Originally Posted by barry123400

How do you tackle restructuring a company that has lost and is losing billions of dollars a quarter? The reality not exercised this time is you just do not. To say what is being done is a historical first in north america may be an understatement.

There is no upside to buying your way out in a situation that in all probability cannot justify the cost by any future profits if any. That senario is just does not really have any upside.

If the companies assets had been divided up there may have been some positive long term result after going into proper recievership. Although probably not but we will never know now.

I really think a lot of people do not realise general motors was and probably is finished as such. The big three have damaged themselves over time and have totally tarnished their images.

In simple terms they perished in their primary market place by their own efforts. In a way this also punishes those auto companies that tried harder to meet their customers needs and did.

To compound things further car prices will be forced to retreat soon. All other brands are getting pretty paranoid about the continuing loss of manufacturing volume. Especially the well run companies.

As production numbers drop costs rise per unit. Better to sell units cheaper in an attempt to maintain production and costs. Just in case the public return to normal buying volumes at some point...

These other manufactures will decide or have already decided to retain their market percentages whatever it takes. That leaves little room for auto companies that have lost most their market share to gain any.

Time will tell or this is just the initial indication of real problems ahead across the board in many sectors. I really suspect there may be more serious problems waiting to surface. This auto thing tends to act as a smokescreen to some extent. How many other major corporations have built debt pyramids.

We may now be starting to live through a period of major historic industrial change. Starting with continually pumping billions of taxpayers dollars into the domestic auto sector for years until the towel is thrown in.

I believe it wil be thrown in as there is too much secured debt to service even after the bankrupcy is finished. Another sixty billion comes to mind for the american taxpayer since they own 60 percent. The debt over asset value is 90 billion. I think they are in for another 110 billion as well. At a fire sale those secured assets bring little. So for 30 billion dollars the government purchased 170 billon of debt? Or is there even more?

The people holding that debt just breathed deeply. I really hope this was not what this was all about. On the otherhand I never believed it was really about the jobs or flagwaving for the domestic brands.

The overall situation was and is so bad the government probably had to act or see a real systematic collapse. What disturbs me the most is people made enormous salaries and bonus to construct this mess.

As general motors goes so goes the whole country is an old expression. I hope this does not play out in reality.