http://cache.jalopnik.com/assets/base/img/thumbs140x140/jalopnik.com.png http://jalopnik.com/tag/gm bankrupt http://jalopnik.com/tag/gm bankrupt NYT Dealbook follows Jalopnik, makes case for GM bankruptcy. [NYT] More »
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One of the biggest problems we've had with the request U.S. automakers have made for financial assistance from the Feds to avoid bankruptcy has been a lack of centralized message. The General's apparently trying to change that, this by heading to YouTube by way of their GMFactsandFiction website. The video, titled "The U.S. Auto Industry and the Ripple Effect," aims to make the case for the Feds to "Save GM." For starters, they're claiming one out of every 10 people in America is employed in a service related to the auto industry. If that number's correct, (which we think may be a little bit exaggerated — but not by much) nearly three million jobs would be lost in the first year after the collapse of the U.S. auto industry, with another 2.5 million to follow over the next two years. In addition, they're claiming personal income in the United States would drop by more than $150.7 billion in the first year with the cost to local, state and federal governments hitting a staggering $156.4 billion over three years in lost taxes plus unemployment and health care assistance. Hit the jump to see the video and to read the rest of the talking points. We're still waiting for the talking heads to advocate buying Save GM t-shirts. More »
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The red rubber bull-biting bald man by the name of Jim Cramer had a mouthful to say about the Motor City today — making clear his belief that if Motown gets showed D.C.'s checkbook, then we've seen the lows of this financial downturn. I tend to agree. Right now, according to Cramer, the issue isn't anymore whether you think GM deserves or doesn't deserve to be saved, it's whether you're alright with massive unemployment and an economic downturn taking this nation further into the murky unknown depths. Sounds to us like someone thinks people need to buy some "Save GM" t-shirts. That sentiment's shared by Keith Crain's Automotive News, where we saw an opinion piece today the likes we've never seen — essentially refuting an idea I'd held up until the past week, that Chapter 11 could allow for reorganization. The Op-Ed's entitled "The cost of GM's death," and you can hit the jump for the excerpts. More »
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Looks like Deutsche Bank's finally jumping on the whole "GM doesn't have money to pay the rent past December" bandwagon, issuing a price target of $0 on GM stock in light of a likely bankruptcy filing without federal intervention. As a result, GM shares are now down over 27% in morning trading. We're glad to see analysts at huge global financial institutions with millions of dollars in resources are finally on the same page as a car blog with a silly name. [Marketwatch] More »
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I'm not the first person to say it. After yesterday's 31% drop in the price per share, news outlets talking to the right people this morning are already saying it, albeit fecklessly, like thus: "Will GM declare bankruptcy?" All I'm doing is removing the question mark. The pundits saying "bankruptcy is not an option" are completely ignorant of the facts, living in an alternate reality or parroting the GM PR public line (a line I don't begrudge GM for pushing given the need to be positive or else face a rush for the hills), because let's be clear here — if the marketplace for credit does not change in the next year, bankruptcy is not only an option, it's the only option. Yes, GM will be forced to declare bankruptcy. Although yesterday's drop in share price had more to do with the release of the short-selling ban on GM stock than anything else, it's indicative of the bigger picture. It's the same one facing every major company in the United States today, and every consumer looking to buy a house or a car — an inability to get a loan. For GM, those loans are what they'll need to go about doing business on a day-to-day basis and it's a problem that looks to not be fixing itself anytime soon. But the "b-word" may not be a curse word for the General. In fact, it could potentially be one of the best things to happen to the automaker in years. Here's why and how. More »
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