We gave GM Billions for nothing. Their Auditors are still saying they will have to into bankruptcy.
GM auditors raise the specter of bankruptcy
DETROIT (AP) — General Motors Corp.’s auditors have raised “substantial doubt” about the troubled automaker’s ability to continue operations, and the company said it may have to seek bankruptcy protection if it can’t execute a huge restructuring plan.
The automaker revealed the concerns Thursday in an annual report filed with the U.S. Securities and Exchange Commission.
The corporation’s recurring losses from operations, stockholders’ deficit, and inability to generate sufficient cash flow to meet its obligations and sustain its operations raise substantial doubt about its ability to continue as a going concern,” auditors for the accounting firm Deloitte & Touche LLP wrote in the report.
GM has a bad business model. They have too many brands, dealers and cars people don’t want. They need to go into Chapter 11 and restructure. I want GM to survive for the sake of American production and workers. But real change is needed, not throwing money at a bad model.
Tags: auto industry, bailout, Cars, GM, US Economy
GM is pulling an AIG. Oooh, give us more money, we pissed it all away and we just can’t help ourselves.
General Motors MUST be allowed to fail. Set an example for the rest. And the UAW leadership needs to be arrested, put into shackles and legirons, and executed for crimes against the American taxpayer, namely THEFT.
I have a whole wishlist of crimes I would put under the execution category.
File for bankruptcy, void the UAW contracts, use the respite to completely overhaul the business model, then emerge smaller and more efficient. Now, where’s my obscenely large consulting fee?
Ditto on the list of crimes calling for execution, but if we discuss the list in detail we’ll probably both wind up in deeper trouble than we’d like.
It’ll be interesting to see how those intellectuals who coined phrases like, “too big to fail” deal with this one. When even their own Budget Dept. found the Stimulus Bill less effective than that offered by the minority, Congress passed it anyway. Will they give more credence to Deloite’s opinion relative to GM?
There are some valuable assets within GM’s holdings that could be brought to productive life after the split-offs that result from a proper bankruptsy. We need to get it underway. On the other hand, that would hamper in a fairly major way Obama’s plan to gain government control of the means of production
American automakers like GM have been producing crap for the last 30 years. They’re never going to and will never be competitive in the real world. let it die, let it bankrupt or be bought out by some Japanese auto makers.
Sometimes you need death to create new life.
Hagar,
I would sell off all the assets, void the damn Union contracts that add a couple of grand to the cost of a vehicle in relation to a Japanese car, and for fucks sake, make some nice looking cars for once.
I remember when I was a kid, anyone could tell the difference between a Ford, a Chevy, and a Dodge. They all look the same anymore, ugly as sin.
What really sucks is today GM is making the best cars they have ever made.
The current Cadillac is incredible. The Corvette and their trucks are outstanding.
I have a 2006 GMC ½ ton P.U and that replaced my 1987 GMC ½ ton P.U which was the very first car I purchased brand-new.
I actually think the cars they’re producing now are great, but those union contracts are a cancer killing them… and even with the horror stories of how slacktastic some of the UAW plants are, I think it’s the pensions the unions beat out of GM that are doing more damage.
GM should have done this first, before asking for money.
All the gubmint funds are being used for is to save the unions.
Chapter 11 will allow them to restructure, and hopefully move to a right to work state, and start fresh.
I’m a car guy, and GM and Ford are making some excellent vehicles, not all of them, but a whole bunch of truly excellent vehicles.
My last Caddy was a 95 Fleetwood, the last of the long wheelbase, rear wheel drive sedans. I loved that car, it had the Vette LT-1 small block V8, detuned of course, and I kept it until it had 300,000 miles on it. Two tranny rebuilds, replaced all of the control arms once, and replaced the original water pump at 296,000 miles. I only got rid of it because little teensy plastic things started to break in the window regulators, and were expensive to repair.
Then I had a Mercury Marquis for five years, no problems at all, until it needed a tranny rebuild, and I sold it.
It had the original a/c in it when I sold it, and never needed any freon the whole time.
Now I’m in the fifth year of my Ford Freestar SEL with a 4.2L engine. It has required nothing but routine maintenance, and one EGR valve. No squeaks, no rattles, and a very comfy butt groove in the captain’s seat.
Don’t get me started on Chrysler.
My 1987 GMC ½ ton P.U. I put 300,000 plus miles on it and only used up three transmissions and one new rear-end. I really liked to do burnouts in that P.U. and I payed the price. What’s cool is a neighbor purchased it from me, so I still get to see it almost everyday.
I had a 1995 Dodge Neon Sport, that thing would shut down at 118 MPH but other than that it worked out well. I drove that car 105miles one-way to work everyday and I drove it like I stole it.
I had “Z” rated tires on it, see I am not completely stupid.
Arwyn Rocks!
Avatar’s are back!
Kinna sorta! I don’t like where they are coming up, but they don’t want to move for some reason! lol
On a trip west couple of years ago we ended up getting a Ford Focus from the car rental place. We were impressed w/ the way it handled the mountains and altitude.
So when I needed a new car this year, instead of our usual Honda we got a 2005 Focus. Can’t say how long it will last, but so far I like it.
I think Detroit CAN be competitive, even in the cheap end of the market if they try—and if the unions will give them a break.
How come the cars can’t sell outside of US borders and why is the US protesting it’s automakers against foreign makes like Honda?
Jamuka,
actually U.S. car sales in the UK are very good, and the most popular car to have in China is a Buick.
I discovered the Dodge Neon shut down at 118 MPH when I was racing a Porsche 911 over the Grape Vine ( I-5) I freaked out when the car shut off, I thought I broke it really good.
Until I realized it was just the governor, my mechanic had a good laughed when I explained the story to him, and asked him this question “what the Porsche 911 doesn’t have a governor”?
I said it with a completely straight face.
My GMC crew-cab ½ ton 4×4 P.U. shuts off at 100 MPH, I am guessing them 35″ tires are not speed rated? Its funny though, it feels like an invisible rubber wall that you just bounce against.
I have had my 2004 Subaru Legacy GT up to 125MPH for a short period, I am not sure when its governor kicks in?
bar,
They don’t use governors now, they program in speed/rev limiters into the ECU.
No2Lib wrote
Jamuka,
actually U.S. car sales in the UK are very good, and the most popular car to have in China is a Buick.
These are one off cases. American makes don;t sell outside it’s borders and this is a fact. Secondly, isn’t there some kinda tax/import quota imposed on foreign makes in the US? Why the protection?
Jamuka,
I don’t know of an import quota, but I would imagine there is some tax/tariff.
As for protectionism, I think that is fairly common, to some degree or another, with most countries.
There are no Peugeots sold in this country, at all, and doubt there are many U.S. brands sold in France.
N2L
“governors”, my age is showing.
bar,
Okay, guvnor.
Here is the banging sound of a modern rev limiter.
Hey, where’s Alex?
Don’t make me break out the “ultra-violence.”
Quick question to you ‘motor heads’ out there, would you know what are pushrod engines?
Jamuka,
Why…yes, yes I do.
LOL! I’m trying learn here ok…as I understand the American makes use pushrod and Japanese and European use camshaft? Am I right?