Let's Say GM Goes Belly Up - What Does That Mean To GM Car Owners And Warranties?......

[global1]

How will GM going belly up hit GM car owners? Will it have any effect on warranties? I know that it means that more people will lose their jobs - but if I own a Chevy - what does it mean to me?

I'm asking because I'm hearing today that many American's are not favoring any help to the failing auto industry. I know the Repugs do not want to help - but they want to bust the unions and they want to buy assets on ten cents on the dollar. They want their cronies to benefit from this crisis.

I just want to be able to talk to people that are not wanting to help the auto companies and let them know how it will hit them if we let the auto companies to go bust.

I favor helping them - but with strings.

[seemunkee]

1. You're screwed.

[phantom power]

2. The business (and warranties) might be bought out by some competitor.

[Democrats_win]

3. Just think of how this will affect sales. Buying from a company going bankrupt is a bad idea.

[bluestateguy]

4. I have a GM car

It's long past warranty, but I do wonder if it would then become harder to get parts.

When AMC was bought out 20 years ago, it gradually became harder and harder to find parts for their cars.

[taught_me_patience]

5. They will still be honored

GM will go into chapter 11 and get a loan to continue business. To the consumer, it will be business as usual.

[endarkenment]

8. Or into chapter 7 and get liquidated.

your optimistic prognosis is but one of the ways this could unfold. In the midst of a liquidity crisis it seems somewhat less than likely that the private sector is going to step up to finance GM through a chapter 11 re-organization.

[taught_me_patience]

9. There is an almost 0% chance of Chap.7

I can't think of a single major industrial company that has faced liquidation in the last 20 years.

[endarkenment]

10. Bethlehem Steel, 2003.

Filed chapter 11 in 2001, liquidated in 2003 after failing to find enough credit to re-organize itself. Of course GM would start out in chapter 11, but would find itself unable to get financing to re-establish a functional business and would be scrapped in short order. Great plan, that is if you are a union-hating republican courting favor from foreign manufacturers. I know, the next time we have a real war we can ask the Chinese to build our tanks and airplanes for us.

[HereSince1628]

6. GM needs to be forced to restructure. That sort of requires going bankrupt

first.

Going bankrupt doesn't mean going out of business, but it does put them on the auction block and the word is that the Chinese are already salivating at the opportunity for a platform that puts them inside the US.

[Idealism]

7. If the government gives them a loan

During bankruptcy they can file Chapter 11, which will allow them to reorganize and, if a competitor wants, to buy up their operations (warrenties and copyrights included). If the government gives them nothing at all, then GM will go into chapter 7 bankruptcy, complete liquidation, which means they will be worthless. Gm would be forced into chapter 7 for the same reason they are forced into bankruptcy now: there is no credit to be had anywhere outside of the treasury. In other words, shits REAL bad.