iamwiz82
Lifer
Originally posted by: Svnla
Originally posted by: iamwiz82
How? They cannot pull the UAW out, they cannot cut pensions, they cannot cut healthcare, they cannot fire the ones dragging down the ship.
Plus, the money they are throwing at that stuff is being siphoned out of R&D. The price of their cars has to stay competitive or they will no be purchased, but the cost to manufacture is obscenely high because of those non-manufacturing debts. So they have to sell the low end cars at razor thin profits or they can skimp on parts that do not affect vehicle reliability.
They could, as the last resort, declare bankruptcy so everything is null and void. Impossible you say? Fortune magazine said it could happend. Interesting article.
GM could face bankruptcy down the road
Suppliers would scatter. They would have a hard time finding anyone to get them parts at a decent price. My company just got shafted by Dana's bankruptcy, and now with rumors of Lear filing soon I doubt we will be shipping much to them either.