It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
NEW YORK (CNNMoney.com) -- Preparations for a possible bankruptcy filing at General Motors have become "intense and earnest", according to a source familiar with the company's plans.
The source, who spoke on the condition of anonymity, said GM still hopes to win concessions from its creditors and unions that will allow it to avoid bankruptcy. But the June 1 deadline given to the company by President Obama and the Treasury Department to reach deals or go into bankruptcy has caused a pick-up in preparations, the source said.
"We're talking about what could be the largest industrial company to ever go bankrupt. The preparations better be intense and earnest," the source said. "The preparations are being made because there's a short time frame here."
Originally posted by pause4thought
reply to post by stander
It's not the cars that worry me. There has been global overcapacity for far too long. It's the jobs - not only those at GM, but also those at their suppliers. We're talking unimaginable figures - and not just in the US, either.
As it currently stands the United States government – on state, local, and federal levels – has given billions of dollars over generations to foreign automakers to come to the U.S. and put our companies out of business.
Before the government stepped in to save the Big Three it had already been propping up Toyota, Honda, Nissan, BMW, Mercedes and many others for decades. We have given tax incentives, public funding, and other kick backs to these companies in our push to keep “free markets” in the U.S. You would be hard-pressed to buy a GM, Ford, or Chrysler vehicle in Japan, but Japanese vehicles are the top sellers here in the U.S. You can buy a Big Three car in most of Europe, but those cars are made overseas without the tax incentives we give foreign companies.
Originally posted by Neo_Serf
I find it insane that the last bastion of real industry in the US is told by the administration to become solvent or face bankrupcy, and the horrors associated, while the large financiers such as AIG that are instrumental in this collapse are given a no strings blank check.
America Needs Electric Cars, But Not this Way
Norwegian electric carmaker Think announced last month that it intends to build a manufacturing facility in the U.S., thrusting eight states in a race to the bottom to offer the most alluring incentives to attract the company’s factory.
That could be a costly venture for Detroit’s already beleaguered Big Three automakers, however, putting them in direct competition with the Norwegian start up that is sure to be afforded with huge advantages in the form of tax abatements, free land, government-funded training for employees and use of federally subsidized power among other incentives.
GM shares slump as bankruptcy fear grows
The automaker is under pressure to cut $28 billion of unsecured debt by two-thirds, turn half of its remaining payments into a union healthcare trust into equity rather than cash, and reduce hourly wages and benefits to match those paid by foreign automakers.