Report: GM told to prep for bankruptcy

There are 20 comments on the WOOD-TV Grand Rapids and Michigan story from Apr 13, 2009, titled Report: GM told to prep for bankruptcy. In it, WOOD-TV Grand Rapids and Michigan reports that:

The New York Times is reporting the US Treasury told General Motors to lay the groundwork for a potential bankruptcy filing, and to do it soon.

Join the discussion below, or Read more at WOOD-TV Grand Rapids and Michigan.

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save money

Benton Harbor, MI

#1 Apr 13, 2009
I wonder what this is going to do to us suppliers who are currently owed money
Heres your chance

Peninsula, OH

#2 Apr 13, 2009
Here's your chance UAW. Give it up and make the necessary consessions...it's all up to you now. Stop the greed and do what is best to keep the company in business.
tom

Middleville, MI

#3 Apr 13, 2009
unfortunately inevitable,
better sooner than later.
re-org under bankruptcy only real option
to stop the bleeding.
gonna be tough for all their
retirees though, no doubt.(concession city)

Since: Oct 08

Grand Rapids, MI

#4 Apr 13, 2009
save money wrote:
I wonder what this is going to do to us suppliers who are currently owed money
Move to the end of the food line ...
Grant

Grand Haven, MI

#5 Apr 13, 2009
This may not be as painful as it appears. Let them re-invent themselves minus all the baggage they have been forced to carry by greed (draw your own conclusions on that one) I'm sure if they regroup, the majority of their vendors will be a part of the transition, it might be a tad uncomfortable for awhile but it will be better in the long run!!
Grant

Grand Haven, MI

#6 Apr 13, 2009
Perhaps this won't be as painful as first surmized! If GM can re-invent itself and dump all the baggage and overhead that it has been saddled with (use your own judgement on what that is), I think it will come back stronger and leaner. I'm sure all the vendors that support it now will be a part of the rebuilding process!!

Since: Nov 07

Caledonia, MI

#7 Apr 13, 2009
Obama knows that Bankruptcy is the only option for GM. With over 70% of the people against anymore aid for the Auto industry what other choice does he have ? The UAW tries to take credit for getting Obama elected but it was the thousands of volunteers that went from state to state, door to door that did it. The part the UAW played was miniscule in comparison. Obama knows this and will go with the people on this one. It is long OVER DUE !
Hollander

West Bloomfield, MI

#8 Apr 13, 2009
Unions = Owned.

The gravy train is officially over.

Since: Oct 08

Grand Rapids, MI

#9 Apr 14, 2009
GM bankruptcy will not dissolve the UAW presence in the company. Chances are it will not rid the company of the legacy costs either. It will "redesign" the means/methods of funding the VEBA (retiree health care fund). I predict that the UAW and GM will strike a deal on pay/benefits before a government mandated bankruptcy that will satisfy the Auto Experts from DC.

The pension fund is funded at about 80-85% and is insured through PBGC, so that is basically safe. Worse case would be for retiree health care to default. In that event, the PBGC provides for 65% of health care costs (premiums) to become a "tax credit" for those people affected by a bankruptcy, providing they are also receiving their pension from the PBGC. This is true for any company entering bankruptcy that has a defined pension plan for it's employees.

Supplier chain will suffer most. Debt could be drastically reduced/eliminated thru bankruptcy.

Since: Nov 07

Caledonia, MI

#10 Apr 14, 2009
Good article in the New York Times ( nyt.com ) today, " Glamor Dims As Hecklers Hit Auto Show." Anger is starting to surface in the American Public because of the Taxpayers money the Auto Companies took. Only in Michigan do they have any support. Bankruptcy is he only option left for them.Detroit Free Press today, Business Auto Section, "Bankruptcy More Likely For GM Now." The handwriting is on the Wall.

Since: Nov 07

Caledonia, MI

#11 Apr 14, 2009
Over 50 wrote:
GM bankruptcy will not dissolve the UAW presence in the company. Chances are it will not rid the company of the legacy costs either. It will "redesign" the means/methods of funding the VEBA (retiree health care fund). I predict that the UAW and GM will strike a deal on pay/benefits before a government mandated bankruptcy that will satisfy the Auto Experts from DC.
The pension fund is funded at about 80-85% and is insured through PBGC, so that is basically safe. Worse case would be for retiree health care to default. In that event, the PBGC provides for 65% of health care costs (premiums) to become a "tax credit" for those people affected by a bankruptcy, providing they are also receiving their pension from the PBGC. This is true for any company entering bankruptcy that has a defined pension plan for it's employees.
Supplier chain will suffer most. Debt could be drastically reduced/eliminated thru bankruptcy.
( http://www.pbgc.gov/workers-retirees/benefits... .)

Since: Oct 08

Grand Rapids, MI

#12 Apr 14, 2009
Mad Taxpayer wrote:
No everyone would benefit from the tax credit. There are stipulations/criteria, as stated in your link. However, there is tax relief available for those that fit the model.

Since: Oct 08

Grand Rapids, MI

#13 Apr 14, 2009
LaserGuy

United States

#14 Apr 14, 2009
Mad Taxpayer wrote:
Good article in the New York Times ( nyt.com ) today, " Glamor Dims As Hecklers Hit Auto Show." Anger is starting to surface in the American Public because of the Taxpayers money the Auto Companies took. Only in Michigan do they have any support. Bankruptcy is he only option left for them.Detroit Free Press today, Business Auto Section, "Bankruptcy More Likely For GM Now." The handwriting is on the Wall.
Am I one of very few that is MORE incensed that we bailed out all these financial institutions than the bailout of the automakers? I am, by no means a union supporter, and I think they are totally out of touch with reality and should be done away with, but why aren't we heckling these finance/insurance vampires? I'm thinking lynchings for the idiots at AIG just for starters. It ain't right, McGee!

“So what!!”

Since: Apr 08

Lakeview, Mi.

#15 Apr 14, 2009
LaserGuy wrote:
<quoted text>Am I one of very few that is MORE incensed that we bailed out all these financial institutions than the bailout of the automakers? I am, by no means a union supporter, and I think they are totally out of touch with reality and should be done away with, but why aren't we heckling these finance/insurance vampires? I'm thinking lynchings for the idiots at AIG just for starters. It ain't right, McGee!
Too many anti union people are upset. Grasping for any way possible to feel relief from all the tarp money dispensed. Anger must be satisfied in some way.

“So what!!”

Since: Apr 08

Lakeview, Mi.

#16 Apr 14, 2009
Hollander wrote:
Unions = Owned.
The gravy train is officially over.
Rethink.
tom

Middleville, MI

#17 Apr 14, 2009
Over 50 wrote:
GM bankruptcy will not dissolve the UAW presence in the company. Chances are it will not rid the company of the legacy costs either. It will "redesign" the means/methods of funding the VEBA (retiree health care fund). I predict that the UAW and GM will strike a deal on pay/benefits before a government mandated bankruptcy that will satisfy the Auto Experts from DC.
The pension fund is funded at about 80-85% and is insured through PBGC, so that is basically safe. Worse case would be for retiree health care to default. In that event, the PBGC provides for 65% of health care costs (premiums) to become a "tax credit" for those people affected by a bankruptcy, providing they are also receiving their pension from the PBGC. This is true for any company entering bankruptcy that has a defined pension plan for it's employees.
Supplier chain will suffer most. Debt could be drastically reduced/eliminated thru bankruptcy.
you overlook one small item, paid for with What! the country's buried in debt now, and taxpauers, hanging by a thread , shouldn't owe them a dime. what is this, the post office! you worked for a huge company, made big money, it's broke! welcome to the reality of today..........sheeesh.
Louie_Louie

Pleasanton, CA

#18 Apr 14, 2009
They should have filed for bankruptcy in the beginning and left our tax money alone!

Since: Mar 09

Grandville, MI

#19 Apr 14, 2009
And what about Chrysler, wasnt it about a month ago they were told they had 30 days to strike a deal with Fiat?
Going to shut them down too?

Since: Oct 08

Grand Rapids, MI

#20 Apr 14, 2009
tom wrote:
<quoted text> you overlook one small item, paid for with What! the country's buried in debt now, and taxpauers, hanging by a thread , shouldn't owe them a dime. what is this, the post office! you worked for a huge company, made big money, it's broke! welcome to the reality of today..........sheeesh.
Sir, the PBGC is an INSURANCE fund that companies pay into if they have a defined pension for employees. The PBGC takes over when pension funds default either through bankruptcy or when a company's fund falls below (I believe) 70% funding.

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