[The_Blur]

Originally Posted by Dragoneye

The wakeup call came in the late 70s...long before Katrina. So I agree with you there. This situation should have been prepared for, imo. But what's tricky is that the "when" was unforeseeable.

However, I disagree that chapter 11 would benifit GM at all. First of all, they aren't out of money, yet. They're losing money, yes....but according to Wagoner, the worst in terms of job cuts and program reshuffling is over. So they aren't yet in an ideal bankruptcy position (if there is an 'ideal' position to go bankrupt...).

If they can make it to 2010 (which the federal loans will all but guarantee) they may actually begin to turn a profit.

Anyways, you cited the 'positive' results of starting over through Capt. 11...but what you left out is what could make the biggest impact...and it's a negative one. Would you buy a car...a 5+ year 'investment', from a bankrupt company? I doubt many would; and this, imo, is the single most deadly facet to GM filing for Chap. 11. They would lose nearly every last customer they have right now. There's no coming back from that -- so they'd be restarting for nothing.

Declaring bankruptcy will make GM look bad. GM has been trying to shed the image of poor products for years and can't afford to look bad again.