Will filing bankruptcy help or hurt GM?

  • Thread starter Thread starter mr_cj_jr
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mr_cj_jr

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http://news.yahoo.com/s/ap/20090305/ap_on_bi_ge/gm_annual_report

Because I have family members who work/have worked for GM, and the industry in which I work indirectly relies on the automotive industry I was on the fence about them filing for Chapter 11 bankruptcy. Not to mention the effect it would have on automotive suppliers who aren't even affiliated with GM.

Another reason for my concern is, per the article, people might be reluctant to buy from a company in chapter 11 for fear of warranty & replacement parts.

However, GM and the U.S. automakers in general have had ample Government assistance to help them get back on their feet to no avail.

So, to me, it sounds like a no win situation either way.

In your opinion, will filing bankruptcy help or hurt GM?
I agree with chuck to a point. If GM weren't such a large global corporation I would agree with you 100%. Yes, it did work for Chrysler..in the 70s. However, I'm not so sure that GM can recover like Chrysler did back then. Times have changed and Chrysler didn't have Honda, Nissan, and Toyota to compete with either.
 
It is a death blow. The only course for GM once they file is to sell off their lines. Buying a "new" car from a company that is bankrupt would be highly risky.
 
Bye bye GM too bad too sad.

They should have kicked out the UAW years ago, the UAW should have to pay every penny back to us the taxpayers.
 
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