So, how long does GM/Chrysler have? (user search)
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  Economics (Moderator: Torie)
  So, how long does GM/Chrysler have? (search mode)
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Poll
Question: How long before one or the other or both declare bankruptcy?
#1
February 17 or before
 
#2
March 31 or before
 
#3
Before end of 2009
 
#4
After 2009
 
#5
Never (the government will fund them indefinitely)
 
#6
Government will nationalize (i.e. they're dead)
 
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Partisan results

Total Voters: 14

Author Topic: So, how long does GM/Chrysler have?  (Read 2258 times)
True Federalist (진정한 연방 주의자)
Ernest
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Posts: 42,144
United States


« on: February 17, 2009, 09:22:15 PM »

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.
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