Bankruptcy anyone?

Off-Ramp
1

Here are the biggest US automakers by market cap.
Who do you think is going to file for bankruptcy first?

  • Tesla
  • GM
  • Ford
  • FCA

0 voters

2

IMHO

General Motors.

I expect some level of social distancing and reduced demand for travel to stay for extended period of time 24-48 months. This includes personal transportation.

The largest unused production capacity will be on GM hands, large fleet on captive financing (which depriciates faster), a last-minute hard push into electric won’t do any good in the new economy.
Cruise division does not generate revenue and would require further investments down the road, will likely to be sold well-ahead of a real cash-crunch.
P.S. Goverment bailout is always a possibility, but I would not count on it this time around.

3

Both F and GM are in trouble here but there is 0 chance a nationalist like Trump will let them go under…i sure hope he doesn’t.

4

I would think airlines are the first to go.

5

Virgin Australia

RB has issues a warning that Virgin Atlantic needs a bailout of BK

jetBlue and Southwest did not get bailouts.

United just issued $2.1B losses and wants another bailout.

Boeing is in real trouble.

I think the companies that supply the car manufacturers are more likely to BK before the manufacturers.

FCA has that sweet sweet Renault purse so I put them at the bottom.

Ford lost $2B last quarter

2 Likes
6

Question is what form of BK that would be judging by scenarios previous administration put GM on fast track BK absolving it from all liabilities only to rack them up again.

Or like Lehman when everyone was left to defend for their own.

7

My money is on Ford.

That debt is going to haunt them.

8

Those dividends they were paying…

9

I was thinking of any kind of insolvency. It includes scenario from the previous administration.

10
11

Tesla? Really?

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12

They deserve to go bankrupt for trying to put a steering wheel this ugly in a car

image
image1000Ă—563 177 KB

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13

Like it or not that’s the future. Do you even West world bro? Minus the steering wheel…

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14

Wow.

Talk about sensory overload.

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15

Is it a typical Chinese company where they will go IPO, try to get some American dollars and then disappear?

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16

You forgot one step. Fudge sales then ipo.

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17

Yes. I think they are so desperate they are skipping that part.

Uh oh, now revero is being revealed as a scam

18

I think the US companies will be fine. We’ve seen the gov’t bail them out before and even this administration recognises the importance of keeping jobs and something of the US Auto industry alive. Maybe.

I’m far more interested in what’s going to happen to the other, smaller players.

  • Nissan & Infiniti - bankrupt, merge, bailout? all 3?

  • Similarly - Renault. The French gov’t can keep them afloat for a while but indefinitely? again?

  • Mazda - small and nimble, but without deep pockets that makes it tricky to survive long downturns.

  • Mitsubishi - just DIE already!

19

Wait, are you suggesting a vehicle that started life as a foreign company that showed up and took US tax dollars and then bounced after hardly delivering may be questionable in their funding strategies?

20

The current company is a different problem. Chinese bought them out, tried to do some things and now they are out of money.

Building cars are expensive…