Hay if Saleen is up far sale maybe it’s time GM starts waving the white flag also, maybe some one in “RUSSIA” will buy them out,
Russia, WTF is up with that….

Check this out rich educated guys and gals, http://www.cnbc.com/id/27597230/

How does Deutsche figure the stock will be worth $0 with a government bailout? Is this analyst unaware of the basic difference between preferred and common shares? The government bailouts are usually in the form of preferred stock purchases.

Case in point: the government has spent $150 billion on bailing out AIG alone (1 company!), which is 3 times the amount the entire U.S. auto industry has asked for, and AIG’s stock is not trading at $0. .

I don’t know where these financial companies find their “analysts,” but they sure don’t know much of anything. They should be embarrassed to employ such ignorant people making public statements.

GM, Ford, Chrysler, known the world over for building average cars with below average quality, except for 2 or 3 models that are not too bad. The reason Detriots sad 3 are going under is because they lack the ability to produce cars that can be respected all over the world. Whats going to happen, and I have read this in a couple of industry journals is that there will be heavy government involvement in the auto industry, its the only thing that will keep the auto industry alive in the US. Whats going to happen is a merger of all 3 companies into one. A complete restructuring and a very possible creation of a new single auto giant which some say may be called United Motors. Its the only solution to the current problem, and the current problem is a very big one. GM and Ford are in incredible debt, its on thin ice and the ice is already cracking all around them. Very big and contraversial changes are going to be made. Many many job losses, and an entire new brand may develop. And our auto industry will become a government owned enterprise. Those who doubt it can say what they want. I said 5 years ago GM will be on the verge of bankruptsy and people say “impossible” but its already happened.

^ That means no more golden parachutes for the clowns who have made these decisions that have GM on life support, I hope we do get ownwed by the government, they’ll run it properly and efficiently.

Lets us smell the roses: GM bankrupt. Not tomorrow, but now.. It has few bucks in the bank and much more liability obligations. If government to provide financing, it probably will not give Rick and Bob 50 billions with no strings attached: there will be provisions for unions to get in on the action in terms of ownership of company. Very same unions that already have agreements that drive cost of cars which public in US does not want to buy anyway higher.
Deutsche Bank is right for a change: existing owners of GM common stock will own nothing if Uncle Sam will provide rescue (and it will). In exchange for 50 billions there will be issue of new share. Today, with 10-15 billions in assets company worth on paper $3/share. Once 50 billion are swapped for new stock issue existing stock value drops to $0.

“I hope we do get ownwed by the government, they’ll run it properly and efficiently.” LOL! Have you seen our government lately?? Please…anyhoo, GM might make the best buggy whips, but they are behind the competition. Yes they’ve made strives, but where were they for the last 10 years when everyone was getting better? Oh ya, they were milking the American public for all they were worth. Poor poor GM…

well its kind of hard to stay in business when banks arent given out loans or making it very difficult.

Seriously Hoosier do you think the government can do any worse than Rick, Troy and Fritz ?

The Big Three need to be handled carefully, that’s clear. Historically, companies in this amount of financial trouble have two options — declare bankruptcy or get acquired. We’ve already seen a failed partnership with Daimler, so that’s not a strong indicator of success, but someone needs to buy GM and Chrysler. There are many big companies out there with enough cash on hand to pick up one of the two without much trouble. Obviously an energy company such as BP or Exxon-Mobil would be a conflict of interest, but they have plenty of cash on hand to keep GM running for the next 20 years. GE would be an interesting partner, as would some of the bigger agricultural concerns. There are many companies out there that Americans are not even aware of that have billions and billions of dollars of cash on hand. Heck, even Apple has 26 billion in cash, they could buy GM in a heartbeat. iCar?

The US government, as some of you argued so eloquently in those threads over the weekend, can not and should not take over US auto production. We’d be better off letting Toyota acquire GM than having the US Gov run it. There would be a clear and obvious conflict of interest between the US and state governments — who make a LOT of their revenue from taxing, controlling and regulating auto ownership and use — being the same people who make the cars. That’s like putting tobacco farmers in charge of cigarette taxes, it has too much potential for abuse.

@400horseSS,

I am optimist, yes government CAN! Actually look at any government institution, except military, and imagine that it works! Military does work very well, except it is a bit expensive. Well, it works.

@bauer100,
Loans are not given, because business practice is guarantee of not repayment. With 3 years of losses and deterioration of financial stability, banks are not insane to give loans (well they are not insane any longer). Very same banks are not constraining Honda, Toyota or Nissan in N.A.

DAMM…… some of you can write a book….
Ohooo…. and I’m more of a cigar man, and dark beer…
And brunette’s with big breast….

Like my wife up-cores….

plant_drive and Borat – don’t quit your day jobs. You both know NOTHING about finance or business.

Yeah, let’s socialize automobile manufacturing…Worked in the Soviet Union right? Maybe they’ll replace the Cadillac Escalade with this: http://i35.tinypic.com/vdkcxf.jpg

All that GM needs to do is to suck up its pride and bring to the US more of their cars from abroad. GM is quite successful around the world and already produces excellent engines with good MPG in Europe and elsewhere. They just couldn’t man up to accepting that their US division became complaisant and slow, and now it’s costing them their life.

The truth is, look at the Saturn Astra, WTF, it’s a good car, got great reviews and is selling very well in Europe, but WHY OH WHY would you bring it here under the name “SATURN” which is synonymous with women’s car and has been for quite some time. Another example, remember the Cadillac Catera?
It was NEVER meant to be branded as a Cadillac, but instead should have been a Chevy, but once again, horrible marketing and poor branding have paid off with a car that sold well in Europe and is actually good, but was killed here.

GM needs to not get bailed out, they need to be forced to pay for their mistakes by sucking up their pride and admit that their US division is a disgrace to the Auto industry.

Just hanging on until Jan 20th and then pressure for a bailout. It’s fairly obvious.

well im no financial genius, but how many people have a good enough credit to buy a car nowadays? any brand.

How about a massive government commission? The government (really any government with a decent amount of coin, it wouldn’t necessarily have to be the US government) could approach GM (and/or Ford and/or Chrysler) and essentially buy a volume order of vehicles that do not yet exist.

The government goes to GM with some kind of objectives list for an alternative energy vehicle, says develop this car and build us a million of them. They could then use x number of cars for public service while either reselling the rest or even giving them away to randomly selected taxpayers… whatever they want to do is fine with me.

This way you’d get a type of direct government intervention that more-or-less operates within the scope of the free market.