?GM's Aversion To Bankruptcy?

[online-with-swine]

Why is GM afraid to go down this route?  Shouldn't they explore this route, which our govt has in place already to give struggling businesses relief, before they take tax payer's money?  They keep talking about scaring off customers, but really, people are already afraid to buy GM as it is.  Seems that declaring bankruptcy allows them to get out of some of the union agreements that keep them from competing with other companies to begin with. 

If they do it now they may be able to become a viable competitive company by the time the economy turns around and people start buying vehicles again.  Makes sense to me.  Am I missing something here?

[RazrRila99]

You are only looking at one aspect of it.  Not only will it affect sales, but the suppliers will be harder pressed to sell to GM worried if they will be paid back.  That is the biggest single thing that is causing the aversion. 

This whole thing is a loss loss -- GM loses if they get more bailout money, GM loses if they go through bankruptcy protection. 

As for the sales issue -- Im not afraid to buy GM.  I can get every part for my Impala and Silverado aftermarket.  Will I get an OE radio, maybe maybe not. 

[SpareRib]

I think that GM's stance is that they may not be able to go Ch 11 and reorganize the debt load.  If they are required to do Chapter 7, that's liquidation and there is no coming back.  Fact or scare tactic?  I don't know.

[Road_Hog]

The quicker people running this country figure out that unions are bad for business, the better off we'll be.  Figure out if we're going to be a predominantly capitalist or socialist society.  That'll tell you what to do with the unions.