How Bankruptcy Would Benefit GM

Reader Comments
Back to blog

On June 1, GM announced that they plan on changing their pension plan options for selected U.S. GM retirees. The website http://www.gm-pension-buyout.com has compiled a useful guide that outlines pension plan changes. The changes were sparked by an effort to reduce the company’s pension plan liabilities by 26 billion dollars. Qualified GM retirees have the option to continue monthly pension payment benefits or take a lump-sum offer. Before making any decision that involves your financial future, it is highly suggested that you consult with a qualified financial planner. The deadline is July 20, 2012.

Jennifar of AK 2:26AM June 16, 2012

Excuse me? work hard like who? Toyota and Honda ? My God, Ignorance is surly bliss. It's obvious this idiot never worked in an auto factory or never worked at all. Best of luck at Wal-Mart

bob joes of NJ 11:33AM April 21, 2009

You can criticize GM & Unions all you want, but all US workers are overpaid & lazy. Government should handle bad economy by making all US workers take a 50% pay cut, do away with minimum wage to allow this to happen. This would help American business thrive. You will all live poor, but proud. Why would you want a union to help better your standard of living. This is a race to the bottom with our free trade deals. Americans are up for any challenge and we can beat anyone. So lets give up our middle class and get to work trashing anyone who wants to keep it. We sure don't want to be like China, who is sucking up all our unwanted middle class jobs. China has tons of cash to burn, thanks to us. But our superior government has a better idea.... kill the american worker and their jobs and borrow from our enemies till we can't see the light of day. See all of you in the unemployment line, cause we're all in this together.

Grandpa Jones of IL 10:45PM March 12, 2009

I think of what the Steelworkers Union did to US Steel, and this looks like Deja Vu all over again......to my mind, the key is getting rid of that $72.00 per hour union contract; put in new mgt, and when John Public sees what is happening, and the GM work force gets paid like, and is made to work hard like, Honda or Toyota employees, the GM cars will fly off the "shelves" of the car dealers.

TOM BARON of CA 9:12PM March 05, 2009

I'm bankrupt any car still runs great, Its not ib ny name any more, but I see it on the street all the tine.

DJ Johnso of VA 2:39PM February 09, 2009

I'm sick of this socialist bailout garbage! Incompetent (carmakers) and greedy (banks) busineses should be allowed to fail! What about Circuit City? They just closed all their stores and laid off all their employees. How come THOSE 35,000 jobs were not worth saving? The lesson we should all take away from these troubled times is this; It doesn't matter how much your company deserves to go out of businesses as long as you employ enough workers to justify bailing you out when you fail.
Does anyone remember the LAST time the government bailed out a car company and how controversial the Chrysler bailout was? What ever happened to that company? Oh yeah, I remember, IT NEEDS ANOTHER BAILOUT! Enough already!

Rick of NV 2:26AM January 20, 2009

What goes around comes around. Lets move on and stop wasting our money on loosers. These guys will never give us what we want even when we pay in advance. Tons of customers could have had free cars by now and still, we get crap quality and gas guzzlers, same O business as usual. Their way of doing business is more like the porn industry both useless pimps selling false dreams and enhansed pictures.
Canadian governament has to be the biggest idiots for donating money to help forign company when for the same amount they could create a better car company with their own employment and modern equipment, of latest technology and design. Or better yet wait a while and buy at scrap price. Who cares if the guy works for GM or TaTA as long as he gets paid and supports his family.
Who would buy from a company in bankruptcy?
Odd how the Volt is scheduled to come out after their caputt, the promise for the future and the car that has been in design stage the longest of automotive history.
So we know it can be done but will we ever get it????????????????? NO

Jeanlouis 10:24PM January 09, 2009

If you are facing financial problems and you are seriously considering filing for bankruptcy, you should speak to a bankruptcy lawyer. Filing for bankruptcy is a complex and time consuming process that can leave you overwhelmed.

live@mybankruptcyalternatives of IN 11:27AM December 27, 2008

If you are facing financial problems and you are seriously considering filing for bankruptcy, you should speak to a bankruptcy lawyer. Filing for bankruptcy is a complex and time consuming process that can leave you overwhelmed.

live@mybankruptcyalternatives of IN 11:27AM December 27, 2008

"The the rank and file workers need education and training to remain competitive in this global economy." - Micaroni of NY
Education and training is a very good idea, but I am in the recent graduate market and let me say that four years getting a Bachelor of Basketweaving is a waste of time. And what is shocking, is even quantitative majors are having difficulty finding stable, high paying jobs, outside niches like computer science. And if everybody who was currently in the auto sector decided to become computer techs there wouldn't be a shortage.
To everybody who says this is capitalism is supposed to act, they aren't seeing the larger picture. Wall Street banks get 750 billion to bail themselves out, and many of these banks have toxic assets. The War in Iraq will cost 1 trillion. And people are saying that GM does not deserve a puny tens of billions loans to make payroll? The article does not really address the point that up to four million American workers depend on GM for their livelihood other than ridicule it.
At the very least the article should have countered the point that nobody would buy from a bankrupt automaker by discussing successful rebranding and public relations efforts by insolvent companies to reform their image. Sales is as much selling the image as the product. But it did not, and even if it did it'd be hard to counter the fact that Americans won't buy cars from bankrupt automakers according to surveys.
And here is a strong point pro-bailout; if the bailout fails, GM has more assets than the small tens of billions that they want in loans. So if the government is at the front of the line as a creditor, there is absolutely no risk to the taxpayer at all because if the bailout fails, the government could liquidate all of GM's assets and get its money back. When someone says GM is having trouble because of the credit crunch they aren't saying GM's problems started in 2007. They're saying the Wall Street bailout package, which was supposed to result in more short term loans to companies which needed them, instead resulted in corporate fat cats acquiring more smaller banks in a mad rush to become too big to fail. So if banks won't lend, the American taxpayer must lend. And this is not "getting into the car business" any more than banks investing in mutual funds with a diversified portfolio is getting into the oil, high tech or hospitality business.
GM may have a bad business model right now but that in no way means it can't change its business model without going into bankruptcy. That is the crucial point the anti-bailout proponents must prove if they want to convince me and many others that destroying one of the largest labor unions in the country and cutting benefits in half is a good idea. The article confuses cutting benefits with firing workers; the latter can happen without the former.

Brian 8:51AM December 27, 2008