So, how long does GM/Chrysler have?

[Sam Spade]

There is a February 17 deadline for Chrysler and GM to show progress to the Treasury in order to continue bailout funding.  It's not as big as the March 31 'drop dead' date, but still...

GM to ask for more govt aid or file for bankruptcy: report
http://www.google.com/hostednews/afp/article/ALeqM5hxr4XBAzEi7zpJcRvdJlxoGPZ7vg

UAW Objects to GM, Chrysler Plan as Deadline Nears
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=acmrNOSikzPs

I'd say there's about a 50-50 chance GM goes under in the next couple of days.  Chrysler possibly too.

Otherwise, we keep throwing money at it.

[2952-0-0]

They break themselves into a "bad company" and a "good company" and then proclaim they have rid themselves of problems?

[Southern Senator North Carolina Yankee]

I have a feeling both companies will be Bankrupt by spring. But bankruptcy =/ death. 75% of companies who go bankrupt survive. Of course I son't expect Obama to let GM or Chrysler be shutter. Either before or after they file for bankruptcy Obama will probably through a few billion at the companies to keep them in business and guarrentee they survive. Or he justs nationalises them.

[Sam Spade]

I have a feeling both companies will be Bankrupt by spring. But bankruptcy =/ death. 75% of companies who go bankrupt survive. Of course I son't expect Obama to let GM or Chrysler be shutter. Either before or after they file for bankruptcy Obama will probably through a few billion at the companies to keep them in business and guarrentee they survive. Or he justs nationalises them.

I don't think the figure is 75%.  Less.

But whatever, they stand a chance of surviving if they go into bankruptcy.  They stand 0% chance of surviving if the government nationalizes them.

[dead0man]

They both need to start selling assets that are not related to making cars.

[opebo]

It will be sad if political foolishness causes this 'bankruptcy'.  I voted 'the government will fund them indefinitely' because it is the best decision and what I hope will happen.  Of course nationalization doesn't mean they're 'dead' - in fact with good government this would be the best course.  But as long as there is one major party intent on destroying the auto industry, this is obviously quite a dangerous course.

The best we can do is to continue funding them in whatever amount is required, and hope that 'good times' (i.e. good government economic policy) return them to 'solvency' before the job-destroying party gets back in power.

[Queen Mum Inks.LWC]

Remember, bankruptcy doesn't mean death.

[MK]

The 2009 year will make or break them and alot hinges on gas prices.


Glad to see Ford is staying strong though.

[Sam Spade]

GM has asked for $16.6 billion more.  Chrysler has asked for $5 billion more.

Money sentence:

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The hole continues to grow...
http://www.foxnews.com/politics/first100days/2009/02/17/gm-chrysler-billion-bailout-cash/

[True Federalist (진정한 연방 주의자)]

If GM goes into bankruptcy this year it will be a pre-planned Chapter 11 reorganization under which they trim their labor costs, get rid of brands such as Saab, Saturn and Hummer, and last and not least, ditch their smaller dealers.

Chrysler on the other hand is likely to go into Chapter 7 liquidation if they don't get government money and Chapter 11 or the equivalent if they do.  Dodge is the only division I see as being assured of survival.  The Chrysler division will survive only if the FIAT deal goes through.  The Jeep brand will likely survive for a while longer, but not as part of Chrysler.  Most likely outcome for Chrysler is a passage through Chapter 11 to among other things, drop off the Jeep division to a Chinese company while keeping Chrysler and Dodge as North American divisions of Fiat. If it goes into Chapter 7, Tata Motors would likely be interested in acquiring Dodge, but not Jeep as they recently acquired Land Rover.  Unfortunately, there isn't anything special about the Chrysler brand that would make it likely to survive a passage though Chapter 7.