What are your thoughts on this ?
Oct 1, 2020
19 Comments
Saw this video on youtube a few minutes ago.
What the guy in the video and the people in the comments are saying is shocking. Could there be any truth to all this ?
https://m.youtube.com/watch?feature=youtu.be&v=6OGugv5dn-A
Ford and GM's $302 Billion Debt Crisis (Bankrupt Soon?)
comments
I can't comment on Ford though.
I don't have a crystal ball and don't know if GM will succeed. But conventional engine sales will keep the company afloat for many years. If we succeed in the EV transformation the it would be awesome to be part of it.
If we fail the EV transformation then we would have time to find new jobs. We will see the writing on the wall. I like GM but I'm not married to GM.
All this doesn't sound bankruptcy.
GM and Ford churned out the ventilators.
The bond rating is junk because this is all revolving debt, but it's not inherently supposed to net positive. As people pay back their loans, GM is fronting the price for another vehicle, etc.
I'm not sure what lending status necessarily implies, but the reality is the automakers aren't huge profit centers. They're moreso major employers, which is why the government protects them. Ford or GM go out of business, and you have millions out of a job, from the OEM itself, to the 1000's of suppliers, to the repair shops, to the dealerships, etc.