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EEO Fritz Henderson speaking to the media in a conference call today.
And here's what he said he said the company will begin notifying dealers of closures this week and that bankruptcy is becoming more probable our next guest says GM.
Has been very slow and a very losing organization for a very long time so can the automaker snap out of it.
In the next three weeks so that's really likely -- what -- you -- Jennings automobile magazine president and editor in chief Jean.
C'mon I'm looking at a.
Goodness we -- how fast Chrysler moved in the last couple days isn't based -- had to go into Chapter Eleven but.
There was such a long way to go by the end of -- General Motors and I mean they have to get to work with their dealers stamp that was based on to do deals with their union.
They have to do deals that their bond holders and it's just not looking likely is it.
They need to hire people to make all of these deals have I mean ridiculous I -- what we have a -- in the last -- say stick a fork in General Motors.
But mainly because he talked about how the company needs ten billion dollars you do have to negotiate those employee union to deals -- I mean that the health care situation.
India and would you just call it here and say it's definitely going to be.
A bankruptcy situation here.
I wouldn't call it that I think they would too if they weren't sort of required by just common decency to say that they could probably could still possibly make it out.
But you know attempt to do his deal.
They're talking about issue wing you know and a hundred times more stock -- is out there now just to get to do this.
For -- -- stock for equity swap how's that gonna.
Well let's bring in the we -- here in -- suddenly the Italians.
I've gotten so feisty not only if they have their -- wrestler but what have you put who put something in the water over there they're suddenly wanting to become a gigantic golf auto conglomerate nothing wrong with that.
-- they also make -- remarkably -- He did this Marchionne is really something else all of a sudden you know you know you -- Saturn.
He wants General Motors all of Europe don't take sob don't -- by follow mobile and he wants South America took so now we've heard.
That General Motors says.
OK well maybe if you give us 30%.
This is 38% of the company.
They already were in bed with five years ago for four billion that was a disaster related to get out of that -- willing to give -- South America and all of Europe for 30%.
I just I'm have a hard to track.
Okay let's talk about these bondholders and everybody's sort of belly aching over over then what type of situation do you foresee for most of them which are unsecured.
I think -- -- really I think there you know they're gonna get right up to the end I think they have they've been put in an untenable situation.
Because the government is not allowing General Motors to offer them more than 10% of the company.
And asked for 27 billion that they in debt that's what they all of the union as well but they're gonna get down 40% or 39%.
She's now -- could say they're just yet how can they say -- and a couple of exactly and let's not pile -- higher and deeper on the US auto makers we know that Toyota and Honda are posted losses as well.
What all is said and done and one day please when the auto sales do come back and consumers begin buying cars again who's best positions of the big names.
To come out the real winner.
I -- I think that's where it's gonna stay how Volkswagen.
I think Volkswagen it and operate it -- They're the number one they're looking pretty again they're making money they have they have portion of their tail -- outlet.
Let me say so they have -- that out of the blue -- at least one of our leases is up and out of the blue.
So -- started calling sick I can get -- -- Porsche Qaeda gang first fellow cheap and I'm thinking what's wrong with this company now.
Well I don't -- that particular vehicle -- you know yes -- me.
Once that I -- -- -- and -- -- -- sports car but you know they are positioned very well still.
Toyota is not you know it read as you can't count that I you can't count on -- out when when the money gets spent again people are going to be buying value.
-- you know Ford is in a good spot obviously because.
They are focused forward they're not trying they're not in the middle of a fire sale or -- roaring and for him.
-- at least focused forward quick comment finally on on Fritz Henderson and his leadership there of what happens at how long do you foresee.
Bankruptcy taking could it be quick and surgical -- people promise.
You know they can watch Chrysler first of all -- -- is claiming they're going to be out sixty days.
So they're gonna -- role model here that they can watch cell.
They have a lot more irons in the fire -- Chrysler did that's for sure.
It depends on if they're able to sell everything as quickly as they think.
They have Hummer they -- sob Hummer and Saturn all those deals should be done by the end of may and June.
And you know I mean maybe that's just.
Got it -- separated out -- what's the favorite team out of bonds being with us we want to bring him.
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