GM Bankrupcy?

[OzJD]

John McCain says General Motors should seek bankruptcy, not ask for more aid | Breaking News | News.com.au

Just wondering if anyone knows if GM go broke, does it affect Holden directly?

 

[MasterOfReality]

Probably would, as far as ownership goes.

GM in the states is bleeding cash as they have just realised they are making cars nobody really wants.

Plus they have to wear the massive cost of health plans for their entire workforce, including retired workers. The blame for that aspect rests squarely on the unions.

I read recently that Holden seems to be the only GM division that is actually making any money.

If GM files for bankruptcy, Holden will be snapped up by another auto maker.

 

[andyman]

Probably would, as far as ownership goes.

GM in the states is bleeding cash as they have just realised they are making cars nobody really wants.

Plus they have to wear the massive cost of health plans for their entire workforce, including retired workers. The blame for that aspect rests squarely on the unions.

I read recently that Holden seems to be the only GM division that is actually making any money.

If GM files for bankruptcy, Holden will be snapped up by another auto maker.

ford! lol


i reckon if gm gets split and holden get bought buy another company with lesser brand holden may than struggle as exports seem to be helping them alot

 

[greenfoam]

I don't think GM is likely to make it at least not with Holden attached. They allready let go of Opel and Saab the other week. Hyundai might be up for buying Holden ?

 

[drewins]

GM thinks we are still viable apparently. As opposed to plants in Canada and umm forgot some of the others. We will still prob need some form of restructure though.

 

[VrWagz1]

Probably would, as far as ownership goes.

GM in the states is bleeding cash as they have just realised they are making cars nobody really wants.

Plus they have to wear the massive cost of health plans for their entire workforce, including retired workers. The blame for that aspect rests squarely on the unions.

Why is that the unions fault. Its not their fault the american government forced employers to stop giving workers pay rises. It was the best way workers could be rewarded for working. I think its a great achievement from the unions, but in a sense it was ultimately the government that caused the situation to happen. I wish something like that could be achieved here. Id forgo a few pay rises for some quality conditions like that in my CA.
However like the people in america that lived through those hard years they would be rope able that their pay rises back then were lost and now their health plans they achieved for that loss is being thrown away so their net gain is 0.

 

[Full Spectrum]

GM used Holden as their example of survival. I can't see them letting them go unless they crumble and have no choice. Holden is way to important to GM. They own more of Deadwood then GM, They build all types of cars and help build a **** load of others. They are to important to let slip. Holden could design the whole range if needed.

 

[Reaper]

Why is that the unions fault. Its not their fault the american government forced employers to stop giving workers pay rises. It was the best way workers could be rewarded for working. I think its a great achievement from the unions, but in a sense it was ultimately the government that caused the situation to happen. I wish something like that could be achieved here. Id forgo a few pay rises for some quality conditions like that in my CA.
However like the people in america that lived through those hard years they would be rope able that their pay rises back then were lost and now their health plans they achieved for that loss is being thrown away so their net gain is 0.

The auto workers union have a lot of responsibility in this. Their negotiating tactics have been deplorable over the years and have held the company to ransom (Ford and Chysler too). That does not absolve GM management who have made crap cars that nobody wanted for many decades as well.

GM used Holden as their example of survival. I can't see them letting them go unless they crumble and have no choice. Holden is way to important to GM. They own more of Deadwood then GM, They build all types of cars and help build a **** load of others. They are to important to let slip. Holden could design the whole range if needed.

On the other hand, they are one of the few divisions which GM could ask a premium price for, thus potentially receiving many years profit now which may hold the wolves from the door for several more days. I don't think they will sell Holden myself but don't be suprised if they do.

Reaper

 

[MasterOfReality]

Why is that the unions fault. Its not their fault the american government forced employers to stop giving workers pay rises. It was the best way workers could be rewarded for working. I think its a great achievement from the unions, but in a sense it was ultimately the government that caused the situation to happen. I wish something like that could be achieved here. Id forgo a few pay rises for some quality conditions like that in my CA.
However like the people in america that lived through those hard years they would be rope able that their pay rises back then were lost and now their health plans they achieved for that loss is being thrown away so their net gain is 0.

See Reapers reply.

The unions have shot themselves in the foot with this one. This very issue about healthcare plans has been the central focus. Indeed, its why a lot of people wanted to work for the American auto makers, yet they and their unions ignored repeated warnings about the detrimental effect it would have as generations of workers retired and GM and the like are forced to foot the ever increasing medical bill.

Its widely known that if GM and the like want to have a chance at survival, the first thing they have to do it scrap the health plans. Part of the blame also rests with GM, for allowing the unions to take so much.

 

[1991_Vn2nV]

On the other hand, they are one of the few divisions which GM could ask a premium price for, thus potentially receiving many years profit now which may hold the wolves from the door for several more days. I don't think they will sell Holden myself but don't be suprised if they do.

Reaper

On a world scale though, Holden is not worth much money. When you look at how fast GM are burning through cash, Holden wouldn't cover a months losses to GM. Any short term gain would not be worth the long term loss, and it would not look good for the US Government after Holden was used as GM's example.

On a side note, GM are starting to make some much nicer cars at the moment. The Opel Insignia and Chevvy Malibu are prime examples of cars that are actually class leading in their regions for GM. Just a pity they are a few years too late.