What if some big company bought GM? Such as Toyota? Or maybe

[raccoon]

some other humongous company that wasn't even a car company?

[TlalocW]

1. Like Nestle!!!

Mmmmm... Chocolate cars.

TlalocW

[KharmaTrain]

2. With Monoploy Money?

During the mega merger mania games of the 90's and in recent years, I'd always ask a question that still has no answer...when does big get too big? When is a company so large that it can't liquidate assets or find a buyer? With credit frozen big time, who is going to finance such a deal? In essence, the bigger is better days are over...they've hit critical mass and the best is to let the corporate structures implode and take whatever pieces have value to seed new companies and opportunities.

The big problem is turning a big company around takes a lot of time and money...it's like trying to parallel park a semi. Many of today's "big" companies built their size on "paper value"...their stock price or some imaginary figure of their assets. We're now finding the true value of these companies. Smart business people are waiting for the other shoe to drop...the collapse of a lot of companies as the credit crunch forces more companies to shut doors or into bankruptcy. While the government attempts to say its doing something, this horse is long out of the barn...out of control until bad debt is somehow figured out and a new credit market/system is put in place.

[ThomWV]

3. Some other company will buy GM, at least all the tooling and worthwhile equipment

And it will be moved to wherever labor is cheaper and it will then be used to make something else, possible the next generation of chineese cars.

[gravity]

4. GM isn't worth buying

Unless they file chapter 11 and can get rid of some of its legacy costs.

[Winterblues]

8. Do you understand what these "Legacy" costs are?

Why GM and Chrysler have very large Legacy Costs and Honda and Toyota have very small if any legacy costs. These are promises made to retirees and injured workers. People put in their thirty years and expect the promises made to them about their retirement be kept. Honda and Toyota have not been operating in America for thirty years so have not had any retirements to speak of yet. It would be devestating to many older people to lose their retirement so a few CEOs can make over $7500. per hour as their Salary..and that doesn't include any bonus's or "Legacy expense of their own..

[gravity]

9. Pensions and healthcare

I understand that the moral arguments behind it, but the fact is that GM isn't bringing in the cash to pay for it anymore. Money doesn't grow on trees and even if you cut the pay of the CEOs to $1, it isn't going to make a meaningful difference. GM and the UAW are in a tough place right now.

No one will buy GM because it will mean that they will assume these liabilities which can't realistically be paid.

[kentuck]

5. Jobs would still be lost because...

they would buy all their parts, glass, tires, accessories from their original country. Millions of jobs would be lost.

[NNN0LHI]

6. Toyota has been closing plants in the US. Why would they want more?

http://in.reuters.com/article/asiaCompanyAndMarkets/idINT27719720080416

Thu Apr 17, 2008

TOKYO, April 17 (Reuters) - Hino Motors (7205.T: Quote, Profile, Research), the truck unit of Toyota Motor Corp (7203.T: Quote, Profile, Research), plans to shut its plant in California due to a sharp fall in demand for commercial vehicles in the United States, the Nikkei business daily said on Thursday.

The move, the first by a Japanese truckmaker, will reduce Hino's plants in the United States to two and roughly halve its North American truck output capacity to 4,500 units a year.

[Winterblues]

7. The Chinese are looking very close at these companies.

They are also traveling around America and buying up forclosed properties at bargain prices. They have all the money in the world at the moment and they are being very smart at how they spend that money..

[dysfunctional press]

10. let Apple have a go at it.

see if they can add a little innovation and styling.

[hootinholler]

11. Like maybe the UAW?

Seems to make sense to me.

-Hoot