GM is months away from bankruptcy. EDIT : Files for Chapter 11

gowda79 · 6th March 2009, 11:19

Crisis-hit GM reconsidering capacity expansion in India

New York: Troubled auto-maker General Motors, which has already received $ 13.4 bn worth federal loans, has hinted at possible bankruptcy if the company’s restructuring plans does not succeed in the long term. Moreover, GM has said its independent public accounting firm - Deloitte & Touche LLP - has raised “substantial doubt’’ about the firm’s ability to continue as a “going concern’’.
“If we are not able to obtain adequate financing from the US government or other sources or to execute our viability plan or if our viability plan does not result in an entity capable of sustaining itself over the long-term. We could potentially be required to seek relief through a filing under the US bankruptcy code,’’ the company said in its annual report to the SEC.

The car maker in its filing to the securities exchange commission said it could potentially seek relief through bankruptcy, “either through a prepackaged plan of reorganisation or under an alternative plan, which could include liquidation’’.

Beleaguered GM is currently seeking another $30 bn in loans from the US government to stay afloat. The firm also warned that the success of its “viability plan’’ and ability to continue as a going concern” are highly dependent on sales volume.

Regarding the Indian market, the auto maker said it is reconsidering the pace of capacity expansion plans in the country. “Lower GDP (5.3% in the third quarter of fiscal 2008-09) and industry volume outlooks have prompted reconsideration of the pace of our capacity expansion plans in India, which had been planned to be self-funded,” the filing stated. Further, the Detroit car maker said global competition is expected to increase over the next few years due to factors including the presence of local manufacturers in countries like India and China. AGENCIES

sidindica · 30th March 2009, 09:15

articles here:

General Motors CEO Rick Wagoner to quit, reports say: AutoWeek Magazine

CEO Rick Wagoner to leave General Motors

Chrysler, CAW fail to reach deal; Rumors of Canadian pullout

himanshugoswami · 30th March 2009, 15:19

read about it here GM chief quits, US govt takes over automaker

the beginning of Socialism in the US

Steeroid · 30th March 2009, 15:31

So the US government prints rapidly devaluing notes, fights "wars" in two countries, actively supports a war in another, pokes its nose into every other country's internal affairs and now, also makes cars.

This must be the most diversified automaker in the world! Still it makes for a compelling business case - buy my cars or be prepared for "Shock and Awwww!"

prince_pervez · 30th March 2009, 16:01

Quote:

Originally Posted by Steeroid;

fights "wars" in two countries, actively supports a war in another, pokes its nose into every other country's internal affairs

People said they did it for oil. How has that helped them. Whom are they going to try this time? Israel? Huh!

GTO · 30th March 2009, 20:54

Rick Wagoner is leaving? I mean, ONLY Wagoner? GM doesn't need a new CEO. They need an entirely new management. A team that can take tough decisions and do what needs to be done. I say fire 'em all!

Quote:

Originally Posted by Steeroid

This must be the most diversified automaker in the world!

Last I checked, it was a health-care company that happens to make some cars

vasoo · 30th March 2009, 21:06

Quote:

Originally Posted by prince_pervez

People said they did it for oil. How has that helped them. Whom are they going to try this time? Israel? Huh!

Last war was to ensure the oil majors make good money buy ensuring a good supply. This time it will be to make sure their citizens consume all the oil that is imported through them. And GM produces the larges oil munchers of all

vasoo · 30th March 2009, 21:10

Quote:

Originally Posted by GTO

Rick Wagoner is leaving? I mean, ONLY Wagoner? GM doesn't need a new CEO. They need an entirely new management. A team that can take tough decisions and do what needs to be done. I say fire 'em all!

Last I checked, it was a health-care company that happens to make some cars

Looks like its more like a "Satyam style" interim management under a new CEO, fully remote controlled by the White House. This interim management has to develop a recovery plan in 60 days or face the ire of Obama & Co.

theMAG · 30th March 2009, 22:24

I read elsewhere that Wagoner was demanded to resign by the new American President.

BBC NEWS | Business | Obama sets tight auto aid terms

Either ways, its a drop in the ocean.

HL4EVR · 30th March 2009, 22:28

I am planning to buy a spark and a captiva. I guess i have to change my decision now

vasoo · 31st March 2009, 12:14

Plan to split GM into "Good GM and Bad GM"

Quote:

One scenario being taken seriously goes like this: The automaker is split in two –- a "good GM" consisting of the brands and operations deemed most viable, and a "bad GM" made up of the brands slated for the junk heap, a big chunk of debt and underperforming operations.

The bad GM likely would be liquidated, say several people familiar with the automaker's thinking, and the good GM would emerge fairly quickly from bankruptcy as a going concern.

Kill 'bad GM', so 'good GM' can survive

CaliAtenza · 31st March 2009, 18:08

Quote:

Originally Posted by prince_pervez

People said they did it for oil. How has that helped them. Whom are they going to try this time? Israel? Huh!

as an american im offended by this and this thread isnt for politics anyways

..anyways back to the action. I hope GM doesnt die...i wanna see a new vette and the volt

dockap · 31st March 2009, 19:12

Quote:

Originally Posted by GTO

Last I checked, it was a health-care company that happens to make some cars

which company would that be

mustang89 · 31st March 2009, 20:59

i seriously wish that gm doesnt fade away into the lanes of memory.it will be a very sad thing to happen.sob sob.

madan80 · 24th April 2009, 23:50

General Motors may announce early next week that its Pontiac brand will be eliminated, said a source familiar with the company's plans. The announcement will be made as part of an updated viability plan to the U.S. auto task force, the source said.

A second source indicated earlier this week that GM was considering phasing out the brand instead of sticking with the current plan to have it continue as a niche marque.

GM, surviving with $15.4 billion in U.S. government loans, had planned to keep Pontiac along with mainstream brands Buick, GMC, Chevrolet and Cadillac. Saturn, Hummer and Saab are up for sale.

Reports that GM is contemplating killing Pontiac surfaced today in Australia, where GM builds the Pontiac G8 sedan.

guess there goes my dream of owning KITT - in its glorious Pontiac TransAM form!

6th March 2009, 11:19	#151
gowda79 Senior - BHPian Join Date: May 2007 Location: Bengaluru Posts: 1,478 Thanked: 194 Times View My Garage	Crisis-hit GM reconsidering capacity expansion in India Crisis-hit GM reconsidering capacity expansion in India New York: Troubled auto-maker General Motors, which has already received $ 13.4 bn worth federal loans, has hinted at possible bankruptcy if the company’s restructuring plans does not succeed in the long term. Moreover, GM has said its independent public accounting firm - Deloitte & Touche LLP - has raised “substantial doubt’’ about the firm’s ability to continue as a “going concern’’. “If we are not able to obtain adequate financing from the US government or other sources or to execute our viability plan or if our viability plan does not result in an entity capable of sustaining itself over the long-term. We could potentially be required to seek relief through a filing under the US bankruptcy code,’’ the company said in its annual report to the SEC. The car maker in its filing to the securities exchange commission said it could potentially seek relief through bankruptcy, “either through a prepackaged plan of reorganisation or under an alternative plan, which could include liquidation’’. Beleaguered GM is currently seeking another $30 bn in loans from the US government to stay afloat. The firm also warned that the success of its “viability plan’’ and ability to continue as a going concern” are highly dependent on sales volume. Regarding the Indian market, the auto maker said it is reconsidering the pace of capacity expansion plans in the country. “Lower GDP (5.3% in the third quarter of fiscal 2008-09) and industry volume outlooks have prompted reconsideration of the pace of our capacity expansion plans in India, which had been planned to be self-funded,” the filing stated. Further, the Detroit car maker said global competition is expected to increase over the next few years due to factors including the presence of local manufacturers in countries like India and China. AGENCIES Last edited by gowda79 : 6th March 2009 at 11:20. Reason: Edit - News From Times Network
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30th March 2009, 09:15	#152
sidindica Senior - BHPian Join Date: Jun 2007 Location: Delhi Posts: 4,892 Thanked: 8,121 Times	GM CEO Rick Wagoner to quit, Chrysler considers pulling out of Canadian plants articles here: General Motors CEO Rick Wagoner to quit, reports say: AutoWeek Magazine CEO Rick Wagoner to leave General Motors Chrysler, CAW fail to reach deal; Rumors of Canadian pullout Last edited by sidindica : 30th March 2009 at 09:17.
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30th March 2009, 15:19	#153
himanshugoswami Senior - BHPian Join Date: Oct 2004 Location: !!!! Posts: 2,303 Thanked: 2,619 Times	US Govt. takes over GM read about it here GM chief quits, US govt takes over automaker the beginning of Socialism in the US
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30th March 2009, 15:31	#154
Steeroid Senior - BHPian Join Date: Mar 2005 Location: N.A Posts: 7,046 Thanked: 2,751 Times	So the US government prints rapidly devaluing notes, fights "wars" in two countries, actively supports a war in another, pokes its nose into every other country's internal affairs and now, also makes cars. This must be the most diversified automaker in the world! Still it makes for a compelling business case - buy my cars or be prepared for "Shock and Awwww!"
	() Thanks

30th March 2009, 22:24	#159
theMAG Distinguished - BHPian Join Date: May 2006 Location: Avon, CT Posts: 7,217 Thanked: 1,807 Times View My Garage	I read elsewhere that Wagoner was demanded to resign by the new American President. BBC NEWS \| Business \| Obama sets tight auto aid terms Either ways, its a drop in the ocean.
	() Thanks

30th March 2009, 22:28	#160
HL4EVR BHPian Join Date: May 2008 Location: Hyderabad Posts: 38 Thanked: Once	I am planning to buy a spark and a captiva. I guess i have to change my decision now
	() Thanks

31st March 2009, 20:59	#164
mustang89 BHPian Join Date: Feb 2009 Location: new delhi Posts: 348 Thanked: 0 Times	i seriously wish that gm doesnt fade away into the lanes of memory.it will be a very sad thing to happen.sob sob.
	() Thanks

24th April 2009, 23:50	#165
madan80 Senior - BHPian Join Date: Jan 2006 Location: Santa Clara, CA Posts: 1,360 Thanked: 80 Times View My Garage	GM prepares to announce Pontiac closure next week General Motors may announce early next week that its Pontiac brand will be eliminated, said a source familiar with the company's plans. The announcement will be made as part of an updated viability plan to the U.S. auto task force, the source said. A second source indicated earlier this week that GM was considering phasing out the brand instead of sticking with the current plan to have it continue as a niche marque. GM, surviving with $15.4 billion in U.S. government loans, had planned to keep Pontiac along with mainstream brands Buick, GMC, Chevrolet and Cadillac. Saturn, Hummer and Saab are up for sale. Reports that GM is contemplating killing Pontiac surfaced today in Australia, where GM builds the Pontiac G8 sedan. guess there goes my dream of owning KITT - in its glorious Pontiac TransAM form!
	() Thanks