http://www.cbc.ca/money/story/2009/04/13/gm-surgical-bankruptcy.html?ref=rss
Would anyone be nutty enough to buy a GM car now with this out there?
If it was cheap enough.
Well, BO has already said that the government will back the warranties.
Well, BO has already said that the government will back the warranties.
lol…I can only think of one thing worse than trying to get the dealer to cover the warranty. And that would be to have to get the governement to do it. I can just imagine the paper work required when you come in for a warranty repair.
M~
Seems to me the resulting new company should be the one to back the warrenties. I really don’t think the government should be helping dig them out. If there is a repayment with interest and the gov. acting as a “bank” for a loan, that would make more sense.
How do companies that big let themselfs get to this point? That is more rhetorical than a serious question.
***Would anyone be nutty enough to buy a GM car now with this out there? **** ***
Sure. What difference would bankruptcy make?
I’d rather buy their cars than buy their stock.
They were ready for BK a long time ago…
http://www.cbc.ca/money/story/2009/04/13/gm-surgical-bankruptcy.html?ref=rss
Would anyone be nutty enough to buy a GM car now with this out there?
it makes me glad I bought a F150
***Would anyone be nutty enough to buy a GM car now with this out there? **** ***
Sure. What difference would bankruptcy make?
Warranty
This should help:
GM recalling 1.5 million cars over fire fears
(CNN) – The possibility of engine fires has prompted General Motors to recall nearly 1.5 million passenger sedans manufactured between 1997 and 2003, the National Highway Traffic Safety Administration announced Monday.
http://www.cnn.com/2009/US/04/14/gm.recall/index.html
My uncle is a retired GM plant manager (Youngstown, OH). They’ve already taken away his health care benefits, and he’s now facing a 50%(ish) pension cut, if they declare bankruptcy. Good times.
Warranty
Why do you think that?
Bankruptcy won’t affect any warranty claims.
As most people tend to agree, GM’s problem has been that they haven’t been competitive in the market. Whether that’s because of the quality of the products they offer, types of products, pricing due to labor costs, internal competing product lines, whatever…the bottom line is that if they want to become competitive in the market, the one thing they cannot do is fail to provide first rate warranty coverage when the competition is doing so. Just not gonna happen. No worries.
Sorry, but no tears here.
My father lost all of his pension and retains a small portion of his medical benefits. Nobody batted an eye when most of the major airlines went bankrupt, why should anyone shed tears when GM goes bankrupt?
Sorry, but no tears here.
I feel sorry for both of them.
Maybe no tears is too harsh. It seems like there was no public sentiment about pilots getting their retirements trashed. Some smart airline contract negotion tactics has fooled the public into thinking pilots are rich and make tons of cash. The reality is that the pilots don’t make anywhere near what they did in the 60’s, and nowhere near what most of the UAW line workers make. It’s really hit my dad hard. He’s depressed and has to care of my 38 year old brother. It is really sad. It’s sad that either business failed to modify their business models to adapt to a changing world.
It’s tragic anytime someone faces the loss of a pension through no fault of their own, and you’re right, it’s happened largely under the public radar for years. The sad truth is, there’s no foreseeable means of preventing it from happening over and over again, as we’re likely to see in the near future.
…The reality is that the pilots don’t make anywhere near what they did in the 60’s, and nowhere near what most of the UAW line workers make. …
Wow, the base pay for airline pilot is less than $58,240 per year? Avg base pay of a UAW worker is $28 / hr. http://malaysia.answers.yahoo.com/question/index?qid=20070924073107AAuGk8O
Looking up airline pilot is a bit more difficult cause it depends on what kind of airline and what kind of pilot but. http://wiki.answers.com/Q/How_much_does_a_airline_pilot_make
On average, pay at a regional carrier is around $30,000. It is lower for pilots with less seniority and, naturally, higher for pilots who have upgraded to captain and have gained seniority.
The pay at major carriers varies considerably but probably averages around $75,000. Again, captains typically make well over $100,000 and new hires make far less. This is a dramatic reduction from years past (pre-9/11) where the average pay was slightly over $100,000. In “the good ole days”, some captains were making nearly $300,000 per year.
So I guess it all depends on what you define as a pilot.
I agree, the “good old days” to my dad was the generation before him, and they are all retired. That was the $300,000/yr generation, all prior to forty years of inflation. Big money! Nowdays the 30k entry pay still includes the 300 days per year away from home. The old money went a long way to make up for the time away from home. I think the principal is the same across the board. Like the UAW worker, he worked his life for a company (from '69 on) and was “promised” a certain retirement via labor contracts. Bankrupcy takes those promises and “renegotiates” them. To the worker “renegotiated” means deleted. It probably would have helped the UAW to spend some of the union cash defending the airline industries unionized workers. Bad all around.