News, Dealers prepare for worst if GM files Chapter 11 bankruptcy. (loans, debt)

[John1960]

DETROIT — Experts are advising car dealers to start preparing themselves for the very real possibility that General Motors (GM) files for bankruptcy protection.

If the automaker does file, any money owed to dealers for warranty work they've done on cars or for rebates they've already paid to buyers could just disappear, warns Scott Silverman, an attorney.

Dealers prepare for worst if GM files Chapter 11 bankruptcy - USATODAY.com

[Dexterguy]

GM is not going to file for bankruptcy now, at least not until another month, they just recieved $2 billion more in loans from the government yesterday.

[chet everett]

I'd go further. Realistically, what group stands to LOSE THE MOST if GM actually lets a judge decide what it looks like? Is a judge really going have the time to pull up the details on THOUSANDS on dealers agreements? Or a similar amount of SUPPLIER agreements? Seems very unlikely.

The UAW has basically ONE BIG HONKING agreement. Any judge, even one that is as left as Huge Chavez wrapped with Bill Ayers is going to do the ol' slash & burn on the benefits and work rules in the UAW agreement. If they also launch a missile or two into the bond holders exactly who gets "blowed up a real good"??? Well the NUMERO UNO donors to the Obama Campaign AND the greatest single BLOCK OF DEMOCRATIC voters...

Odds that happens????

[texdav]

No he will appoint a person to do that and that person will have lawyers that will do it for him.It will be up to GM attorneys and the people that are owed to file their claims on debt.Rememeber that the trial lawyers are the biggest contributors to the democratic party. They will make milions just like any legal matter. I am sure they are wring their hands over the money they wil make.Likel;y to be the biggest thing since the asbestos suits for trail lawyers.

[jimj]

Hopefully the UAW will go the way of the air traffic controllers union! They've sucked this company dry and now want to own the well on top of it...

[Stac2007]

Pontiac is gone and with it 21,000 jobs. More unemployed workers for an economy which is stronger that ever!

[jimj]

Originally Posted by Stac2007

Pontiac is gone and with it 21,000 jobs. More unemployed workers for an economy which is stronger that ever!

Yep, didn't you get the news from TurboTax Timmie, the worst is over and we're in recovery!!!!

[wheelsup]

Originally Posted by chet everett

The UAW has basically ONE BIG HONKING agreement. Any judge, even one that is as left as Huge Chavez wrapped with Bill Ayers is going to do the ol' slash & burn on the benefits and work rules in the UAW agreement.

Pretty sure under the new bankruptcy laws that is now illegal, thankfully. Hell even if GM didn't pay their labor ANYTHING it would only reduce the cost of their cars 10% or so. There are so many other things that cost GM money vs. labor.

[jimj]

Originally Posted by wheelsup

Pretty sure under the new bankruptcy laws that is now illegal, thankfully. Hell even if GM didn't pay their labor ANYTHING it would only reduce the cost of their cars 10% or so. There are so many other things that cost GM money vs. labor.

Nope, they go BK the UAW contracts go POOOOOF! Bring on the BK!

[OC Investor2]

Originally Posted by jimj

Yep, didn't you get the news from TurboTax Timmie, the worst is over and we're in recovery!!!!

"Turbo Tax Timmie" Heh!

I just hope they can emerge from BK a going concern. Would like to see something of the auto industry left in the US. Besides that new CTS rocks & I see a CPO model in my future in a few years!

Anyone know how Ford will fair if GM & Chrysler (dead co. walking, BK is a foregone conclusion for them) go BK? More sales up for grabs, but will it deveastae the supplier base & tip them into BK as well?