General Motors Corperation to begin liquidation July 10 if asset sale deinied
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From: The Golden State
General Motors Corperation to begin liquidation July 10 if asset sale deinied
I think there has been a general feeling that since Chrysler made it through bankruptcy and is back in business, GM will have a cakewalk. Nothing is farther from the truth.
Chrysler had a very simple, and straightforward issue. They needed a credible mid and small size car platform, needed to expand to benefit from the economies of scale, and needed to hook up with another company to do it since they had no real money of their own since Rams, Jeeps, and minivan sales tanked.
General Motors' issue is far more complex, institutionalized, was decades in the making and was exasperated over the past 9-10 years. To top it all off, everyone has learned from Chrysler's bankruptcy, and improved on strategy. Both GM as well as those who oppose it coming out of bankruptcy without their own intrests addressed.
That's going to make GM's time even more difficult than it already will be.
On July 10th, federal funds to the General Motors Corperation stop if GM is unable to sell it's assets to the "new" GM. At that point, General Motors will have no cash, and will be forced to begin liquidation.
Before the internet lawyers show up here again to sprout off their BS about how "in this economy, it's not going to happen" as they did when Chrysler went through this, lets remember that any time you have creditors, debtholders, or other groups looking to get the most of their money back or get what they feel is theirs, the risk of liquidation is extremely high. Especially when you have a company whose assets are valued dozens of times over the value of the current intact company.
Like Chrysler, GM has debt holders that are against the sale. But learning from Chrysler's slash and burn strategy, those who have pending lawsuits against GM are making their case known early.
With Chrysler, the UAW got technical ownership of Chrysler in exchange for massive concessions. The UAW will have no such deal with GM for the nearly identical concessions they will be forced to grant. Another stumbling block considering GM will be cutting far more workers, and closing far more plants than Chrysler both in shear numbers, and as a percentage of the company even taking the differences in size into consideration.
Chrysler had 45 days to settle everything or risk liquidation (June 15th, Fiat was free to abandon their deal). Chrysler was in and out of bankruptcy in less than 60 days.
GM has a total of 40 days before they are at the point of liquidation. Today is day 29.
Very tense and important 11 days coming up.
Don't think for a moment that it's impossible for things to go downhill... very quickly.
http://www.detnews.com/article/20090...sale+is+denied
http://www.freep.com/article/2009063...+plan+in+court
Chrysler had a very simple, and straightforward issue. They needed a credible mid and small size car platform, needed to expand to benefit from the economies of scale, and needed to hook up with another company to do it since they had no real money of their own since Rams, Jeeps, and minivan sales tanked.
General Motors' issue is far more complex, institutionalized, was decades in the making and was exasperated over the past 9-10 years. To top it all off, everyone has learned from Chrysler's bankruptcy, and improved on strategy. Both GM as well as those who oppose it coming out of bankruptcy without their own intrests addressed.
That's going to make GM's time even more difficult than it already will be.
On July 10th, federal funds to the General Motors Corperation stop if GM is unable to sell it's assets to the "new" GM. At that point, General Motors will have no cash, and will be forced to begin liquidation.
Before the internet lawyers show up here again to sprout off their BS about how "in this economy, it's not going to happen" as they did when Chrysler went through this, lets remember that any time you have creditors, debtholders, or other groups looking to get the most of their money back or get what they feel is theirs, the risk of liquidation is extremely high. Especially when you have a company whose assets are valued dozens of times over the value of the current intact company.
Like Chrysler, GM has debt holders that are against the sale. But learning from Chrysler's slash and burn strategy, those who have pending lawsuits against GM are making their case known early.
With Chrysler, the UAW got technical ownership of Chrysler in exchange for massive concessions. The UAW will have no such deal with GM for the nearly identical concessions they will be forced to grant. Another stumbling block considering GM will be cutting far more workers, and closing far more plants than Chrysler both in shear numbers, and as a percentage of the company even taking the differences in size into consideration.
Chrysler had 45 days to settle everything or risk liquidation (June 15th, Fiat was free to abandon their deal). Chrysler was in and out of bankruptcy in less than 60 days.
GM has a total of 40 days before they are at the point of liquidation. Today is day 29.
Very tense and important 11 days coming up.
Don't think for a moment that it's impossible for things to go downhill... very quickly.
http://www.detnews.com/article/20090...sale+is+denied
http://www.freep.com/article/2009063...+plan+in+court
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Joined: Sep 2002
Posts: 9,705
From: Oakland, California
Things are actually moving in a positive direction:
http://www.google.com/hostednews/ap/...CwazgD99568SG2
http://www.google.com/hostednews/ap/...CwazgD99568SG2
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Joined: Jul 2004
Posts: 1,496
From: Roseville, MI, USA
There are several reasons why the proposed "New GM" shouldn't' emerge under the plan Fritz has pushed. One of the reasons and perhaps the biggest is Fritz himself. I'm sure it will go through and "New GM" will emerge but I'd be happy if Fritz left as a condition.
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Joined: Mar 2001
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From: The Golden State
He seems OK to me. Why?
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Joined: Dec 2002
Posts: 1,505
From: Charleston, WV
Here is a start...
http://www.businessweek.com/magazine...mpaign_id=yhoo
In the meantime, Henderson is tackling GM's glacial decision-making process. A couple of four-hour meetings have been cut in half. Gone are the "premeetings," when the agenda for the real meeting was set. "I don't have time for that," Henderson says. Delegation, never GM's strong suit, is now an imperative. In early April, just after Treasury made him CEO, Henderson and several executives were discussing whether to add some pricey features to a future Buick model. Some wanted to save a few bucks while others figured they needed to step out and show consumers that the brand is truly upscale. After some debate, Henderson turned to Buick-GMC boss Susan Docherty. "You're the vice-president of Buick," Docherty recalls him saying. "Make the call." She opted to spend the money, and that was fine with the CEO. "Fritz is creating a culture where we don't need 17 meetings," Docherty says. "In the old GM, we would have to hear from everybody."
Henderson may ditch one managerial bottleneck, a star chamber known as the Automotive Strategy Board. Its 16 members decide where money is spent, what strategy every business unit should take, and who gets promoted. Traditionally, the group has convened monthly. So if the automaker needed to make big calls like cutting checks for a new car or slashing production, those decisions languished until meeting time. GM insiders say Henderson may replace the strategy board with smaller teams that meet weekly and make decisions further down in the company.
Thread Starter
Registered User
Joined: Mar 2001
Posts: 13,713
From: The Golden State
The 2 examples above shows that Henderson has a grip on what needs to be done.
Again, Fritz seems OK to me.
When one indicates that someone shouldn't have the job and should be gotten rid of, then the next step is to list what you see wrong with that person NOT challenge someone else to list what they see right. That indicates a a predjuice against a person.
If I took that stance at work regarding my employees (I don't like them, they should go, and I don't have to say why they should go...someone else has to prove why they should stay), the company I work for would be investigted and sued and I'd probably have a shortened career with said company.
If you see something none of us sees, then I'm up for hearing it. However, based on what I know about Fritz and his history, while he may not be a corperate rock star like Bob Lutz, Lee Iacocca, or Wolfgang Bernhardt, he seems to be a very competent guy and he's handling an unimaginably horrendous situation without a misstep. He seems to be doing the right things and seems to know exactly where the problems are.
Rick Wagoner was a finance guy with a heavy accounting background.
Fritz Henderson is a business guy with heavy administration and management background.
He's also from GM's own ranks.
GM desperately needs an overhaul of it's management and administration.
GM also needs someone who knows where the bottlenecks are and where to take a chainsaw without first needing to go through orientation or needing time to get through a learning curve.
Fritz seems to be the guy GM needs.
Again, Fritz seems OK to me.
When one indicates that someone shouldn't have the job and should be gotten rid of, then the next step is to list what you see wrong with that person NOT challenge someone else to list what they see right. That indicates a a predjuice against a person.
If I took that stance at work regarding my employees (I don't like them, they should go, and I don't have to say why they should go...someone else has to prove why they should stay), the company I work for would be investigted and sued and I'd probably have a shortened career with said company.
If you see something none of us sees, then I'm up for hearing it. However, based on what I know about Fritz and his history, while he may not be a corperate rock star like Bob Lutz, Lee Iacocca, or Wolfgang Bernhardt, he seems to be a very competent guy and he's handling an unimaginably horrendous situation without a misstep. He seems to be doing the right things and seems to know exactly where the problems are.
Rick Wagoner was a finance guy with a heavy accounting background.
Fritz Henderson is a business guy with heavy administration and management background.
He's also from GM's own ranks.
GM desperately needs an overhaul of it's management and administration.
GM also needs someone who knows where the bottlenecks are and where to take a chainsaw without first needing to go through orientation or needing time to get through a learning curve.
Fritz seems to be the guy GM needs.
Last edited by guionM; Jul 1, 2009 at 03:45 AM.
