http://articles.moneycentral.msn.com...n-survive.aspx

 

That plan of breaking corporations into pieces of profitable and non profitable or toxic as Uncle Sam calls them seems to be the prevailing thought. AIG is looking into a similar process. For GM it may be the best option as like AIG not all of the company is in poor health. I just don’t see what GM could get for Hummer, and Saturn. I notice that Pontiac wasn’t even mentioned.

As a fan of GM I'm for it. But as a taxpayer I don't want to see this type of precedent set where corporations are free to run poor risky business strategies with little consequence. Although in the age of the bailout I think that's already been set so some degree.

IMO the Govt. has already committed money to GM so they need to finish the job as the decision to help was already made. Giving up now just means throwing the money and principles behind the loans away.

 

I'm not sure how you take "toxic assets" like Hummer, Saturn, various plants, maybe GM Canada, some other stuff and bundle and liquidate them, and the "good GM" Chevy/Caddy/GMC/Buick walk away clean a suit proof.

 

GM and Ford tried the same approach by creating and spinning off Delphi and Visteon, and we see how well that worked out.

 

It will probably go off the way Lehman Bros. did. Put all the debt into the "bad" GM and put that company into Bankrupcy.

 

The way I read it is that both go into bankruptcy, but the "bad" GM continues on to liquidation while "good" GM emerges as a new, viable entity.

 

I'm still for and always will be for the idea of making the executive, administration and even development programs for the "toxic" brands back to basics. Look at the types of vehicles TVR made with it's basic structure in the late 90's early 00's, it wasn't until they became a popular and investor friendly company that they became screwed up.

You would probably end up with much more unique vehicles, especially if most internal ties were cut.

Smaller teams will put more responsibility on fewer people, yet it will also place more pride and feeling of accomplishment. A designer who designs the headlight for a vehicle is not going to feel as much pride as a designer who designs the entire exterior including the lights and wheels.

 

This plan makes sense. I think it is the only reasonable option. They need to get the debt, dealership network and worthless brands out of the way. Otherwise the "good" GM just continues to suffer and bleed money.

 

In light of recent events, is GM left with any other option?