Is GM headed for bankruptcy again?
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Not really. It just this week posted $1.5B in profits for the third quarter, or $0.89 return on a share. Analyst expectations were 60 cents a share. By the way, its the 11th straight QUARTER that it has posted profits. Any weakness in its financial report, which is hard to find, is due to Europe sales, which is down for all firms including Ford. Hardly a company looking to go bankrupt.
The same thing that brought GM down in the first place was NOT corrected by the Obama buyout.
Union healthcare coverage and retirements.
Obama just stuffed cash into the union coffers.
Inside 10 years they will have the very same problem they had before the buyout.
Ford fixed this problem by paying (3 billion) the union itself to take over the retirements and healthcare coverage or its members.
Now the union is crying that they will have to cut back on those very same retirements and healthcare coverages or raise rates on the members.
GM could have made the same deal but the union did not agree and before they would have been forced into it Obama stepped in to “save” them.
I bet Obama in this term will either dump more cash into their system or will offer to take over the retirements and force all the members into Obama care.