GM On GM's Bankruptcy

Edward Niedermeyer
by Edward Niedermeyer
gm on gm s bankruptcy

GM’s Steve Harris is dancing all over the bankruptcy issue at GM’s Fastlane blog. Yesterday Haris was sounding resigned if still-delusional. “So, by now you’ve seen the news reports,” he wrote. “You know that auditors have said that there is substantial doubt about GM’s ability to survive as a ‘going concern’ through the end of the year. It’s certainly led to some scary headlines – some more accurate than others, of course.” But all scary. Yeah, believe it or not, we kind of saw it coming.

“First of all, we’d just remind everyone that an auditor’s job involves objectively determining whether there is substantial doubt about a company’s ability to survive the year.”

To be fair other people at GM are probably supposed to help “objectively determine the company’s ability to survive the year,” but the auditors are the only ones who can be prosecuted if they don’t.

“Given our recurring losses, the weakness of the economy and the auto industry in particular and the fact that we have announced that we will need additional support this year, we agree that our ability to continue as a going concern is a matter of substantial doubt that depends on a number of factors—and we don’t control all of them. We acknowledge the challenges and risks that face us today, but we’re still going forward with our plan, we’re still making the best cars we’ve ever built, and we’re still rebuilding our company for long term viability.”

Oh, right. Dozed off for a second there. Sorry.

“I know, some will say that this sounds like corporate-speak. But what does anyone expect – that we’ll pick up our marbles, say “They’re right,” and go home? Sorry… we’re planning on being around. We understand all too well the challenges we face at this time and in this truly difficult economy. But we’re not giving up, we’re not giving in, and we sure aren’t planning on going away.”

You mean cards, not marbles. When you’re threatening the US government with $100 billion in pension liabilities, you always stay in the hand. Even if your “Vice President, Global Communications” admits that his blog post sounds like “corporate speak.” And as of today, Harris has his poker face back. Go underdogs!

“Sometimes there’s coverage in the media that doesn’t represent the full story of what’s happening at GM. I thought I’d take the opportunity to use FastLane to fill you in on a recent media misstep.”

Please do not read my post from yesterday.

“Despite the story in today’s Wall Street Journal, I am here to tell you that General Motors has not changed our position on bankruptcy. Since this is a major issue, much in the news today, we issued a statement in response to the story – and while I hate to just repost things verbatim, the press statement is dead-on, so I’ll repeat it here:”

You get the idea. And no apologies for “corporate speak” this time either. Meanwhile, GM’s stock has fallen below $1.50.

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  • Pch101 Pch101 on Mar 08, 2009
    I’ve NEVER once heard of anyone trying to emigrate or sneak across the border into a Communist country from the West. That's great. But I think that the Finns would be surprised to hear themselves described as Communists, particularly given that they fought two wars against the Soviets. You truly need to hop on a plane and go visit other countries. There is no plane that will take me to Communist Finland, because such a place doesn't exist. If China, did you know, you can’t even MOVE from one city to the other without government permission I know that this will surprise you, but China and Finland are two different countries with different governments, cultures, languages and business practices. Honestly, you're in the deep end of the pool with this one. If you have to violate Godwin's Law to make a point, then you haven't made much of a point.
  • Rastus Rastus on Mar 08, 2009

    Would you wish to be reminded of a more "tame", a more "kindler, gentler", which won't grate your delicate nerves? Try British Leyland on for size. How did that work out for you? Was it all the fault of the government...not tossing enough money at the problem? It's all the Queen's fault, right? has absolutely nothing do do with the fact they built junk which even those in their home market refused to buy, now does it? Let me guess, you drive a 1978 yellow MG Midget, don't you?

  • ToolGuy Here is an interesting graphic, if you're into that sort of thing.
  • ToolGuy Nice website you got there (even the glitches have glitches)
  • Namesakeone Actually, per the IIHS ratings, "Acceptable" is second best, not second worst. The ratings are "Good," "Acceptable," "Marginal" and "Poor."
  • Inside Looking Out "And safety was enhanced generally via new reversing lamps and turn signals fitted as standard equipment."Did not get it, turn signals were optional in 1954?
  • Lorenzo As long as Grenadier is just a name, and it doesn't actually grenade like Chrysler UltraDrive transmissions. Still, how big is the market for grossly overpriced vehicles? A name like INEOS doesn't have the snobbobile cachet yet. The bulk of the auto market is people who need a reliable, economical car to get to work, and they're not going to pay these prices.