General Motors is BUST.

[Ayham]

The car manufacturing tycoon has finally announced bankruptcy yesterday after announcing a total debt of $170,000,000,000 (company capital is $90,000,000,000).

IMO, we have entered phase II of the crunch with style. Until the company is re-branded and listed as a new stock market entity, what would happen to the dealers? Clients who drive GM cars? Racing teams?

[akanso]

:Coffe: until they get the termination letter!!!!!

[Ayham]

More on the move:

General Motors filed for Chapter 11 bankruptcy protection today as part of the Obama administration's plan to shrink the automaker to a sustainable size and give a majority ownership stake to the federal government.

GM's bankruptcy filing is the fourth-largest in U.S. history and the largest for an industrial company. The company said it has $172.81 billion in debt and $82.29 billion in assets.

The fallen icon of American industrial might will rely on $30 billion of additional financial assistance from the Treasury Department as it reorganizes. That's on top of about $20 billion in taxpayer money GM already has received in the form of low-interest loans.

GM will follow a similar course taken by Chrysler LLC, which filed for Chapter 11 protection in April and hopes to emerge from its government-sponsored bankruptcy this week.

The plan is for the federal government to take a 60 percent ownership stake in the new GM. The Canadian government would take a 12.5 percent stake, with the United Auto Workers getting a 17.5 percent stake and unsecured bondholders receiving 10 percent. Existing GM shareholders are expected to be wiped out.

President Barack Obama is scheduled to address the nation about GM's future at midday from Washington, and GM CEO Fritz Henderson is to follow him with a news conference in New York.

Source: http://www.chicagobreakingnews.com/2...ankruptcy.html

[mahmoud_bedewi]

it is a trick
man i am sick of this world ..... they say there is a recession , but think with me, the world is a CLOSED system ....so where did the money go ? to the aliens?
it is just another american trick to reorder things

[Ayham]

Indeed.....A giant like GM doesn't lose all its assets and money overnight! Read the press release and it says that it's a

goverment-sponsored bankruptcy

, which means somebody had to pay for it and it's the regular Joe & Jane who own(ed) stocks at the company...That's a small price for the government; people can afford to lose their life savings. I don't think their shares are transferable to the new entity too.

[Haissam]

it is a trick
man i am sick of this world ..... they say there is a recession , but think with me, the world is a CLOSED system ....so where did the money go ? to the aliens?
it is just another american trick to reorder things

:rofl:

it's not that simple man!! :reading:

http://www.crisisofcredit.com/

[SSense]

Mahmoud, my friend, we can talk about the meets in the official chatting thread :)

[mahmoud_bedewi]

:rofl:

it's not that simple man!! :reading:

http://www.crisisofcredit.com/

believe me it is that simple ...... how come every thing collapse in a few months
it is not simple for normal ppl like u and me coz we get crushed
but for world leader like the USA it is just a button to press

[Bruno]

this serves them right!

[Nabil]

Japanese FTW!

[Ayham]

You know what? Listening to the news last night the first thing that jumped into my mind was the Chevrolet Optra I tormently drove in Saudi, and then I was somewhat happy. But I have friends working in the GM head office in Dubai. I hope they'd be taken care of...

speaking on behalf of those here in the US, this Chapter 11 Filing is a VERY scary proposition. GM has been THE producer of american cars over the past many years.

In terms of the recession, I can def. tell you that we're in one. This has been happening for months. GM didn't have enough money to pay back its debt, so it tried to pay the debt back with stock, however none of the companies accepted. The US gov. pumped BILLIONS of dollars into the company to try and lift it up from the grave. They tried to make a deal to have most government vehicles from GM. etc. etc.

GM's failure is a product of its smaller companies making **** cars, which happen to be affordable. Its really like fast food here in America. Its cheap, and easy to get, so a lot of people get it. However this turns into a HUGE (no pun intended :rofl: ) problem in terms of obesity.

This is the same problem with the car industry. We like the cheap and easy cars (cept for me. Stayin with the Bavarians! :D ) which 'feeds' our obesity, and led to the downfall.

GMs restructuring plan is to have smaller, better quality companies when GM regains its ground. This Chapter 11 filing means that hundreds of thousands of US jobs are going to be gone. This is a MAJOR hit for the US economy, and will be a major deal for almost all Americans in the near future.

Thank God for Opel and Fiat and all the other subsidiaries that are helping pay off the debt. Also thanks to the Canadian government to pumping Billions into this as well.

[SewerSideUp]

Ive never seen a country that buys so many cars and sells so many cars before. If you go to the scrap yards and used car importers around the country here you'll see 2006-7-8 vehichles imported from the US up for sale!! 2007 and 2008 model cars are supposed to be under warranty !
Americans buy their 07' Chevy Suburban, in a year or so, they sell it to buy the as advertised 09' model Suburban and they actually do it. It happens over and over again .... No value for these cars, so who cares, just keep buying new ones !