GM: Bankruptcy 'Not An Option'

General Motors, which saw shares of its stock plummet 31 percent in today's trading, spurring speculation that the cash-strapped auto giant might be edging toward bankruptcy, released this statement:

"Clearly we face unprecedented challenges related to uncertainty in the financial markets globally and weakening economic fundamentals in many key markets. But bankruptcy protection is not an option GM is considering. Bankruptcy would not be in the interests of our employees, stockholders, suppliers or customers and we believe speculation about a possible filing is exaggerated and unconstructive."

-- Frank Ahrens

October 9, 2008; 7:16 PM ET  | Category:  business
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cry wolf

Posted by: willie | October 9, 2008 9:14 PM

The way GM's statement is worded, it could all be true AND GM could go bankrupt tomorrow and it would still be true.

Posted by: dg | October 9, 2008 9:20 PM

Sounds like a; "You're doing a helluva job Brownie" comment to me. Can Chapter 11 be far behind.

Posted by: Gus76 | October 9, 2008 9:20 PM

Toyota can buy them or the Japanese Government.
Or Iceland maybe.

Posted by: blake Southwood | October 9, 2008 9:21 PM

they will deny filing bankrupty until the day they go ahead and file.

Posted by: jws | October 9, 2008 9:21 PM

Yeah, well....the GM execs are trying to buy some time so they can sneak their bonuses out of whatever cash is left. Then they can go to the government asking for more. Gotta love them playful exec boogers, huh?

Posted by: nighthawksoars | October 9, 2008 9:28 PM

GM e.t.c., should have been out of business long time ago, for producing Junk Cars and lossing $ 1 Billion a month, but the American Goverments kept giving them Free Billions for years. Last week the Corrupt-Congress passed a bill for GM,Ford,Chrysler-Crooks, $25 billion Free Money, WHY ? Honda and Toyota make profit quarter after quarter !

Posted by: Dick | October 9, 2008 9:38 PM

I do think it would be in the best interest of the country for GM to decloare bankruptcy. Here is why --

(1) The retiree pension and health care costs are killing them. Under bankruptcy these payments would be substantially reduced as they should have been a long time ago.

(2) Why should union grass cutters make $60,000 a year. That skill should pay one third of that.

(3) Finally remember when the executive at GM (forget his name) blasted fuel efficient and hybrid cars a few year ago. They are to big to have foresight.

Posted by: Joseph D | October 9, 2008 9:48 PM

What are the options? More losses ahead and watch the stock go down as the market gets tighter. They're killing themselves for nothing. Talent will soon head for the exits. What's left? Bankruptcy. They have a new plant in Russia and that market looks worse than ours. A waste of time.

Posted by: A-G | October 9, 2008 9:49 PM

GM has mismanaged their company since the late 70s / early 80s when Japan entered the market.

Instead of revamping their internal systems to compete with Honda, Toyota, etc.. GM continue to have multiple platforms (in a sense they made one bad car across these multiple platforms).

Honda/Toyota limited their choices but made better quality (& fuel efficient) cars.

Oh well, global economy now...see ya GM.

Posted by: ssanford00 | October 9, 2008 9:51 PM

Gm Bunkruptcy is inevitable, but we can save the health and pension, the time is NOW!

Posted by: Steven Martin | October 9, 2008 9:54 PM

GM is an outdated and a wholly mismanaged company. For years they spurned innovation for huge profits. Americans are partially at fault for driving demand for the monstrously large gas hog SUVs/pickups. GM ceded to the Japanese and Europeans the passenger cars. Talk about no foresight. Honda was one of the few companies that didn't get punch drunk with large SUVs/Pickups. Can anyone name a large Honda SUV or pickup? Let GM die. As the Japanese and European car companies build more factories in the US, they'll employ more Americans without the muddling of those unions.

Posted by: Jabreal00 | October 9, 2008 9:58 PM

Does word work if it is a result only?

Posted by: Yabin Li | October 9, 2008 9:58 PM

GM needs to go out of business. Talk about a failed company. They've been an embarrassment to America for decades as Japanese and Korean automakers have cornered the market on innovation, efficiency, and creativity.

Make sure pensions and health care are covered, and break it up. Better sooner than later.

Posted by: William J. | October 9, 2008 10:04 PM

yes, GM, Please, don't do under. You're the only thing keeping mechanics in business.

Posted by: swalker3 | October 9, 2008 10:17 PM

I'm buyging some shares in the morning at a bargain price.

Posted by: will | October 9, 2008 10:18 PM

Why is GM still in business?
And Ford?
And Chrysler?

A few months ago, a young inventor from Europe travelled around the U.S. in a fully functional solar car. ZERO oil consumption. ZERO carbon emissions. Almost ZERO noise. It was ugly and slow, but any corporation with a few good engineers and designers could have turned that thing into a decent car.

Of course, not Detroit. Innovation and entrepreneurship abandoned that place decades ago. Detroit's bureaucrats (from top-level executives to union bosses) don't even try to make good products anymore. Their attention is in Washington: how to block foreign competition, how to lower safety and environmental standards, how to twist the tax code so that people buy more Hummers, how to get more subsidies for those inefficient factories.

But the invisible hand of capitalism is doing its job: no matter how hard they try, those who sell bad products or services will end up out of business. And those who have put money, intelligence, and effort into making better products and services, will survive to fight another day.

Posted by: Scoby | October 9, 2008 10:21 PM

if you are a capitalist - let them fall on their stupidity.

if you're a socialist - take them over and force them to wake up to reality.

Posted by: jmorran | October 9, 2008 10:27 PM

what do you do if you're a fascist?

Posted by: daver | October 9, 2008 10:31 PM

when your ceo has to release a press statement with the word bankruptcy in it, not good. and interestingly enough, i watched the documentary who killed the electric car last night. i feel for GM employees, but man, it's hard to see how these guys do not deserve their fate.

Posted by: freethkntxn | October 9, 2008 10:46 PM

Nice Joseph D -- obviously you weren't a GM employee that gave 50 years to your company (remember the days when people used to stay at one job their entire careers)! And you think retirees don't deserve their pensions. Sick b@st@rd!

Posted by: Debbie | October 9, 2008 10:47 PM

Not an intelligent comment in any of these posts

Posted by: Anonymous | October 9, 2008 10:52 PM

You posters that are capping on American manufacturers and unions are not only pathetic but very non-patriotic. Americans should be buying American and should have been buying American. Maybe we wouldn’t be in as much of a crisis at this time .We should have been supporting our own companies. Keep buying those imports and put our workers that are making a fair wage on the bread line. So what if you pay a little more for American products,that’s what, keeps our own economy in tack. If it wasn’t for unions we would not have a middle class. Unions have helped the working class make a fair wage for a fair days pay. If the companies had their way, you would be making 67 cents and hour and wouldn’t need to worry about buying cars or homes. The only difference with union wages and non-union wages is that the CEO’s and upper management would only make 1 million in salaries rather than 4 million per year. If we continue to let our factories go bankrupt and move over seas, whose going to support the American economy and pay the taxes to keep the government functioning? Then there are these Fair Trade Agreements, yah right. What is fair about Fair Trade Agreements? I firmly believe these agreements have also weakened our economy. Understandably we need to be involved in foreign trade but these trade deals need to be FAIR. How is Americans going to afford the American Dream on Wal-mart wages? We need to invest in ourselves and bring back manufacturing jobs (steel, clothing etc.) and quit exporting them. We need jobs that pay decent wages and we need to support American manufacturers such as GM. If you don’t like union wages in America, then when you apply for work with these foreign companies opening in the US, tell them you will work for 67 cents and hour and pay your own health insurance and 401’s.

Posted by: TC, Harrisburg, PA | October 9, 2008 11:35 PM

Posted by: TC, Harrisburg, PA | October 9, 2008 11:35 PM

Piss OFF!

GM should be loyal to Americans, not the other way around. Americans are the customers, not the other way around.

If GM can't make the cars right for a reasonable price, f*ck GM.

The best thing that could happen to GM is to have Toyota buy them out, and then perform a Stalinist purge on everyone and move every last asset out of the dungheap we call southeast MI. They should move the plants to the south where people will work for less than $100,000 per year without the obscene retirement benefits that nobody outside of government would ever get.

To Hell with GM (unless the Gov. bails them out, and then my stock makes a killing, :)

Posted by: Tom | October 10, 2008 1:03 AM

The United States does not need GM. Toyota, Honda, and other Japanese companies already provide great cars, and they provide Americans jobs making these cars of parts many of which originate in the United States. If you want to be patriotic, buy a Japanese car, since they create jobs for Americans.

I don't feel sorry for GM. When things were working out for them they were fully behind free enterprise. Now, they get to learn the hard way how free enterprise devours the weak ... Unless the Socialistic Bush administration rescues them.

Posted by: Eric von Schonberg | October 10, 2008 3:50 AM

What might emerge is a smaller GM. They could go into bankruptcy, sell off parts that don't make money and reorganize as needed. Bankruptcy is sometimes a good option and a better strategy. There's a stigma attached to it. Maybe they don't have options and don't want options. Keep getting killed. Whatever.

Posted by: IV | October 10, 2008 5:20 AM

hope all you democrats that bought foreign cars are happy. I guess the union jobs of the US automakers being lost to your foreign car makers should make you proud to be a democrat.

Posted by: tunaman | October 10, 2008 8:44 AM

To: Anonymous | October 9, 2008 10:52 PM
Sorry, guy, but I do not understand your rage. Why do You say NAFTA (and other FTAs) are unfair ? It *is* fair, please do not mix it with a problem of the US, that it is NOT competitive and pays its workers 2000-3000$/month whereas "worldwide average salary" for exactly the same job is 300-500$/month.
Would You say it is fair if the workers in, e.g., NY would be paid 10 times more than in Nevada ?

Posted by: Alexandr | October 10, 2008 9:18 AM

I work for a dealership and im new to the business but the economy has not only had an affect on GM corporate but even the little guys, the mom and pop 50 yr. old dealerships. GM has not taken the right approach to the changing economy and wants of consumers. while most people like luxury and comfort, even more people like 30 MPG. with fleeting efforts to stay in the fight with companies like toyota and honda, GM is fighting an uphill battle. speculation of bankruptcy is just that, however like someone stated before if a CEO has to make a statement with the word bankruptcy in it things cant be good. Im sitting at my desk not selling a car but typing on this thread. If GM wants to stay in it they need to overhaul their entire product line. which would be astronomically priced especially when our dollar is worth less than the yen.

Posted by: Brian PBG | October 10, 2008 10:32 AM

GM should go under. They do not listen to the customers. They also make poor decisions AKA: Colorado truck, SSR truck(what a Joke), HHR, they also got rid of the camaro, s-10 and went to vehicles with engines that have not been proven. Also really what was GM thinking when they bought Hummer? Someone told me they still have hummers on the lot new from 2005 that cant be sold. I think that when Toyota can tailor their truck line-up for American buyers (and they have already started doing that), Toyota will be the biggest Car giant in the US.

Posted by: Benjamin | October 10, 2008 10:43 AM

I will totally agree with that comment and I think that Gm should do away with all of their divisions like Buick, Pontiac, Cadillac, Hummer, and Saturn. They had good cars and should have kept them instead of changing to a whole new design.

Posted by: Brad | October 10, 2008 11:09 AM

Cadillac and Saturn are still outrageously popular. cadillac is the epitome of style and class while saturn is holding ground economically. many saturns boast 25 + MPG. as for Pontiac, the G6 and G5 offer value and economy with up to 37 MPG on the G5. as for buick there is only 3 of them enclave, lacrosse, and lucerne. enclave is popular but expensive and as for lacrosse and lucerne 70 yr. olds have to drive something, right?

Posted by: Brian PBG | October 10, 2008 11:20 AM

I have been a GM Supplier for 20+ years in the hometown of GM. My father, uncles, neighbors and many of my high school friends have made careers at GM. A few observations:

-The UAW absolutely sucked GM dry with lazy, unskilled, overpaid production workers for years. Now the UAW controls the Democratic party in MI,OH etc. They will elect Obama for more of the same.

-GM cares nothing for the USA. They will move production to Mexico or Uzbekistan for a dime.

-GM has treated its suppliers like dog c**p ever since Lopez. The suppliers that are left are only taking what they can get and offer no innovation or cost savings like they used to.

-GM has staffed its lower ranks with temporaries who do not give a **** about the company. The older workers are biding their time, waiting to get out with no confidence about their pensions.

This is a bleak scene that can only be remedied with a top to bottom restructuring.

Posted by: Adam Gibson | October 10, 2008 11:21 AM

ok so im pretty sure we are all in agreement that GM is going into bankruptcy and just doesnt know it yet. so what does that mean for GM employees besides the retirees.

Posted by: Brian PBG | October 10, 2008 11:45 AM

It means that they better get a real skill (if they want to maintain some semblence of their lifestyle), since assembling cars pays about the same as assembling burgers in the real world. The UAW had negotiated great educational benefits. The typical GM-UAW worker went to Mott Community College that offered a weekend class on how to assemble a pressure washer or generator. It was a scam for the UAW member to get a free generator on GM. Methinks the UAW is done scamming GM whether they know it or not.

Posted by: Adam Gibson | October 10, 2008 1:11 PM

Joseph D.--- clearly, you have no idea what it is like to work in the conditions that a factory worker must cope with for thirty or more years. You earn everything that you get, and you never know if you will ever see the pension that you earned!

Posted by: Ann Marentette | October 15, 2008 12:37 AM

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