WI: A Big Three automaker is liquidated during the Great Recession

[Deleted member 6086]

I'm not sure precisely how bad the Detroit automakers' finances were in late 2008/2009, but the argument was certainly made that without the bailouts they would go bust. What if one (or even two) actually did due to a different administration or whatever refusing to bail them out? Chrysler would seem the most likely one, given its smaller size, but GM doing so would be pretty massive indeed.

 

[kernals12]

I'm not sure precisely how bad the Detroit automakers' finances were in late 2008/2009, but the argument was certainly made that without the bailouts they would go bust. What if one (or even two) actually did due to a different administration or whatever refusing to bail them out? Chrysler would seem the most likely one, given its smaller size, but GM doing so would be pretty massive indeed.

Chrysler and GM were both liquidated. The current GM is called General Motors Company which bought the assets of General Motors Corporation. Chrysler Group purchased the assets of Chrysler LLC and in 2014 became Fiat-Chrysler.

 

[Deleted member 6086]

Chrysler and GM were both liquidated. The current GM is called General Motors Company which bought the assets of General Motors Corporation. Chrysler Group purchased the assets of Chrysler LLC and in 2014 became Fiat-Chrysler.

I mean if one or more went bust for good and didn't come back, rather than the accounting game that event was.

 

[kernals12]

I mean if one or more went bust for good and didn't come back, rather than the accounting game that event was.

That probably wasn't going to happen. Both companies had profitable brands that would've survived. Jaguar, Land Rover, and Mini all were once part of the disastrous British Leyland but today are alive and well under new ownership. If GM allowed to fail, I'm guessing this is what would happen:

GMC: Sells profitable trucks and SUVs, kept same as IOTL
Buick: Sold to Chinese company
Cadillac: Stops all passenger car production
Chevrolet: Kept the same

Chrysler would probably be stripped down to Jeep and Ram.

 

[subway dreaming]

Another interesting possibility that Canuckwanker-in-chief @TheMann likes to bring up is auto-parts manufacturer Magna buying parts of GM and becoming an auto manufacturer of its own right. If one of the Big Three went bust, could we see Magna step into the void?

 

[TheMann]

Another interesting possibility that Canuckwanker-in-chief @TheMann likes to bring up is auto-parts manufacturer Magna buying parts of GM and becoming an auto manufacturer of its own right. If one of the Big Three went bust, could we see Magna step into the void?

Maybe, as Magna did seriously consider buying GM's European operations during the recession but couldn't arrange the financing. The question there would be whether Magna could arrange the money and what they were buying.