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GM Out of Bankruptcy
She's all yours, America. The new government-owned General Motors is expected to announce a restructuring Friday that takes it out of Chapter 11 bankruptcy protection and puts it back on the path to profitability. CEO Fritz Henderson is set to announce moves, including cutting another 4,000 white-collar jobs, aimed at making the company leaner and more efficient. But despite successfully shuffling off debt in bankruptcy court, GM faces the same underlying problem—a lack of a product people want to buy. "It is the smaller, leaner, tougher, better-cost-focused GM," one automotive analyst told The Washington Post. "But they still have to deal with the problems that they faced longer-term," he added. One early success: A new Chevrolet Camaro is selling well despite the recession.
squiggy
For the moment at least, it will take them years to be respected and make a profit, if ever. Sad case for America's car industry. I think more people will turn to Ford.
Carole65
Right you are. I'm already looking at trading a Chrysler for a Ford.
squiggy
Decided which model you like? I saw a fusion and didn't think it looked bad for a small car, don't know the stats though.
benvonk
Consumer Reports gives the Fusion an overall 69/100. Compare that to the Hyundai Sonata (77), Chevy Malibu (83) and Honda Accord (88).
"Like its siblings, the Mercury Milan and Lincoln MKZ, the Fusion is based on the old Mazda6. It combines a firm and controlled ride with responsive handling.... Our initial impressions are that engine noise is reduced, and interior fit and finish is better. A new hybrid version maximizes use of electric mode. Crash-test results and reliability are both impressive."
JDK-JDK
My dad worked for Ford, so I've always been a Ford guy, but now I have an actual reason to be one.
EtienneEtoile
Is it true that they will be making Tesla Roadsters and selling the for $25k?
Llplo99
I can't find any news on GM manufacturing Tesla cars. The Tesla roadsters are priced at $100K. The Tesla S series are priced starting at $50K.
squiggy
That would be almost worth it at 25K, not 50K. This is supposed to save money but I don't like paying all that savings up front. Someone tried to sell me an air cleaner, $800 up front, savings in filters over the lifetime, great, but only 3 year warranty which makes the thing about $550 over priced. Don't want to pay up front for intangible savings.
guiltybystander
when do I get my profit-sharing check? (they have, thank god, no part in Tesla, and I'll stick with my lexus)
hardrain
If you are driving a Lexus, you already got your profit-sharing (in the form of Bush tax cuts).
JDK-JDK
ROFL!
JDK-JDK
I drive a Ford Ranger. You're better than me.
Jonqpub800
How about GM goes into the business of building a new high speed rail system? Offering new energy efficient vehicles?
What happened to all those amazing prototypes GM proudly displayed at EPCOT Center?
As a stockholder in GM (taxpayers own the company) it would be nice if they made real strides to create jobs instead of business as usual.
We need innovation, new jobs, and should have allowed GM to fail!
With a little imagination and a lot of hard work people could get back to work. Cities could get greener with new rail systems. The gas guzzling auto is not sustainable!
As we have ignored our competition it's also not profitable!
mattbenzor
If GM can capture the mpg market.Maybe 40 to 50 miles to the gallon they would dominate everything that has to do with the car industry.People want to payless at the pump they can not be bought by "BIG OIL" ,Big oil can not have anything to do with GM keep the lobbyist out of GM because they would rather have us drive cars with lower mpg "WHY" more stops at the pump .We are trying to avoid that. its time the consumers benefited and GM can come out this as #1 brand also hybrid,electric its government owned right.Well so is NASA the president should call on NASA engineers to engineer a car that would dominate the world market.I can be done "NOW"is the time........! Would you drive a car that got 40-50 even 60 miles to the gallon
EtienneEtoile
Maybe they could license the design of the "Zero". 60 mph with a 60 mile range. www.zeromotorcycles.com/ Could be a great little commuter
sparky13
I'll keep my Harley ! Thanks.
JDK-JDK
Some gas scooters can do 70-80 MPH and get 80-100 MPG. I think they have tanks a gallon or two large.
sparky13
I had one of those when I was a kid. Got it at Sears, paid $300.00 cash, brand new! Now it's $3000.00.
EtienneEtoile
The "Zero" does not use fossil fuel. You could drive across country for $30. A little difficult due to the 4 hr recharge time. Less than $.01/mile.Non-toxic battery technology.
And best of all "AMERICAN MADE" !!!
MaliciousDisorder
Anything but gumint cars
EtienneEtoile
Wrigley's make gumint
sparky13
No! Wrigley makes fields.
This comment has been removed by The Daily Beast's editors.
sparky13
GM plans to build Buicks in China with Chinese labor and import them to the US.
They're using tax dollars to accomplish this feat with the blessing of Obama!
If we boycott we're cutting off our nose to spite our face.
MaliciousDisorder
No boycott, just don't buy, let it sink, The government that is. Then we can get back to allowing them do what they were suppose to do, protect and serve. If we can take back california by starving then everybody else can do the same.
Breaking News !! Cal State University just announced they have to roll back all salaries 15 to 20 %, and will not accept any new students this fall..
They can close those cesspools of hate America for all I care. We're winning...
ThinkAgain
Good news unless you're one of the poor smucks who they owed money for a product or service you provided and had it wiped out like it never happened.
ConstitutionalRights
Good money after bad. Wow, we attack Wall Street for mismanagement of funds, then practice as a government what we are prosecuting people for.
Hmmm, I wonder how California is going to handle this?
mcmchugh99
In a depression like this one, survival is a great success, and at least the government saved some of those jobs for the time being. We have not yet lost the US auto industry completely to countries that pay $1,00 a day, although we have given up most of our manufacturing over the past 30 years.
How is that model supposed to sustain itself, anyway? Drain the United States of its industry and middle class by sending all the good jobs to $1,00 a day countries, then make things over there for almost nothing and export them back here for sale at large profits.
How is that model supposed to work, anyway, when wages and incomes for 80% of the US population have stagnated or declined over the last 30 years? Sure, people can keep running up large credit card debts, but now the credit has run out.
And what happens then? Which is to say, what happens now? That's a big problem.
That's why these Green Jobs and Green Bank and Green Investment in all kinds of new industries and technologies better pan out here, and why GM should rename itself Green Motors and start producing all these natural gas engines Pickens keeps talking about--things like that.
I don't care that the transition to a green economy will be long and painful. I just care that we have something to transition into, cause right now we're going nowhere.
ThinkAgain
The winner is the UAW. The loser is the American taxpayer who will now forever have to subsidize the UAW so this company can compete despite paying non competitive wages and benefits.
HarryParatestis
It's a battle victory, not a war victory - very temporary. Government Motors? Do you really think that Americans want to make this Obama bailout work? If GM can build cars substantially better than the Japanese, Ford, or the Koreans, maybe, just maybe they have a chance. I'd bet the house against them.
Ottoheinz
Which company gets the huge UAW pension obligations? The new GM or the old GM?
democracyforall
SSDD. Government Motors and UAW demands, same old, same old. No company is too big to fail. It's best when companies are competitive. Senator Corker was right about everything.
scubasteve
Funny how the same group opposing a GM bailout now screams how the high unemployment rate is proof that Obama's initiatives aren't working. Imagine those numbers, and the country's morale, if massive auto industry unemployment were added on top of it. The company's definitely have culpability, but in the end a bailout that works is good for Americal. I'm keeping my fingers crossed. Our nation needs a strong vehicle production capability.
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