New and Used Car Talk Reviews Hot Cars Comparison Automotive Community

The Largest Car Forum in the Philippines



Page 5 of 19 FirstFirst 12345678915 ... LastLast
Results 41 to 50 of 188
  1. Join Date
    Jul 2006
    Posts
    1,743
    #41
    Quote Originally Posted by ChevyChaser View Post
    G.M., Once a Powerhouse, Pleads for Bailout

    By BILL VLASIC
    Published: November 11, 2008
    New York Times

    DETROIT — Just two months after celebrating its 100th birthday, General Motors is facing the grim prognosis that it may not survive to see another year unless it is rescued by a bailout from the federal government.
    Rick Wagoner, G.M.’s chief, said his company needed help immediately.
    Its cash cushion has been shrinking by more than $2 billion a month this fall. If that continues, G.M.’s reserves will fall below the minimum of $10 billion in cash it needs to run its global operations by January, the company said in its third-quarter S.E.C. filing.
    In that event, G.M. said it might be unable to pay its suppliers, meet its loan covenants or cover health care obligations in its labor contracts. The extent of G.M.’s financial crisis, revealed in greater detail in its filing than it acknowledged before, is proving to be far worse than investors and analysts expected just last week.
    Only an emergency federal bailout seemingly stands between G.M. and a bankruptcy filing, according to industry analysts.
    As the G.M.’s crisis deepens, the pressure increases in Washington to pass a rescue package for up to $50 billion in assistance for Detroit’s troubled Big Three or risk the economic fallout of a bankruptcy that would affect hundreds of thousands of jobs that rely on the auto industry.
    Democratic Congressional leaders said Tuesday they would push next week for emergency legislation to help the automakers.
    Despite a recent plea from President-elect Barack Obama, the Bush administration has been unwilling to commit any funds to Detroit beyond a $25 billion loan program to assist the companies in developing more fuel-efficient cars.
    G.M.’s chairman, Rick Wagoner, says the company cannot wait for aid that may come when Mr. Obama takes office in January.
    “This is an issue that needs to be addressed urgently,” Mr. Wagoner said in an interview with Automotive News.
    Investors drove G.M.’s stock down for a fifth consecutive day Tuesday. The company’s market value fell to about $1.7 billion, a more than 90 percent decline from a year ago. A spokesman for G.M., Steve Harris, said Tuesday that Mr. Wagoner’s job was not in jeopardy and reaffirmed the G.M. board’s support for its embattled chairman.
    “Nothing has changed relative to the G.M. board’s support for the G.M. management team during this historically difficult economic period for the U.S. auto industry,” he said.
    The depths of G.M.’s problems came to light in its federal filing that painted a bleak picture of a company that has lost more than $20 billion this year and is in danger of not being able to pay its bills in a few weeks.
    “We do not currently expect our operations to generate sufficient cash flow to fund our obligations as they come due,” the company said. “And we do not have other traditional sources of liquidity available to fund these obligations.”
    G.M. ended the third quarter with $16.2 billion in available cash. The company estimates it needs a minimum of $11 billion at any time to pay its bills.
    At its current pace, G.M. will have less than $10 billion by the end of the year — and that is after cutting 30 percent of its white-collar work force, halting the development of new models and temporarily shutting down most of its North American assembly plants in a desperate bid to save money.
    The credit-rating agency Standard & Poor’s cut its ratings on G.M. debt further into junk status on Tuesday, and Fitch ratings is also considering another cut.
    Analysts said G.M.’s inability to raise cash, other than from federal loans, will force another, deeper round of restructuring — at a minimum — to keep it solvent.
    “We expect cash outflows to quickly reduce the company’s liquidity during the next few quarters, perhaps to levels that would force G.M. to consider a financial restructuring, even if it does not file for bankruptcy,” S. & P. said.
    By its own admission, G.M. cannot cut its costs fast enough to balance the sharp fall in revenue in what is the worst United States vehicle market in 15 years.
    “Looking into the first two quarters of 2009, even with our planned actions, our estimated liquidity will fall significantly short of the minimum required to operate our business,” the company said its third-quarter filing.
    G.M. said the deterioration in its balance sheet could make it difficult to pay its suppliers by the end of this year, and it has no other sources of cash to tap except federal funds.
    It also said it might not be in compliance with its credit agreements, including a $4.5 billion revolving credit line and a $1.5 billion term loan. “There is no assurance we could cure a default, secure a waiver or arrange substitute financing,” G.M. said.
    hmnnnnn...... sabi ng wife ko natatangap sila ng email from a GM executive na hindi ito tutoo. hawak kasi nila isang account ng GM.

  2. Join Date
    Aug 2004
    Posts
    22,705
    #42
    Quote Originally Posted by lowslowbenz View Post
    agree to this...
    Not the first automobile... just the first gasoline powered one (and it was by a hair, at that, Daimler was building his own car at the same time... )... there were many steam-powered automobiles built over the decades leading to Benz's invention.

    Ang pagbalik ng comeback...

  3. Join Date
    Jul 2008
    Posts
    131
    #43
    Quote Originally Posted by LexTer View Post
    hmnnnnn...... sabi ng wife ko natatangap sila ng email from a GM executive na hindi ito tutoo. hawak kasi nila isang account ng GM.
    My respects to your wife and her company...

    Philippine President GM Arroyo's son, Mikey, says that his mom has no intention of extending her presidency, yet, as per survey, 6 out of 10 Filipinos don't believe this.
    All big corporations, where ever they may be, has a CONTINGENCY PLAN so as not to bring chaos.
    As a seafarer, we too have contingency plans when it comes to disaster ( oil spills, etc...) and one of them is to maintain a media blackout.

  4. Join Date
    Jul 2008
    Posts
    36
    #44
    the scenario ricochet to US. gone are the years they control the world's fuel market that gave their auto industries the lux to manufacture fuel whore cars! look what's happening now, crude oil and gas giant in the middle east, asia and europe are now accepting business with their consumers preferred currency except US dollar. other player's tactic is slowly killing US economy. its no use even US print billions of billions of dollars.

  5. Join Date
    Nov 2005
    Posts
    45,334
    #45
    this is so funny

    GM Asks U.S. FAA to Bar Public Tracking of Leased Corporate Jet
    http://bloomberg.com/apps/news?pid=2....2Y&refer=home

    Nov. 27 (Bloomberg) -- General Motors Corp., criticized by U.S. lawmakers for its use of corporate jets, asked aviation regulators to block the public’s ability to track a plane it uses.
    hahaha

  6. Join Date
    Feb 2008
    Posts
    14,181
    #46
    I would really cherish the idea of a GM bankruptcy. Not because I am a saddist, but because I only want the best for everyone concerned.

  7. Join Date
    Oct 2008
    Posts
    944
    #47
    Quote Originally Posted by tidus1203 View Post
    I would really cherish the idea of a GM bankruptcy. Not because I am a saddist, but because I only want the best for everyone concerned.
    dahil ba sa isang example ng automaker na mahilig gumawa ng mga gas guzzler ang GM kaya mo nasabi yan?

    ako ok lang sana magclose GM kaso wag lang sana mabale wala yung sinampa nilang kaso sa chery

  8. Join Date
    Feb 2008
    Posts
    14,181
    #48
    No its more of a business reason why I want them to go bankrupt. GM at its current state is not a viable business. Too much benefits for its employees and management and not enough sales to augment that. They have to go bankrupt so they can lay off people and start all over again with a more sane cost structure. And bailing them out is just a waste of money, in a few months for sure they will be back again.

  9. Join Date
    Jul 2006
    Posts
    1,743
    #49
    Quote Originally Posted by ChevyChaser View Post
    My respects to your wife and her company...

    Philippine President GM Arroyo's son, Mikey, says that his mom has no intention of extending her presidency, yet, as per survey, 6 out of 10 Filipinos don't believe this.
    All big corporations, where ever they may be, has a CONTINGENCY PLAN so as not to bring chaos.
    As a seafarer, we too have contingency plans when it comes to disaster ( oil spills, etc...) and one of them is to maintain a media blackout.
    maybe tama ka. pero sa collections ang wife ko e. parang mas dapat yata i push sila lalo na mag kumahog maka kolekta dahil kelangan ng pera. mas logical di ba?

    parang di din dapat ikumpara sa politiko ang isang kumpanya. alam naman natin laro dun. kakaiba .
    Last edited by LexTer; December 3rd, 2008 at 11:13 PM.

  10. Join Date
    Jan 2006
    Posts
    4,777
    #50
    Quote Originally Posted by Burai View Post
    ako ok lang sana magclose GM
    Ok for millions of people to lose their jobs?

    When GM goes down, they will shut down not only their domestic plant, but their plants around the world.
    Another problem is the Auto Parts supplier, they are shared between the big 3 and other foreign companies that have US plants, this includes Toyota.
    If their biggest customer disappears, they will be forced to shut down and if that happens other carmakers will have to stop production in their US plants, its a chain reaction.


    Update: Just to show how bad the situation is for both Domestic and Foreign carmakers....

    November 2008 Sales, compared to the sales of the same month last year

    Ford: -32.6 % (dropped to 122,723 units)
    GM: -41 % (dropped to 154,877 units)
    Chrysler LLC: -47 % (dropped to 85,260 units)

    Toyota: -33.9 % (dropped to 130,307 units)
    American Honda: -31.6 % (dropped to 76,233 units)
    Mazda: -31.3% (dropped to 14,134 units)
    Nissan: -42% (dropped to 46,605 units)
    Mitsubishi: -36.2% (dropped to 5,096 units)
    Subaru: -7.8% (dropped to 13,706 units)
    Suzuki: -46.3% (dropped to 3,216 units)
    Hyundai Group: 38.6% (dropped to 34,403 units)
    VW: -21.5% (dropped to 21,290 units)

    PS: Different brands/divisions under one company are combined (example: Chrysler = Chrysler/Dodge/Jeep, Toyota = Toyota/Lexus/Scion, Hyundai Group = Hyundai & Kia, VW = VW/Audi/Bentley etc)

    To see the rest click here: http://www.autonews.com/article/2008...1078/FRONTPAGE
    Last edited by AG4; December 4th, 2008 at 02:36 AM.

Page 5 of 19 FirstFirst 12345678915 ... LastLast
GM in trouble