Comments on: How Can GM Avoid Bankruptcy?

By: davidlind

davidlind — Tue, 09 Dec 2008 16:53:57 +0000

Appointing a congressional “czar” to run GM strikes me as giving up on our free enterprise system in a big way. Bankruptcy is a much better alternative.

By: Yasser

Yasser — Mon, 08 Dec 2008 23:46:27 +0000

I really agree with the fact that people will buy the cars, if they get a good deal. The reason that people avoid bankrupt company is that their product cannot have aftersales service. The reasons for bankrupt company are also clear to the public – few sales. So, it is not the case that people would get inferior products. They would get a good car that is no longer being produced. Great article overall.

By: Fish

Fish — Sat, 06 Dec 2008 19:53:41 +0000

I vote that Oprah gives them away.

Maybe we could do the same thing with houses – buy out all the bad mortgages and give them to HUD.

And correct me if I’m wrong, but isn’t the only real problem with buying a car from a potentially bankrupt company that you couldn’t trust your warrantee? And is that a reasonable fear here?

By: pk

pk — Sat, 06 Dec 2008 14:22:14 +0000

Chrysler should absolutely not be aided. The US cannot support 3 car companies (there is even doubt it can support one). Chrysler is owned by a private equity company that can supply additional capital if required and we should not be subsidizing this company’s bad management decisions. They would like to push their losses onto investor but, believe me, they will never share their excessive profits with anyone.

By: Argel

Argel — Sat, 06 Dec 2008 00:52:38 +0000

There is a difference between looming bankruptcy with some expectation that the Government will help out versus actually being in bankruptcy. I suspect that *that* reality *will* heavily influence buyers. Assuming they don’t just liquidate — remind me again how they are supposed to get that DIP loan?

By: Robert VanDerVelde

Robert VanDerVelde — Fri, 05 Dec 2008 19:27:28 +0000

Rather than loan/give the Big Three the bailout dollars, why not just buy cars? Thirtyfour billion would (at $20,000 per car) buy 1.7 million vehicles, and that’s not including a volume buying discount. The cars could be distributed as a new GI Bonus to the families of servicemembers serving overseas, to teachers in low income school districts, and to police and firefighters. Choose the winners by lottery if 1.7 million cars aren’t enough, and give the winners a voucher good for one vehicle.

By: James Kwak

James Kwak — Fri, 05 Dec 2008 19:15:59 +0000

Hmmm. I think you can say I am extraordinarily sarcastic at times; extraordinarily biased, no. See my previous posts on the topic, such as this one.

By: mark

mark — Fri, 05 Dec 2008 18:57:44 +0000

Don’t agree with your extraordianry bias against GM. You are falling for the simple answers. Things are not that clear cut. To say they have fought higher CAFE with every dollar they could muster is simply not true. There is nothing wrong with trying to impact the regulory environment and it is no different from their competitors (yes, including the Japanese). Please raise the discorse beyond the typical left/right coast liberals accusing the rest of the country being ignornant buffons.