I'm no Economist, But.....

[jimnance]

All of the big three automakers are bleeding cash like crazy. GM stock is trading at $6. 18 and can't find cash to run it's operations. It's looking to merge with Chrysler because Chrysler does have some cash and Cerubus, the owner of Chrysler wants to bail. Ford is trading at $2. 09/share signaling almost certain bankruptcy. To me, it looks like all three auto makers may be forced into Chapter 11.



So, where will that leave us, the car owners? To what extent will they honor past commitments? Will our warranties be any good?



Inquiring minds wonder? :{

 

[HBarlow]

If an auto manufacturer goes out of business and files for bankruptcy protection a federal bankruptcy judge will decide whose claims against the former company will be honored and the priority or position the claimant will have in the long line of lenders, companies, employees, former customers, and other claimants against the assets of the company.

My guess is if that happens a warranty claim will be about as likely to be honored as a letter to Santa Claus.

When Travel Supreme, Alfa, National RV, and others went out of business earlier this year the warranties became void.

If GM does acquire Chrysler and then voluntarily closes parts of Chrysler and retains other portions a warranty might be honored, or might be voided by some tricky maneuver by a bunch of overpaid lawyers.

 

[RVTRKN]

Yes, I have thought about it, but in a different way. Will GM be purchased by Dodge or is it the other way around. Which motor will survive the merger, Duramax or Cummins and the Allison trany or the 68rfe.



But if my warranty is voided the DPF will be removed and to hell with EPA, If we do not get support for the over restrictive system with way too expensive repairs, EPA will have to relax their regs.



I believe the Duramax will only last as long as there contract lasts if GM buys Dodge. The Allison will replace the 68rfe and the Aison. I personally dont like the Allison but it does not matter to me because I like manual trany's. Ford is another story, International will step in to to get Fords light truck commercial market and only warranty the recent 6. 4 powerstroke. Ford can outlast the other two but if the 6. 4 costs them as much as the 6. ohno did, they will go bankrupt.

 

[jimnance]

With a $2. 00 share price the market is betting that Ford goes before Dodge or Chrysler.

Yes, I have thought about it, but in a different way. Will GM be purchased by Dodge or is it the other way around. Which motor will survive the merger, Duramax or Cummins and the Allison trany or the 68rfe.



But if my warranty is voided the DPF will be removed and to hell with EPA, If we do not get support for the over restrictive system with way too expensive repairs, EPA will have to relax their regs.



I believe the Duramax will only last as long as there contract lasts if GM buys Dodge. The Allison will replace the 68rfe and the Aison. I personally dont like the Allison but it does not matter to me because I like manual trany's. Ford is another story, International will step in to to get Fords light truck commercial market and only warranty the recent 6. 4 powerstroke. Ford can outlast the other two but if the 6. 4 costs them as much as the 6. ohno did, they will go bankrupt.

 

[RVTRKN]

Ford has enough cash too stay afloat longer, now what they will do is anybody's guess.