Government Motors update

[Dave007inVegas]

May 7, 7:34 AM (ET)

By TOM KRISHER and KIMBERLY S. JOHNSON

DETROIT (AP) - General Motors Corp. says it lost $6 billion in the first quarter and spent $10.2 billion more cash than it took in, as a sales slump cut revenue by $20 billion.
The nation's biggest domestic automaker lost $9.78 per share, compared with a loss of $3.3 billion, or $5.80 per share, in the year-ago period.

GM has received $15.4 billion in federal loans and faces a June 1 government deadline to finish a restructuring plan or go into bankruptcy protection.
Revenue dropped 47 percent, to $22.4 billion from $42.4 billion in the year-ago quarter.

It’s good to see that $15.4 billion helped.

 

[mplastered]

Give GM to the unions. They'll fix it.

 

[Dave007inVegas]

Give GM to the unions. They'll fix it.

That’s what BO did for Chrysler, it won’t be long till GM follows.

 

[Dave007inVegas]

Another opinion…..

Thursday, May 7, 2009
Manny Lopez
Obama's flawed auto logic

President Barack Obama insists he doesn't want to run the domestic auto industry -- and we should all be thankful for that.

But his actions speak differently -- and we should all be worried.
"... I rejected the original restructuring plan" that Chrysler LLC submitted for government loans, he said April 30 in announcing his decision to force Chrysler into bankruptcy. "... And the standard I set was high -- I challenged them to design a plan ..."
That's a lot of self promotion and involvement from a guy who doesn't want to control the companies.

To be sure, the government, with the investment of $4 billion in our tax dollars in Chrysler and $15.4 billion in General Motors Corp. needs to set guidelines and rules for repayment. If not met, call the loans and get our money back.

But forcing a private American company into bankruptcy because the president thinks it's the most prudent action. Um, no. Not by any measure.

Blaming the hedge funds

The president found a scapegoat in the hedge funds that balked at the government's "offer" to take pennies on the dollar for their secured investment
"... It was unacceptable to let a small group of speculators endanger Chrysler's future by refusing to sacrifice like everyone else," he said.

Pardon me while I puke.

Chrysler's secured lenders held about $6.9 billion in debt and a couple didn't want to take significantly less than what they were owed. The lenders that opposed hold less than 10 percent of that debt.

You mean to tell me that the president, who has authorized more than $19 billion in cash to the auto companies, with much of it likely never to be repaid, was willing to force Chrysler into bankruptcy over less than a billion bucks?

When you're doling out dump trucks full of cash, another Ram pickup full doesn't break the government's back.

Make no mistake: The president had this outcome in mind all along. He'll force that action on GM, too.

All the while bashing Detroit for not being Toyota.

"I don't know how to create an affordable, well-designed plug-in hybrid. But I know that, if the Japanese can design an affordable, well-designed hybrid, then, doggone it, the American people should be able to do the same," he said during his 100-days-in-office speech. "So my job is to ask the auto industry: Why is it you guys can't do this?"
Seriously? GM is building the Volt. The Ford Fusion hybrid will get top mileage numbers. It's about time Obama starts looking past the nonsense he's being fed by Californians in Congress. Certainly, the domestic industry needs to do more and it didn't adapt fast enough.

But to suggest that less than a billion bucks forced Chrysler into court or that these companies aren't in the same league as the Japanese shows that the auto ignorance in Washington rolls on.

:cripwalk:

 

[Dave007inVegas]

:WTF:

By Peter Whoriskey Washington Post Staff Writer
Friday, May 8, 2009

The U.S. government is pouring billions into General Motors in hopes of reviving the domestic economy, but when the automaker completes its restructuring plan, many of the company's new jobs will be filled by workers overseas.

According to an outline the company has been sharing privately with Washington legislators, the number of cars that GM sells in the United States and builds in Mexico, China and South Korea will roughly double.

The proportion of GM cars sold domestically and manufactured in those low-wage countries will rise from 15 percent to 23 percent over the next five years, according to the figures contained in a 12-page presentation offered to lawmakers in response to their questions about overseas production.

As a result, the long-simmering argument over U.S. manufacturers expanding production overseas -- normally arising between unions and private companies -- is about to engage the Obama administration.

Essentially in control of the company, the president's autos task force faces an awkward choice: It can either require General Motors to keep more jobs at home, potentially raising labor costs at a company already beset with financial woes, or it can risk political fury by allowing the automaker to expand operations at lower-cost manufacturing locations.

"It's an almost impossible dilemma," said former labor secretary Robert B. Reich, now a professor at the University of California-Berkeley. "GM is a global company -- so for that matter is AIG and the biggest Wall Street banks. That means that bailing them out doesn't necessarily redound to the benefit of the U.S. or American workers.

"More significantly, it raises fundamental questions about the purpose of bailing out these big companies. If GM is going to do more of its production overseas, then why exactly are we saving GM?"

Excellent question, don’t you think?

 

[punter]

Corporate ownership wrecked Harley Davidson. When the workers bought it from AMF it was a shell of what it was.

Look at them now.

 

[Dave007inVegas]

By: Reuters | 11 May 2009 | 01:55 PM ET

GM is open to considering moving its headquarters from Detroit, selling off U.S. plants and even renegotiating parts of its restructuring plan with its major union, the new chief executive said Monday.

CEO Fritz Henderson, on a conference call with reporters, said it was more probable that GM was headed for bankruptcy by June 1—the U.S. government-imposed deadline for the automaker to restructure or face bankruptcy.

"It's more probable that we would need to accomplish our goals in a bankruptcy," Henderson said. "There's still a chance for it to be done outside a court proceeding."

Face the facts GM is toast.

By: Reuters | 12 May 2009 | 06:03 AM ET

Six General Motors executives disclosed Monday they sold almost $315,000 in stock and liquidated their remaining direct holdings in the struggling automaker.

In filings with U.S. securities regulators, the GM insiders led by former GM Vice Chairman and product chief Bob Lutz detailed stock sales on their behalf Friday and Monday during a trading window for such transactions.

Lutz, who is now an adviser to the automaker, sold $130,989 worth of GM stock at the closing price of $1.61 Friday.

That sale of the 81,360 shares cleared out all of Lutz's direct holdings of GM stock, according to his filing with the Securities and Exchange Commission.

The five other executives, including Lutz's successor, Thomas Stephens, GM North America President Troy Clarke, Chief Information Officer Ralph Szygenda and manufacturing chief Gary Cowger and head of European operations Carl-Peter Forster also sold all of their GM stock holdings, according to the filings.

GM is headed for either a bankruptcy filing or an out-of-court restructuring that would wipe out current stockholders by flooding the market with new shares to pay off creditors.

The automaker's stock could be either worthless in a bankruptcy or worth less than 2 cents per share if it proceeds with its plans to issue shares to creditors led by the U.S. Treasury, the company has said.

$15.4 billion well spent. Now that's what I call a good return on our investment.

:cripwalk:

 

[rolltide]

GM is open to considering moving its headquarters from Detroit, selling off U.S. plants and even renegotiating parts of its restructuring plan with its major union, the new chief executive said Monday.

sounds like the move to Warren might be a good one. Warren giving them major tax advantages and no city income tax. Not sure how that would effect attrition from their employees that live south of the city but GM's all about attrition these days

 

[Dave007inVegas]

sounds like the move to Warren might be a good one. Warren giving them major tax advantages and no city income tax. Not sure how that would effect attrition from their employees that live south of the city but GM's all about attrition these days

I don’t think it matters where they move to, the best analogy I can think of is their trying to compete in the wireless communications industry with a string and two cans.

 

[C-Gold]

What's this "our" investment.

"Tax payers" investment, and 50% of people don't pay taxes anyway ... they are called democrats.

 

[Dave007inVegas]

What's this "our" investment.

"Tax payers" investment, and 50% of people don't pay taxes anyway ... they are called democrats.

Indirectly you and I both contributed, thus the “our”. But I see your point. :lol:

 

[Dave007inVegas]

The saga continues…..

By Chris Isidore, CNNMoney.com senior writer Last Updated: May 15, 2009: 10:10 AM ET

NEW YORK (CNNMoney.com) -- General Motors notified 1,100 of its 6,000 dealerships Friday that it is terminating their contracts with the struggling automaker, the first step in an even deeper 40% cut in its retail network.

This is another example that capitalism works in spite of government interference.

 

[Dave007inVegas]

Mon May 18, 2009 2:25pm EDT

WASHINGTON (Reuters) - The Obama administration is "supportive" of efforts by General Motors Corp and the United Auto Workers union to reach agreements on all aspects of the automaker's restructuring plan, including production issues, a U.S. Treasury spokeswoman said on Monday.

The UAW has been campaigning to block GM's restructuring plan on the grounds that it would close 16 plants and cut some 21,000 domestic factory jobs while increasing imports of GM-badged vehicles from China, Mexico and South Korea.

"GM and the UAW are in active and constructive deliberations around all aspects of their plan," the spokeswoman said.

GM's production plan "is one of several issues they are focused on, and the (Obama) administration is supportive of their efforts to come to a resolution," the official said.

In an e-mail to rank-and-file workers late on Sunday, the union's leadership said it expected talks to intensify this week, with both Ron Gettelfinger, the union's president, and GM Chief Executive Fritz Henderson due in Washington.

UAW leaders also urged auto workers and retirees to write to President Barack Obama and ask him to dictate job-saving changes to the plan proposed by GM, which faces a June 1 government deadline to show it can be viable or face probable bankruptcy. The union made a similar appeal to Congress last week.

The above is article is pure fantasy. Government Motors will not be in business by the end of 2009 unless it is nationalized and becomes a permanent welfare recipient.

 

[Georgiaboy]

Corporate ownership wrecked Harley Davidson. When the workers bought it from AMF it was a shell of what it was.

Look at them now.

Hell, just let the government run everything, I mean damn you see how good they do with everything else they touch.

 

[punter]

Hell, just let the government run everything, I mean damn you see how good they do with everything else they touch.

What in the hell did that have to do with what i posted?

 

[Dave007inVegas]

Why am I not surprised…..

By Chelsea Emery and Tom Hals
NEW YORK, May 19 (Reuters) - General Motors Corp's (#HYPERLINK "http://www.reuters.com/finance/stocks/overview?symbol=GM.N"GM.N) plan for a bankruptcy filing involves a quick sale of the company's healthy assets to a new company initially owned by the U.S. government, a source familiar with the situation said on Tuesday.

The source, who would not be named because he was not cleared to speak with the media, did not specify a purchase price. The new company is expected to honor the claims of secured lenders, possibly in full, according to the source.

The remaining assets of GM would stay in bankruptcy protection to satisfy other outstanding claims.

GM has about $6 billion in secured debt, including a secured revolving credit and bank debt.

The government's plans include giving stakes in the new company to GM's union and bondholders, although the ownership structure of the company is still being negotiated, said the source who is familiar with the company's plans.

In addition, the government would extend a credit line to the new company and forgive the bulk of the $15.4 billion in emergency loans that the U.S. has already provided to GM, the source said.

The government has given GM until June 1 to restructure its operations to lower its debt burden and employee costs.

If those talks failed, the company has said it would follow rival Chrysler LLC into bankruptcy.

Setting up a new company to buy the healthy assets is aimed at reassuring consumers who might not be willing to make a major purchase from a bankrupt company, fearing it would not honor warranties or provide service.
The board of the new company would be established with the tacit approval of the government. Fritz Henderson, who took the helm of GM earlier this year after the government pushed out Rick Wagoner, would likely head the new company, the source said.

GM could not be immediately reached for comment.

Permanent welfare recipient. Bye Bye $15.4 billion. Hello new credit line. @)

 

[Georgiaboy]

Feds to inject $7.5B more into GMAC
David Shepardson / Detroit News Washington Bureau
Washington -- The Treasury Department is preparing to announce as early as today that it will invest an additional $7.5 billion in GMAC LLC in a deal that could allow the U.S. government to hold a majority stake in the Detroit-based auto finance company.

GMAC, whose financial good health is key to providing loans for consumers to buy General Motors Corp. and Chrysler LLC vehicles, has been in talks for several weeks to secure additional capital. It had hoped to close the deal last week.

In December, the U.S. Treasury invested $5 billion in GMAC by buying preferred stock in the finance company. That stock carries a 9 percent dividend, but has no voting rights. Treasury also loaned GM nearly $900 million to buy GMAC stock.

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If the Treasury exercised its options from those investments, which would give it voting rights, it could own about 35 percent of GMAC, a person familiar with the matter said Tuesday.

The person said the additional $7.5 billion could allow the Treasury Department to claim a majority stake in GMAC, if it chose to do so. The percentage of that potential ownership stake is unclear.

Treasury Secretary Timothy Geithner said this month that the government was preparing to provide "substantial support" to GMAC. The Treasury Department has said it will infuse more capital into GMAC to allow it to assume lending operations for Chrysler dealers and consumers from Chrysler Financial. GMAC was supposed to take over lending for Chrysler Financial on May 15, but that is on hold until it obtains government aid.

The Treasury and Federal Reserve Board this month announced GMAC needs $11.5 billion in additional capital reserves as the result of government stress tests. The additional assistance to be announced this week is likely not the end of government support for GMAC.

GMAC spokeswoman Gina Proia said Tuesday the company was still in talks with Treasury about the amount of the financial support -- both for its capital requirements and to take over lending for Chrysler.

"Clearly, those are two areas where we are focusing on and we are having dialogue about support," Proia said.

By Thursday, GMAC is set to complete reconstituting its board of directors. Its major shareholders -- including GM -- are also working to divest their holdings to no more than 9.9 percent of GMAC's stock as part of the agreement that allowed GMAC to become a bank holding company, and thus eligible for federal bailout funds. GM no longer has any representation on GMAC's board, even though it temporarily holds 60 percent of GMAC.

GMAC said earlier this month that it was working to shore up its capital.

"Ensuring the availability of credit to consumers and businesses is a key component in stabilizing the economy and a top priority at GMAC," said GMAC chief executive officer Alvaro G. de Molina. "We support the government's efforts to shore up the banking system and expect that the additional capital raised will further strengthen GMAC and aid in achieving our strategic objectives."

GMAC seeks to obtain the additional capital by Nov. 9, and said it would file a plan with the Federal Reserve Bank of Chicago on how it will do so by June 8.

 

[C-Gold]

I would never buy an American car for the socialists ever again. They are 100% un-american.

 

[Dave007inVegas]

"We support the government's efforts to shore up the banking system and expect that the additional capital raised will further strengthen GMAC and aid in achieving our strategic objectives."

What strategic objectives? To make a product no one wants? To live off the tax payer trough? This has gone past Socialism and is quickly approaching Communism. Change only a comrade could love.


:cripwalk:

 

[C-Gold]

Obama says they should make small green cars
Obama gave them money
Obama by passed the law and gave the company control for debters to the union ( theft).

It's socialism, and no republican should ever buy one of those Obamobiles.