Posted on Nov 26, 2018

GM To Cut 14,700 Jobs And Close Plants In North America

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This is why "soft bankruptcies" are a stupid idea. Why Obama chose that path for GM is beyond me. You really need a full bankruptcy to clean house fully and give the surviving company a chance to survive. These GM folks keep repeating the same errors they made prior to bankruptcy over and over again. Precisely because in their last restructuring we let the former GM Executives restructure and develop restructuring plans for the new company. Big mistake and we might see GM disappear liquidate entirely as a result. If you ask me Mercedes has the right idea. One platform that you can build a sedan on, a crossover on or a sport Utility on. Three different types they offer now on their C - platform, their E Platform and their S Platform......9 different vehicles on just three standard platforms. Smart idea and very flexible..........which GM will probably never follow or copy.

GM is probably going to fail long-term as a car company because nobody had the guts to force it through the full bankruptcy process and properly restructure the company. Instead, deadwood was allowed to survive, expensive union contracts were preserved, heavy pension payments left untouched. Good luck GM with all that overhead your still dragging around...........it's not sustainable.

GM To Cut 14,700 Jobs And Close Plants In North America

Posted from finance.yahoo.com

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Automotive General Motors Jon

Jobs

Economy

Edited 6 y ago

Posted 6 y ago

Responses: 3

SPC Margaret Higgins

Edited 6 y ago

Posted 6 y ago

President and General Dwight D. Eisenhower's words in a video entitled "Why We Fight": We Never Learn.
SPC Erich Guenther

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Carrie Nowocin

Posted 6 y ago

Actually it was Bush W who bailed out the auto industry. https://www.newyorker.com/news/john-cassidy/an-inconvenient-truth-it-was-george-w-bush-who-bailed-out-the-automakers

An Inconvenient Truth: It Was George W. Bush Who Bailed Out the Automakers

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SPC Erich Guenther

6 y

Really?, did you read past the headline to the actual article you posted? Here let me quote the important part for you........"After taking office six weeks later, Obama put together an auto task force that extended tens of billions more in emergency financing to Detroit over the ensuing months, and also did what appears to have been a pretty good job in restructuring G.M. and selling Chrysler to Fiat." That was the bailout in which the controversial "soft bankruptcy" option was chosen for restructuring. Obama's funding was also conditional to GM that GM would focus on smaller cars and electric vehicles like the Chevy Volt / Cruze (the same cars they are abandoning now for not selling) Additionally, Obama approved the "soft bankruptcy" option. The Bush Financiing was an emergency line of credit because they were out of cash and if that cash was not extended GM would have collapsed with a number of it's large suppliers before they could sort out which parts to sell, which parts to keep. The Bush funding was used in ongoing operations of the old GM as it was out of cash. The Obama funding was used after they decided on the "soft bankruptcy" and going forwards after that......cherry picking what assets and car lines to keep and which to get rid of. So Obama was the bailout. Bush was preservation until the bailout.

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SPC Erich Guenther

6 y

It's really a bad attempt at revisionist history by the New Yorker Magazine, the author of that article contradicted his own headline and trully is unaware who covered what with what funds.

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