Wild Ass Rumor of the Day: GM Waiting for Chrysler to File Chapter 11

Justin Berkowitz
by Justin Berkowitz
wild ass rumor of the day gm waiting for chrysler to file chapter 11

While rumors that GM's letting the UAW run it into the ground (accidentally on purpose) are pretty far-fetched, it's highly likely that GM knows it's flaming-out (cash-wise), heading for C11 in a death spiral. So what's stopping them from using C11 to protect their current cash reserves (which they need for reorganization) other than, say, hubris and self-delusion? Chrysler. When Chrysler files ("how our employees spent their summer vacation"), GM and Ford will get a short term boost. Sales will come from former MOPAR devotees, rural areas without a large transplant presence and people who consider Chrysler's bankruptcy a "wake-up call" to start buying American. If GM files before Chrysler, ChryCo gets the dead cat bounce. Oh, and why not let Chrysler introduce Americans to the possibility of buying a car from a bankrupt carmaker? Look for a full editorial on the slings and arrows of a GM bankruptcy by the end of the week.

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  • Menno Menno on Apr 23, 2008

    But, quasimondo, you didn't answer the question. Is the Fusion an AMERICAN car? You're also inaccurate - the Ford Crown Victoria (now fleet - read, police and state use only), the Mercury Marquis and the Lincoln Town Car are all manufactured in Ontario, Canada. Are they AMERICAN cars?

  • MgoBLUE MgoBLUE on Apr 23, 2008

    Add to Ford's hecho en Mexico list: The Edge and the soon to be: Ford Flex The TRUTH is that the only vehicles that Ford manufactures in the USA is the Taurus, Mustang, F series Trucks and SUV's. With the slump in gas guzzler sales, I believe Ford manufacturers ~50% of its units outside of the USA this year, then imports them here. Meanwhile, we have a bunch of self-described "patriots" running around yelling "buy American". Little do they realize (or care to admit) that the Transplants are more American than the Big 2.4 these days. And profitable. And sustainable. Just sayin.

  • Menno Menno on Apr 23, 2008

    MgoBLUE, maybe Hyundai, Toyota, Nissan, Honda, Subaru and soon Kia should start waving the American flag about the fact that they manufacture some vehicles in the United States (or soon will be in the case of Kia). Plus they actually need to increase their dealer footprint in the middle of the country. I guess that'll happen "naturally" once the 2.801 are kaput. The British public is no worse off (in fact, an very strong argument could be given that as taxpayers not supporting a dead auto industry, they are better off) without "British owned" mass production automotive manufacturers. I'm sure we Americans and Canadians will also do just fine. Most countries of the world don't have their own auto industries. However, it will be somewhat ironic to have India, China, Taiwan, South Korea, Germany, and France with home-grown mass production auto industries if America does not....

  • Geeber Geeber on Apr 23, 2008

    MgoBlue: If I recall correctly, the Edge is made in Canada. The Flex will be made in either Canada or the U.S., but not Mexico. The upcoming Fiesta will be manufactured in Mexico. Even the head of the UAW admitted that Ford can't make any money on the Fiesta if it manufactures it in the U.S. with UAW labor.