Cupcakes all around!
Government General Motors emerged from bankruptcy today, and the shiny new version of GM is now leaner, in charge, and ready to manufacture cars that people actually want to buy. Maybe.
Cupcakes all around!
The automotive bloodbath continues today as GM plans to eliminate up to 1,200 dealerships. The dealers could start getting notification as soon as Friday.
The New York Times DealBlog liveblogged the GM conference call. We’re glad they did, because just reading their recap is depressing enough for us.
Hey, GM just lost $6 B and barely has enough cash to operate. [CNN]
Hey, this is getting kinda dramatic. Over in bankruptcy court land, Judge Arthur Gonzalez has decided to reveal the identities of the group of investors calling themselves “Non-TARP” lenders that are seeking to stop the auction of most of Chrysler’s assets to an entity managed by Fiat SpA, says Bloomberg.
President Obama announced today that Chrysler would seek bankruptcy protection and enter into an alliance with Fiat. The president told reporters that a “small group of speculators” made up of hedge funds and other investors held out in the hopes that the US government would bail them out. That didn’t happen.
President Obama is expected to speak at noon to announce the fate of Chrysler. The New York Times says, “Last-minute efforts by the Treasury Department to win over recalcitrant Chrysler debtholders failed Wednesday night, according to people briefed on the talks. Barring a last-minute agreement, Chrysler was expected to seek Chapter 11 protection, most likely in New York, these people said.” [NYT]
It now seems much more likely that Chrysler will avoid bankruptcy. BusinessWeek says that Chrysler and the US Treasury have reached a deal with the banks and private equity firms that hold Chysler’s debt.
GM released a new plan to avoid bankruptcy today, and the cuts are deep. The U.S. Treasury would own at least 50% of the company and the failing Pontiac brand would be completely eliminated.
With a week to go before the deadline runs out on Chrysler’s bailout — it’s looking less and less likely that the automaker will be saved from liquidation.
BusinessWeek did a little math and discovered that if you lined up all the new financing deals, tax incentives and discounts — a new car might actually be cheaper than a late model used one. But do you care?
In accordance with the March 31st deadline for evaluating the restructuring plans of the bailed out automakers, President Obama is expected to address the nation today to present his administration’s findings — and the news isn’t too sunny for the automakers.
With two weeks to go before the government deadline to approve GM’s restructuring plan, the AP says that GM’s CEO Rick “The Station” Wagoner told the press that if GM is allowed to go into bankruptcy, it will simply be liquidated.
It’s not just US automakers that are in trouble these days. Toyota is asking its government for a bailout and now Bloomberg says that Honda and Mazda might do the same.
Reader James forwarded us a sad email he got from Saturn, in which they admit that GM is probably going to give them the ax. In it, they emphasize that their warranties feature the “industry’s best overall coverage” and that no matter what “GM will support the continued availability of Saturn parts and service as needed.”
Say Goodbye To Saturn, Pontiac GM will file its restructuring plan on Tuesday, and is expected to cut its brands down to four — Chevrolet, Cadillac, GMC and Buick. [NYT]
Here’s some depressing news — not even rental car companies — the largest purchasers of automobiles, are buying cars this year, says CNNMoney.
Here’s a sad little saga. After convincing our government that it was responsible enough and commercially viable enough to deserve a multi-billion-dollar bailout, Chrysler spent some of the money taking out full page ads in The Wall Street Journal and USAToday, thanking America for its money. They also posted these ads proudly on their blog. The reaction from actual Americans was, um, harsh.