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July 6th, 2009
08:51 AM ET

General Motors Bankruptcy

A federal judge has approved General Motors’ plan to emerge from bankruptcy. Under the restructuring plan, the Detroit-based automaker creates a new company and sheds crushing debt and expensive contracts. We want to hear from you. What kind of chance do you give the new GM? Will it ever be back on top?

Filed under: Tony Harris
soundoff (58 Responses)
  1. michael armstrong sr.

    one more chances this time they either float or sink no more bail outs .

    July 6, 2009 at 9:38 am |
  2. Dr. Fate

    I am against bailouts, I really want this to turn GM into a leaner business athlete, but I fear of course that we are just keeping people employed for a temporary time period.

    July 6, 2009 at 10:44 am |
  3. TAN

    GM needs a new marketing team, lower costs (for their vehicles) and a HIGHLY determined and inspired team. With that, there is no reason they cannot over come their disposession!

    July 6, 2009 at 11:07 am |
  4. Don E Mathis

    Beyond my comprehension, why NO USA news organization has picked up on this.. which can effect many many millions o USA citizens, and potential start a huge trade war.. Who is hiding this?

    ITC votes for duties, not quotas, on Chinese-made tires
    WASHINGTON (June 30, 2009)—The majority of U.S. International Trade Commission commissioners have voted to impose duties, rather than quotas, on passenger and light truck tires made in China and imported into the U.S.
    The commissioners voted to recommend to President Obama that the following duties be imposed ad valorem, or based on the value of the item:

    * 55 percent for the first year;

    * 45 percent for the second year; and

    * 35 percent for the third year.

    Two of the commissioners—Vice Chairman Daniel Pearson and Commissioner Deanna Tanner Okun—said they would recommend to President Obama that no trade-restricting actions be taken. Okun read a statement representing her and Pearson in which she said that “implementing a trade restriction would be far more likely to cause market disruption than to alleviate it.”

    All of the panel’s commissioners recommended that trade adjustment assistance be provided to domestic tire workers who have lost their jobs because of foreign competition.

    July 6, 2009 at 11:11 am |
  5. C Bechler

    I have been a faithful purchaser of GM cars. Since they did not rid themselves of the labor union and now that the government is running the show, we will probably buy Fords!

    July 6, 2009 at 11:13 am |
  6. Edna Fussbudget

    I'm not sure ANY car company will ever be "on top" again, but the quality of our two newer GMs is, we believe, worth the investment in the turnaround of an American legend!

    July 6, 2009 at 11:15 am |
  7. Missy Blair-Knight

    I believe that President Obama deserves some credit on this issue. Some months ago, it was feared the big 3 may all go under... I'm so sick of hearing the criticism over the amount of ownership the government now has... Obviously, GM needs some guidance, especially with so many peoples jobs and pensions depending on the well-being of the automobile industry... For Obama critics, look at what a mess the country was handed to him from the last administration. His prompt resolutions for many issues thus far show his leadership, and with his leadership, I have to have faith in our president. He is the first one in a while that I can say I do have faith in... With Obama allowing a breath of fresh air, of hope and change, I DO believe there is a good possibility our solution oriented president will guide the big 3, specifically GM to a brighter future.

    July 6, 2009 at 11:16 am |
  8. Eileen

    Only if they can produce a dependable automobile that lower income American's can afford with quality to hold up with ten year warranty and transition into a greener America.

    July 6, 2009 at 11:18 am |
  9. G. Macko

    We have to do what we can to keep businesses here! GM, Ford, Chrysler and even TOYOTA showing a sales loss. Declining world market, we made it and we are losing! CNN calls it a "Brave new world". I work in construction field. A dead market. Go to a building center and just try to buy a faucet, plumbing or lighting fixture, even a tool.... 99% made in China!

    Wake up America, our manufacturing base is going, going, gone.

    We should do whatever it takes to keep Americans working. The American auto worker buys food, clothing and housing – here. It's just too bad that his dollars have to be spent on foreign made products.

    Fair trade, North American Trade agreemnt – BAH!

    July 6, 2009 at 11:19 am |
  10. Beryl Jackson

    I think Rep . King has committed libel. Michael Jackson was found innocence of molestation charges. So why does Rep. King think that he can condemn him now that he has died. I hope someone sues him

    July 6, 2009 at 11:29 am |
  11. Torin Dixon

    I do not believe GM will survive for three reasons:
    1. The government cannot run any enterprise efficiently or profitably.
    2. The same knuckleheads are running GM (management and union)
    3. Many Americans will not buy GM BECAUSE they ran it into the ground and required a government bailout.

    July 6, 2009 at 12:07 pm |
  12. Michelle Raley

    I read about the GM bailout this morning in The Seattle Times and I'm absolutely sick over it. My family has had a wrongful death lawsuit pending against General Motors in the case of my mother-in-law's tragic accident, on December 29th 2006. Now it appears that all "past sins" of GM will be forgiven, not to mention the horrific impact General Motors has made on those families who suffer every day in the loss of a loved one due to a GM-known automobile defect. .

    July 6, 2009 at 12:15 pm |
  13. James

    If GM stops its service department game and starts playing the game like the Japanese and Germans, then MAYBE they can regain some market share. If not, they will slip back into trouble. Let's hope their new camaro will be a quality machine, not a bucket of bolts.

    July 6, 2009 at 12:51 pm |
  14. zack

    i think that will have a baill out but if they are the top car seller in the us why are they strugling?this is a good questing.

    July 6, 2009 at 12:52 pm |
  15. Brian

    I will never buy a GM vehicle after the way they have scammed the people they owe money to.

    July 6, 2009 at 12:53 pm |
  16. Jan Youwer

    I hate to say I have little confidence in any of the businesses that received bailout money. They didn't use it in an effective way. Many of them lined their pockets rather than restructure to become great business again.

    July 6, 2009 at 12:53 pm |
  17. Jessica

    If GM can learn to make cars that the American public will actually buy I think they have a chance, but if they continue to opperate like they did before then they don't have a chance. My dad works for a GM dealership, so I'm really hoping that they learn from their mistakes so my dad and the other people in this country that depend on GM won't be out of a job in this rough economy.

    July 6, 2009 at 12:53 pm |
  18. Tadashi Davis

    Too little too late. I don't care how lean you make GM, they still have to overcome years of making sub par products. I just don't see GM as being successful until the overall economy gets on track. Does no good to make a product that no one can be qualified enough to buy.

    July 6, 2009 at 12:55 pm |
  19. Jeff, Marietta GA

    50/50 at this point. They've been given the opportunity but whether or not they take it is up to them to redefine their products enough that American consumers will want to buy them. Otherwise they'll just go buy a Toyota or Honda and know it lasts for a while. And this, coming from someone who owns a Pontiac.

    July 6, 2009 at 12:59 pm |
  20. Gene Mroz

    More people would buy GM Cars if they could afford them. The wages paid to most American workers does not support the cost of the Automobile, Maintenanace and Insurance.

    July 6, 2009 at 1:00 pm |
  21. David

    As a mechanic, I hope GM makes a comeback. I will make enough money to buy that German sports car I have always wanted.

    July 6, 2009 at 1:01 pm |
  22. Adel

    I want them to come back. I like their trucks. I have a family of 6 and everyone's height is above avg. and I really prefer GM trucks for transport and just hope the can now produce truck with better gas mileage without being above what I can afford.

    July 6, 2009 at 1:01 pm |
  23. an adventurer

    You guys talk on air about high labor costs like it's completely separate from the UAW. The "jobs bank" MUST go. I am sorry guys, I am not anti-union, but the whole work force practice must be changed. There is a way for car mfgs to pay living wages. LOOK AT NISSAN USA. I am not prop this or that, I believe in the best tool for the job, nothing should be off limits.

    July 6, 2009 at 1:01 pm |
  24. Anthony Hernandez

    Listen, you can only make infierior products for so long even 20 years. It will eventuly blow up in your face like it is now. When other car manufactures for years have been making superior products like toyota and honda it is hard to stay in the game if you do not make products that are any good. It is as simple as that!

    July 6, 2009 at 1:01 pm |
  25. Joe K.

    I do not believe that a government-run General Motors will work. But I think rather than people pushing to make the company profitable they should focus first on making sure they can pay off their costs before moving with profits. Too often the focus of business and Wall Street is to push profits – not just make money – and it's that mindset which brings companies like the Big Three into the vicious cycle of profit, decline, and bailout. Instead they should make sure that the company can remain in business and focus on pushing more "profitable" projects back to when the company can keep itself above water.

    July 6, 2009 at 1:02 pm |
  26. Brad S.

    In my opinion, GM was never on top. They duplicate vehicles by putting different namplates on them. They compete with themselves and build subpar automobiles. If GM is to compete, they must get back to core values. Please stop manufacturing glorious excess!

    July 6, 2009 at 1:03 pm |
  27. jbbarker

    GM has nothing I would buy.
    Quote "we are just keeping people employed for a temporary time period."

    July 6, 2009 at 1:03 pm |
  28. Dave

    Years ago I did work for GM as a consultant. One could not get any work done because of EDS & the Union beaurocracy. For GM to survive they need to (1) improve their old-world regime and be able to make changes faster and get union concessions (2) make vehicles consumers want (3) ensure vehicles can be purchased with individuals with poor credit.

    July 6, 2009 at 1:04 pm |
  29. Will

    I'm glad to hear GM's restructuring is almost over, but I don't believe they will make it back to the top...GM has a tarnished imagine and a history of terrible customer service. Look at the other players in the market that have great success ( Honda, Toyota, VW, and the newcomer Hyundai)...all of which give reliable products, depreciate the least, change with the times, and have great customer service. Unless they change these key problems, nothing will change. I think GM will be around forever, but wont be the icon it once stood for, but I guess we will have to wait and see.

    July 6, 2009 at 1:04 pm |
  30. Ed Goff

    GM needs to produce vehicles that people want. Attractive, fuel efficient vehicles, of exceptional quality produced at a reasonable price are a must. GM can only do this by increasing productivity (fewer man hours per vehicle) and by getting rid of fat cat management and staff.

    July 6, 2009 at 1:07 pm |
  31. Richard In Texas

    Went to GM to possibly purchase a new chev camaro. Found the dealers are adding $5K to $10K to the sticker price. The Chev Dealership in Hillsboro, Texas added $10,000 to the sticker price of the only 2010 camaro on their lot (priced at $46,000). Now I know why GM isn't selling vehicles and going bankrupt. They will not get any of my business. Why aren't you reporting these GM tactics.

    July 6, 2009 at 1:07 pm |
  32. bruce

    well here we go Tony..... something Positive comes out today for our country and GM..... and what does cnn do..... rain on the parade with your lies..... cnn is unamerican and should move to china or japan or mexico etc etc..... and lie to them.... Tony it is still Mom Apple Pie and Chevrolet!!!!!!!!!!!!!!!!! when are you unamerican People over there at cnn going to join the Band Wagon? Boycot Cnn until they tell the truth!!!!!!!!!!!!!!!!!!

    July 6, 2009 at 1:08 pm |
  33. Alexia

    I think gm is a joke… i have a grand prix gt that i got 3 months ago then a month after i got it it started on fire on the freeway. I was never contacted about the recall and now have been waiting a month for them to have claims call me. I have been lied to every time i call that they can fix it now or i will get a complimentry car. I lost my job because I work out of my car and they keep pushing back the date that claims will call me. If they really wanted to keep business wouldnt their customer service be better? Wouldnt they make cars that dont start on fire then not help you out when legally they are responsible?

    July 6, 2009 at 1:11 pm |
  34. Marcella Mroczkowski

    The single biggest reason for the car industry's near bankruptcy is Bush era wage suppression. Most American families were considerably poorer at the end of the Bush Administration then they were at the beginning. The car industry lost tens of millions of customers because too many US families could no longer afford their cars.

    July 6, 2009 at 1:11 pm |
  35. Lee Fleck

    I think that GM is making very good cars and the latest reports show that their quality is as good as any in the world. They dug a large hole in the 80s and 90s but have shown that they are listening and have improved. We drive GM cars and have had no defects. They have an image problem with the public. If they come out of bankruptcy with costs under control they will be formidable competitors. I like to buy American because the taxes paid by them helps keep personal taxes under control. The imports don't provide jobs or pay as much in taxes.

    July 6, 2009 at 1:15 pm |
  36. Wendell Prowse

    Monday, July 06, 2009
    By; The Ancient Curmudgeon

    General Motors has been and still is run by the old boy network. Nepotism is still a way of life and that is what got the company to where it now is. Also GM is a rear motivation based company which always produces inferior products and management. They will lose more of our tax dollars and die on the vine from lack of quality leadership and middle management.

    The reason Ford was in a position to survive without bailout money is they are spending their own money and not money that is from someone’s pocket besides their own. It is far easier to waste other people’s money than your own. General Motors days as an automaker are almost over I give them six months at best.

    The Ancient Curmudgeon Speaks

    July 6, 2009 at 1:16 pm |
  37. James

    GM has get to get rid of those excessive lines. They only need 3 lines MAX: Cadillac for the president, Chevrolet for the mainstream, and Pontiac for performance. Buick and saturn are completely useless. I actually preferred Oldsmobile, as those were beautiful cars. They killed oldsmobile to bring Saturn? Where they stupid? Any, 3 lines needed:

    1. Chevrolet
    2: Pontiac
    3: Cadillac

    ALL OF THEM must be quality made cars, not cars that don't last past 40K Miles.

    July 6, 2009 at 1:20 pm |
  38. Dannielle Colliver

    Here's something NO ONE is reporting on GM/Bankruptcy: While the UAW fought for their workers and got a 17% stake in the "NewGM" and a seat on the Board, NO ONE represented the retired SALARIED workers. GM has cut these retired salary benefits to the bone. There are over 122,000 people in their 60's, 70's,80's and 90's who are going to lose health care, pensions (from cut of 10% to 67%..Yes! 67%!!!These people worked for GM for 30,35 and 40 years and got annual benefit statements promising these benefits when they retired. The y are even taking away the life insurance or dropping it to $10,000.(just enough to bury you). GM has used the bankruptcy to override their obligations to the eldery who have no hope of replacing these benefits. They are indeed the "Old GM" and the are being gutted. Taxpayers shuold know that the $50-60 BILLION the government is giving GM is not being used to meet the obligations GM has to its elderly reitrees who put in decaeds of work so they could provide for their spouses and familes. This may be legal, but it is immoral, and unethical. Taxpayers deserve to know what GM is doing.

    July 6, 2009 at 1:22 pm |
  39. Bill McCliment

    The Obama administration has shown its true colors in supporting only the UAW in GM's government led bankruptcy. GM had 3 other unions in their operations which are being totally ignored. The IUE-CWA has over 41,000 retirees which will loose both healthcare and life insurance under this plan. My family and I will never buy a GM product again!!! Shame on the Obama administration, Sen. Sherrod Brown and Congressman Tim Ryan for not protecting their supporters!

    July 6, 2009 at 1:27 pm |
  40. arthur hill

    Ever since the oil embargo in the seventy's both GM and chrysler have been building disposable car's.I can not believe the WORLD allowed this to go on as long as they have.It's about time this has happened.Thirty Seven year's this has gone on.I for one don't think they should have been given this free pass to continue on.I believe they should have been made to flounder just like there product's have all along.I also believe the UAW should be disbanded and some body held Accountable for everything that has gone on in that union.My father in law belongs to the UAW,He brings home $2.000 A week as A Q.C. All he doe's all day is play poker and take's bet,s on every thing from Football,Baseball,Basketball to the lottery would not own A Chevy or A Dodge if it was given to me.I guess we can chalk it up to"Greedy,Lazy American Know How"

    July 6, 2009 at 1:31 pm |
  41. Bill

    How in the world can they let this go through? The plan allows to close US plants giving pink slips to US workers and let the Mexican and Canadian plants to remain open saving their jobs. This plan is called a US bailout? Our tax money is going to save Mexican and Canadian workers. Will they count those jobs as saved????

    July 6, 2009 at 1:31 pm |
  42. Carroll Gant, JR.

    I think GM is doing the right thing now. The only way to get back ontop, GM has to design and build Automobiles CAR people have passion for. Like the new Camaro and Cadillac CTS-V & CTS. The Technology in the Ecotec, LS V8's and the 3.6L V6 used in the CTS and base Camaro. Better than the 4.6L V8 used in the Mustang GT. Not everyone is going to buy Automobiles with 4 cylinders and no torque.

    July 6, 2009 at 1:49 pm |
  43. kelly

    I am 49, always driven GM vehicles, my brother and father too. Never a lemon. Mostly Pontiacs & Buicks, for all of us with the occasional Chevy. I drove a '91GMC Pick Up that turned 175K miles before the 1st problem, the battery needed replacing. Best vehicle I've ever owned. I now own a '98 Buick. LeSabre LIMITED W/85K miles. It is 11 yrs. old and doesn't qualify for the Klunker Law because it's gas mileage is too high. HA!

    July 6, 2009 at 1:52 pm |
  44. kelly

    General Moters makes the best 6 cyl. engine in the world.
    They MUST make it. GM MUST make SMART, WELL THOUGHT OUT, FORWARD LOOKING, GREEN (HYBRID), DESIGNS. We are sad and hoped to purchase a Pontiac Solstice Coupe for our next car, but they have sold the brand.

    July 6, 2009 at 1:52 pm |
  45. Mark

    Being a son of a union laborer and a being retired teacher, I find it treasonous to imply that GM will only return when labor costs are reduce. This may be true, but undoing the labor unions is not the answer. Bush/Chaney set that as a goal. What was their success? Are we supposed to return to the days of sweat shops, child labor, poverty level wages, and a 7 day work week 52 weeks/year? GM, Ford, and Chrysler will sell more cars when they build more cars we can afford to buy and afford to drive.

    If we are going to compete with foreign manufacturers for product production costs, then we have to level the playing field. A large contributing factor for high cost of labor is medical. if we are competing against foriegn companies that have government subsidized medical programs, we need to adopt the same to level the playing field.

    GM will come back when the right wing slave labor supporters (Republicannots) wise up and start acting the the national interest. Unions helped raise this country out of poverty by raising the wealth of the laborers and helpd improved labor working conditions and health.

    News Reporters should support union and laborers.

    July 6, 2009 at 2:07 pm |
  46. kelly

    Hybrid Technology has been proven reliable. It raises the MPG by an impressive amount on any vehicle that uses the technology.
    So my question is: Why does'nt government mandate all cars sold in the USA, use hybrid technology as a viable stop gap measure to meet stricter Gov. MPG standards on all vehicles, as well as, reduce America's carbon footprint tremendously?

    July 6, 2009 at 2:27 pm |
  47. kelly

    Mandating hybrid technology on personal use vehicle's would be enough reduction to slow global warming while we improve other options, especially hydrogen fuel cells. Because we (USA) use a disproportionate amount of the worlds resources, such initiatives will slow global warming. Even if no other country passes such initiatives.

    Our Government is outlawing incandescent bulbs, we will all have to use compact flourescent bulbs. Why, Global Warming. I 've already changed all my bulbs, wow, my elec. bill dropped over $100/month. Yes, vehicles will be 3K higher, so what. If there is no other choice we wil have to buy hybrids. Why do this, Global Warming

    July 6, 2009 at 2:42 pm |
  48. Glen Cuff

    Hi Tony

    With respect to GM, there has been absolutely no mention of the service they provide. I stopped buying cars from them 15 yrs ago and went with foreign cars solely because of their very poor service! They should start there and not be so arrogant with there customers.


    July 6, 2009 at 2:46 pm |
  49. ronnie evans

    i think it is kind of sorry that they can do the people of the usa the way they have. they need to give the money back to the tax payers.we are the ones that had no chose to say what we think. we are the ones that are paying for it. get real just because you print more money does not make the spending any less just pay back is more .the tax payers are tiried of all spending that is not right.

    July 7, 2009 at 10:32 am |
  50. Milton Smith

    I looked into super lenses that focus 99.9% of light into a solar power extractor and it produces more power than Earth will need. I looked at motor companies using this type of engines with carbon fiber from oil and coal etc.. the numbers of success were off the charts but I guess they would rather be broke. Then be broke.

    July 8, 2009 at 2:54 am |
  51. Matthew T.

    I give the new GM a slim chance of succeeding. No, they will not be on top ever again. Here is an interesting thing, a few years ago, Toyota offered to let GM buy them. Do you know what GM said? They said, "No, you will never be as big as us." Look who's close to the top now.

    July 8, 2009 at 9:44 am |
  52. Glen Cuff

    Absolutely Not! The damage has already been done and it is solely their fault. Government should stay out of private business and let the pieces fall where they may! Ask the Question or do a survey on the SERVICE THEY PROVIDE TO THEIR CUSTOMERS and you may be surprised by the results. I left GM 15yrs ago after two Court cases that I won because of their attitude and poor service.



    July 8, 2009 at 3:50 pm |
  53. Allen Barnett

    Please someone explain to me how a company can claim that they will sell 10 million vehicles and NOT make money , claiming they must hit 12-13 million to turn a profit. Wouldn't any other company jump at the chance to hit even a portion of that number. Just seems that if saving a company is your goal it could be done or do they want us to believe theyare concerned more for the jobs that may be lost in the process.

    July 10, 2009 at 11:21 am |
  54. Grant

    Since the government now owns 60 percent of GM. does this mean that when the government buys vehicles for it's fleet they'll be GM vehicles? Ford did it the right way and will suffer from GM's mistakes. Can you say 'Lawsuits'?'

    July 10, 2009 at 11:27 am |
  55. Charles Johnson

    Good afternoon Tony, wanted to speak about how GM as taken 50 billion dolloars of tax payer money and still wants to rip us off. I went to my local chevy dealer to by a new Camaro, I have wated for 30 years to buy a new camaro. Gm's dealer wanted to charge me 10000 oversticker for this car, this does not sound like a company wanting to do the right thing with the american people. I hope this is not the new future of GM.

    July 10, 2009 at 12:24 pm |
  56. Antonio

    We need to stop giving these giant corporations "Get outta Jail Free cards", It's the American way for businesses to fail, that's how the good ones emerge and remain strong for generations. The saying goes "All good things must come to an end." But legislators seem to be interperting that as "All bad things should be given chance after chance." GM will never be the same as before, unless they lead the charge in America's slow decline into mass public transportation.

    July 10, 2009 at 12:54 pm |
  57. Tye

    The reason most businesses fail is because of poor management. Same reason for GM. People would buy their vehicles if they weren't junk. Don't get me wrong.. you should still buy American.
    I buy Ford products... Ford doesn't beg for money. Buying Ford keeps my money in my own country. Those of you who don't are the real people responsible for the shape that our economy is in.

    July 12, 2009 at 1:13 pm |
  58. Felix Chesterfield

    Has anyone seen this site for GM car and truck parts ? Will they still be open?

    July 20, 2009 at 2:55 pm |