Sunday, November 16, 2008

And What of Bankruptcy Concerns?

GM says it cannot wait until inauguration for bail out capital.  So, if the choice is between GM's collapse or bail out, why are Spring Hill's GM employees and UAW representatives just expressing concerns in the Tennessean about exacting bail out loan requirements and not about the possible liquidation of their plant if GM is not bluffing that bankruptcy is imminent?  In other papers bankruptcy is a distinct possibility.  And if Spring Hill is as "well-positioned" as Tennessean interviewees maintain, then could that be indication that GM is bluffing on the urgency of their need to leverage funds as soon as possible?

At $200 billion in costs if collapse occurs in a worst case scenario, this is serious business.  If GM is bluffing it needs to be called and right quick.  Exacting loan payback requirements and incentives to help consumers and the environment might force a tell.  And if I were a Spring Hill auto worker I would be more worried about the risks of bankruptcy and less concerned about bail out expectations.

1 comment:

  1. Let GM go bankrupt. It is the only way to free up those resources and let them be reallocated to a more productive use.
    I am shocked that the socialists are all of a sudden promoting "corporate welfare".