http://www.bloomberg.com/apps/news?p...aXs&refer=home


Whats next.

 

Good. Let them go into bankruptcy. American cars suck anyway.

 

yeah cause all those people who rely on GM in one form or another will simply go out and get new jobs with toyota right?

 

 

I was being serious this time.

 

 

many of them may still do business as usual (or close to it) if GM goes bankrupt.

 

I keep hearing this a lot. Going into bankruptcy does NOT mean that GM would go out of business. United Airlines went into bankruptcy a few years ago and they're still flying; they came out of bankruptcy protection this year, I believe. Bankruptcy would allow GM to restructure and would give them huge negotiating leverage with the UAW to rewrite their contracts with GM.

 

you'll see the already slow traffic on GM car lots completely dry up

can't reorganize if everyone stops buying your products

 

I need to make a shirt:

"O hai. I ****ed up,can I has cash now?"

 

That's why I think the bailout is a terrible idea. The problem is already with the perceived quality of American cars. They really are a lot better now than the were in the 90s. In order to convince Americans of that and stimulate sales, I think that instead of giving the Big 3 the money, Congress should pass a $2,000 - $5,000 tax credit (not deduction) for every American vehicle purchased. That would get people into showrooms and put American car sales through the roof.

The greenies would love it because you can base the size of the tax credit on the fuel economy instead of the cost of the vehicle (i.e., a Cobalt would get $5,000 back and an H2 would get $2,000).

 

i think that restructuring under chapter 11 may be the best bet. have a bancruptcy judge involved insted of a car czar. I think that may be a better idea.

thats just my opinion as a not well informed on the issue person.

 

I really really really hate when people compare them to the airline industry.

It's apples and oranges. You buy a plain ticket, you travel, that's it.
You spend 35k on a car, you have a warranty for 5-10 years.

Completely different.

 

At least someone gets it.

 

No, I get that they're very different industries. My point with the comparison was only to show that "bankruptcy" does not necessarily equal "out of business."