GM CEO: Bankruptcy “more probable”
May 12, 2009 by Matt Brogan
General Motors’ CEO Fritz Henderson said the manufacturer will start notifying its dealers later this week on its plan to eliminate about 2,700 dealerships by 2010.
Mr Henderson also said bankruptcy is “more probable” now given the objectives GM has set for itself, but he would not quantify the likelihood of bankruptcy saying there is “still a chance we can do it outside of bankruptcy.”
“That specific plan is being finalised here early this week, and we’ll began notifying dealers later this week,” Mr Henderson said.
GM, staying afloat on $15.4 billion in US loans so far, is grappling with a government-imposed June 1st deadline to reach agreements to restructure operations and cut more than $40 billion in total debt.
Over the last several days, GM executives increasingly have signaled the possibility of a bankruptcy filing as the automaker has made little progress in negotiating with its bondholders.
GM wants bondholders to take 10 percent of stock in the reorganised company in exchange for about $27 billion in their debt.
Representatives of GM bondholders have said they are being offered an unfairly low payout. They have asked instead for a majority stake in the restructured company.
Mr Henderson said GM was still working on a time frame for how soon a dealership would have to close if it was selected to shutter.
That wind down would include GM buying back dealership signage, special tools and dealers’ unused inventory.
GM also would honor all warranties and work with dealers to make sure customers know they will continue to be serviced by other GM stores.
What do you think the likelihood of a GM bankruptcy is? Leave a comment now.
Print it: 
If GM go bankrupt, then GMHolden will almost certainly too.
Henderson recently said that going into Chapter 11 would have consequences on the foreign operations which might mean they too need to enter bankruptcy.
I love my Fords but I don’t want GMHolden to die.
worst built australian cars no1: holden camira (all models) no2: holden vn commodore (they sold bucket loads so that’s why there are still a few around that is the one’s that weren’t wraped around a tree or power pole) no3: holden gemini (all models)
Frontman – Whilst GM own Opel they also own the rights to their designs & names of their cars such as the Insignia.. GM also has the power to decide which cars are made where etc..
Therefore; GM could decide that Insignias will be built at the Holden factory in Elizabeth as well as the Opel factory in Europe.. and install similar tooling/robots
Not only that but since reports of Opels impending sale were made public GM has said that they plan to transfer production of the Astra and Corsa from Europe to Korea where Daewoo will build future model Corsas and Astras.
So why wouldn’t they transfer production of the Insignia from Europe to Australia before Opel is sold?
As whoever buys Opel can only buy the tooling belonging to Opel [in Opels factories] not Holdens or Daewoos
So both companies [that being GM-Holden Op-iat] could end up building similar looking cars – However; if it happens I suspect Holden would have to change the name.. from Insignia to Torana perhaps?
Figjam your full of it as usual……….now go get my beef and black bean and plawn clackers…………..
anyway as much as i love to bag holden i would never like to see holden shut down! australia needs it’s motor industry (all 3)and the jobs it generates for both the factory’s and its suppliers! it sounds very much like amercia will very shortly be a two or three car mass manufacturing country!
hey bm that’s why i am “the figjam”
Figjam you say that they made/ sold loads of VN Commodores
However its nothing compared to the HQ.. Have alook at this
VB Commodore – 95;906 cars
VL Commodore – 151;801 cars
VN Commodore – 215;180 cars
462;887
Compared to HQ Kingswoods – 485;650
And thers still a considerable number of Q-ies on the roads
Self praise is no recommendation………….
You have made your point quiet clear previously on this site of your hatred for Ford and Holden and you look forward to their demise,your not going to make friends now dude by sucking up……….As Ive said before dont let the door hit you when you leave…………. DB
yes they did sell a lot of Q’S those were the days when holden commanded 30-35% market share,a lot has changed hasn’t it! and “minskip” most of the Q’s left would be put away as collectors?
“bm” shutting down any local manufacturing and fully importing all new cars into this country is not going to be any good for current or future jobs in this country and before you “rudely interrupted me” i said we need a local car industry in australia! now go get my slippers!
Only the “REAL” Monaros [Coupes] would be collectables the others are either still being used as daily commuters or out on farms or….
As Frontman said Holdens build quality might not be as good as Toyota or Nissan Or Honda However; they can take alot more “punishment” [burnouts etc] than what your average Japanese Import can
Trying to “save face” Jammed Fig?
You have been bagging Holden and Ford on this site for a month, wanting their demise!
Now no MSG in that thanks ;)
Figjam – My uncle would be happy that [unlike pmost people]you don;t think that the P-76 is the worst Aussie built car
FigJam, the other part you neglect to remember about the starfire Corona is that the boy trims, interior, seats and suspension whilst when new “Looked” way more luxurious than the Australian offerings, they deteriorated at a much faster level. Faster even than a JB Camira. Fast forward to your next time line, again we see trims and interior and suspension components failing on the SV21’s, Pintara /Skyline’s and 929’s in at least the same time frame but generally quicker than the Ford and Holden offerings.
Oh and don’t make assumptions about who you talk to, I was selling SV21’s when released after having done my apprenticeship and 4 years on the spanners. ;-)
hey wheelnut remember the p76 got “wheels car of the year” that was before holden bought shares in the magazine!
Figjam if Holden have shares in Wheels Magazine then Toyota/Lexus must have shares in Dog & Lemon Guide
Because whilst it may appear that every month there is a Holden on the front cover of Wheels.. It can be said that the only car that is yet to receive a negative review from Mr Clive Matthew Wilson wears a Toyota badge.
Thing is they are both publications which are intended to keep people up to date as to what is going on in the Auto Industry.. such as inform them about new cars and compare them to their rivals etc
It’s not Wheels fault that GM-Holden is one of the more high profile issues in the Auto Industry ATM.. Nor is it Wheels fault that [over the last cople of years] Toyota are yet to release a car of any real note or interest
one with leading edge technology let alone innovative features or design etc.. I mean where is the new Supra?
cars are essential…Hope the government can find solutions..
spammer!!!