: GM Bankruptcy - How Will It Effect Us?



agp
06-01-09, 09:27 AM
As we all know GM is going bankruptcy and is about to file bankruptcy... How will this affect us Cadillac owners?

Jesda
06-01-09, 09:30 AM
Parts that fail most often may take longer to order (like Northstar engines).

ltdltc
06-01-09, 09:53 AM
Hope the CPO warranty I got from Cadillac is still valid. "Former" GM got my money for that.

halfmonkey
06-01-09, 09:58 AM
...these are great questions. I believe the Government said they were going to guarantee the warranties on all brand new car purchases but I'm curious how they're going to handle extended warranties and CPO warranties. Hopefully, they'll fall under the umbrella. :suspect:

Frankly, I don't see why they wouldn't, as long as "Cadillac/GM" wrote the extended warranties and CPO warranties and not some 3rd party like AAA or something like that.

The Tony Show
06-01-09, 10:35 AM
Probably not too much. The Treasury is providing the DIP (debtor in possession) financing to GM to keep operating during the BK, so cars will still be built and warranty claims will be paid. The only things being sold off or voided under BK are Pontiac, Saab, Saturn and Hummer, plus some debts to parts suppliers, factories and equipment.

After the bankruptcy, GM will have more money to spend on the surviving brands (Cadillac, Buick, Chevrolet and GMC) now that they aren't saddled with the cost of trying to keep Hummer, Saturn, Pontiac and Saab operating, so advertising and product development for Cadillac should increase.

billc83
06-01-09, 10:50 AM
The only real question I have is: will Saab revert back to being an independent automaker?

I know they filed the equivelent of Chapter 11 bankruptcy in Sweden, and they've been trying to get independent of GM. I've always had a soft spot in my heart for them.

gdwriter
06-01-09, 12:03 PM
From what I've gathered, the Chrysler bankruptcy has gone smoothly, and they might even be out this week. GM, being a larger entity, will likely take a bit longer, but at least GM has several strong products to sell, and if the credit markets start to thaw, people might start buying again.

Jesda
06-01-09, 12:09 PM
Expect it to take 2-3 months for GM to shed its dead weight. I'm watching Barry's speech on Fox, and its his most sincere-sounding and fluid one so far.

The unconditional TARP bailouts and those that followed were a mistake. Should have gone right into bankruptcy late last year to get the ball rolling sooner.

Eric Kahn
06-01-09, 02:13 PM
I hope you all liked the Cimmiron, that will be all Cadillac will be able to sell in the future, little re badged econoboxes
Going to have to keep the 95 deville going for a LONG time it looks like

agp
06-01-09, 03:26 PM
Can someone explain to me how this bankruptcy and bailout thing works or is supposed to work? Also, Buick is still alive? I get the impression that it's no where as widely driven as Pontiac or Saab... Why keep Buick?

dkozloski
06-01-09, 03:34 PM
Can someone explain to me how this bankruptcy and bailout thing works or is supposed to work? Also, Buick is still alive? I get the impression that it's no where as widely driven as Pontiac or Saab... Why keep Buick?
Buick has always been a huge seller in China.

Ranger
06-01-09, 08:49 PM
A member on caddyinfo posted this. I found it rather interesting.

It was early in 2007 that my favored financial adviser, Porter Stansberry ( http://www.stansberryresearch.com ), proclaimed GM a "dead duck." He doesn't seem too pleased about the current "solution."

Apparently, "spreading the wealth around" applies with special rigor to creditors of General Motors. They've been offered 10% of the new company. The UAW will get almost 17.5%, plus warrants for another 2.5%. The only logic to such apportionment is political, not financial. Fearing a lawsuit – which they'd lose – the Feds offered bondholders warrants on an additional 15% of the new company, potentially bringing their stake to 25%. My bet is those warrants won't ever be worth a penny. While the union agreed to give up reimbursement on Viagra and Cialis for retirees (I'm not kidding), it did not agree to any further reduction of wages, health care, or pensions for current employees...

That means we should be publishing letters from the chairman of GM again within a few months. But at least the next bankruptcy will finally wipe out the people who most deserve it

DILLIGAF
06-01-09, 09:22 PM
My V will be my last GM product!I don't see a future for GM,government controll,no thanks.Sucks to not be a chevy man anymore.I'm already where the bailout money didn't go for the most part,2 Ford pick ups and a new Lincoln.

ewill3rd
06-02-09, 08:22 AM
The way it will affect us is that we will have to put up with thread after thread of people speculating as to what will happen to GM, how their product sucks and they deserve it, and other trival nonsensical crap.

Otherwise it won't affect you at all, except it might be hard to get parts for a while.

CIWS
06-02-09, 08:43 AM
My V will be my last GM product!I don't see a future for GM,government controll,no thanks.Sucks to not be a chevy man anymore.I'm already where the bailout money didn't go for the most part,2 Ford pick ups and a new Lincoln.

You need that new Lincoln with twin turbos :yup:

Playdrv4me
06-02-09, 04:42 PM
I don't think it will effect us at all. Might affect us though.

Submariner409
06-02-09, 07:45 PM
Now's the time to call up a few of your old mechanic buddies, talk to Joe's wife, (the retired bookkeeper), look at the lease terms on the old shop building on Main Street, get tight with your local parts service, and start your own business to pick up the slack left by the dealer closings.

No guts, no glory.