“Our ‘CC’ corporate credit rating on GM continues to reflect our opinion that there is a high likelihood that the company will undergo a distressed debt exchange (which we would consider tantamount to a default under our criteria) or file for bankruptcy protection toward the end of May or shortly thereafter.
In our opinion, a bond exchange on the terms proposed might be difficult to accomplish, given GM’s desire for a high threshold for participation by noteholders. GM estimated it would need to receive 90% of the total principal of the notes in the tender offers to satisfy the U.S. Treasury Department’s conditions and avert a bankruptcy. However, we believe it is possible that theTreasury Dept. might accept a smaller amount if all of its other conditions are met.’
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chevy, caddy that’s all you need. gotta file bk to screw over the pont buick GMC guys and not have to pay them a divorce settlement. If Buick rocks in japan, keep making it. If there is a model that must be made here, call it a Caddy or even chevy, it’s just a name.
I’m surpriced that GM cannot just bite the bullet, they all know the PBGMc lines gotta go and be merged, and those dealers are going to take it in groin. This is absolutly invetitable, if they reform with PBGMC intact, then we’ll be relivng all this same sob story bullshit five years from now, when they gotta go ahead and kill all the PBGMC stores too.
Right on, jwolfe.
People seem to keep trying to come up with reasons to save the PBG sales channel, but as far as I’m concerned it’s the most obvious place to start cutting. Most of the products from these three nameplates are simply rebadged cars from Chevy and Caddy platforms…so why keep them?
Kill the whole sales channel so GM can actually close down a fair portion of its unnecessary dealers.
I hear ya.. Seems the quickest way to “good GM and Bad GM” is just euthinize the pbg concept as a whole…now…impossible to fiscally pull that off outside of a ch11 thought. Many of those ol school wealthy pbg dealers have enough money to sue the shit out of them, make it too costly.
They know this too, just too scared to do it. They should ask obama if he’ll take the wrap for it, and say he forced them. If he hadn’t been shot at yet, he’s bullettproff in my book.
Now we get to the fork in the road where talk ends and someone blinks. Is the government going to write new rules for investors, corporations, and the like?
If they burn everyone with a deal that leaves the union owning a large chunk of everyone’s GM with us paying the bills there is going to be hell to pay.
Now who is going to buy a car from a company like that? I think the backlash is going to surprise everyone.
The backlash is already beginning. Every day this mess draws out, the fewer customers there are out there that will consider a GM. Dragging it out will only make matters worse in the end. The more the news headlines scream about a GM bankruptcy, the more these messages will make it thru to the subconscious minds of the consumers. And who actually wants to be seen in a GM product anymore, anyway???
GM’s problems have been 40 years in the making. Their North American business model was developed in the 1920’s when foreign producers were far and few between in the US.
GM’s NA model of badge engineering the same platform five different ways left out one important ingredient in the past four decades – top marks with regards to quality chassis and power trains in their passenger cars. Pontiac is a case in point.
Part of it is a dealer problem with too many divisions wanting models that were all things to all people. Most of it is due to a dysfunctional bureaucracy that was spared the axe five years ago – because the General was still making money off its truck platforms. Once those sales crashed – it was over.
I foresee the mother of all bankruptcies approaching.
“Bad” GM disappears:
Current warranty obligations
GM Card earnings obligations
Selected dealer franchise agreements
All debt except what the administration lent it
Pension and health care obligations
Hummer
Saab
Pontiac
“Good” GM becomes American Leyland:
Chevrolet
Buick
Cadillac
GMC
Who actually wants to be seen in a GM product anymore?Asks Rday.
A lot more than what you might think.Newsflash here,not everybody wants to drive an import.Some people want to support the home team.There is other buyers that believe that sending your cash to Korea,Japan and Germany isn’t such a great idea
A comment come up yesterday,to the effect
of,the low income,low IQ,beer for breakfast crowd losing thier own brand.Yeah yeah I’ve heard it all NASCAR loving, trailer living, manicurist,that drives a Grand AM.Talk about your class warfare
Some people detest foriegn vehicles.Theres is those that believe that a Tundra is a wannabe truck, fit only for poseurs.Driving an import is not the in thing to do everywhere.If that was the case GM ,Ford and Chryler would have been,long gone.
BMW’s and Mercedes and VW,s make Chrysler look like a leader in quality control.But that doesn’t stop the metrosexual with his BMW ,from looking down his nose at the redneck driving the Firebird.
Well you know what?The Firebird driving redneck takes a peek at the Bimmers auto carwashed wheels,with the brake dust smeared all over them.
The redneck’s thinking “this dude probably tells his buddies he is a car guy.The truth be known,the guy probably couldn’t find the hood latch on his overrated,overpriced import.
Where the domestics end up at the end of this mess,is anybodys guess.Key word guess!
But one thing is for sure the working class is not going away.And these folks,that believe that “Get er done” has some humour in it.Patriotic fools that they are percieved to be, will continue to “BUY DOMESTIC”
Now some good news…
The “new” GM will be more focussed, with new management and a new approach. They will rethink their whole business model and in five years, their products will be very good.
The bad news is…
They lost me, because I had nothing but trouble with GM cars over the years and now that I’m a Honda guy, GM has to prove to me that their products are of better quality.
I think that’s fair, don’t you?
I’m on board with jwolfe and kowsnofskia, no excuses, kill all of BPG. If Buick is so damn popular in China, Cadillacs or dressed up Chevys can be sold there as Buicks. With so much overlap, there is point. All they’re doing is cannibalizing sales from other brands. Not to mention that shuttering all 3 brands would solve the problem of how to get rid of 42% of their retail outlets. Go C11, drop the riff raff, and roll on with Chevy and Caddy.
Mikey is partly right, I think, in that there will always be some buyers (although their numbers are going down) who detest anything perceptibly foreign and want to buy only American. Where I disagree is his suggestion that GM is their only option. It seems to me that Ford is playing this whole thing extremely well and can remain a domestic option without the taint of taxpayer-financed bailout.
I also agree with those who propose euthanizing all of BPG. As superbadd75 says, if Buick is so popular in China, keep selling it there–why does that mean that GM fritters resources trying to make this pathetic brand popular with anyone under 70 here.
Here’s a really wild one:
Why not keep the BPG and get rid of the other ones??
Sorry, I had to get that wild hair out of my ass!
OK I realize that Caddy is the bright spot. I was just an idea!!!