All Eyes on GM Following Chrysler's Bankruptcy...Will GM be Next?

I doubt GM will enter bankruptcy based on the Presidents desire to keep his approval ratings high and his "promise" to save/create a ton of jobs through his spending package and his close ties to the unions. May not be the right choice, but America's majority elected him to save jobs and give unions more power, time to write another bailout check.

I'd bet not... Now that the debt holders see that America's new dictator will force private companies into chapter 11 thereby eliminating all they are owed. No I'd bet those debt holders would rather take something than nothing.

The unions, they are a different animal. I seriously believe the unions will not offer any concessions. Personally I'd rather have a job and a bit less pay, than be looking for a job in the current economy. It seems the union bosses don't see things the same way.

Good luck GM, competition is good for us all.

GM will file. I mean really...convincing 90 percent of its bondholders to swap $27 billion with of debt for a 10 percent stake in the company... get real

Chapter 11 for GM is coming

It could be possible that the debt holders would rather dismantle GM and sell off the pieces to recoup some of their money, than own GM stock which is virtually worthless.

GM will go into chapter 11, because it's the easiest way to reduce debt. Like Bradford said, no-one wants to take 10 % on money owed. This allows GM to say they tried to negotiate out of it, and then sell off their toxic assets. They will do a similar move to Chrysler, where they offload the 'bad' divisions and keep the good ones. This also eliminates a large volume of debt, which GM needs.

I'm not sure if they can scrap the UAW simply by going into chapter 11 or not, but you can be sure that if GM can get away with not paying the pension fund or something similar by going into chapter 11 they will do so because they can.

Its sad that these car companies are stuck negotiating with unions in the end. Sad that most people in this country can't see that its these union's that have destroyed American Industry. Sure at some point they were needed for fair wages etc, but that was a while ago and now they just take advantage and screw each industry over. People getting paid for being lazy and doing shoddy work. But you can't fire them or you'd have to pay even more. People getting paid because their position was no longer needed in an evolving market, but so now they sit at home and get paid years later.
The unions should just be eliminated completely and if new unions want to rise up later that should be fine. Perhaps they would do things a bit more logically and not suffocate US companies.

One fails company down now one to go. When GM files for chapter 11, they like Chrysler will come out a better company in the long run. Yeah it's going to take them a while to recover from Bankruptcy, but they will be a lot more organized and efficient car companies then they ever were before in the long run. I mean it's either going this route or going belly up.

I hate unions but it's just as much the fault of the executives. American wages when normalized for inflation have been flat for 3 decades. Americans in large starting out today will never do as well as their parents. Those days seem to be over forever do to globalization.

Having said that if the government stays out of GM they may have a shot out of bankruptcy. I don't really see that happening. And everyone should know that there is nothing remotely efficient about government.

Actually I would agree with the fact that I might not do as well as my parents, but I'm not 100% sure globalization has everything to do with it.

I look at it as more of a culture change. People (sometimes including myself) have gotten into the excess, accumulation, and greed that companies have created for us. The whole minimalist attitude that is making a come back is kind of refreshing. But as with many things today I doubt enough of a change will come about to make a huge difference in the overall American culture.

Paul is right, bankruptcy is not the end of a company,just gives them the ability to renegotiate debt and contracts. We should have insisted they do so before the first bailout went out. All of the major airlines have gone bankrupt,but they are still around to give us awful service.

Hopefully the quality of GM vehicles goes up.