Bankruptcy Will Let General Motors Move Forward

[…] 11 manufacturing plants. GM was the world's biggest automaker for 77 years, but the company has lost an aggregate $82 billion over the past four years even as it slashed production capacity, nameplate brands, and more than 100,000 U.S. jobs. The […]

I believe that GM should have gone bankrupt last fall before their previous gift of free money from the public money trough. I guess that GM will not give back any of the money that the US Government took from me previously and gave to GM.

Is there anything of value going to be left after the auto industry executives and the auto union members have bled their companies to death (bankruptcy)? The banks probably have mortgage lien on the title to most of the remaining factories and other assets anyway.

If they are allowed to continue to go to the public feed trough again and again, they will never stand on their own two feet. Should we continue Auto Industry bad behavior and outright theft of company money with taxpayer funds? Who is going to buy a vehicle from a bankrupt auto manufacturer when the bankruptcy court will allow the manufacturer out of their warranty contracts with the vehicle purchaser? It is too late for Chapter 11 reorganization.

The additional $50billion of Taxpayer funds proposed to be given to the US Auto Industry will only encourage the continuation of the arrogant, stupid, and selfish bad business policies of both the US Auto Industry executives and the UAW members. Why are these same highly paid incompetent executives and the overpaid union workers continue their featherbed deals, job banks, perks, private jet airplanes, stupid business decisions, and etc. with taxpayer money. These are the same selfish people that are responsible and should be fired, unless they know something about making cars instead of finance. Let other parties buy their assembly plants and re-start these plants. Maybe we have to let the GM Executives disappear with the large amounts of money that they took from the US Auto Industry, but do not let them have another $50billion of Taxpayer Funding to continue their bad business practices and personal thievery.

GM is probably already in debt up to their ears. Let GM disappear, especially as a lesson to all of the other financial geniuses that caused these problems. If these financial geniuses that caused these problems disappear then the UAW feather beds that they created will also disappear with them. Are these Taxpayer Billions for the Auto Industry going to fund the golden parachutes and bonuses of the auto industry executives that caused the crisis?

Should taxpayer money pay off the bank loans that occurred when these financial geniuses borrowed money to pay stock dividends, in order to artificially drive up the stock prices, which personally enriched themselves through their stock option plans? How can we get rid of these financial geniuses and the UAW feather beds that caused these problems without costing the taxpayer some of his/her hard earned tax money? They do not need any more Financial Genius Master Type Criminals to manage their affairs. Are there any more "Lee Iacocca" type people in that industry that could revive these sick Auto Manufacturing companies from their impending deaths?

I believe that GM is managed financial geniuses that know how to drain company assets into their own pockets, and know very little about making automobiles.

The new lighter unencumbered GM will do well once the latest high profit margin low cost low retail priced Chinese models debut in America. Buick's from Shanghai may seem strange at first, but remaining dealers will soon be in the full swing of shystering and shylocking the poor Yankee Doodle Dandies into laying down good American dollars, earned at lower American wages, and harder come by dollars for Chinese scrap metal! GM is and old cancerous corporation, filled with all the problems that come with old age for companies. They will flog crap for the remaining years of brand loyalty to the fools with hearts bigger than minds, then, like Microsoft, fade into the history books, with Kaiser, Studebaker, Chrysler and Cord. Capitalism is shedding its old folk and Tesla and Aptera, the new kids on the block are spreading their wings. We witness historical events, a failure today of a once great American company!

"Under the new offer, bondholders would have a recovery of around 9 cents on the dollar, up from an estimate of zero to 5 cents under the previous offer."

Really…so I give you 1 dollar and I get 5 cents in return? Tell me, what's the inflation adjusted profit for this investment?

Seriously, this company will NEVER TURN A PROFIT AGAIN.

They easily had the technology to make cars profitable, but like most companies, they sat on their asses and keep the technology on the low and assumed that foreign companies couldn't touch them.

Just another example of the arrogance of the U.S. Corporate world.

President Obama fails to recognize that he just wasted over 100 billion on GM and Chrysler and somehow thinks that a dumbed-down America will continue to back his economic policies.

Meanwhile, smart investors saw this coming a long way out. The govt., and especially 99% of CONgress is still shocked that this happened!

This bailout is totally mind boggle to me. Does anyone understand what this mean!!!. GM, Chrysler chose this route by wasting money and producing car's that could not stand up to foreign competition. By choice, they took this route. If they can send a man to the moon, of course they can build a car that is competitive. Because of this bail out, generation after generation will be in debt for this.. For the love of God, let them sink like anyone else that mishandled money. Who cares that they are an considered an American icon. Not in my book. Ive never puruchased an American car because I know that the car would not outlast the loan.

Despite the recession having many negatives, such as unemployment, debt levels soaring, saving levels plummeting and the general gloominess that surrounds a financial downturn, things are starting to improve.
Credit card firms have invented a programme called ‘Blueprint’, which will give consumers an interest free grace period with their debts, on every day products, just as long as they know in advance what they want and they can pay the bills off in full at the end of each month.
Unis are also helping students struggling with debt, such as the hardship fund and even some uni’s paying for student’s rent.
Consumer confidence is also on the up, with credit card applications increasing by 5%.
So although it may seem that debt is hanging over the world – debt help is there and is working.

[…] However, there's also a good chance that labor-cost pressures – combined with tightening margins – will take the likes of JPMorgan and Goldman Sachs Group Inc. (NYSE: GS) down a path similar to that of General Motors Corp. (NYSE: GRM) and Chrysler Group LLP, both of which earlier this year declared bankruptcy. […]

[…] makes sense in view of the U.S. carmaker's significant progress since it filed Chapter 11 bankruptcy last June, analysts […]