GM says debt-for-equity offer to bondholders falls short; bankr...

Max wrote:

This wouldnt be a problem if the disloyal traitors didnt buy those cheap jap cars.

If american car mnfg. built products to last then they wouldn't be in this predicament. American cars are built to break at certain mileage thesholds and americans have been cheated. The auto makers have been unpatriotic to american citizens by selling disfunctional cars.
It will take 10-15 yrs for them to gain the american trust again. The only way is to build dependable cars and for the american people to see this through the years.

No matter what they do, the bondholders money is gone.GM is going to be a shell of it's former self. Toyota, Honda and Nissan, are the new big three, in cars.

John wrote:

<quoted text>If american car mnfg. built products to last then they wouldn't be in this predicament. American cars are built to break at certain mileage thesholds and americans have been cheated. The auto makers have been unpatriotic to american citizens by selling disfunctional cars.
It will take 10-15 yrs for them to gain the american trust again. The only way is to build dependable cars and for the american people to see this through the years.

And where do you get this secret info, that cars built by GM,Ford or Chrysler, are designed to break at a certain mileage? I have a 10 year old Oldsmobile, with 110,000 miiles, that has never had a major repair, and rides better, and quieter than my new Honda Accord.

What I understand of the deal and most of the media is not reporting is as follows:

1)The government gets approximately 70% of GM stock plus a note for $20 to30b to pay back the funds.

2) The union will forgo $20b in benefits in exchange for 10b in cash, 17% of the company stock in preferred shares paying 9% annual interest, plus a note for 2.5 b.

3) The bond holders will forgive all $27b in debt in exchange for 10 to 15% of the common stock. This equated to a dollar value of between $100m to 150m based on GM closing price. Put another way a half a penny on the dollar pay off.

Now who do you think got a raw deal here? This is a good example of why we should not let the government nationalize US companies lender yes, owner no.
This begs the question what was last government owned/run
operation that was turning a profit? Any objective person knows the answer.

John wrote:

<quoted text>If american car mnfg. built products to last then they wouldn't be in this predicament. American cars are built to break at certain mileage thesholds and americans have been cheated. The auto makers have been unpatriotic to american citizens by selling disfunctional cars.
It will take 10-15 yrs for them to gain the american trust again. The only way is to build dependable cars and for the american people to see this through the years.

BS, I've owned nothing but Pontiac and Chevrolet since I bought my first car in the 70's. My last Pontiac had 265,000+ miles on it. I replaced the transmission at 195,000. A/C system somewhere around 100,000. The rest was routine maint. Alternators, brakes, shocks/struts, etc...

You are kidding right wrote:

<quoted text>
BS, I've owned nothing but Pontiac and Chevrolet since I bought my first car in the 70's. My last Pontiac had 265,000+ miles on it. I replaced the transmission at 195,000. A/C system somewhere around 100,000. The rest was routine maint. Alternators, brakes, shocks/struts, etc...

Wait, you think replacing two of the three major components in less than 200,000 miles isn't a big deal? No wonder GM is dying.

DREW wrote:

<quoted text>
Wait, you think replacing two of the three major components in less than 200,000 miles isn't a big deal? No wonder GM is dying.

Thge a/c took a rock through the front grill. Can't blame GM for debris on the highway numbnuts.

And a tranny with 195k ? I'll put that against any manufacturer.

You on the otherhand write like American cars are dropping parts on the road as they leave the lot. In my commute along the turnpike, I see just as many if not more foreign cars broken down on the roadside as I do American.

What will happen to Gm stock trading today ,once bankruptcy is declared? Is the stock worthless, will a new stock issue be offered once restructuring occurrs?

You are kidding right wrote:

<quoted text>
Thge a/c took a rock through the front grill. Can't blame GM for debris on the highway numbnuts.
And a tranny with 195k ? I'll put that against any manufacturer.
You on the otherhand write like American cars are dropping parts on the road as they leave the lot. In my commute along the turnpike, I see just as many if not more foreign cars broken down on the roadside as I do American.

Again, you're A/c (and front grille) got killed by a rock and you don't see an issue? I had a VW hit a guardrail and not only did it still run and drive but the A/C still cooled like a meat locker.

I'm not saying American cars are dropping parts right off the lot. I'm saying it takes less time for them to do that then other makes do. I grew up around Fords, my Family works for them but you can't deny the difference in quality between something like a Chrysler Sebring and a Toyota Camry. The problems with the "Big 3" right now are just the last 20 years coming to a head and its nobody's fault but their own.