The General may be heading for Chaprter 11
« on: October 11, 2005, 01:48:06 am » Quote
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Delphi Chief Sees GM Bankruptcy Without U-Turn on Wages, Health
Delphi Corp. Chief Executive Officer Steve Miller said General Motors Corp., his biggest customer, will have to file for bankruptcy if it can't wrest wage and benefit concessions from the United Auto Workers union during their next contract talks. Miller took Delphi, the largest U.S. auto-parts supplier, into bankruptcy after he couldn't get financial aid from GM and was unable to persuade the UAW to cut pay for long-time workers by as much as 64 percent to as little as $10 an hour.
``If GM comes out of 2007 with a labor agreement that looks like what today's agreement is, they are inevitably headed toward Chapter 11,'' Miller said in an interview yesterday.
Source: Bloomberg.com
"GM has $284 billion in debt outstanding, S&P said"
Warning to all: Do not buy extended GM warranties.
Oh wait - sorry, I quoted something artic posted in 2005...... seems they made it thru that time. This time who knows? here is the answer: only GM knows.
But until they ARE chapter 11, they AREN'T chapter 11.
Hasn't GM been doomed for a very longtime now?
Is it just me or does the Merill Lynch article only discuss GM NA? Apart from mentioning that China sales were slowing - only up 14 percent compared to 19 percent a year ago (and not down so how bad is that?) they fail to mention or acknowledge that GM sells a heck of alot of cars outside of NA:
http://www.infibeam.com/blog/news/2008/04/24/gm_announces_q1_global_sales_of_more_than_2_25mn_vehicles.htmlDETROIT - General Motors sold 2.25 million cars and trucks around the world in the first quarter of 2008, according to preliminary sales figures released today, with a record 64 percent of all sales occurring outside the United States. GM global first quarter sales were down less than one percent. Robust first quarter sales in GM's Latin America, Africa and Middle East (GMLAAM) and Asia Pacific (GMAP) regions, and improved sales in the GM Europe (GME) region helped offset a 10 percent decline in GM North America (GMNA). Sales outside GMNA were up 8 percent compared with last year.
Thankfully the rest of the world isn't going the way the NA market is, and should help sustain GM. Will it be easy? no. It hasn't been easy for GM for a long time......