• May 28, 2009
Despite today's word of coming to terms with its major shareholders on a debt-for-equity swap, Bloomberg is reporting that General Motors will join Chrysler in filing for Chapter 11 bankruptcy on Monday. The move is widely expected, but the news agency is adding a bit of flesh to the story, suggesting that what promises to be the third-largest bankruptcy in U.S. history (after Lehman Bros. and Worldcom) will indeed result in the sale of most of the automaker's assets to a new company (likely the oft-discussed "Good GM"). GM's worldwide assets have been reported to be $91 billion against a total liability of $176.4 billion as of December 31.

A suggested location of the possible bankruptcy filing has not been disclosed. More details in the link below.

[Source: Bloomberg News | Image: Bill Pugliano/Getty]


I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.


    • 1 Second Ago
  • 49 Comments
      • 5 Years Ago
      Well.. "buddy". American ignorance is nothing new. Commit stuff :) The propaganda in your country today (21st century) is far worse than the soviet propaganda back in the days (mid 20th century). And just for the record:

      http://www.nationmaster.com/graph/ene_oil_con-energy-oil-consumption

      There are ~270 million cars in the USA and ~60 million cars in Germany. USA consumes 9 times more oil than Germany. It's basic math :)
        KLR
        • 5 Years Ago
        "There are ~270 million cars in the USA and ~60 million cars in Germany. USA consumes 9 times more oil than Germany. It's basic math"

        On a per capita basis the US uses 2.3 times more oil than Germany and that's likely because the US is a physically much bigger space.

        And Germany uses 2.4 times more oil per capita than Brazil.
        • 5 Years Ago
        Wow...early 20th century propaganda trying to get people to hate the Jews, Christians, gays, etc. and to join the government collective thereby giving up your individual freedom is worse than modern propaganda...please elaborate with an example that won't beggar the imagination ;-).
      • 5 Years Ago
      I just want GM to sell me a concept car of theirs for rock-bottom prices. who cares if they are functional or not some of them are dammmmned sexy.


      (yes I'm talking to you, pontiac atze...I can't even type that without laughing)

      maybe I will roll into the dealership with my Cadillac Sixteen (V, not W 16)
      • 5 Years Ago
      Well, say goodbye everyone...

      *raises his glass*
        • 5 Years Ago
        Huh? You realize GM is not shutting down, right?
      • 5 Years Ago
      Good.
        • 5 Years Ago
        Coolio, it all depends on what you buy...

        If you buy a new V8 Tundra, then you are supporting one of my friends that works at that plant.. which helps him keep his job.
        • 5 Years Ago
        I just HAD to get it on this!!!!!!!!!!!!!!!!!!!!!!!!!

        @no.
        In response to: "Good."

        Response: Whatever your reason is, it's a fair statement! You're free to do as you wish!

        @Coolio

        Response: FAIL

        @Parkerman
        In response to: "If you buy a new V8 Tundra, then you are supporting one of my friends that works at that plant.. which helps him keep his job."

        Response: You didn't conisder that the Japaneses auto makers aren't tariffed or import taxed in a way that ever kept the playing field level? Add that kick in the ballz (to the US auto makers) to the fact that US auto jobs wouldn't have been lost if A: Tariffs were in place (which always should be), B: Unions weren't such greedy organiziations C: Due to unfair manufacturing costs (i.e. lack of unions and tariffs for the importers) that US companies had to cut corners in 80 to stay competitive. Thus giving a temporary advantage to import makers in terms of quality. Then it just tumbled!!! So that job that's keeping your friend working costs the US auto worker and indirectly related (i.e. suppliers) workers about 5 jobs.

        In the end, your friend working for Toyota costs the entire country!



        @Sea Urchin 10:45PM (5/28/2009)
        In Response to: "Gloria, ahhhh auto industry in to the only industry that has to comply with governmental laws..."

        Response: Are you actually serious or are you not taking your retard pills today?


        Here's a page from a US Gov website. Read the index and see what's regulated!

        http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=2008_government_manual&docid=214669tx_xxx-119


        • 5 Years Ago
        What gets anywhere close to that (real MPG rating and not hypermiled junkets) which isn't for all intent and purposes a 2-seater golf cart?

        Do you really think an 80 MPG car was a commerically viable venture when gas was $1?
        • 5 Years Ago
        If you're saying Good because you want the slimy suckas who sold you a lemon 15 years ago to go down, than you're an idiot.

        if you are saying Good because now GM can level the playing field (since the Japanese government has financed R&D for the japanese manufacturers for years, and they don't have massive legacy costs, and the Japanese auto market is essentially closed to foreign makers), than maybe you are right.

        p.s. for all you Toyota buyers out there, where do you think the profits from your purchase go ? Straight our of your country and into theirs. Wake up before the US is an "also ran" like the UK is currently.
        • 5 Years Ago
        Sea Urchin, do you even research anything, you state as "facts."

        Bush did not "give" the D3 $25 billion to retool factories. He initiated a program, through the Energy Department, to give loans to help retool factories for higher fuel economy vehicles. This loan program is open to ANY manufacturer who fits the criteria. Nissan applied, Honda applied and rescinded their application, Tesla applied, and Ford, GM, and Chrysler applied.

        GM and Chrysler were told that they could not qualify, as they are not viable.

        NOONE has received any money, on this program, yet. We should start seeing approvals, and moneys start to flow, in June of this year.

        Short of the GM and Chrysler bailouts (loans you never have to pay back, are bailouts), the US government has rarely helped our automakers in any way. As a matter of fact, with the piles of unfunded mandates (mandatory safety/emissions/fuel economy), they have hurt them far, far more, than they have EVER helped them.
        • 5 Years Ago
        Coolio, this issue has been beaten to death

        http://en.wikipedia.org/wiki/PNGV

        PNGV, Clinton spend millions to develop a 80 mpg car by working with D3 and D3 only, no one else was allowed to participate, as soon as Bush came into office he said that automakers to not have to follow PNGV, so D3 had R&D financed by the government. Also Bush gave 25 billion to D3 for "restructuring plants"+ Obama want's to DOUBLE this program + US bailed out D2.


        So let's see "(since the Japanese government has financed R&D for the japanese manufacturers for years,"----you are right on this point, but as you can see it's not like we do not "help" D3.
      • 5 Years Ago
      Well, every week since november, somebody says "GM will file for Chapter 11 next week".

      One day they will be right...
        • 5 Years Ago
        At least someone else's got a brain here.
      • 5 Years Ago
      good riddance to bad rubbish...too bad so many tax dollars have been wasted in the process thanks to the socialist president...
        • 5 Years Ago
        Everyone says wasted tax dollars, but that remins to be seen. If the Governement sells the stock and makes a profit, I guess nothing was wasted.
        • 5 Years Ago
        Since you're apparently not American, it's none of your goddamned business. :-)
      • 5 Years Ago
      Why did this not happen about 6 months ago instead of just dragging it on, and on and on and ooooon.?
        • 5 Years Ago
        The process started 6 months ago.

        I am fairly certain that GM and Chrysler and the Government knew that BK was the only real option, but they needed the time to get their affairs in order to ensure that the bankruptcy process went orderly, smoothly, and most of all as quickly as possible.

        Thing is, the plunge in the auto market from last October-on meant that neither company wouldn't survive until the "prepackaged" part of the bankruptcy was put together. And were it not put together, the companies wouldn't have survived the cram-down or traditional C11 BK they would have had to accept.

        That's what's taken so long for GM to file, what with the Opel selloff, the Delphi BK, the bondholders, the UAW/CAW, and the dealer body issues to work through.

        I am convinced that the last 6 months have simply been about prepackaging the bankruptcy. All the talk of avoiding it has simply been window dressing.

        Had GM and Chrysler come out publicly for BK in the beginning, the US Gov't would have had less public justification to give them bailout funds, and they would have blown their negotiations with the UAW and bondholders before they even began.

        The way it worked out, GM and Chrysler looked less like the bad guys trying to screw over their debtholders by escaping through the hatch, while the Obama Admin got to look tough by "ordering them into bankruptcy if they didn't satisfy the requirements".

        I also assume that, while the loans "won't be paid back" after all on the current deal, the American taxpayer has better prospects anyway, since the US Gov't will probably be selling its stakes at tidy profits once the companies emerge and stabilize down the road.
        • 5 Years Ago
        Wagoner needed more money
      • 5 Years Ago
      i always shake my head in disgust when i see how the media and people want to see GM fold. Apparently hating GM is cool nowadays and even when they show new products/idea people scoff at them. i find it a shame that ford/gm recalls were always a top story on the news, but toyota/honda recalls always flied low on the radar of cnn.
        • 5 Years Ago
        Hating GM is the "new" black.
      • 5 Years Ago
      I can't wait to see innovation at the new, GM (Government Motors).

      The 2010 GM Trabant is said to be a winner with its flat-head 3 cylinder and one barrel carburetor.

      It'll have tubes in its tires and really neat windows that roll up and down with a hand crank.

      The excitement is palpable and I just can't wait!
      • 5 Years Ago
      Boy, it's a good thing we gave them all those billions to keep them out of bankruptcy, isn't it?

      And remember how many politicians, talking heads, "experts" and Autoblog commenters claimed that keeping GM out of bankruptcy was the only way to save ourselves from some kind of economic Armageddon? Good going, geniuses.
      • 5 Years Ago
      32 times larger? Want to, ya know, back that up with some statistics?

      No? Fine, I will bring my elite librarian skills to dazzle and amaze... Great Teacher Stryfe is on the air!

      The CIA's World Factbook (greatest reference material evah) says Germany is 349,223 km.

      World Atlas says that the US is 8,588,712 km (For the 48 states.... not many cars in Alaska and Hawaii, and to be fair, that's a lot of empty space up there).

      Dividing 8,588,712 by 349,223. The United States is 24.59 the size of Germany. You are incorrect.

      The US population is 307,212,123 (Factbook, 2009 est), while Germany has 82,329,758 (Factbook, 2009 est) souls. The US is 3.73 times more populous then a country 25 times less in size.

      Germany uses 2.456 million bbl/day of oil. The US, 20.68 million bbl/day (Both Factbook, 2007 est.). The US uses 8.42 the amount of oil, despite only having a population 3.73 times larger. And yes, the great size of our nation feeds into that, but people don't travel cross country alot. For most people, our sphere of life - the places we go to every day, the grocery stores and the banks and the jobs we hopefully still have, are relatively close.

      Really, we're pigs. We love big cars that get crappy gas mileage and we don't like being told no. We're children, who have for too long been spoiled and told it's ok to take what ever we want. The game is over people - time to grow up. We are running out of everything especially that stuff we love so much and if we don't smarten up, conserve and work on less consuming technologies, we will bury ourselves far deeper then China, North Korea or Iran could ever do.
        • 5 Years Ago
        Haha - see that is what I get for rounding (and yes, the CIA worldbook is the shizzz).

        Then again, you cannot save your way to prosperity - the thing that drives innovation is a need. If we are forced into a conservation based growth model, we will simply stagnate and then be forced to rely on a select group of "intellectuals" to make the best choice for the majority. Currently, that seems to be a reliance on the government when it should be a reliance on the market forces at hand. Basically, if we are running out of oil, the market will determine we need something different - we do not need to be forced into using less and stagnating.

        Thats all - I'm not trying to say we shouldn't review our options, I just don't think that some outside force of "guilt from the rest of the world" or "the government" should make us regret the lives we are able to build for ourselves.
      • 5 Years Ago
      nice, UAW will get to own another auto company at taxpayers expense once this ckears. Love it.
    • Load More Comments