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Originally Posted by Design1stCode2nd
The problem here is GM needs chapter 11 legal protection, then and only then would I back government loans to help them restructure and shed brands/dealers/UAW. If we just give them 20 billion it will be wasted.
The average Joe will see GM and Chapter 11 and say “what the hell?” even though this has been years in the making. Then the politicians will say we need to save Detroit and American jobs and we will throw good money after bad.
Mark my words Chapter 11 is the only was GM can rise from the ashes of mismanagement and largess of its past. I very much want a Camaro in a couple years but I won’t buy from a bankrupt manufacturer unless they are restructuring properly and my warranty is backed by an independent authority (oh and huge incentives would help too).
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Yeah, I know a lot of people don't like the "B" word being bandied about, but I too think it's coming as fast as they're burning through cash, and it will actually be a good thing for GM. Their problems will labor costs and inefficiencies with franchises are killing them, and bankruptcy will be about the only way they can overcome that hurdle. They're still organized like and handing out wages as if they still own 50% of the market.