Well it happen GM is now bankruptcy. Iam going to buy a truck today and i put the tv on and i see this as of 8am easter time GM filed chapter 11 . So how do i feel about it iam still buying my chevy truck maybe for bit less. how do you all see this good or bad i hope that they can pull out of this.

 

Id just like to know what others think about the Government haveing controlling assests of General Motors, i wonder whats in store for all the performance cars.

 

http://finance.yahoo.com/news/Genera...-15397846.html

 

Once they extremely large amount of overhead costs are shed through Bankruptcy court, what should GM do? That's a question I've been thinking hard about. An article I was reading on CNN further states that after bankruptcy, the car company will need increased car sales to ensure survival. With the overextended overhead of GM soon to be gone, I've come up with a few ideas.

#1: Lower prices on OEM replacements/accessories. By doing so, an increased volume of purchases would arise.

#2: Due to the need for increased car sales, once GM comes from bankruptcy court and hits the stock market again, the price of their stock will increase, thereby allowing the govt to collect back on much of the money used to bail out the giant. This is on top of hard cash the company is already expected to pay back in the form of dollars not stocks. Since we have made it clear we as a country will not let GM fail, perhaps we could put some of this money to use in the form of a govt subsidy when buying an American car. Even if we gave a $5,000 discount subsidy on all American cars, and all 118+ million of us capable Americans took advantage of the subsidy, it'd total a cost of ~$590,000,000. So GM/Ford/Chrysler could take back a huge amount of market share.

For instance the Cobalt. I purchased it for under MSRP, @ $11,200. For the price, new car speaking, there really isn't a vehicle that touches this. Yes you can get a new car for around that price, but it surely won't be as nice as the Cobalt. Now lets say we as a nation were told there is a $5,000 govt subsidy on all American cars. GM could then sell the Cobalt for $5,200 a piece, turn a profit as millions of Americans would be much more enticed to take advantage of the subsidy and purchase American cars. This would once again allow GM/Ford/etc to take back the US market share very quickly, with quantity of vehicles demanded the American companies could all ramp production back up and get US citizens employed on a large scale, thereby helping the economy pull out of the unemployment slump as well. Of course quality would need to be part of this. Once you get a customer you wanna keep em hooked.

After a couple years of the subsidy, I feel quite confident lifting the subsidy at that point would leave the American auto industry in a much stronger position.

Just an idea. McDonalds was never the best product, but they did it cheap enough and long enough that now they have 90% of the international market share for fast food hamburgers, and can charge us $7 for a meal. I mean serious, did we ever for-see paying as much for a Mickey D's meal as we do now? The strategy they used works, and works well.

 

Merged the 4 GM posts into one. Any new posts on this post here, I'll delete others. thanks

 

not sure about the U.S but here in Canada truck incentives drop tomorrow so the better deal is today.

P.S - you are not going to see prices drop, if anything they will go up. Nothing has really changed down at the consumer level.

 

Thanks to Canada their government lent GM some money!

 

Socialism at it's finest...I'm glad I didn't vote for "change." Can't blame me...

 

we made that left turn along time ago we need less goverment control. i like to voted on were the the next billion goes how about you. so i didnt buy the truck iam going save up for little more iam going to use my impala to pull my detail trailer .