Comments on: Delphi Headed for C7 Liquidation

By: Robert Schwartz

Robert Schwartz — Tue, 07 Oct 2008 15:51:07 +0000

Liquidated? no. To liquidate something you need buyers. Scrapped is more like it. Won’t cover the legal fees.

By: John Horner

John Horner — Tue, 07 Oct 2008 15:43:59 +0000

Maybe we can call the final solution American-Leyland, just for old times sake.

By: 50merc

50merc — Tue, 07 Oct 2008 15:42:38 +0000

It’s “cut bait [do nothing] OR fish [do something].” GM is cutting bait with the Impala. Ford went fishing with the Flex.

Paul, thanks for reminding us that inflation distorts comparisons of nominal dollars.

Strippo, you’re right on the “going concern” issue. A year or more ago I was wondering how GM’s auditors were facing up to the question of the viability of a unprofitable company with liabilities greater than assets.

By: Matthew Danda

Matthew Danda — Tue, 07 Oct 2008 13:45:25 +0000

I guess GM will be nationalized after all (once they default on the gov’t loans). Whodathunk, in America of all places.

By: Strippo

Strippo — Tue, 07 Oct 2008 12:20:44 +0000

But for the idea that ultimately the government will not let the company fail, GM is no longer a “going concern”. The cash on hand is too modest for a company going through constant, expensive downsizing, the monthly cash burn is too great and there is no end to the downward spiral in sight given the prolonged recession that appears to be ahead of us.

By: Paul Niedermeyer

Paul Niedermeyer — Tue, 07 Oct 2008 02:45:40 +0000

Once again: comparing GM’s current stock price to it’s price in 1954 is pretty meaningless. Adjusted for inflation, GM’s stock in 1954 was worth $64 today. Or, GM’s price ($8.24) today would have been only $1.08 in 1954. GM’s stock is way below anything it ever was (inflation adjusted).

By: eh_political

eh_political — Tue, 07 Oct 2008 01:56:44 +0000

and what roughly manufactured parts
lurch on semis
towards Detroit to be cobbled together
…i mean born