General Motors is moving closer to terminating the term “Government Motors” as they filed plans to go public and begin selling common shares as soon as this Fall.

As you already know, GM has resurrected from bankruptcy and has come out a leaner company posting profits again. GM hopes to raise up to $16 billion in the stock sale which would be among the largest public offerings in history. The IPO will generally pay taxpayers back (recover from the 61% stake in GM) for the supplied bailout money.

After the (stock) sell takes place, the government’s stake in GM would be expected to be below 50%. This comes as good news as yet another American automotive company is emerging from the doom and gloom of last year.

For more in-depth information, please visit the source at Autonews.com (Subscription req.).

I am no politician, and I doubt I’ll ever intend on attempting to understand politicians because I believe many of them don’t have the sense that God gave a goat. One thing that I do know a little about is the automotive industry and what is put on blast in the media, on TV, and through the internet. In the current state of America’s economy it is obvious that it still stinks BUT, we are actually showing growth in areas of the American automotive industry.

When President Obama took office we were already headed for disaster, and many of us are still unsure if President Obama actually helped our economy with the government’s hands in the American auto industry. Two of the big three took a bailout that we are all too familiar with, while Ford was able to rebuild without billions of our tax payers money. Some of the most recent stories in the media will tell you that things are on an upswing as President Obama visits the heart of car country at a Chrysler plant, Chevy’s Volt plant and Ford’s plant where they will be building the new 2011 Ford Explorer.

Given the depth of the automotive industry and the slowdown of consumer spending, the automotive industry is only showing marginal returns. Nevertheless, they (GM, Ford and Chrysler) are turning over a profit, something that they have not seen in 6 years, says Obama.

Critics are still taking issue to President Obama’s plan that poured billions into American car companies in an effort to “save” them from disaster. If we face the facts of the matter, we would have seen a trickle down effect of automotive suppliers pulling the plug if one of the big three were to actually liquidate or close their doors completely. Whether that meant an even bigger job loss than what we have already seen or a possibility of someone else absorbing that failed company.  We will never know what would have taken place. What we do know is, some people are claiming to see a victory on the horizon. Some analysts and industry experts believe the American auto industry dodged the bullet but are still on the battle field. Others might tell you the bullet wound is still bleeding out and needs another doctor to fix it.

From an economic standpoint, a large percentage of Americans feel that they have taken ownership of two American car companies. Basically, tax payers have footed the bill on this bailout and they want to see better results. Could it be some have less patience than others, or is the growth that we are seeing in the American auto industry a direct result of “the bailout”?

These are my questions to you: Was the automotive bailout necessary? Ford did just fine without the assistance. Were GM and Chrysler so bad off that they needed this type of “bailout” assistance? Would we have seen a bigger crisis in America if they didn’t have an automotive bailout? Would we be seeing the marginal growth in the American auto industry TODAY? Was the “Investment” in the future of this industry worth it?

Check out the videos of President Obama’s visit to the Ford, Chevy, and Chrysler plants below.

Visit msnbc.com for breaking news, world news, and news about the economy

Visit msnbc.com for breaking news, world news, and news about the economy

Ford Motor Co. posted a net income of $2.1 billion in the first quarter of this year which is almost twice as much as projected by analysts.

Last year Ford reported a loss of $1.4 billion in one of the worst economic years for the United States. The current revenue rose to $28.1 billion from $24.4 billion. Second quarter productions will be boosted says the automaker.

This should be a good indication that the economy is starting to show signs of a return. Although we are nowhere close to where we need to be, it is a step in the right direction. Politicians will make claim that the “auto bailout” has actually worked as we will start seeing auto companies hire back employees and make growth as leaner and meaner companies.

[source: autonews]

“Our plan is working, and the basic engine that drives our business results — products, market share, revenue, and cost structure — is performing stronger each quarter, even as the economy and vehicle demand remain relatively soft,” CEO Alan Mulally said in a statement.

Ford can’t risk complacency and arrogance as it tries to complete a turnaround, according to Bill Ford. First-quarter U.S. sales totaled 1.08 million in 2000. This year’s tally was 441,708.

“I’ve seen this movie before,” Bill Ford said in Detroit last week. “I know how quickly self-satisfaction can turn into self-destruction.”

For now, Ford reaps rewards for going it alone and not taking a government rescue, McGinn said. Of 16 analysts covering the shares, eight say buy, six advise holding and two recommend selling, according to data compiled by Bloomberg. In January 2009, one analyst had a buy rating while eight said hold and three said sell.

“Ford just seems like it can do no wrong,” said John Wolkonowicz, an analyst at consultant IHS Global Insight. “The company is doing very well, and the stock is doing very well.”

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 25^th- 29^th). 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?

Once this takes place, the government will own about 50% of GM while the UAW (United Auto Works union) will control about 39% of GM. The remaining portion of General Motors’s stake would probably be split by the government and Canadian bondholders. Funny because the bondholders have yet to accept GM’s proposed debt to equity offer that is still on the table.

Is this any surprise to you? Didn’t you expect the GM bankruptcy to happen so soon? I think I may have to save up some cash to purchase a new GM from one of these closing General Motor dealerships!

[source: Washington Post]

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.

• Chrysler Bankruptcy will last 30-60 days.
• Fiat will be able to control Chrysler only after the loans are paid back. (part of the bailout)
• Chrysler’s bankruptcy lawyer will oversee bankruptcy proceedings.
• Hundreds of Chrysler dealerships (Chrysler, Dodge and Jeep) will be closing across America. The list has not been complied yet. Chrysler will be evaluating which dealerships will survive the bankruptcy.
• Chrysler will continue to honor all warranties during and after bankruptcy.
• The Chrysler Corp. will be scaled down tremendously including the possible exclusion of some vehicle models within the Chrysler, Dodge and Jeep brands.
• Most Chrysler plants will be put on hold, temporary suspending production until further notice.
• The Chrysler-Fiat deal will make them the 6^th largest global automaker.
• The U.S. Treasury will lend up to $6 billion to the Chrysler-Fiat alliance through its restructuring period.
• GMAC will provide dealer and customer financing, and continue to do so after Chrysler emerges from bankruptcy. The U.S. government will provide capitalization that GMAC requires to support the Chrysler business.
• Daimler, a minority shareholder in Chrysler, will waive its share of Chrysler’s $2 billion of second-lien debt, give up its 19 percent equity interest, and pay $600 million to Chrysler’s pension funds.
• U.S. Treasury gets 8 percent of equity in new Chrysler and right to choose four company directors.
• Fiat brings “billions of dollars” in technology to help Chrysler build more fuel-efficient cars in U.S. factories.

[poll id="7"]

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]

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?

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!