? on GM bankruptcy and effect on orders

[Soulrÿche]

hello all!

Working on getting a camaro and am gonna wait till white comes out.. talking to a co worker he said, you know they will stop making cars until the bankruptcy
is cleared and everything has settled.. i looked around here.. didnt see a post and since this is general discussion/questions.. here i am..

thanks!

/soul

[Rogue Leader]

There are tons of posts.

This is not true, don't listen to them.

[PQ]

+1

[Sinergy]

The less people order, the quicker I get mine. Listen to your co-worker.

[marcgo2]

I believe technically everything should shut down during bankruptcy until the judge reviews and allocates what money is available. But GM is working to keep the factories that produce cars like Camaro, Malibu, Equinox...etc open since they are high sellers.

[Brokinarrow]

The government has agreed to provide working capital for GM when it goes into bankruptcy. They will still produce any cars that need to be produced (so if there are a ton of something on the lot, the plant for those will more than likely be shut down for a bit)

[mikenmar]

Originally Posted by marcgo2

I believe technically everything should shut down during bankruptcy until the judge reviews and allocates what money is available.

As far as I'm aware, there's nothing in bankruptcy law that would require GM to shut down, per se. They may have trouble making payments, which could indirectly lead to a shutdown, but not if they can secure parts and supplies in advance. From what I've heard, they've spent a lot of money doing just that, as part of the billions of dollars received from the govt recently.

Bankruptcy typically involves a tug of war over assets between different parties, but it is in the interest of all parties for GM to keep producing profitable products. I would bet that everybody involved will try to do just that.

[Soulrÿche]

thanks for the input..
so i will still order one.. (haha!!)
and tell my co worker stick to his job.. lol

and sorry for being lazy..
" It is easier to ask for forgiveness then to ask for permission" Words my kids seem to live by..

[LabRat]

I guess we will all find out Monday.

LabRat

[Rogue Leader]

Originally Posted by mikenmar

As far as I'm aware, there's nothing in bankruptcy law that would require GM to shut down, per se. They may have trouble making payments, which could indirectly lead to a shutdown, but not if they can secure parts and supplies in advance. From what I've heard, they've spent a lot of money doing just that, as part of the billions of dollars received from the govt recently.

Bankruptcy typically involves a tug of war over assets between different parties, but it is in the interest of all parties for GM to keep producing profitable products. I would bet that everybody involved will try to do just that.

I agree, the reason Chrysler shut down their factories is that they use Just-In-Time logistics (as does GM) and that they haven't paid their bills, so bankruptcy hits, nobody ships parts, no cars are built. However GM paid bills ahead to prevent this from happening.

[Rusted Virtue]

I work for a company that filed for chapter 11 at the beginning of the year. Not one of our plants shutdown because of the filing. For those of us in the plant, we wouldn't have even really know it happened if we weren't told. We did have some small supplier issues in the first couple weeks, but nothing that shut the plant down or cause any delays at all.

Hopefully that makes you all feel better

[Vash]

Only time will tell. We are all just living life one day at a time.

Camaro is popular. And wanted. So it's got the best chance of almost any model sans the hybrids and pea shooters to survive well into the future.

Relax.

[Evotion]

And to add to a post above, there was an article yesterday stating that the government is supplying GM with $19 billion more "during" bankruptcy.

Not sure if that is to help with suppliers during bankruptcy or not, just a thought.

[Shadowmind]

Lots of speculation. We wont really know the real deal until monday.

Chrysler shut down during proceedings for a number of reasons. Mainly, they didn't want the added burden of cost overhead on their potential sale of the company.

GM may just shut down a number of plants, that it intends to either cut or sell after its liquidated. But the Canadian plants aren't one of those. They've already stated they'll shut those down for 1 week and recommence. I think Evotion is correct, they are getting 'float' cash to keep them going through the process. GM's filing may take several months.

GM will likely kill or sell off all of its brands except GMC, Chevy, and Cadillac. My guess is that Chevy will become the car division, Cadillac the luxury division, and GM strictly trucks and SUVs. Chevy will loose its truck, suv and van line up. They can't really give up the Cadillac brand since its engines are used in many Chevy models. But if push comes to shove, Cadillac may go as well.

With a decent trimming of their line, GM should be able to straighten themselves out fairly quick if they concentrate on their winners for a few years.