General Motors - going bankrupt?

GM: Is automaker is ripe for bankruptcy?

GM Leadership Says its solution: Cut costs and make better cars

Wall Street's confidence that GMC Chairman and CEO Rick Wagoner can restore the company and avoid bankruptcy down the road is evaporating -- quickly.

GM shares slid 4.5 percent Thursday to their lowest level since October 1992, the month the automaker's directors ousted then-Chairman Robert Stempel in a historic boardroom coup.

GM Says its solution: Cut costs and make better cars

Here are the lowlights of what General Motors told investors two days ago. Instead of breaking even in the first quarter, it now expects a first-quarter loss of $1.50 per share. Instead of earning $4 to $5 for the year, the best that investors can expect is $2. Cash flow will be a negative $2 billion, not the positive $2 billion the company forecast as recently as Jan. 13.

GM Says its solution: Cut costs and make better cars

Argus Research analyst Kevin Tynan thinks there's a 100% chance the company will file at some point. "I wouldn't say two years, and I wouldn't say five years," Tynan says. He notes that GM is weighed down by inflexible labor costs, and he doesn't see how the automaker will get out from under those expenses without the aid of a bankruptcy court judge. But, "I think there are enough Band-Aids left; they could really push this out pretty far until they have to deal with the wage issue."

GM Says its solution: Cut costs and make better cars

UAW Blue-collar workers at General Motors Corp. have ratified a landmark deal to help the automaker cut its massive health-care costs, the United Auto Workers union said on Friday.

GM, the largest U.S. private health-care provider, has said the deal will save it $1 billion annually and slash its long-term costs by $15 billion.

The deal, which shifts some of GM's costs onto the backs of the automaker's hourly workers, had to be ratified by the UAW's rank and file. The process began last week and the union announced final approval on Friday.

GM Says its solution: Cut costs and make better cars

qualityg says… I thought they were already cutting costs and making better cars. Didn’t they win all those J.D. Powers awards? Something stinks in Detroit and it’s not the Rouge River Bridge over I 75.