General Motors has insisted that going bankrupt is “not an option”.
The American auto giant was forced to release a statement today after market experts predicted the company would file for America’s Chapter 11 bankruptcy protection within days.
“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,” the GM statement said.
The company’s share price took a battering on Wall Street yesterday. Its stocks were worth just $4.76 each when markets closed, valuing the company at less than $3 billion.
Media reports have been suggesting that GM is on the verge of filing for bankruptcy since its share price dipped below the $10 mark earlier this year.
Currently GM is trying to sell the failing Hummer brand and is streamlining vehicle production worldwide in an effort to cut costs. It blames the “global financial markets and weakening economic fundamentals” for its ongoing crisis.
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Re: GM: bankruptcy "not an option"
I think we're all being a bit harsh on Vauxhall here. I previously owned an 06 Astra and was extremely pleased with it. It was extremely well priced (with discount), good to drive, good looking and very reliable. As for the cheap plastics, I genuinely thought that they were as good if not better then most of the competition. When looking for the Astra, I looked at the Focus (which was very slightly better to drive), the Golf (which was far more expensive and in my opinion inferior quality) and the Citroen C4 (which was a good car but poorly made). I had never owned a Vauxhall before and it was an outside choice but hands down I know it was the best of the bunch on balance. My mother also wanted a small people carrier which felt like a premium product (as she was used to BMWs and Mercedes) about a month ago and guess what, after weeks of trawling dealers, do you know what she felt was the best product? The Zarifa. Yes it's not the most exciting car in it's class (that belongs to the C4 Picasso) but it was by far the best quality. And the most disapointing car...well that was shared for the S Max (dreadful plastics) and the Touran aka the van.
As for me, I don't own a Vaxhall anymore, I've switched to BMW. My 3 Series is faster, more economical, more green, better equipped, better looking and more fun. But guess what? It cost £32.000. Pound for pound I still think the Astra is the better car.
Re: GM: bankruptcy "not an option"
I think you are right and getting closer to the point than most of the crap albeit entertaining crap that this story has generated. I think the most important thing however is that we need to remember that GM is a huge company on which many people, suppliers, dealers, towns (the list goes onand on) that rely on GM being profitable and using it's services. Can anyone imagine what would happen to places like Flint and Detroit if GM went belly up? Now you may not like their cars but you have to appreciate that if all the aforementioned folk lose their jobs it has a real snowballing effect. They will still have to live somewhere, eat etc. Who will pay if they can't? Social Security that's who. You and me.
Re: GM: bankruptcy "not an option"
Although you may not like GM, you would probably be worse off if they went, although you may not realise it. Today manufacturers like Ford have pushed the boundaries on the driving front in mainstream cars, GM are trying hard to lift the quality. They and others are the reason that today BMW et al sell cars that are forced to go a step further, not all actually do it, but the standards are being pushed. And prices are being forced down.
If GM were to go, Ford may say lets not bother making cars that drive well it is too risky financially, Toyota may feel that putting that bit extra into the reliability isn't worth it either. Competition will be less, prices will probably rise.
You need big players in all areas of the market all pushing the standards up, that is good for everyone. Personally, and I don't drive a GM product, I actually wish all the people in the UK working for them the best of luck - they aren't the reason for the financial problems.