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Originally posted by cestmoi at 11/20/2008 11:29 AM
But if Congress lets GM go, a lot of suppliers will file for Chapter 11 as well. As things stand, if GM files for Chapter 11, it will not end there, it will be broken up into parts, likely along the line of its existing divisions.
Not a lot of people outside of Detroit know this, but most of the tier 1 to tier 4 suppliers have already shrunk down, filed for bankruptcy restructuring, or have just simply gone out of business. As for GM filing - the plan will be very simple - dump the pensions and union contracts, sell/lease some nameplates and/or physical assets, and move to right to work states to assemble vehicles. Most likely the only nameplates to come through will be Chevy and Caddy. GMC, Pontiac, Buick, Hummer, etc. will go the way of Oldsmobile, Fisher, and Roadmaster.
It was interesting to see what is developing for GMAC - given they want to go the way of a traditional, deposit based bank. That would given the restructured GM a base to extend car loans - bypassing other banks at this stage.
The sticky point will be the Tech Center in Warren, Michigan. It is one thing to move the blue collar jobs - it will be more of an issue to move the white collar positions.