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What do you think should and will happen to GM and Chrysler?

  • GM will restructure, Chrysler will file Chapter 7

    Votes: 6 18.2%
  • GM will Be forced into Chapter 11, Chysler will Merge with Fiat

    Votes: 7 21.2%
  • GM will file for Chapter 11, end in Chapter 7 and Chrysler will be Chapter 7 (dooms day scenario)

    Votes: 9 27.3%
  • GM will restructure, Chrysler will merge with Fiat

    Votes: 11 33.3%
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U.S. autos task force rejects GM, Chrysler plans - Yahoo! Finance
Task Force Says GM Can Bounce Back With Changes - WSJ.com
"We have unfortunately concluded that neither plan submitted by either company represents viability and therefore does not warrant the substantial additional investments that they requested," said a senior administration official, who asked not to be named.

GM CEO Rick Wagoner, who met on Friday with the task force, was forced out on Sunday at the request of Rattner, an official said. U.S. officials said plans were also underway to replace most of GM's directors in the coming months.

Chrysler, which is controlled by Cerberus Capital Management, was given 30 days to complete an alliance with Italy's Fiat SpA or face a cut-off of its government funding that could force its "liquidation."

Meanwhile, GM President and Chief Operating Officer Fritz Henderson, the architect of the automaker's existing turnaround plan, will become CEO and work with U.S. officials and outside advisers in coming up with a "a more aggressive restructuring plan," officials said.

The official said the Obama administration had not ruled out a structured, quick bankruptcy process for either GM or Chrysler. Such a process, he said, could shed debt at a time when GM bondholders and Chrysler's bank have held out against concessions.

AND FOR A LOL
YouTube - The 2012 Pelosi GTxi SS/RT Sport Edition
GOVERMENT MOTORS!
 

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GM will continue to tank because of the cancer that's killing it.. Chrysler will die because they refuse to make quality cars for a good price even though they've proven with the SRT line that they are capable of doing just that.
 

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just out of curiosity how does chrysler merging with FIAT help OUR economy. . .it could just be my perception but i have always viewed fiat as the "kia" of italy. . . and i cant see how them merging with a foreign auto maker does anything for our economy
 

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^^^ better that Chrysler stays alive and keeps SOME profits rather than having them disappear and bring nothing but mass unemployment, and Fiat may be the 'kia' of italy, but theyve done enough things right that they own Ferrari, Maseratti, Alfa Romeo and a good chunk of Italy's car makers



I forsee GM going into Chapter 11. . . at this point I think that much is inevitable. . . but honestly, theres nothing really wrong with that, im sure they can make a turnaround when their back is to the wall and their ass is REALLY on the chopping block
 

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just out of curiosity how does chrysler merging with FIAT help OUR economy. . .it could just be my perception but i have always viewed fiat as the "kia" of italy. . . and i cant see how them merging with a foreign auto maker does anything for our economy
Your correct.

The only good thing is that this would be like selling a lemon car to the guy in the next town over. You know its a junk car but your willing to take his money and run. The big three car makers will have a very very tough time as our economy tanks for the next few years. So it might be good to sell out now?


Other than auto's do we Americans :usa: have any industry left? We import most all of our goods. We export very little.
 

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Chrysler merging with Fiat would allow another company to take on a majority of its debt, offer up a new (hopefully more competitive) lineup, and allow Chrysler to start repaying some of the loans that it owes the taxpayers of America.

That being said, Fiat would have to be retarded to buy out chrysler. Mercedes already attempted to turn Chrysler around and just ended up cutting their losses and pulling out because Chrysler just can't be saved. If a luxury automaker attempts to rebadge their own $80k cars that sold great and when Chrysler gets a hold of them they ruin it and can't sell them for 50k less then I'd say that Chrysler is a lost cause.
 

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yahoo said:
The official said the Obama administration had not ruled out a structured, quick bankruptcy process for either GM or Chrysler. Such a process, he said, could shed debt at a time when GM bondholders and Chrysler's bank have held out against concessions.
I don't think bankruptcy will happen. This is just a public threat designed to put pressure on controlling interests whos agendas may conflict with the administration. I forsee GM continuing to struggle under new leadership, but in 3 years will become a much more competitive automaker.

I disagree with the 60 day restructuring though. A short window forces rash decision-making with potentially worse effects (compared to what we're seeing now).
 

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just out of curiosity how does chrysler merging with FIAT help OUR economy. . .it could just be my perception but i have always viewed fiat as the "kia" of italy. . . and i cant see how them merging with a foreign auto maker does anything for our economy
I wouldn't mind seeing this happen if it helps to make Chrysler a viable company again.

Don't forget that not too long ago Nissan got help from Renault...a deal which at the time was looked at as being kinda iffy, but worked out great.
 

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I don't think bankruptcy will happen. This is just a public threat designed to put pressure on controlling interests whos agendas may conflict with the administration. I forsee GM continuing to struggle under new leadership, but in 3 years will become a much more competitive automaker.

I disagree with the 60 day restructuring though. A short window forces rash decision-making with potentially worse effects (compared to what we're seeing now).
Here's my question; What exactly can the new leadership do to improve this situation and create a profitable company?
 

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Chrysler merging with Fiat would allow another company to take on a majority of its debt, offer up a new (hopefully more competitive) lineup, and allow Chrysler to start repaying some of the loans that it owes the taxpayers of America.

That being said, Fiat would have to be retarded to buy out chrysler. Mercedes already attempted to turn Chrysler around and just ended up cutting their losses and pulling out because Chrysler just can't be saved. If a luxury automaker attempts to rebadge their own $80k cars that sold great and when Chrysler gets a hold of them they ruin it and can't sell them for 50k less then I'd say that Chrysler is a lost cause.
^ Good point. Remember when they took the SLK Kompressor and turned it into the Chrysler Crossfire.......:face-puke
 

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Here's my question; What exactly can the new leadership do to improve this situation and create a profitable company?

It's a combination of effects. New leadership in conjunction with reduced stakeholder involvement will help to free the perceived bottleneck in GM. For example, the automaker struggled to reduce its fleet size (and cut significant production) primarily due to union involvement. With the threat of bankruptcy on the horizon, unions (among other stakeholders) have no choice but to give in to the Federal mandate.
 

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It's a combination of effects. New leadership in conjunction with reduced stakeholder involvement will help to free the perceived bottleneck in GM. For example, the automaker struggled to reduce its fleet size (and cut significant production) primarily due to union involvement. With the threat of bankruptcy on the horizon, unions (among other stakeholders) have no choice but to give in to the Federal mandate.
You would think so, but when GM themselves announced that they were entertaining the idea of filing for bankruptcy the UAW walked away from the table and said that they were done negotiating. The funny thing is that they haven't done anything to help the company in their negotiating at all. The best that they've done is taken over the managing of the retirement accounts, which just meant that GM had to pay them a fatter check and they got to pay it out however they wish.

I can understand the fact that changing something like that might change public perception, but from a business perspective the new leadership can't possibly do anything within the confines of the law (without filing for bankruptcy) that hasn't already been done by Wagoner/Lutz. They did everything right, but you could jog 5 miles every day when you wake up and if you have cancer it's not going to change the fact that end result is still guaranteed.
 

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I'm just so sick to my stomach from hearing about the government helping GM and Chrysler. Why the hell should our government help them out anymore. How many forclosures, unemployed, homeless people, hungry people are living in america that our government is not helping. They should let these car companies go to hell. Let them close up shop. I do understand that if they go chapter 11 that there will be more unemployed, homeless, forclosed people that used to work for the car companies. But thats just a handful of people compared to whats out there now that are struggling just to survive. Yes you cant help everyone at the same time but, it makes more sense to help the millions that are trying to help themselves at the cost of hundreds of thousands that are not helping themselves. I mean they bailed out aig, bank of america, car companies. what about us citizens? They bailed out those people with our tax paying money. Well we need it now and we arent getting the help we deserve. So why should the dealers get it. What makes them so superior over us. Hell they dont even want to bargain on price. Where the hell is their brains at. We are in a poor dying economy and they want to produce more muscle cars that cost a fortune to maintain, put gas in, and own overall and that keep costing us US people. WTF! They obviously dont understand that we need reliable, fuel efficiant, valuable cars today. Not some gas guzzler that no one wants but just a select few in america. In my eyes the dealers are just acting like they know they are going down so lets produce huge monsters of a muscle cars and screw the government and the people of america. We just want to make what we want no matter what. Right? WRONG, DEAD WRONG!! I feel the bailout money should have been spent in a more sensible way. Give it to us americans that need it. I mean come on people. GM and Chrysler produce nothing but POS cars in my opinion. No one wants them today. They want Honda, Nissan, Toyota, Scion, Mitsubishi, Subaru, etc. you get my drift. They knew that the economy was going to turn bad at some point which is why honda and toyota started working on hybrids 10 years ago. what did gm do? they built muscle cars. what did they do today. They built more muscle cars. I mean they never learn. Why keep helping them. I mean your not going to give $20 to a crackhead so they can buy more crack. GM is the crackhead of america that our government gives more money to so they can keep getting their fix on our money. Thats not fair and definatly not the american way. Let them fold. I dont feel bad for them because they are hurting the economy more right now more than ever and we need to put a stop to it right now. And for the banks they should be re evaluated and turned over for what they did. The banks gave loans to people they knew would not qualify just so they can get their commission. They didnt care because they sold the loan to wall st. as an investment so at that point it was out of the banks hand. What do you expect from such needy people. The people took the loan just so they had a roof over their families head because they were being forclosed and needed a place to live. Now they are forclosed on. They didnt care about credit that moment in time. If you are giving loans out, people are going to take the loan when they are down and out and worry about the consequences later on. My loan officer bragged to me about how she closed over 30 million in loans last year. Also how she closed 10 deals on a person who forclosed 9 times. WTF! Yeah how many really qualified. Hell they tried offering me more money than I could qualify for just to make more commission. They dont care either. This is what got us into this mess in the first place, and our government is not smart enough to catch on. Why? I'll tell you why, because they are living so high in life that they cant feel the pain we feel. They dont care about us at all. its everyone for themselves. Until our government realizes the real problem here (banks and car dealers) We are screwed.
 

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Not to split hairs but It's a loan that will be repaid. Also GM is still the #1 seller in the U.S. so they still have a lot of customers out there.

"POS cars" They do make competitive products now from the Vette, Malibu, CTS, Silverado, G8. I drove a Malibu last week and it's a good family car alternative. I understand you're angry from the tone of the post but my concern is with the people losing their jobs when bankruptcy occurs, from GM workers to the suppliers and dealers going under. Our local Saturn dealer went under this month. There's just to many unanswered questions that bankruptcy brings. My sisters husband is an exectutive for GM in Detroit. I think we all know someone that has been effected by this.
 

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Dont get me wrong, I do really feel bad for the workers of gm and suppliers, however I dont feel bad for the corporate jerks of gm. They have made poor choices in the business industry and now they need to pay for their mistakes. Its not like this happened overnight. They seen it coming and chose to do nothing about the change in the economy in regards to changing the way they make cars. Yet they still bleed down the throats of our government and us for help. Hey, you can only cry wolf so many times. Screw em. I say only help those who help themselves. you say they make good family car alternatives. you may have had a good experience with gm cars or know someone who did also, but I didnt. I owned a 2002 malibu that had just under 60,000 milees on it and the cpu fried. the cost to fix it far more exeeded tha value. I had nothing but probs besides the cpu with that car. it was in our family from day one it was new. My family swears by gm and have nothing but probs also. I would literally pay people not to buy gm cars. thats how i feel about gm. I owned 4 hondas and never had 1 problem to this day. I now own 2 hondas and they have been so reliable to me. gm=low resale value, unreliability, no technology (all interior knobs, radios, seats, instrument panels are all the same). not to mention they feel/look cheap and they charge a boatload of money to buy it. Its time the government should help us now. Thats all im saying. Im just fed up with hearing about gm trying to get more money from us. Let em sink to the bottom.
 

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Let gm file already,fiat should own chrysler and dissolve their operations completely,use their facilities and dealer network to sell fiats. Ford is kicking both gm and chryslers ass. I agree with kene the government sucks ass.
 
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