[Angelqute1]

My husband brought me a copy of the Wall Street Journal, from a couple of days ago, and there's this LONG article about GM, and junk bonds, and Wagoner, who is bringing GM down. Now, there are some periodicals that are more credible than others, and I consider the Wall Street Journal highly credible.

What's in the future for GM and how can it affect us? Will it affect us?

I've read some of the threads/posts and discussing the financial struggles of GM in terms of healthcare and the Union issues. But overall, how will this affect GM and it's product lines?

I have a deposit down on my car, and I know I could get a refund.... not the point here. I think most of us want our SKYs, right? What is the chance of us not getting the SKY at this point? And I am looking for honest, non-biased "hatin'" people, I'm just looking for someone that is "in the know", understands these types of business practices, etc. I honor all of your opinions, but from some of these threads, I see more emotion than fact.

I appreciate any feedback.

 

[doberman]

Seem to remember Chrysler was rescued by the govt. intervention. IF G.M. is in the same position, I would expect the same. It may not be as serious as the headline writers claim. Lately many of them try to write history before the facts, then hide behind protecting their source (the invisible friend they've been talking to since childhood). I would suspect you WILL get your ordered SKY from Saturn of the Valley in due course. And besides, men are not the emotional ones.

 

[Lost Sol]

yeah, unfortunately Uncle Sam will bail them out. Just another big corporate bail out ... bankruptcy is not a scary word to them.

I would not worry about them dropping the Sol or Sky, because when they finally get production caught up they will bring folks into the show rooms. :cheers: The Government would bail out GM ... just like they would/will bail out Delta (ect). :willy:

 

[achieftain]

I disagree with McKee's (LostSol) assessment of government intervention in GM and even Delta. The only government intervention in Delta is the federal bankruptcy law. Delta is attempting to start over from scratch with the unions to save their butt. Regardless of whether top management took too much money out of the company or if sales were off since 09-11-2001 or the rising cost of fuel or the rising cost of healthcare and benefits. At this point it does not matter since Delta was in trouble long before their hubs and base of operations were placed in jeopardy by Mother Nature. (her name is Katrina). What matters is that Delta, to survive, has to reinvent Delta. Trim, lean, less cities, smaller jets, possible merger, you know the drill.

Washington is no longer into bailouts, or Enron would still be around in more than just a name on a stadium. There may be low interest loans involved but would be no different other than in scale to what SBA does. The key to Delta is lower costs, including first payroll and benefits. If the unions walk instead of conceding a certain amount it has been suggested that the workers would be committing the equivalent of murder-suicide (killing the company AND their jobs and pensions)

GM needs to lower their soft fixed costs. I consider hard fixed costs to be plants, machines, ofice buildings, taxes, depreciation, etc. The soft fixed costs are the pensions and helth benefits and base costs regardless of whether any cars are propduced and sold or not. It has been widely reported taht GM has people on the payroll who arrive at work and have zero tasks for the day/week/month and sit around all shift doing crossword puzzles, etc. Guaranteed jobs without work needs to go the way of the dinosaurs. No company can spend any portion of payroll on non-retired workers that don't work.

 

[achieftain]

Angelqute, if you got everyone to demand their deposits back, AND convinced the rest of the company to boycott GM products you might achieve the result that your car would not get built. But as long as GM breathes, Saturn lives. And as long as that happens, the SKY is scheduled for introduction without turning back. I would challenge you to name a car model in recent history from a major manufacturer (this excludes shams like the DALE) that was introduced, slated for production, scheduled for manufacturing, and then had the plug pulled. Even the Bricklin and Delorean made it into production, however short.

Sure the days of "What's good for GM is good for the country" are long gone. But look around, maybe that phrase needs new life. Part of GM's problem, whether good or bad, is that it's sheer size does not allow it to respond to shifting all manufacturing offshore to the third world and placing all marketing in the hands of the Walton family, such as happens with computers, tv's, and other appliances. I just bought a second Frigidaire brand freezer, which used to be a GM brand and is now part of Swedish giant Electrolux. Chances are good, although I have not checked that this machine was not built in the US or even Sweden.

I am sure you have a cellphone, who doesn't. If it is Samsung or LG you are supporting South Korea with your purchase. If it is Motorola, it may not have been built in the US, but it was designed here and supports a US company.

Are you prepared for the day when all auto plants are in China? I am not.

 

[rick112]

Anglequte1 you are going to look great in your Sky and I am going to look 20lbs lighter in mine

The GM exec's are playing a dangerous game by crying poor. It could cause a panic and reduced car sales. I suspect that GM will be around for quite a few years to come. I think our grandkids will probably purchase GM products.

I don't know much about stocks and all the BIG issues, but I do know that GM has a 20 billion dollar war chest. They have the resources to deal with this current problem.

A few years ago Nissan (I think it was Nissan) had some major problems. Cars weren't selling and the stock was dropping in price big time. It took a change in leadership and a change in design direction to help the company as I remember it. I'm sure there were other management changes as well.

I suspect it would be several years before anything really serious happened to GM if it did at all. I feel very comfortable making a purchase of a GM product. I am actually glad to see the small GM badging on the Sky. I was a lot more worried about purchasing a Saturn than a GM product.

With a $20 Billion war chest and a company loosing $1 Billion a year we have a little time before anyone should panic! They can't keep it up forever and it will get solved but I suspect this is more about playing with numbers to get Union concessions than anything else.

I'm betting GM will be around when our Sky's are classic roadsters. :cheers:

 

[SkyMan 08]

And besides, men are not the emotional ones.

Except when it comes to cars and trucks!!!! :lol: :lol: :lol:

 

[ChiliSky]

I heard on CNN around 2 this morning

I heard part of a conversation on CNN early this morning, have forgotten the name (old fart syndrome) BUT it was someone in GM top management that said they will not seek bankruptcy on any level and that they are very capable to work this out without government help.

I will search later to see if I can find that interview.


Things will work out, they didnt get as big as they are not to continue, they will revamp and move forward.

Kimberly
ChilliSky

 

[Rick Tinley Park]

Just this AM GM annonced that they recognise the need for restructuring and will announce, next week, their plan. They have no intention of going bacrupt and feel they can get through this period with a good financial plane. Their stock is up well over $1.00 a share

 

[Angelqute1]

As I have always felt like I am officially a part of this forum, I want to thank you all for the feedback. I just got into the office from a round-trip 30 minute meeting in San Diego and on the way back, I was listening to KCRW (our non-profit radio station out of Santa Monica College) and they had someone, I am not sure who, stating that GM would NOT be filing for bankruptcy. And that it's not as serious as everyone is making it out to be. So, that made me feel a little better. But then when I logged onto the forum, which was the first time since I sent the original post, I feel even better. Thank you all sooooo much for your feedback. It is truly appreciated.
Angelqute1

 

[rick112]

Well if they do go under just think, you'll have a real collectors item. And someone will pick up the parts at auction so there will be a good supply. :lol:

 

[Thraxz]

Big businesses don't go out of business anymore without scandal. It's a fact of trickle down economi...er life.

 

[ChiliSky]

Angelqute1 here is the article

LONDON - Rick Wagoner, chairman and chief executive of General Motors, robustly rejected claims that the world's largest carmaker could be heading for bankruptcy as he tried to reassure staff worried about dire Wall Street predictions.

In a letter to the company's 325,000 employees sent on Wednesday, Wagoner said it was "just plain wrong" to talk of GM filing for Chapter 11 bankruptcy protection from creditors. "I'd like to just set the record straight here and now," he wrote. "There is absolutely no plan, strategy or intention for GM to file for bankruptcy."

The letter follows a sharp fall in the company's shares and bonds amid fears of a strike at Delphi, the bankrupt parts maker which is GM's biggest supplier. In Thursday morning trading the shares hit an 18-year low of $20.80, close to the $20.44 low of Black Monday, the 1987 record stock market crash.

Delphi supplies parts to every north American-built GM vehicle, and analysts predict GM would burn through its $19.2 billion cash pile and be forced in bankruptcy in a three-month strike.

In the letter, Wagoner points to the "robust" balance sheet and liquidity of the company and sticks to this year's plan to revamp the U.S. business, which involves new vehicles, cost-cuts, a $1 billion a year healthcare deal with unions approved last Friday and changes to sales and marketing.

"The large losses at GM North America are unsustainable, for sure, and require a comprehensive strategy to address them… a strategy that must be implemented promptly and effectively, to get our U.S. business profitable again," he wrote. GM lost $4.1 billion in its north American automotive division in the first nine months of this year.

 

[Angelqute1]

So Check This Out

Alright, so all this negativity is getting me down now. So let me share with you an experience I had today......

So, after a 30 minute meeting I had in San Diego today (3 1/2 hours away) at 10am, I had to come all the way back and go into the office. I got into the office at 3pm, having already driven for 7hrs...

I decide to cut out at 4pm ( a little early) and hit the road. I hadn't seen my daughter in 2 nights due to working late. So I hit the 110 freeway (I work downtown, Los Angeles) and as I'm getting on the freeway, I see in my sideview mirror, a car, a car that looks "familiar"... it was the Solstice. It was the first one I had seen driving in real life. And the top was up. Now ya'll know me and my "boldness", so I pulled up next to him and made him roll down his window. He told me he worked for GM and was on his way to a newspaper company. That he's been driving them a lot and really likes it. Honestly, it was "alright" in terms of style. The SKY is a lot more sleaker and has really nice lines on it. This looks, "soft" to me. Bubbly or something. But nonetheless, seeing it and hearing it and watching it drive off with Michigan plates was pretty cool. I wanted to share that with you, because life is good and we need to stay loyal to GM and back this up. This car is going to be the turning point, watch. It's got great specs and we've heard nothing but good things. It's just a waiting game.