All Posts Tagged With: "Predicts"

In a letter to shareholders General Motors’ Chairman and CEO Porter Stansberry says he sees light at the end of the tunnel but it is a GM bankruptcy and that a company cannot suffer 40 years of bad decisions, bad ideas, and bad debts and expect to compete with the rest of the world’s automakers.

He says, “what’s killing us is a legacy of debts and obligations we cannot possibly repay.” Stansberry says, “nor do we have any pleasant way to repudiate our promises. The only answer is bankruptcy.” He likens it to promises made under Social Security saying, “we cannot make enough money selling cars to afford the service on our $33 billion debt load, ” and “or the $11 billion we owe in cash pensions. These debts are killing us.” He thinks, “we’ve finally entered the end stage – the death spiral.”

“Given our current burn rate, I estimate we will declare bankruptcy in a little more than three quarters, “he predicted.

Toyota pays workers $43 an hour to make cars in the U. S. but the United Auto Workers demand $67 an hour from GM, Ford and Chrysler. Plus, they make cars that consumers judge to be inferior. Turn out the lights the party is over in Detroit, and Dearborn.