It doesn't get much more turbulent in the automobile industry than the last 24 hours, and a little birdie told me there's plenty more coming in the next couple weeks, not to mention the next 24 hours...
But for now let's focus on what we know.
We know Rick Wagoner is gone. It doesn't matter if you agree or disagree with how he ran GM. It doesn't matter if you think his dismissal was prudent change or simple posturing (one guess as to what I think). The bottom line is he's viewed as the man at the wheel when GM steered into the sun, and the president's administration wanted a "fresh" approach.
We know Obama wasn't satisfied with either Chrysler or GM's viability plans and has asked for a "do over" from both. The president seems fired up by the idea of a Chrysler/Fiat merger (more fired up than he should be?), but he was nebulous about GM's next steps. It seems "go futher" and "work harder" on restructuring is the only concrete takeaway.
We know the president left open the concept of bankruptcy as a possible pathway to viability in his speech. After the speech GM's new CEO, Fritz Henderson, reiterated the bankruptcy option and spoke of likely government aid to expedite bankruptcy proceedings.
Finally, we know the government is now guaranteeing the warranties on all domestic automobiles. This is good because it means current and potential new domestic car owners can be comfortable knowing the government has backed up their vehicles (versus leaving them "out to dry" on warranty work).
Add these indisputable facts up and I think we all know something else: A GM bankruptcy is inevitable.
Continue reading…
Categories: Automotive News, Buick, Cadillac, Chevrolet, Domestic Manufacturers Problems/Challenges, GMC, Hummer, Pontiac, Saturn, Talk Back Tuesday