I dont think it will happen, but if GM entered chapter 11, they would not be screwing their customers. The labor contracts and 'legacy' benefits costs to retirees who outnumber employees 3:1 would get cancelled, and without the drag of the retirees, and with a slimmed down wage&benefits contract for employees (aka screwing the employees) and the end of the jobs bank GM suddenly looks competive and profitable. However the social cost and morality of breaking these deals via C11 is highly dubious, but it has been done, look at United airlines.
Uniteds C11 is quite illustrative, the traveller did really see the bankruptcy, the planes kept flying, the fares stayed competetive (had to) event the frequent flyer miles program got retained. Sure the flight attendants were royally PO'd and let that show (hey I would be too, doing longer hours for less pay&my pension gone) but the thing did keep operating.

Of course whether or not GM went into C11, it might decide to sell off some units like saab. The only buyer I see for saab is Renault-Nissan or PSA group (Peugeot-Citroen of france), both have a huge hole in their portfolios offering premium vehicles in europe (big peugeots and renaults are dire and only sell to the french government), and PSA has no presence in the US at all since 1990, weras saab has expertise in federalising vehicles, OBDII etc that could leverage a return.


posted by 24.14.32...

• What happen to my SAAB 95 if GM goes bankrupt?, st, Wed, 5 Apr 2006 15:29:56
  • GM and Chapter 11, Bevan, Thu, 6 Apr 2006 20:34:13 <-- Viewing This Message
  • even if GM did go bankrupt..., sonique, Thu, 6 Apr 2006 08:24:29
  • Re: What happen to my SAAB 95 if GM goes bankrupt?, zyzzix, Thu, 6 Apr 2006 05:51:59
  • Re: What happen to my SAAB 95 if GM goes bankrupt?, Aussie Aero, Thu, 6 Apr 2006 05:04:37
  • Isn't gonna happen PERIOD !! n/m, TG, Wed, 5 Apr 2006 16:47:53
  • GM Sticks around, Schu, Wed, 5 Apr 2006 16:08:45

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