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?
Obama Says U.S. Will Guarantee GM, Chrysler Warranties
Today is my “what to do in case of Automotive Industry emergency” news day. All of the major news networks are steadily reporting today updates of the Obama administration’s plans for the automotive industry. It seems they already want federally regulate everything else so why not do it with the Automotive industry. I mean, heck, they already gave Rick Wagoner, GM’s CEO, the boot and now they will guarantee the federal government paying for any warranty repairs on a General Motors or Chrysler vehicle if either company can’t because of financial problems or a bankruptcy filing. That’s actually good news now that I think about it because all my neighbor has to say about his Chevy Tahoe other than it is gas guzzler is that GM may not be able to fulfill their 100,000 mile warranty if they go under.
This has been the topic of discussion for thousands who happen to drive a GM or Chrysler vehicle currently. Many of these cars are still under warranty considering the 100,000 mile warranty offered in the past couple of years by both GM and Chrysler.
“Given where the industry is, these highly unprecedented actions are consistent with the unprecedented times we’re in,” Standard & Poor’s analyst Robert Schulz told Reuters today.
Let’s face it, bankruptcy is a very feasible option for Chrysler and GM and many are finally realizing this. We all knew it may come to this. I guess for now it is good that the government and/or Obama administration is on our side… or are they?
GM CEO Rick Wagoner Calls It Quits
March 30, 2009 by Malcolm
Filed under Automotive, Featured, GM, News
General Motors CEO Rick Wagoner will step down from his position immediately as recently reported by various news associations. This comes about maybe as a slight surprise on the eve of President Barack Obama’s expected announcement of a deadline for Chrysler and General Motors to finalize their terms for restructuring or deciding on a Chapter 11 bankruptcy package.
As the economy shows no apparent signs of improvement except for the recent stock market rallies the auto industry continues to suffer and look for some type of outlet. The outlet for Rick Wagoner was specifically requested by the Obama administration.
Rick Wagoner spent 32 years with GM and in part over-seeing the operations of General Motors all through its better days and recent slump.
Below after the jump is the official message from Rick Wagoner and GM’s board restructuring announcement.
[source: Associated Press]
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.
Breaking: It is Official – U.S. House Passes Big 3 Automakers Bailout Package of $14B
The Bailout for the Big 3 Automakers has made it through the U.S. House totaling $14 Billion. Not quite the original amounts of $25 Billion or even the $34 Billion figure that they tried to pull out of their butts the other day. So now we can move on in hopes that “THEY” do what they said they would do. Hopefully a Carczar will be appointed to oversee the rebuilding of these companies so we can get this economy to where it needs to be within the next year or two.
Let’s keep our fingers crossed that it makes it through the Senate… hmmm maybe!
Below is an excerpt from Automotive News in regards to the Big 3 Automakers Bailout Package of $14 Billion getting passed through the U.S. House.
Excerpt after the jump…
Saturn Owners to GM: “Please Don’t Leave Us”
December 10, 2008 by Larry
Filed under Automotive, News, Saturn
The Saturn nameplate use to be known as a type of automotive brotherhood when it comes to its loyal owners. Lately many Saturn owners have expressed their opposition of GM possibly eliminating the nameplate as they try to restructure.
Just think, TV would not be TV without those awesome Saturn commercials. Okay, I am just kidding. I can say this because I do not drive a Saturn but I totally respect the togetherness that the owners share. I think Saturn was known for revolutionizing the dent resistant panels and the “price you see is the price you pay” deal. Not bad ideas at all. Hopefully GM will reconsider after they see the long petition lists that many Saturn fan-sites are signing. Maybe if they all donated $1 they could help bailout GM… wishful thinking. No pun intended.
Big 3 Automakers May Get $15B Bailout
It seems to be “very likely” that congress will reach a deal to loan the big 3 automakers a total of $15 Billion. That figure is much less than the original $25 Billion and even the $34 Billion that they recently asked for. Details and total size of the package have not been finalized but we look for an answer after the vote Tuesday of this week.
