GMC Bankruptcy

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Bonsman

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Look for GMC to file today. Their bond payments are due and they do not have the money to pay. I suspect it will be another pre-packaged plan like Chrysler. All the stockholders of GMC will be wiped out and the stock will be worthless. The new owners of GMC will be the government, unions, bondholders, and unsecured creditors. I am somewhat concerned about the ripple effect on GMC's suppliers. We could see a lot of their suppliers going under. If you need a new vehicle, wait about 30 days and you should be able to get a heck of a deal.

Under the pre-packaged plan, warranties will remain on your vehicles; our tax dollars will provide GMC with post-petition financing; more dealers will be cut, again, and GMC will be able to come out of bankruptcy with a decent balance sheet. The difference between the Chrylser and GMC banruptcy filings is that GMC does not have a company like Fiat to come in and buy the majority of their assets. That means WE will be the majority owner of GMC when it emerges from bankruptcy.
 

Jim62

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........."If you need a new vehicle, wait about 30 days and you should be able to get a heck of a deal."...

But, I don't expect that a GM bankruptcy will make Fords any cheaper. :tiphat:
 
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Bonsman

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Jim62":104k9cic said:
........."If you need a new vehicle, wait about 30 days and you should be able to get a heck of a deal."...

But, I don't expect that a GM bankruptcy will make Fords any cheaper. :tiphat:


LOL -- I should have said if you need a new GM vehicle..................
 

BeefmasterB

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Interestingly enough, Storm Ruger and Smith & Wesson stocks are going up! Wonder why that is?
 

browns

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Bonsman":zlo2ocwo said:
Under the pre-packaged plan, warranties will remain on your vehicles; our tax dollars will provide GMC with post-petition financing; more dealers will be cut, again, and GMC will be able to come out of bankruptcy with a decent balance sheet. The difference between the Chrylser and GMC banruptcy filings is that GMC does not have a company like Fiat to come in and buy the majority of their assets. That means WE will be the majority owner of GMC when it emerges from bankruptcy.

Who are you going to get to work on them? Just got word from a friend of mine that their dealership is not going to pay them full time for anything that is warranty . for example 12 hrs he would get 6. He and most of the others shut their toolboxes and told them when they decide to pay them they would come back.
 
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Bonsman

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browns":1tgn0au4 said:
Bonsman":1tgn0au4 said:
Under the pre-packaged plan, warranties will remain on your vehicles; our tax dollars will provide GMC with post-petition financing; more dealers will be cut, again, and GMC will be able to come out of bankruptcy with a decent balance sheet. The difference between the Chrylser and GMC banruptcy filings is that GMC does not have a company like Fiat to come in and buy the majority of their assets. That means WE will be the majority owner of GMC when it emerges from bankruptcy.

Who are you going to get to work on them? Just got word from a friend of mine that their dealership is not going to pay them full time for anything that is warranty . for example 12 hrs he would get 6. He and most of the others shut their toolboxes and told them when they decide to pay them they would come back.


Tell your friend welcome to the world of bankruptcy where nothing is fair or logical.

An Order has been entered in the bankruptcy case allowing GMC to honor the warranties in effect. How they honor the warranties is between GMC and their dealers. I am not involved in the warranty aspect of the case; so I am unable to give you an explanation concerning the reduced payments. However, there is an Order in place "allowing" GMC to honor warranties.

You would have to look at the contract between your friend and GMC to determine how GMC can reduce warranty payments. If your friend's dealership was terminated; then it is easily explained and our friend is lucky they are offering to pay him anything. I could go on; but explaining how executory contracts work in bankruptcy cases is not possible on a board like this. Executory contracts are one of the most complex aspects of the bankruptcy code.

We lost our GMC and Chrysler dealership in my town. So we will be traveling to get any type of service on our vehicles. It is a pretty crappy deal; but that is how bankruptcy works.
 

JHH

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Tell your friend welcome to the world of bankruptcy where nothing is fair or logical.

You got that right. I think the dealer was just trying to pull a fast one on the techs. They said they would pay them now. Seems when you lose your workers things spiral out of control as the dealer soon found out after 3 days with just the oil change guy working. ;-)
 

1982vett

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Looks like the techs made their point.

I had the opportunity to be part of such a plot. The company I was working for at the time went under and the bond took over. However payday rolled around with no check and no certain date was given when they would. The workers on the job held a small pow-wow and informed the superintendent we would be back when the checks were good.
 

TheBullLady

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I've heard some of the Chrysler dealerships here that have been given the "pink slip" are going to sue Chrysler to remain open. That should be interesting...
 

JHH

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I dont know about sueing, but I cant figure out how they made some of the decisions to close some stores? We have a nice newer building in Quincy ILL that was a Chrysler dealer and the Jeep dealer was across town in a little building. The nice one got closed down? Didnt Jeep become part of chrysler? The nice building also had Toyota that may have something to do with it.JHH
 
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Bonsman

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JHH":11z0x5eu said:
I dont know about sueing, but I cant figure out how they made some of the decisions to close some stores? We have a nice newer building in Quincy ILL that was a Chrysler dealer and the Jeep dealer was across town in a little building. The nice one got closed down? Didnt Jeep become part of chrysler? The nice building also had Toyota that may have something to do with it.JHH


You are correct. The new Chrysler only wants dealers selling their brand of automobiles under one roof.
 

hurleyjd

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Here is something to think about, all of the bond holders, pension funds, stock holders and such will get zero after the bankruptcy. Do you think each of the people who lost on this deal will be a customer for Chrysler or GM cars. I know that I would not be a customer for either of them.
 

1982vett

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Might wake up people to realize those extended warranties aren't always worth the money. :nod: Doubt I would ever have been or would be a Chrysler customer. Probably best to wait till post bankruptcy to be a GM customer. Everything is just promises till the ink is dry.

However, the secured bondholders are set to get 10% of the new GM as it comes out of bankruptcy. (Baring farther usurping of business law by the government.)
 

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