GM Filing For Bankruptcy? CEO Says No.
As you can expect, we have successfully handled thousands upon thousands of GM lemon law cases through the years….Cadillacs, Buicks, Chevrolets, Corvettes, Pontiacs, Hummers, etc. Founding Partner and Lemon Law Attorney Bob Silverman has taken charge of many of these cases, and he has always felt that, despite the fact the glitches occur, GM has constantly exhibited a strong commitment to quality and customer service. We have also seen that many of our GM clients have illustrated tremendous brand loyalty, buying a brand new GM vehicle following their lemon law experience. Thus, it is quite disheartening to hear that this once invinceable auto giant is suffering a tremendous amount of troubles and tribulations.
Bloomberg reports that the company has suffered a 16 percent decline in 2008 U.S. auto sales and the price of GM stocks is now at a 54-year low (Shares have tumbled 62% this year, the most among the 30 companies in the Dow Jones Indsutrial Average). However, despite continuous speculation that GM could file for bankruptcy in the next year, Chief Executive Officer Rick Wagoner says that the company has “no thoughts whatsoever” of bankruptcy. Wagoner also says that Hummer is the only one of GM’s U.S. brands being studied for possible sale or shutdown. As gas prices continue to soar, the manufacturer will review the truck’s future and sales potential. He adds that the bankruptcy rumors have not resulted in any drop in sales, with GM sales falling less than 1 percent in the first three months of the year.
As a company, GM has not posted an annual increase since 2004, with no U.S. sales gain since 1999. Last year, they suffered an astounding $38.7 billion loss. Outside analysts say that in a worst case secnario, with sales continuing to decline and an inability to acquire much needed captial, GM might have to declare bankruptcy by the end of 2009 or beginning of 2010, but they put the odds of that happening at 25 percent.