liongterm investor

Auto Sales Are Cause for Optimism

IMO if GM were to declare any form of bankruptcy in order to shed debt and legacy obligations, they would lose a large fraction of the "loyal" US long term GM purchasers. Many would equate the obligations to the debt holder with the obligations to the purchaser of the car - neither "warranty" is of any value. GM would not be a company that you could trust.

GM car sales in the US would likely drop by another 30% or so. IMO this is why GM will struggle harder than most companies to avoid bankruptcy. Maybe they will ultimately find it necessary. If they do, they will return as a much smaller company, at least in the USA. I do not believe that the willingness to do that is in their coporate culture gene pool.