3rd quarter of next year, and the hope is it will fill the gap that the export sales left behind. In the meantime, the plant runs production in a single day shift, we work week on week off. This is comforting for us as employee's because it shows the company standing behind the investment involved with training their staff. Rather than lay off a whole shift, they have done the best they can to keep us around, at a higher expense than letting us go no doubt, so that when things do pick up, they have the staff on hand to capitalize on the upturn. To us, this shows they are confident that it will turn around.

    We have been told that Holden is still financial viable, the numbers and actions seem to confirm this, we are told that Holden will be a key subsidiary to the restructured GM in the asia-pacific region. As with anything, we wait with fingers crossed, and happy thoughts.

    Disclaimer: This is what I think, based off of, and including the information given to me by my employer, but in no way represents the companies position on this matter.
  10. The bankruptcy accountants will be looking for salable assets at the moment. They will weigh that against the future of the company. I imagine Saab will be pretty much at the top of the list as it is easily salable and they still have Vauxhaul as a toehold in Europe ( I understand Opel has already been sold).

    Deawoo, however, will be the least likely sale. It represents market in asia and a way to make acceptable quality parts, cheaply in the future.

    Chevy Australia is probably the second most likely to be sold. It is not key to the future of Chevy and is easily parred off.

    So who is going to buy it? Not Ford or Chrysler as they simply are not in a position. VW? unlikely given that Saab (or Vauxhaul) will be sold in Europe and the European economy is doing very badly.

    so that Leaves Japan, Korea or China. Maybe Proton, though from memory they have had recent problems. Nissan may be interested, but my money would be on China or Hyundai.
  11. There was an offer on the table for Opel and Vauxhall, from VW. At the last minute, GM asked for an extra 300 million Euro, and got told to stuff it. Porsche are 9 Billion in debt, and VW are playing hardball there too. Nobody seems to want saab, it's a liability, and they are struggling to give cars away at the moment. "Chevy Australia?" who? Got a link? But yeah, don't be surprised to see daewoo take a much larger role in all this than they do at present. Hummer is almost sold, the deal is still being finalised, somewhere around the $200 million mark.

    It really will be interesting to see how this unfolds.
  12. Nissan is own by Renault, and even they are struggling ! They have asked for a cash boost from Sarkosy !

    Porsche won't fold, they have tied up with VW.

    I thought Opel and Vauxhaul have been snapped up by that Canadian company - Magna ! They are looking at building cars in Russia and Canada !
  13. Don't shoot the messenger :wink:

  14. From what I just heard, 60% ownership will be US government (!) at least for the time being. FIAT are rumoured to be taking up the rest.
  15. No !
    FIAT was interested in Chrysler !
    They have since said no because they did not recieve all of Chryslers financial records and they requested a further cash injection as part of the deal.

    FIAT are one of the strong players in the automotive industry at the moment.
  16. The 60% US govt ownership is confirmed, not sure about the rest.
  17. And apparently its settled for Opel. Magna have picked them up.


    Interestingly enough, this has been backed by a russian bank. This could see GM reaching even further, keeping a 35% share in the company.

    It appears this has been done in advance of the chapter 11, with the deal also insulating Opel from the bankruptcy proceedings. From what we are hearing, they aren't so much trying to liquidate assets as is being reported. They are looking to restructure the financial side of things first, allowing them to keep the infrastructure that, managed properly, can lead to a strong comeback.

    Interesting times.
  18. News just in.........

    Looks like Ford and Renault may have to merge.

    Details so far at hand.....

    Ford looking to use the base mdel of the Ford 'Tauraus' with the internals of the Renault 'Clio'

    Company reps have been heartened by the public response to this new car.

    It's going to sold as the.........

    Fur on the dash is optional, I hear.

  19. :LOL: That is funny!
  20. No more fuzzy dice then? :shock: