Leadership, Not Another Bailout, Will Fix GM (And No, It Is Not Going Bankrupt)
 

Leadership, Not Another Bailout, Will Fix GM (And No, It Is Not Going Bankrupt)

Joann Muller - FORBES - 8/16/2012

Who is right? When will we know? --Ed.

The U.S. Treasury Department’s tally of what the government might lose on its $85 billion auto bailout keeps rising as GM’s stock price sinks. Earlier this week, it put the number at $25 billion, about 15 percent higher than its previous forecast.

Somehow, Forbes contributor Louis Woodhill uses this fact as proof that GM is headed for bankruptcy again. His self-described “unconventional logic” escapes me (“uninformed” might be a better word). But the basis of his argument seems to be that he doesn’t like GM’s Chevrolet Malibu as much as the Volkswagen Passat.

Far be it from me to defend General Motors, which is a company still in need of serious work, but let’s not toss around such incendiary words as “bankruptcy” without putting a little effort into understanding the situation, OK? GM is a global company with a strong balance sheet, and not in any danger of going bankrupt again. It has $33 billion in cash and $5 billion in debt on its balance sheet; posted $2.5 billion in net income so far this year, and generated $1.7 billion in automotive free cash flow in the second quarter.

That said, anyone who looks at the summary slide GM provided to investors during its second quarter earnings call can see this is not a company headed in the right direction.... [Read More]

Re: Leadership, Not Another Bailout, Will Fix GM (And No, It Is Not Going Bankrupt)
 

Oooh, dueling Forbes writers. Pass the popcorn.

Re: Leadership, Not Another Bailout, Will Fix GM (And No, It Is Not Going Bankrupt)
 

There may be some politics involved..

Re: Leadership, Not Another Bailout, Will Fix GM (And No, It Is Not Going Bankrupt)
 

Yes.

There will be politics involved in a decision on a second bailout in a few years too. Ive drive several current models and wouldn't want any of them. While hondas are far from perfect they are better as I'm sure toyotas are (though ive never owned one). GMtrucks are what keep them going.

Re: Leadership, Not Another Bailout, Will Fix GM (And No, It Is Not Going Bankrupt)
 

No matter how we feel about it, if needed there will be a second bailout, and a third.. etc

Re: Leadership, Not Another Bailout, Will Fix GM (And No, It Is Not Going Bankrupt)
 

Gm trucks are and have been whats keeping them going.

In 1993 I was 19 and a New/Used car salesman at a Chevy dealer. One day the boss took me aside and asked, " why is it you can sell a Geo Prism all day long, to anyone and you do alright on the trucks too. But you don't sell much else?"
I said, "The trucks are great trucks. And that Prism is a good car, the rest of these cars are junk"

A month or so later I bought a Toyota and was told not to come back.

Re: Leadership, Not Another Bailout, Will Fix GM (And No, It Is Not Going Bankrupt)
 

@ TheStepChild, wow, you mean that car dealerships hape a code of conduct?

Re: Leadership, Not Another Bailout, Will Fix GM (And No, It Is Not Going Bankrupt)
 

19 year old with a big mouth :)

Re: Leadership, Not Another Bailout, Will Fix GM (And No, It Is Not Going Bankrupt)
 

Sounds like it was TheStepChild who had a code of conduct... don't sell crap.