Yes I do believe they will file! It is killing my business, I am right across the street from a Chevrolet dealer. Our business is down 23% and I believe 10% because of GM's problem. The Chevy dealer across the street is down 65% according to them.
I believe they will file, and I believe the stage was set when the Federal Government took over the warranty obligations. I think in some cases the effect will be very bad, floor traffic will suffer in the interim, what will be harder to control will be attitudes. It will be extremely important that dealers and general managers manage the attitudes in the dealerships, and do what they can to keep the attitude and moral up. The jury is still up in the air as to what the effect will be, but if the media spends as much time explaining how well things are going, and how fast GM will be out of bankruptcy, about 45 days from now the pent up demand will expand and sales could be quite brisk. In our case we are focusing more and more on used cars, and branding it away from our GM stores, but I also expect some big news on Saturn, so sales will come to the forefront quickly for Saturn retailers as a whole, and with a spin-off I believe faster then the rest of GM.
I do not know if they will or not. It will put unrest on all automtive industry. Whatever the outcome this country needs closure to many topics in front of our administration and the GM and Chrysler topics need to be resolved. As an asian brand dealer this will have an effect on us all in regards to parts suppliers that do work for many manufacturers besides the domestics.
We are a Chevy, Buick, Pontiac dealer in missouri-- They need to go ahead and file and get it over with!! They are killing our business, we havent seen a buyer in days and when we do they think they can steal the unit they want to buy. Been working a guy for a week and he just called to tell us that $8500 off the price of a new pick-up isnt enough and he will just wait until the incentives get better!!!
Typical GM style cant even go broke in a timely manner!!
What happened to the bail out? I, as a young ignorant American, was told we needed to bail them out and could not afford to let them fail? If they come back after a bankruptcy I would invest in them only because they wouldn't have all the looming pentions to pay. GM would free up alot of cash flow if they did such a thing.
I used to see this as a bad thing but from a business perspective I think it will be a good thing. I have listed the pros and cons in list order (IMHO)
No more Unions(lets face it,biggest problem facing GM)
Shed of zombie debts from said unions,ect
More profitable long term view
Be shed of useless names like Staurn,Saab,Hummer,Pont,and GMC
Leave the strongest three Chevy,Buick, and Caddy
Combination to form more profitable stores(lets face it the weak will be cut from the herd, but how many Chevy stores does one 30 mile radius need...Honda and toyota have that one down right
Possibility of the company being took over by hostile buyout from BK Court(dont hear much about this but what some don't know is that the good and bad assets can be bought out from the court) Might be the best thing for the brand to have someone else own it!!!!!!
Loss of many dealer priciples to loss of brands
Retirees will have to fight with medicaid like everybody else and no more free viagra(I know this one for a fact) Damn retirees and workers make more than I do in Finance when you combine all their salary plus paid health
I think thats about it from my point of view...I used to think that the public would lose faith in GM but we actually have made more sales since all this BK talk than we did last quarter. The people of America are Not STUPID and know Gm would be better off without the unions, ect.
I feel if they are going to do it. Do it and lets move on. I think it is a bad move when it comes to the country’s interest. But the Guys at the top office in this country must understand. This didn't happen over night or in the last year. GM must set down and come up with a plan to work it out. If everyone from GM and all its employees take a little less pay remembers we are the USA there is northing we can't do. We just need to stop the crying and get back to work.
Even though I agree the Administration did the right thing when they "broomed" Wagoner and gave GM an extension, the car czars are rookies. They offer up a gov't supported plan for warranty coverage to try to get people to continue to buy cars. If there are no parts being produced, and no dealers left in business, how will this warranty work be accomplished?
But forget about all of that. The threat of bankruptcy has caused any dealer with any brains to STOP ordering vehicles! In a BK, the franchise agreement is null and void, and along with that the OEM's obligation to buy back inventory in the case of dealer termination. It is this provision that allows dealers to gain bank floor planning in the first place. How many banks will call the "floor plan" loan without the OEM "buy back" provision in place. Losses from this debacle will kill off most dealers and will take a few banks along at the same time.
Despite the fact GM and Chrysler will pay dealers for orders, who says they will be able to collect that money as an unsecured creditor? The OEM wants to load dealer's up to drop them off the BK cliff? Only the chumps who are in denial are still ordering vehicles.
This Chevy "Chump" is still selling Chevy's and a whole bunch of Used units. I have no idea what is going to happen. As a Chevy Dealership, we are still selling well over 200 units a month, usually over 250 per month. We are only focusing on what we CAN control and when this thing is over (one way or the other), we ARE READY!
The good news is the product has never been better!! The Malibu and Traverse are OUTSTANDING and the Camaro will be here any day. We have been here for 162 years and are planning on being here for another Century:)!!
Maybe I'm in denial, but it sure beats the alternative!! We have great people, great processes, and a great location. Someone is going to be selling vehicles (unless spaceships takeover) so it might as well be us!
Let's hope they do. Maybe I missed something before we turned into a nation full of badly managed companies looking for taxpayers to bail them out, but wasn't Ch.11 the original and "no public tax help" way for companies to reorganize and bail THEMSELVES out? Throwing good money after bad makes no sense, except to our new President. Reorganization, under new management, with new direction and vision WILL work. We hang tough, tighten our belts, and SELL.
Time to revolt!! Cancel all cable access in your stores, If we can only view BAD news in our lounge why waste money on cable for our Guest, Bankruptcy makes sense, it's long overdue, the UAW is what has killed GM, Chrysler,& Ford,they need to use Hyundai as an example of wages earned by production workers on an import american assembly line, $22.00 per hour!!! not 60-75 per hour!!
Did our Pres know when he asked Rick Wagner to step down that Rick was entitled to 21 Mill in Sevrance pay??? Kinda sounds like AIG!!
Thats Right AIG cant go under, all the Congress men Pensions are handled by AIG imagine that!!!
dont mean to RANT but as a 30 year Vet of the Auto Industry, There has always been to much Goverment intervention into our Industry, Cafe, OFAC, RED FLAG, now we the people are to carry the additional burden of where or who will be left over the next 6 months.
yet we still have no plan, Good GM/ Bad GM??
Saturn, No Saturn,
guess I'll wait and see
oh yeah, we have Pontiac,Buick,Gmc,Mazda, and Hyundai,!!!
Unique Times we find ourselves In
I think it will probably happen. I wrote the following in our monthly newsletter to our customers because I think it is best to deal with it up front. The article speaks for my attitude. As business has slowed down, I worked harder.
Will GM Go Bankrupt?
How will that affect Apple Chevrolet and the consumer?
"Apple Chevrolet has had the privilege of being in business for 40 years, and Apple Chevrolet is here to stay. Although we have lost a few of our competitors in the last several months, Apple has expanded our Service operations, Internet presence, Inventory and Marketing to accommodate these new customers who have migrated to our dealership. We have even expanded our Saturday Service hours to 8:00 – 4:00 PM. We welcome our new customers and are committed to remaining #1 in Customer Service among Chevy dealers in Chicagoland. We plan to outlast our competitors."
"As for GM, anyone who reads the news knows that bankruptcy is a possibility. However, bankruptcy does not mean going out of business. We would prefer to see GM avoid this option, but in fact, a quick bankruptcy could actually speed up GM’s restructuring, resulting in a leaner, meaner, greener GM with fewer brands and with Chevrolet as it’s flagship brand. We, as a dealership, have Total Confidence in GM and the Chevrolet brand. We continue to be committed to offering you the best vehicles, at the best price, with the best customer service."