"Ed Huntress" wrote in message
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"ATP*" wrote in message
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"oldjag" wrote in message
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Well, I guess most folks don't really care to much if the US auto
companies fold, judging by the internet postings. If one or more does
fold, who has the capital in the US right now buy up any of the
assets? The cost of admission for new vehicle design is very high.

They need to go bankrupt and reorganize. There will still be a US auto
industry and it will be more competitive than ever without the UAW
millstone around its neck.

Most of the industry experts I've heard over the past few days say there
will be no receivership and no reorganization. People don't buy cars from
bankrupt manufacturers. (Studebaker is an example; once it became known
they were thinking about getting out of the car business, they were.)
They'll go straight to liquidation, possibly with a few months of
receivership in order to handle the selloffs. The brands have very little
goodwill equity so most of the remaining value will be real estate and
hardware.

The Chinese are already sniffing around, looking for possible bargains.

--
Ed Huntress
I think the brands are still valuable. Chevrolet, Cadillac, Ford, even
Chrysler will always retain a certain percentage of the market. If the newly
reorganized company is solvent and honors existing warranties, people will
still buy from it. Whether the trademarks and desirable production
facilities can remain intact and be transferred in a liquidation is of
course, questionable. The other question is, even assuming the US automakers
are not long term viable, can we afford to let them fail right now?