In the case of Delphi, GM spun off its parts business but made the new company take the old, high cost union contracts--a recipe for disaster.
Those legacy costs and the GM dole, called the Jobs Bank for laid-off GM workers, drain billions from the company.
Wouldn't GM be better off designing some new Chevrolets with the money spent on the Saab?
It had grown into an unwieldy monster by the time GM spun it off in 1996.
The government took a 60% equity stake in General Motors, and as part of the deal GM began selling off assets, closing facilities, making itself smaller.
Among the largest underlying components of VXF, in trading today Las Vegas Sands Corp ( NYSE: LVS) is up about 0.8%, General Motors Co. ( NYSE: GM) is off about 0.5%, and Crown Castle International Corp ( NYSE: CCI) is higher by about 0.8%.
Ford shares are off 42% from their 52-week high, and GM's are off 48%.
Millions were still being laid off, GM and Chrysler had not yet taken bankruptcy and the federal government was injecting the first of trillions of dollars into a shell-shocked economy.
FORBES: Next Movie On Main Street: 'Small Business Shrugged'
GMAC, which was spun off earlier from GM, also cut way back on new loans and leases.
FORBES: Most Car Companies Want Their Own Finance Company So They Have A Place To Go Home To
In the 1990s, GM borrowed heavily to pay off its pension plan, saddling itself with hefty interest payments.
FORBES: GM Loosening The Noose From Its Massive Pension Plan
But Koonce now says GM might as well kill off the brand, because that would be preferable to the slow death she sees as inevitable.
But GM has fired or laid-off over tens of thousands of workers since the beginning of the recession.
But while GM is surviving, and paid off its debt last year, investment banks are still falling apart and will likely have to shed parts of their assets in order to stay in business.
The consortium can call off the GMAC deal if GM's debt sinks below triple-C.
The question is whether GM's sales nosedive will level off before the money runs out.
When GM's large SUV sales taper off, it makes it look like the whole segment is deteriorating.
It paid off in Lordstown, where GM is investing hundreds of millions of dollars in their auto plant.
WHITEHOUSE: Remarks by the President at a Campaign Event -- Hilliard, OH
GM, Ford and Toyota can shrug off problems in Asia, because of their huge volumes in America or Japan.
Wolff likes his young team and figures it can contend awhile longer before GM Billy Beane is forced to sell off key players.
FORBES: World Series 2012: Modern Ballparks Power Up The Giants and Tigers
Speculation has also swirled about whether the crisis will force GM to take severe actions once considered off-limits, like killing some of its brands or hacking its bloated dealer network.
Earlier this week, he announced GM, Renault and Nissan were calling off alliance talks two weeks before their Oct. 15 deadline because the two sides disagreed on how an agreement would be structured.
He fought hard to protect jobs for American families. (Applause.) And that is why today, the auto industry is back, and new cars are rolling off the line at companies like GM.
"When GM feels the pain, the industry will back off incentives, " says Glenn Reynolds of the credit analysis firm CreditSights.
If GM shares dive, Treasury could decide to hold off longer.
In June, Sichuan Tengzhong announced that it had a tentative agreement with GM to buy the brand, which features large off-road vehicles that initially were developed for military use.
Mr. WEBSTER: It's hard to see if the economy doesn't turn around next year how they will be able to - Ford, GM or Chrysler - be able to not lay off more workers.
He got the auto industry back on its feet, and today new cars are rolling off the line at proud American companies like GM.
He got the auto industry back on its feet again, and today new cars are rolling off the line at proud American companies like GM.
Some said its grille resembled a Jeep's--a red flag for GM, which was being sued by DaimlerChrysler for knocking off the Jeep's signature grille on the H2.
应用推荐