99SSragtop
11-22-2008, 01:43 PM
All doom a gloom. Correct me if I'm wrong. Press is saying all suppliers will go belly up. How, GM will still use the same suppliers there not about to source out new suppliers to say make seats why, that would hold up production line like crazy.
GM I'm sure will use all the same suppliers and target the unions contracts kick there ass out and start fresh on that front.
Hell maybe have no unions.
Quote
" Joe D'Cruz, a professor at the University of Toronto's Rotman School of Management, said there's a "high likelihood" the auto giant - which reported a US$2.5 billion loss in the third quarter - will run out of cash before January, leaving the automaker with two choices: file for bankruptcy protection or go out of business.
Legal provisions in both Canada and the U.S. protect large companies from going under - under Chapter 11 of the U.S. Bankruptcy Code and the Companies' Creditors Arrangement Act in Canada - but will force a massive restructuring to make the company viable again.
D'Cruz predicted that if the 266,000-employee GM were to file for bankruptcy protection in the United States, the best that Canada can achieve is proportional pain.
"If 40 per cent of the employment goes in the United States, we should expect 40 per cent to go in Canada." he said.
In the process, many parts suppliers and dealerships would go under as well as the auto giant restructures its entire supply and distribution chains, D'Cruz said.
"Everybody in the GM ecosystem will be affected," he said. "Some of them will lose their jobs and others will have a very significant cut in their income."
GM I'm sure will use all the same suppliers and target the unions contracts kick there ass out and start fresh on that front.
Hell maybe have no unions.
Quote
" Joe D'Cruz, a professor at the University of Toronto's Rotman School of Management, said there's a "high likelihood" the auto giant - which reported a US$2.5 billion loss in the third quarter - will run out of cash before January, leaving the automaker with two choices: file for bankruptcy protection or go out of business.
Legal provisions in both Canada and the U.S. protect large companies from going under - under Chapter 11 of the U.S. Bankruptcy Code and the Companies' Creditors Arrangement Act in Canada - but will force a massive restructuring to make the company viable again.
D'Cruz predicted that if the 266,000-employee GM were to file for bankruptcy protection in the United States, the best that Canada can achieve is proportional pain.
"If 40 per cent of the employment goes in the United States, we should expect 40 per cent to go in Canada." he said.
In the process, many parts suppliers and dealerships would go under as well as the auto giant restructures its entire supply and distribution chains, D'Cruz said.
"Everybody in the GM ecosystem will be affected," he said. "Some of them will lose their jobs and others will have a very significant cut in their income."