Quote:
Originally Posted by hdslew43
GM Oshawa will shut down as soon as Bankruptcy is filed, because of suppliers. All Chrysler assembly plants are still down. This could be a long wait. Ordered IOM 2 SS on 5-04-09.
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Ok people there is a difference between Chapter 11 and Chapter 7 bankrupty. Operations do not stop unless it is required or done by GM themselves. In Chapter 11 you are protected from your debt holders while you restructure and get your plan together to come out. Chapter 7 is when you completely shut operations down and liquidate all assests in as we say in the accounting world (Fire Sale). Also as part on the Chapter 11 the government has agreed to loan GM money, that was the reason GM was given more time to either come up with a plan or file for bankrupty. One condition of them going into chapter 11 is that the government would release more funds to them. What does that mean you ask? That means GM will close some operations but not all and will use the money to put towards the operations that are creating revenue and profits which the production of the Camaro is one of them. The government has agreed the foot the bill for the suppliers of GM so that will not stop them from getting the raw materials that they need.
Its as simple as that. I do this for a living and more then likely this is how GM will operate while re-organizing the company.