If it wasn’t clear before, it is now: GM will use the next 60 days to prepare itself for a Chapter 11 filing. Freshly-minted CEO Fritz Henderson told a suited and booted press Detroit press corps that he wouldn’t have taken the job from Rick Wagoner if he wasn’t prepared to do “whatever it takes” to return GM to profitability. Henderson spoke of his distaste for “messy” bankruptcies, but indicated his willingness to be the new broom. (Dream on, Fritz.) Meanwhile, despite repeated requests by the friendly press flacks, Henderson refused to be drawn out on how much GM will draw out of the taxpayer’s purse while it gets ready to file Chapter 11. He skated over the point faster than a duck landing on a frozen pond, saying that GM might scarf the $2 billion that it didn’t take this month, or the $2.6 billion it requested for April, or both. At the beginning of the conference, Fritz touted GM’s new “Total Confidence” program. TC is designed to protect GM buyers from losing their wheels after they lose their job, and insulate them from [some] negative equity at trade-in time. It doesn’t, however, protect TTAC’s Best and Brightests’ finely honed sensibilities by the unintentionally humorous irony implicit in the program’s name. If you know what I mean.
Let’s give ’em $1 B to do C11, and then pull the plug.
Chapter 11….11.5. Whatever it takes.
/great “Mr. Mom” line. Appropriate considering where he worked before he was forced to become Mr. Mom.
I’m curious, how long will it take GM to repay all of this taxpayer money if and when they return to profitability? How long does everyone expect this restructuring to take, and when should consumers start seeing the new GM products that are going to save the company? Are the products in the pipeline currently enough? And how many brands are going to be led to the guillotine? Realistically I’d say Chevy and Cadillac are the only ones needed, and if they want to keep Buick around for its value in China, fine. There’s either too much redundancy amongst the remaining brands, or they just aren’t working (I’m looking at you Saab). I want this to work, and think it can, but it’s going to take some new thinking at GM, I’m hoping the new guy can get things rolling over there.
Somebody should have done a little research,before they come up with “total confidence
My guess…Things are gonn’a move a little quicker with Fritz behind the wheel.I watched almost the whole thing{Thanks TTAC}and I was impressed.
Fritz is just more of the same manager-style GM CEO. He will react to what happens just enough to “manage” the crisis, but Fritz has no vision of where GM is going. He has no clue what it means when he says “whatever it takes” to get it done. He does not see the “it” that needs to be done.
Come on, Fritz. Obama said he’s paying for C11 and covering the warranties! Now is the time to get rid of ALL the old GM legacy burdens. Chevy and Cadillac are all you need in the new GM. Imagine the savings if you spent no more money on the other brands that just steal sales from Chevy and Cadillac! Every car could be even better than the CTS and Malibu.
Enough of this wandering in the wilderness! GM needs a true Leader to take them to the promised land.
I’m guessing Fritz’ thought process went something like this: “Hhmmmm…….how much money did Rick bank on his way out the door? Holy smokes! I can kiss a LOT of government ass for as long as it takes in order to get a shot at some of THAT kind of cheese!”
The TC program? WTF is this?
If Hyundai and Ford want to allow buyers to return their car or guarantee their payments that is their business and their money. Private credit insurance policies exist for this that anyone can buy without going Ford or Hyundai. But when they take our tax dollars and do it that crosses the line.
C11 this mess so we can get it over with. This is not a business, it’s a political campaign to see who can kiss UAW butt the most.
it’s a political campaign to see who can kiss UAW butt the most.
I fail to see how job, pay and benefits cuts, coupled with losses in membership as those jobs are lost, show any evidence of adoration for the union.
The UAW is one stop from death’s doorstep. The only way that the union is going to survive is if it expands into non-automotive sectors, because its base is rapidly shrinking. It’s almost irrelevant, no need to focus on it.
Pch101 wrote:
The only way that the union is going to survive is if it expands into non-automotive sectors, because its base is rapidly shrinking.
They already are, casino dealers, teachers’ aides, nurses, and many others. Actually, auto workers are still the majority, but all the others combined make the auto workers a minority.
Sorry I forgot, did the renegotiated contract cut pay for current employees or just the fictitious new ones?
I for one welcome our new, leaner General of Motors. Hopefully without all the product bloat. For god sake’s without the product bloat!
Fritz = Wagoner 2.
Same old crap, same old GM.