Chrysler, GM Deny Threat of Bankruptcy

Robert Farago
by Robert Farago
chrysler gm deny threat of bankruptcy

If GM and Chrysler were healthy, they wouldn't have anything to deny, would they? But they do. And so they have. In so doing, GM CEO Rick Wagoner provided the perfect non sequitur. According to Bloomberg, "GM has no thoughts whatsoever'' of bankruptcy. Hang on; if you're not thinking about it how can you answer the question? And anyway, if Wagoner isn't thinking about bankruptcy, should he be? You know; the threat of bankruptcy? Or is this one of those quintessential GM fingers-in-the-ears "la-la-la-la-la" moments? Along the same lines, Wagoner declared "We don't have any plans to eliminate more brands." That's reassuring? Shouldn't GM have plans to eliminate brands? Especially if GM "has a lot of money for a company of its size" (i.e. one who's market cap is less than Mattel). Meanwhile, Automotive News [sub] has intercepted a letter from former ToMoCo Prez (and current Chrysler Prez) Jim Press and his best bud Steven Landry (executive vice president of North American sales) to ChryCo dealers. The missive assures store owners that the ailing American automaker isn't going Tango Uniform. "Speculation has surfaced recently in media coverage of analyst reports suggesting Chrysler might have liquidity issues down the road if the U.S. market does not pick up. Chrysler has communicated to the media that the suggestion of a possible bankruptcy situation is without merit." Without merit? As in untrue? False? Wrong? Parse-ably.

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4 of 18 comments
  • GS650G GS650G on Jul 11, 2008

    Lucky for us other companies make cars too, even better ones than these two behemouths, so after they are gone the sun will still rise on a Toyota dealership somewhere

  • ZoomZoom ZoomZoom on Jul 11, 2008

    Ouch, that hurts, especially with the "sun will still rise" statement. But it's true. To those who think this is getting morbid, you're right. But let's keep this in perspective. Do you blame upper management for it, or the messenger? Robert is a big boy and he can take care of himself. It's his business to decide what is a healthy level of mental/emotional involvement, and it's Mrs. Farago's business to put him to work folding laundry or mowing the lawn, not ours. Making such suggestions, unless we are close personal friends who have personal and valued insight, seems to me to be somewhat condescending.

  • Bunter1 Bunter1 on Jul 11, 2008

    "Sick transit system, Gloria." That is gorgeous Stephan. All my best, Bunter

  • Jaje Jaje on Jul 11, 2008

    Recent article quotes Wagoner noting that "customers didn't want fuel efficient cars 2 years ago". Not noting that economy and fuel misers still sold well even with the SUV craze. The market for cars never bottomed out and disappeared it was just the growth in SUVs (really minivans and wagons took the hit). If this doesn't tell you that Wagoner doesn't know what to do, how to lead a company, or how to see reality - I don't know what does.