Korean Job Discussion Forums

[seosan08]

General Motors board weighs bankruptcy option: report
Sat Nov 22, 2008

http://www.pyrabang.com/contenteditor.php?ps=7078&target=http://www.reuters.com/article/newsOne/idUSTRE4AL0VW20081122

WASHINGTON (Reuters) - The board of directors of embattled U.S. automaker General Motors Corp is considering "all options" including bankruptcy, according to a report on the Wall Street Journal's website late on Friday.

The paper, citing people familiar with the board's thinking, said the stance puts it in conflict with chief executive Rick Wagoner, who told lawmakers this week bankruptcy is not a viable alternative for the company.

GM, in a statement to the newspaper, said the board has discussed bankruptcy, but said the board did not view it as a "viable solution to the company's liquidity problems."

A GM spokesman told the paper that management is doing everything it can to avoid a bankruptcy filing.

The company's board has been convening by phone each Friday to discuss GM's liquidity situation, according to the paper.

Wagoner, along with chief executives from Ford Motor Co, and Chrysler LLC, this week went to Capitol Hill to plea for $25 billion in aid from U.S. lawmakers.

On Thursday, Democratic lawmakers demanded that executives provide them with a plan of action in exchange for supporting any bailout.

(Reporting by Kim Dixon, Editing by Philip Barbara

[Milwaukiedave]

Here's a different link to the same story:

http://news.yahoo.com/s/nm/20081122/bs_nm/us_autos_gm_bankruptcy


I think bankruptcy would just make their situation worse given their credit rating would be in the toilet. It will be interesting to see how this ends.

[sojourner1]

If they are failing to innovate and deliver products that sell, then we should let them sink or swim as a company taking risks in a free market economy. If I invest my money in stocks or a business and lose, is Uncle Sam going to bail me out as to keep me in the business career? If I lose a job due to gross negligence on the employers part, is Uncle Sam going to bail me out? If I go broke, is Uncle Sam going to house me in the event I lack funds to pay rent? Will saving the big 3 and many other corporations fix the problem with the same executives running the show who created this mess pocket this money in the form of bonuses and capital gains?

Will creating a social system that functions as an executive safe haven during what very well is probably a great depression benefit the majority of Americans? While Laissez-faire was intended to give entrusted American professionals the freedom to work as they please, couldn't we drop the Laissez-faire approach and have a more active white collar policing agency to serve and protect the interests of keeping a stable market economy instead of letting all this executive corruption ruin it for all of us? The Laissez-faire style of system we've been living in doesn't work since corruption takes over and forces people on the lower rungs to unfairly lose while compromising the economy and national security itself. The finance, business and economic systems failure situation is our real national security threat; not Bin Laden nor Iraq. We needed more structure and meritocracy where the most competent applicants get a job; not those related to someone in high places or a member of a good ol' boy club. This problem has been so obvious to me for at least 15 years and I knew it lead to mass economic failure if allowed to run it's course. The Fed, shareholders, and boards should had sent corrupt and low performing executives packing years ago without golden parachutes and took a more accountability approach. If America can't function as a free market capitalist society, then maybe socialism would better serve the majority in that employment, health care, housing, food, and transportation are available to all citizens much like how they do in Europe. This would ease most of Americans financial induced anxieties that is destroying the country's mentality and promote a fairer environment for all to operate in.

Wouldn't it make good sense for the US government to build a new white collar financial management agency that sends effective business managers out on site to relieve the CEO's and presidents of their duty in failed corporations and banks? Currently we have a huge core competency of educated professionals willing to do the job (who are looking to demonstrate their abilities) and take care of business, if allowed the opportunity to do so.

If Uncle Sam is going to put out this money, then it can afford to send the best qualified managers out on site to assume responsibility in attempt to fix the problem, because most of those in the executive ranks today are failing their companies, employees, suppliers, customers, shareholders, and the country itself. Their just self-righteous, self serving, stingy, and greedy incompetent fools for the most part who are only out to get rich. We need managers who have a little class, integrity, honesty with a sense of duty fulfill to the company, employees, and the country itself. Come on, isn't $250,000 to $1,000,000 a year base salary enough to do a great job of leading a company in a value building fashion and encourage positive economic growth instead of just being a taker who destroys value? We need to re-evaluate who, why, and how we're hiring to run the country and hold them more accountable; not just throw more money from China at them as we're only rewarding bad behavior; not correcting it.

[Milwaukiedave]

I agree there needs to be alot of changes in the auto industry in the US. They need to start building cars people actually want to buy and that are more fuel efficent.

There are too many industries that the US has ended up bowing out of only to have foreign companies dominate that industry. The US is becoming a service oriented industry and is building less and less.

[Tiger Beer]

[mindmetoo]

[Kuros]

[bucheon bum]

Hyundai and Mercedes have plants in AL. Nissan has at least one plant in TN. One of my college friends went to high school in TN with a bunch of Red Wings fanatics (all of whom had migrated south with their fams for auto manufacturing jobs). Honda has a few American factories, and I know the Subaru I am currently driving was made in Indiana.

Hyundai has a design office in Irvine, and I'm pretty sure a couple others have them in SoCal as well. A couple of them have important offices in the Detroit area too.

Point being, there are lots of people employed in the US by foreign automakers, including blue collar jobs.

[bucheon bum]

Oh, and the most efficient GM factory is a joint-venture with Toyota: NUMMI, in Fremont, CA. It used to be the worst in the country, but back in the 80s, Toyota was brought on board and turned things around.

[khyber]

Or, heaven forbid....perhaps a new single American car company could forge itself in the Fires of Mount Doom (Detroit) to create General Chrysford.

[Joo Rip Gwa Rhhee]

[Jandar]

The problem with the big three is the pension burden, without the pension burden they would be very healthy.

Fix the pension fix the industry.

Automakers in other countries do not carry the same burden, equalize the burden equalize the playing field.

[mindmetoo]

[Tiger Beer]

[Kuros]