Comments on: GM Sinks Another $350m into Delphi

By: capeplates

capeplates — Sun, 10 Aug 2008 08:01:43 +0000

Seems like the pebble in the pond syndrome – once one goes many others will follow. The Delphi/GM link is so intertwined that one cannot exist without the other. Will they be around in two or three years – I wouldn’t put any money on it!

By: iNeon

iNeon — Sun, 10 Aug 2008 02:11:32 +0000

Netrun–

I think so, and I’m a Chrysler guy.

A bunch of import-loving cheerleaders won’t close America’s automobile manufacturers down– Even if they’re the majority.

The 3 will find their way.

By: netrun

netrun — Fri, 08 Aug 2008 18:42:52 +0000

So if Delphi goes under, it takes GM with it. According to the people responsible for setting the odds for this sort of thing (the insurance banks) there is a greater than 95% chance of this happening.

If ResCap goes under, it takes GMAC and GM with it. Again, a greater than 95% of this happening.

If GM doesn’t shut off the truck plants quick, they will go under. Again, a greater than 95% chance of this happening.

Does anybody think there is actually a chance of GM existing 2-3 years from now?

By: NickR

NickR — Fri, 08 Aug 2008 16:45:14 +0000

The question is, who will bail out GM?

That’s pretty obvious isn’t it? After all, what good are taxpayers if they can’t bail out failed corporations?

By: Dr. D

Dr. D — Fri, 08 Aug 2008 14:29:14 +0000

Good Lord! General Motors has become the world poster child for absolute corporate insanity.
General Motors is very much akin to Adolph Hitler in that: take the road we want and stay on it until the world goes up in flames and then blame everyone for the flames. Poor GM they are an ultimate embarassment to America and Americans.

By: powerglide

powerglide — Fri, 08 Aug 2008 14:02:46 +0000

Katie —

There’s still time to edit your post! Can’t you somehow work in the word ‘oracular’ ?

We Yanks expect no less…

By: jolo

jolo — Fri, 08 Aug 2008 13:59:44 +0000

Delphi will go chapter 7, which will push GM into chapter 11, if Delphi does not come out of this bankruptcy protection by the end of the year. Even if they could get someone (like Denso, Johnson Controls, Visteon, etc) to buy the profitable parts of Delphi, the parts stoppage will allow GM to have another work stoppage to thin out their inventory. If and when someone buys those Delphi divisions that are wanted, if it takes too long to do so, it will drag GM into bankruptcy protection. Delphi is the weakest link in GM’s precarious financial condition; their products are in too many GM vehicles. Pull the Delphi plug on their life support (”loans” from GM) and GM knows they’ll follow them into the same grave.

By: Cammy Corrigan

Cammy Corrigan — Fri, 08 Aug 2008 13:17:29 +0000

I suppose it makes a change to see GM dumping millions of dollars into another bottomless pit (i.e Rick Wagoner’s salary).

Incidentally, are GM expecting to see these “loans” repayed in full? Or is the word “loan” being thrown about so there’s an illusion of GM getting their money back….?