GM Being Prepped for Bankruptcy Next Week
So you may think the government is going to run GM and Chrysler… you may be right.
The Obama administration is preparing to send GM into bankruptcy as soon as next week (May 25th- 29th). Under the plan it would include an additional injection of $30 billion in capital. What’s another $30 billion compared to the billions already spent to bailout other companies right?
What Does The Chrysler Bankruptcy Mean? w/Poll
Are you wondering what will happen to Chrysler after Chapter 11 Bankruptcy?
If you have not heard already or you live under a rock, Chrysler has filed for bankruptcy and announced a deal with Fiat S.p.A. We have compiled a list of points briefly describing what will actually happen to Chrysler during and after the bankruptcy. We have included a voting poll allowing you to participate and let us know what you think will ultimately happen to Chrysler.
Below is a list of highlighted points of what will happen to Chrysler during and after bankruptcy.
GM Prepping to Announce Closure of Pontiac
Okay, the economic situation was already pretty serious. Now it is really hitting big companies like General Motors, very hard.
General Motors is preparing to announce the closure of the Pontiac brand. Yes, that is right; there will be no more Pontiac. The announcement will be made as part of an updated viability plan to the U.S. auto task force.
Other automotive news sources have said that GM was considering to phase out the brand instead of sticking with the current plan to have it continue as a niche brand or marquee.
GM is barely holding on to its cash even with the $15.4 billion in U.S. government loans as part of the bailout. Original plans for GM included keeping the brands Buick, Chevrolet, GMC and Cadillac while selling off Hummer, Saturn and Saab.
[source: autonews]
GM Plans to Shut-Down Plants For The Summer
April 23, 2009 by Larry
Filed under Automotive, Featured, GM, News
At this point, there is no doubt in my mind; GM will be filing for bankruptcy soon. Confirmed by various sources, GM cannot file until after sometime in June of this year. General Motors is looking to conserve every last bit of the money that they have. With the date for them paying back the $1 billion is closing in on them they realize that it simply cannot be paid back. It has been reported that GM plans to idle most of its domestic plants this summer for as long as nine weeks. GM employees will be notified before any official announcements or moves are made towards the idle. It is expected that staggered closures could start as early as May.
Many fear that this could cause a trickle-down effect on the automotive suppliers who are trying to hold-on until some sign of relief or growth in the economy.
WE will all have to literally RIDE this one out and see what takes place.
What do you think? Will GM file bankruptcy in June? Should they?
GM Bankruptcy Woes: GM Prepping for Bankruptcy and New Offer to Bondholders
April 10, 2009 by Malcolm
Filed under Automotive, GM, News
No doubt that the majority agree that GM filing Bankruptcy would not be such a bad thing. Many support the idea that bankruptcy would “force” them into restructuring and emerging as a better and much more profitable company. Lately GM set into preparation to give a new offer to bondholders for a debt restructuring critical turn around that could be worse than the previous terms set by the automaker.
GM is actually preparing for bankruptcy as the outlook points more towards them doing such a thing. Restructuring alone is simply not good enough says the majority of tax payers who do not wish to bail them out mainly because of the poor decision making over several years of operation.
What will they do? It is possible GM will file and then eliminate several brands. Don’t worry, your GM car will still be covered under the current warranty terms and agreements if GM files for bankruptcy, even that part is backed by President Obama. What do you think GM should do at this point? File bankruptcy and restructure? Sell off a few brands? Eliminate a few brands? Build better cars? Close shop? Apologize to the customers? Build a bunch of Chevy Volts?
Tell us what you are thinking! Post your comments below!
President Obama Vows Not to Walk Away From Auto Industry
February 25, 2009 by Larry
Filed under Automotive, Featured, News
One of the highlights of the delivery that President Obama gave to the joint session of congress was a vow not to walk away from the automotive industry. The tone seemed directed at the American infrastructure of the automotive industry which directly includes the suffering Big 3.
The points that were brought out by autonews and others in the automotive industry were the positive inspirational parts of the speech saying, “We will rebuild, we will recover, and the United States of America will emerge stronger than before.” Then later a specific address was directed towards the automotive industry having an obvious effect on the economy where the President said, “As for our auto industry, everyone recognizes that years of bad decision-making and a global recession have pushed our automakers to the brink. We should not, and will not, protect them from their own bad practices. But we are committed to the goal of a re-tooled, re-imagined auto industry that can compete and win. Millions of jobs depend on it. Scores of communities depend on it. And I believe the nation that invented the automobile cannot walk away from it.”
President Bush Readies $17.4 Billion Auto Industry Bailout Package
The back and forth of the Big 3 Bailout talk has come to a head. Bush today has signed the $17.4 billion auto industry bailout package to rescue mainly GM and Chrysler so that they may “live to see another day”. Of the total $17.4 billion, $13.4 Billion in federal loans will be ready almost immediately so GM and Chrysler can stay afloat into the new year (2009).
GM is to get $9.4 billion from the first allocation of the federal loan money leaving Chrysler with $4 billion for the taking.
The terms of the loans are for three years but the money will have to be paid back in full in full if the firms do not show themselves to be viable by March 31st. This means if all fails and they do not show some real results by March 31st, they will have 30 days to pay back the money in full. This means the companies will more than likely have to negotiate new agreements with the unions and creditors to make this happen.
Other conditions were set in place for the loan to actually happen. Each must submit their ideas by Feb 17th for their plans to become “viable” and profitable by this date. This means they will have so REAL work to do in the upcoming weeks. Wonder what kind of blow-out year-end sales will be happening on the dealership lots?
Big 3 Auto Bailout Rejected in Senate
Late Thursday the U.S. Senate rejected the emergency bailout bill that would have provided upwards of $14 Billion to the Big 3 Detroit automakers. Many were hopeful of that was to come of the bailout after it was passed by the U.S. House just two days ago. Now the outlook is grim for the big 3 GM may actually run out of cash by the end of this month while Chrysler may have it’s issues by March.
Other options that are being pushed through is the step to do a repeat vote when Congress comes back next year with new legislation. We will all have to sit back and see what takes place in this situation. Rest assured, we will all be keeping our eyes open on this one. Maybe bankruptcy is not such a bad idea after-all.
