John's Journal: John McElroy's multimedia blog about the automotive industry

AUTOLINE ON AUTOBLOG: What if GM Collapses?

November 8th, 2008 at 9:37am

In Partnership With
Autoblog Logo

Anyone watching the auto industry these days is acutely aware that General Motors is hurtling towards disaster. It’s burning through cash reserves at a rate that will put it in Chapter 11 sometime next year, no matter how much management says “that’s not an option.” It’s still being crushed by its legacy costs, yes, even after concessions from the UAW. And it just witnessed its own finance arm, GMAC, essentially pull out of the automotive lending business.

What was an emergency just a month ago has now blossomed into a full blown crisis. Unless something is done quickly, General Motors could collapse.

This article continues on Autoblog

4 Comments to “AUTOLINE ON AUTOBLOG: What if GM Collapses?”

  1. John Says:

    As I watch CNBC this morning and the crying about “how much is too much” with government bail outs with a brief mention of GM’s “Legacy Costs”, I really have to wonder how the Union that has basically had a big part in the destruction of the U.S. auto industry has the stupid idea to push the, “Employee Free Choice Act” .

    See:
    Labor unions ask political backing for organizing law
    By Andrew Stern
    Sun Nov 9, 2008 8:59am EST
    http://www.reuters.com/article/newsOne/idUSTRE4A81L720081109

    “BATTLE EXPECTED OVER LABOR LEGISLATION

    A battle is shaping up in the U.S. Senate over the Employee Free Choice Act. Its two major provisions would let prospective members sign union cards instead of waiting to hold secret ballot elections to unionize workers at a company, and call for a government arbitrator if a newly created union and the employer did not reach a contract within 120 days.”

    Great idea if your goal is to speed up the, as Ross Perot described, “The Giant Sucking Sound” of manufacturing jobs leaving the U.S. .

    Does this country have to turn into a cratered banana republic over run with illegal immigrants with their social security demands and unchecked diseases that will destroy any chance that a LEGAL young U.S. Citizen will be able to achieve “The American Dream” ?

    That’s right, destroy the manufacturing base, flood the fallback position labor market with Illegals (“jobs that U.S. citizens won’t do” B.S.), and think that short term “stimulus packages” to consumers are going to fix it.

    THE U.S. NEEDS A LONG TERM PLAN, NOT A SERIES OF SPECIAL INTEREST BAND-AIDS.

    And Yes, GM is part of that plan.

  2. Tom Martin Says:

    The U.S. needs to bring manufactuering back to the U.S., not only for the auto industry, but for consumer electronics, clothes, batteries, etc.

    I would tax anything foreign including oil, cars, airplanes, etc.

  3. Ken Post Says:

    Why is no one commenting on the fact that a big part of the Detroit melt down has been brought on by the unfair compitition from the Asian manufacturers allowed to do business right under our noses. Some of the problem is also the ignorence of the consumers who blindly go on buying Asian cars and letting the American companies die on the vine. I guess those chickens are coming home to roost now too. Some day we will look back and say “I shoulda bought that Chevy”.

  4. BMW Cars Says:

    yes..A battle is shaping up in the U.S. Senate over the Employee Free Choice Act. Its two major provisions would let prospective members sign union cards instead of waiting to hold secret ballot elections to unionize workers at a company, and call for a government arbitrator if a newly created union and the employer did not reach a contract within 120 days.”

    Great idea if your goal is to speed up the, as Ross Perot described, “The Giant Sucking Sound” of manufacturing jobs leaving the U.S. .BMW Cars