Counting down the days until the end of General Motors - Calgarypuck Forums - The Unofficial Calgary Flames Fan Community

HotHotHeat · 03-05-2009, 09:21 AM

WSJ reports auditors are questioning the company's ability to continue operations, quite possibly the worst kept secret around. Apparently the US government forgot to consider that even if they get a bailout, no one is going to buy a GM anymore.

General Motors Corp. said its auditor has raised "substantial doubt" about the auto maker's abiltiy to continue as a going concern, a move that could put the company into an even tighter financial squeeze.

If the company is unable to remain a gooing concern -- a buisness that is able to sustain itself -- it could violate covenenants on billions of dollars in debt and allow banks to call back the money GM has borrowed.

The news sent GM sparked a deep drop in the company's stock. In trading Thursday morning, GM shares were down 32 cents, or 15%, at $1.88.

The comments came in GM's delayed annual report filed with the Securities and Exchange Commission. Auditor Deloitte & Touche cited GM's continuing losses from operations, its negative net worth and an inability to generate the cash needed to run its business.

"Our recurring losses form operations, stockholders' deficits an dinability to generate sufficient cashflow to meet our obligations and sustain our operations raises substantial doubt about our ability to continue as a going concern," GM said it is annual 10K filing.

http://online.wsj.com/article/SB123625134434838921.html

HPLovecraft · 03-05-2009, 09:25 AM

You Need a Thneed · 03-05-2009, 09:25 AM

I guess this relates to hockey because the Canucks would have to rename their rink.

mykalberta · 03-05-2009, 09:27 AM

Off topic. Nothing to do with hockey at all.

JohnnyFlame · 03-05-2009, 09:28 AM

The job loss totals will be staggering but they really need to pull the plug. If there is a sustainable auto industry it can reform from the ashes. Propping up all these companies is stupid. We should accept the losses, retrain the workers and move forward.

VladtheImpaler · 03-05-2009, 09:30 AM

...leading to even worse attendance at Red Wings games?

burn_this_city · 03-05-2009, 09:35 AM

I dont think they will die completely. They definitely wont be the biggest in the world anymore. I couldnt imagine being forced to buy Ford or Dodge instead.. Eiwwwww.

4X4 · 03-05-2009, 09:45 AM

I wouldn't be surprised if this is the catalyst that changes the auto industry forever. I think the days are numbered for traditional dealerships that have ten of everything on their lots at all times to satiate any possible buyer. I've thought for years that it wouldn't be long until the whole system of 'dealerships' dies and what comes out of it are dealers that will sell any brand. Once that happens, you'll see a major shift in how cars are made and marketed.
Imagine going to a dealership and the salesman is no longer trying to sell you his brand, he's just trying to find the right vehicle for you. This is where survival of the fittest will be born. The crap will be weeded out quickly and the good stuff will sell like hotcakes.
Of course, maybe I'm crazy.

HotHotHeat · 03-05-2009, 09:49 AM

Did I put this in the Flames section? Ooooops

Tron_fdc · 03-05-2009, 10:03 AM

What 4x4 is saying is happening in all kinds of sectors. Steel, alcohol (liquor stores) you name it. Inventory isn't the rule anymore, cash is.

Pretty soon people are going to see the end of large inventories of goods that carry high $$$. Companies just don't have the cash laying around to invest in it.

Bring back Consumer Distributing!!!! lol

CaptainCrunch · 03-05-2009, 10:05 AM

Didn't consumers die because their depots carried so much inventory that they were writing off massive amounts of it each year?

Tron_fdc · 03-05-2009, 10:26 AM

Quote:

Originally Posted by CaptainCrunch

Didn't consumers die because their depots carried so much inventory that they were writing off massive amounts of it each year?

haha I have no idea. I just remember there being this big book that you ordered from when I wanted new GI Joes.

Our industry is selling off old inventory like crazy and not replacing it. We tell people all the time that the days of having things on the shelf like Walmart are long gone, and that they might actually have to PLAN AHEAD in order to get their parts on time. Some people listen, but some people still continue to wait until the last minute to replace things, and they're the ones that will get caught with their pants down.

Just imagine the trickle down effect captain......guy like you and me will have to pre-order our hookers and blow! No more last minute coked out gang bangs!!!

Azure · 03-05-2009, 10:41 AM

Yeah, nice job bailing them out there.....it really helped.

Betcha all the taxpayers in 2090 want their money back.

Let them crash and burn, and then rebuild. It'll be tough, but we'll all be better off.

I would still buy a GM. No matter what.

Resolute 14 · 03-05-2009, 10:58 AM

I like my Pontiac, but frankly, one, or more, of these companies needs to die.

I wonder if we'll see the UAW, etc, finally put some consideration into the long term future of its members? Its time unions accept that its members are massively overpaid, and that significant wage reductions are far superior to unemployment.

Dion · 03-05-2009, 11:36 AM

TheDragon · 03-05-2009, 11:54 AM

Quote:

Originally Posted by VladtheImpaler

...leading to even worse attendance at Red Wings games?

And Lions' and Tigers' and Pistons', oh my!

3 Justin 3 · 03-06-2009, 07:52 PM

Maybe if they release the damn Corvette they will sell a vehicle. I can't even afford it, but I would manage somehow if I could buy one. As much as I want them to die, they just need to reform the company and make better vehicle, reduce wages, market better. As much as I hate American companies and GM, I secretly want them to be the VW of America (making good vehicles and profiting).

Slava · 03-06-2009, 08:13 PM

I wonder about the idea of GM dying though. If the company was as dire as it sounds wouldn't another corporation jump in and buy all of the assets? Surely they don't just lock the door one day and walk away?

LGA · 03-06-2009, 08:14 PM

Well there goes my hometown of Oshawa, Ontario...

Ducay · 03-06-2009, 08:19 PM

Quote:

Originally Posted by Slava

I wonder about the idea of GM dying though. If the company was as dire as it sounds wouldn't another corporation jump in and buy all of the assets? Surely they don't just lock the door one day and walk away?

The creditors pretty much own all their assets. If GM couldn't find a buyer for itself (after spinning off whatever subs it can), it would be sold off piece by piece to repay creditors etc.

And here I was thinking I was dumb to bail at $3/shares