ST Alpha - "I'm not convinced that if GM "fails", unemployment skyrockets. " (Reading a Post)

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I'm not convinced that if GM "fails", unemployment skyrockets.

Posted by Dr.Vermin (aka Dr.Vermin) Nov 14 '08, 15:09

If they are forced to declare *bankruptcy*, as I understand it, nothing disappears, the ownership merely changes.

Responses:

Depending on the type of bankruptcy, the owner may or may not change. Heck, it could result with the doors being padlocked closed and a not from the - Trish Nov 14, 15:45
A typical bankruptcy situation is much smaller and financing is always needed during the reorganization - Stewie Nov 14, 15:36 1
- Still seems preferable to propping up a company that consistently insists on doing the wrong thing. - Dr.Vermin, creative destructor Nov 14, 15:41
would that not be a "bailout" ? -- nm - DaneDukeNuuk Nov 14, 15:14 7
- When a company goes bankrupt, the assets don't disappear. The creditors get to sell everything. Do you want a car manufacturing robot? -- nm - Mop Nov 14, 15:23 1
  - true if the assets hold any real value (and arent used as security for loans) -- nm - DaneDukeNuuk Nov 14, 15:27
- Not a government one. - the liioulu without yarn Nov 14, 15:19 2
  - To summarize: "MOAR SUVs" -- nm - Beryllium Nov 14, 15:24 1
    - *nods* -- nm - the liioulu without yarn Nov 14, 15:27
- ... or it might be done as a Chapter 11 reorganization proceeding -- (link) - Beryllium Nov 14, 15:19
- It might be done as a conservatorship -- (link) - Beryllium Nov 14, 15:18
I believe my position has consistently been against bailouts in the US marketplace. - Beryllium Nov 14, 15:13 10
- If GM collapsed, a Canadian firm could purchase GM's Windsor plants, one of its brands, and start an all-Canadian builder. -- nm - Mop Nov 14, 15:21 9
  - Yes, that's my suggestion. :) -- nm - Beryllium Nov 14, 15:24 8
    - (I would recommend the Cobalt, and possibly one of the smaller pickups) -- nm - Beryllium Nov 14, 15:24 7
      - Who can do this? What's that buyout firm that bought Air Canada? Onyx? -- nm - Mop Nov 14, 15:26 6
        
        Ace Holdings is the current parent company. You were thinking of Onex. That might work. -- (link) - Beryllium Nov 14, 15:30 5
        
        I think Onyx is a waste management company. -- nm - the liioulu without yarn Nov 14, 15:35 1
        
        L3. That might work even better :) -- nm - Beryllium Nov 14, 15:36
        
        Ehhhxcellent. It's all coming together. I'll call Gerry Schwartz when I get home. -- nm - Mop Nov 14, 15:33 2
        
        Personally, I think Cerberus might swoop in, although they might be feeling burned after Dodge. - Beryllium Nov 14, 15:35 1
        
        I worked for a company that got bought by Cerberus and TenX. -- nm - Mop Nov 14, 15:48
it's not just the manufacturer. it's the ancillary businesses, like machinists and parts suppliers and dealers etc. -- nm - pretty awesome pigby Nov 14, 15:12 6
- I'm saying the manufacturer will still keep manufacturing, just with new management/ownership. - Dr.Vermin Nov 14, 15:15 4
  - who's going to buy a business that manufacturers product nobody buys? -- nm - pretty awesome pigby Nov 14, 15:17 2
    - A company that wants to crack the US market and finds it cheaper to retool existing infrasructure than build new. -- nm - the liioulu without yarn Nov 14, 15:21 1
      - Like Tata, perhap? -- nm - Beryllium Nov 14, 15:25
  - how can that be a "fail" then? -- nm - DaneDukeNuuk Nov 14, 15:17
- This is true - it's an industry, after all, not a single company - but Chapter 11 would allow for most of the ancillary industry players to continue -- nm - Beryllium Nov 14, 15:14
I believe I proved that GM can fail repeatly without loss of employment. (nm) - Matt Millen Nov 14, 15:12
Who buys a car from a company that has declared bankruptcy and might be gone in a year? -- nm - sgtmike Nov 14, 15:11 2
- I don't see how that's much of a factor. - Dr.Vermin Nov 14, 15:19 1
  - The loss of the warranty is a huge deterent from buying a car IMO. - Cuzzum of Toddstace Nov 14, 15:22
GM would continue, although substantially downscaled. A best case scenario, though... - Mop Nov 14, 15:11

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I'm not convinced that if GM "fails", unemployment skyrockets.

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