GM Gets Pranked at Chevy Event

By SHARON TERLEP

DETROIT—General Motors Co. officials were red-faced on Wednesday after software on a network at its headquarters was programmed to insert a derogatory remark on computer browsers after any mention of Chrysler Group LLC and several other competitors.

The prank came to light at GM's unveiling of a battery-powered version of its Chevrolet Spark small car at a five-day event marking the 100th anniversary of GM's Chevrolet brand. The event drew more than 200 journalists from around the world.

Selim Bingol, a GM spokesman, said the auto maker had nothing to do with the prank. GM has since corrected the problem.

GM officials said computer technicians found an unauthorized software program had been installed on a wireless router, and the program was altering the way Web pages were displayed to insert the word "sucks" after any mention of certain rivals on computers linked to the network.

Later in the day, GM said it had identified the culprit—a subcontractor who had helped set up the wireless network. GM didn't identify the company but said the subcontractor had admitted its role and intended the prank to be humorous.

"These guys are learning the definition of sucks," Mr. Bingol said.

Computers accessing the Internet via other networks at the company's headquarters were unaffected.

The word "sucks" appeared after mentions of Chrysler, Ford Motor Co., Toyota Motor Corp., and Honda Motor Co. on any searches or references to those companies conducted on computers using the GM network. Web references were not permanently altered because the word was inserted only onto the displays of computers using that one network.

The word did not appear after mentions of Nissan Motor Co., Hyundai Motor Co., or Volkswagen AG.

Source;
http://online.wsj.com/article/SB10001424052970204002304576626982322048592.html

Honda eyeing first Russian car plant - Nikkei

TOKYO Sat Sep 17, 2011 11:20pm EDT

(Reuters) - Honda Motor (7267.T) plans to set up its first assembly plant in Russia, the Nikkei business daily reported on Sunday, as Japan's No.3 automaker looks to lift its competitiveness in the fast-growing auto market.

The company is looking to invest several billion yen (tens of millions of dollars) to produce 30,000 to 50,000 cars annually, the Nikkei said, adding Honda has submitted the plans to the Russian government and had started talks with officials.

Honda is consulting officials on the location of the assembly plant, which will use components imported from its global facilities, and the Russian Far East is seen as one candidate, the Nikkei said.

A Honda spokesman declined to comment on the report.

General Motors (GM.N), Renault (RENA.PA), and a host of other top players have already announced plans to ramp up production in Russia in exchange for lower import tariffs for parts.
Honda, which sold about 18,000 cars in Russia last year, has been selling its cars with tariffs of about 50 percent, making them more expensive than automobiles produced by rivals locally.
Russia's vehicles market is expected to double sales to about 4 million units a year by mid-decade.

(Reporting by James Topham)

Source;
http://www.reuters.com/article/2011/09/15/us-usa-campaign-palin-idUSTRE78E77B20110915

General Motors to Sell a Diesel Powered Car in North America

I hope that if this car actually comes about that it is a success, then maybe companies like Honda can bring their diesel products over here to North America....
General Motors has confirmed that it will sell a diesel-powered car on U.S. soil in the future. According to Ward’s Auto, the source of the news is none-other than GM Vice Chairman Tom Stephens. The use of a diesel would mark the first time in almost three decades that a diesel car was sold in the U.S., with the last diesels being sold in Cadillac, Buick and Oldsmobile vehicles in the late ’70s and early ’80s.

There’s no additional info on what vehicle could get the new diesel powerplant or even if the diesel engine being considered is new. GM has been offering a diesel version of its Ecotec 4-cylinder in Europe and other markets since 1996. That being said, it would seem easiest to offer a diesel engine in a car like the Buick Regal, which is based off the European Opel Insignia and is already offered with a choice of several diesel powerplants overseas including an upcoming twin-turbo 2.0-liter CDTi Ecotec motor making 190-hp and 300 ft-lbs of torque.

Source;
http://www.autoguide.com/auto-news/2010/09/general-motors-to-sell-a-diesel-powered-car-in-north-america.html

GM pays back government loans in full

Here's a bit of good news....
Kansas City, Kansas – General Motors has made its final payment of US$5.8 billion to the U.S. Treasury and Export Development Canada, paying back its government loans in full and ahead of schedule. The payment includes $4.7 billion to the U.S. Treasury, and $1.1 billion to Export Development Canada.

The announcement was made by GM chairman and CEO Ed Whitacre at a ceremony in Fairfax, Kansas to announce an investment of $257 million in Fairfax and Detroit Hamtramck assembly centres. The investment will prepare Fairfax to build the next-generation Chevrolet Malibu and make Detroit Hamtramck a second source for the model. Fairfax currently builds the current Malibu and the Buick LaCrosse.

As part of the launch of the new GM, the U.S., Canadian and Ontario governments provided loans of $8.4 billion and took equity stakes in the new company. The latest payment completes the payback of the loans.

“GM’s ability to pay back the loans ahead of schedule is a sign that our plan is working, and that we are on the right track,” Whitacre said. “It is also an important first step toward allowing our stockholders to reduce their equity investments in GM. We still have much hard work ahead of us, but we are making progress toward our vision of designing, building and selling the world’s best vehicles. We appreciate the support the taxpayers have given GM, and our new great products are tangible results of that support.”

Source;
http://www.canadiandriver.com/2010/04/21/gm-pays-back-government-loans-in-full.htm

GM lets Saab die

First Saturn, then Pontiac, now SAAB....
NEW YORK (CNNMoney.com) -- General Motors is shutting down its Swedish car brand, Saab, after attempts to close a deal with a buyer failed.

GM had announced earlier this year that it was close to reaching a deal with Swedish super-carmaker Koenigsegg. That deal fell, though.

"In the end, Koenigsegg discovered some issues they didn't think could be overcome in a timely fashion," said John Smith, GM vice president of corporate planning and alliances.

Dutch exotic carmaker Spyker then emerged as a bidder for Saab, but that deal couldn't be concluded in time, GM said.

In both cases, according to GM, issues arose during negotiations that prevented a final sale. GM executives would not say what the specific problems were, however.

"Like everybody, we would have preferred a different outcome," Smith said.

GM said it still intends to sell some Saab 9-3 and 9-5 technologies to the Chinese automaker Beijing Automotive Industry Holdings Co. Ltd. That deal was announced last week.

With GM's announcement that it's winding down Saab, BAIC or other companies may be able to buy more of Saab's assets, possibly even the brand name itself, Smith said. But no buyers have expressed interest, yet.

Brands we loved ... and lost in 2009

"Despite the best efforts of all involved, it has become very clear that the due diligence required to complete this complex transaction could not be executed in a reasonable time. In order to maintain operations, Saab needed a quick resolution," said GM Europe President Nick Reilly.

"We regret that we were not able to complete this transaction with Spyker Cars."

GM has owned the Swedish automaker since 1989; Saab has been making cars since 1949. GM will now begin winding down Saab production, but warranties will continue to be honored, and spare parts will still be available, the company said.

In the past two decades, GM has made every effort to turn Saab into a profitable car brand, Smith said. But recent global economic problems were simply too much for the still-weak automaker to survive.

"It's a business that has struggled more years than not during its existence," Smith said.
A total of 3,400 employees will be directly affected by Saab's closure, GM spokesman Chris Pruess said.

Saab has never been a big-selling car brand, but the recent global recession and news of the brand's possible demise have driven sales down to crisis levels. Saab's U.S. sales have been down by more than half so far this year.Sweden's other major automaker, Volvo, is currently owned by Ford, which is in the process of selling it to the Chinese automaker Geely.

As part of its bankruptcy restructuring, GM planned to sell of or wind down four of the eight brands it recently operated. Pontiac is being wound down; a deal to sell the Saturn brand to Penske Automotive fell through in September; and a deal to sell the Hummer SUV brand to Chinese heavy equipment maker Sichuan Tengzhong is awaiting government approvals.

GM's remaining brands are Chevrolet, Buick, GMC and Cadillac.

Source;
http://money.cnn.com/2009/12/18/autos/saab_closed/

BusinessWeek: The Battle Raging Inside GM

Henderson's ouster leaves Whitacre and the board of mostly Detroit outsiders calling the shots. And that's making GM's executives jittery

By David Welch
The Dec.1 ouster of Frederick A. "Fritz" Henderson as General Motors' CEO was a surprise, but only in how fast it happened. Since GM emerged from bankruptcy in September, Chairman Edward Whitacre Jr. had become the de facto chief executive, and his board had reversed one of Henderson's biggest decisions. Now, as Whitacre looks for a new CEO (assuming he doesn't take the job himself), he and the directors are in the driver's seat. Whitacre and much of the board are industry outsiders. Now GM veterans are asking: Do they know what they're doing?

Dumping Henderson made tactical sense. He was a GM lifer and restructuring expert running a company that now needs a strategic visionary with expertise in reaching consumers. But firing and replacing him with Whitacre, at least on an interim basis, is risky. He will have to make big calls: how to fix the European business, burnish GM's brands, choose new vehicles, and build a management team. None of it will be easy for a former telecom guy who told employees on Dec.2 that he doesn't even know where his office is. "Now Whitacre is on the hot seat," says James N. Hall, principal of 2953 Analytics, a Detroit-area consulting firm. "He has to listen, trust the leadership team, and filter out GM's autoimmune system." (GM declined to comment.)

Nervous Executives
One of Whitacre's big challenges will be motivating a jittery staff. Right after Henderson's firing, Whitacre held a conference call with GM's top executives. Some asked if he wanted their resignations, too. Whitacre tried to assuage their concerns. "He was clear that we have good people," says an executive who was on the call. "He said: 'I can't do this without you.' "

But Whitacre's soothing words are cold comfort. He told Bloomberg News in mid-November that Henderson had the board's confidence. Two weeks later Henderson was gone. Several GM executives say the uncertainty is hurting morale. "It's almost like experience is a liability these days," one says.

Already, some top executives are getting antsy. Sources close to Vice-Chairman Robert A. Lutz say he is dismayed at Henderson's firing. The 77-year-old executive doesn't like how it was handled and has told people close to him he is not even sure what his role will be. If Lutz were to leave, GM would lose the one guy who has managed to bypass GM's sclerotic culture and build cars people will actually pay decent money for. "Is this the time to blow the whole thing up again?" wonders Joseph Phillippi, a veteran GM watcher and principal of Auto Trends, a New Jersey consulting firm.

While Whitacre looks for Henderson's replacement, GM's new hyper-independent board will be calling the shots. It's far from clear that the directors have made the right decisions so far. Particularly worrisome to GM veterans are the actions of private equity executives Steve Girsky, David Bonderman, and Daniel Akerson. All three were tough on Henderson in board meetings, say executives briefed on the discussions. They pushed Henderson to keep GM's German unit Opel rather than sell it. GM has long needed an independent board, but GM insiders fear that too much second-guessing could prevent the company from sticking to a clear strategy. (The three directors couldn't be reached for comment.)

The Opel Reversal
The decision to keep Opel was divisive. The board thought it too risky to cede control of GM's European engineering works, where the company designs its small and midsize cars. Plus, GM would lose up to 1.5million cars a year in sales. But holding on to the subsidiary is risky, too. Opel hasn't made money in a decade and is in the throes of restructuring. Finishing the job will cost GM some $3billion and divert executive focus from the troubled North American business and expanding operations in Asia and Latin America.

As Whitacre steers GM in the interim, he may learn a few lessons. He wants GM to push market share above 20% next year from 19.7% today. But as GM phases out Hummer, Pontiac, Saab, and Saturn, the carmaker will lose more buyers. What's more, Whitacre wants GM to expand market share with lower discounts. That's a prudent goal, but people don't rush to buy damaged brands for no reason. While GM's November sales fell just 1.5%, the company outspent its rivals on incentives by at least $1,000 a car, blowing $4,300 per vehicle, says Edmunds.com. If Whitacre pulls back too much on the discounts, sales could plummet.

As for Henderson's replacement, Whitacre and the board want a non-GM person or an industry outsider such as Alan Mulally, who left Boeing (BA) and has since managed to bring Ford Motor (F) back from the brink. But potential candidates will have to consider two facts of life: an activist chairman and board and a salary that GM's government minders have capped at $1million. "It's a sick company with a bad ownership structure and pay constraints," says Charles Elson, director of the John L. Weinberg Center for Corporate Governance at the University of Delaware. "I don't know who they will get." The only person willing to report to Ed Whitacre may wind up being—that's right—Ed Whitacre.

Welch is BusinessWeek's Detroit bureau chief.

Source;
http://www.businessweek.com/magazine/content/09_50/b4159000314215.htm?chan=autos_autos+--+lifestyle+subindex+page_top+stories

GM Sells Hummer to the Chinese

GM Finalizes Deal To Sell Hummer To Tengzhong

General Motors Co. said it has finalized an agreement to sell its Hummer brand to China's Sichuan Tengzhong Heavy Industrial Machinery Co. (STHIM.YY), four months after the companies reached a preliminary deal.

Terms weren't disclosed, but people close to the talks told the Wall Street Journal earlier Friday the price tag was $150 million.

A finalized deal - which needed the blessing of China's government - has important overtones. It represents the country's first full-fledged acquisition of a troubled auto brand in the wake of the global economic crisis, which sent some auto makers such as GM teetering further. A flurry of such potential deals highlights Chinese companies' global ambitions, but a question remains as to whether Chinese companies such as Tengzhong would be able to revitalize troubled auto brands, especially given their executives' limited experience running global operations.

Tengzhong is buying 80% of Hummer, with local tycoon, Li Yan buying the rest. The 46-year-old is chairman of the Sichuan-based company, which he founded and successfully listed on the Hong Kong Stock Exchange in June. Lumena is one of the world's biggest producers of sodium sulphate, a key raw material used in detergents, glass and pharmaceutical products.

Finalizing the sale for Hummer comes little more than a week after its planned sale of the Saturn brand to Penske Automotive Group Inc. (PAG) fell through. GM is also trying to sell the Saab brand as part of its restructuring, while the Pontiac line will be phased out the next year.

Source;
http://online.wsj.com/article/BT-CO-20091012-707678.html

'New GM' to emerge from bankruptcy

Ailing automaker seeks court protection today
June 01, 2009 Tony Van Alphen
BUSINESS REPORTER

Canadian taxpayers will provide reeling General Motors Corp. with $9.5 billion (U.S.) in aid and take a 12 per cent stake in the once mighty automaker, which will seek court protection from creditors today.

In the biggest corporate rescue package in Canadian history, Prime Minister Stephen Harper and Ontario Premier Dalton McGuinty will announce in Toronto this afternoon the repayable loan and what taxpayers will get in preferred and common stock under a restructuring plan to save the automaker and turn it into the "New GM."

GM, once the biggest company in the world, will file for court protection under Chapter 11 of the U.S. Bankruptcy Code in New York but it hopes to emerge in 60 to 90 days. It is not clear if GM of Canada Ltd. will file for protection here.

Protection in the U.S. will be automatic. A judge will decide during the 90 days who all the creditors are and will resolve disputes about how much holdout GM bondholders will get for their debt, payments to other creditors and expenditures by the company.

Under the plan, the money from both governments will be used during the bankruptcy process and subsequent transition into a healthy company.

U.S. President Barack Obama will announce about $30.1 billion in extra loans for the company. In return, American taxpayers will get $8.8 billion in debt and a 60 per cent interest in the company. In addition to its 12 per cent stake in the company, the Canadian government will get $1.7 billion in debt.

There will be a new GM board with a minority of existing directors and a majority of new members, including one from Canada.

Obama and Harper will emphasize at separate news conferences that the aid should put GM on sound financial footing with a viable plan that takes into account conservative projections for the future of the industry.

They will also say there are no plans for further aid and it is their intent to sell government-held stock in GM as soon as appropriate.

"The government has no desire to own equity stakes in a company any longer than necessary," one U.S. official said last night.

The moves come after GM submitted a new restructuring plan to the governments with more concessions from stakeholders, additional plant closures and lower projections on sales and market share.

Under the North American government aid package, Ottawa and Ontario will contribute $9.5 billion or $10.58 billion (Canadian), far more than the $3 billion the two governments promised in December. At that time Harper acknowledged taxpayers would probably need to provide more help.

The U.S. has already pumped $19.4 billion (U.S.) into GM, whose sales have plunged in the past year.

Government leaders in both countries have said that allowing the collapse of GM and rival Chrysler would push the Canadian and U.S. economies into a much deeper recession and cost millions of jobs.

GM will announce 11 more plant closures and idle three operations as part of the restructuring. However, industry insiders say the moves will not affect Canadian operations.

Chrysler LLC, also surviving on a government lifeline, gained court protection in the U.S. last month and hopes to emerge within days in a partnership with Italian automaker Fiat SpA. Their Canadian subsidiary did not seek court protection.

GM has not indicated it will stop production in the U.S. or Canada during bankruptcy proceedings.

Source;
http://www.thestar.com/business/article/643419

GM files for bankruptcy protection

I guess we all saw this coming....
General Motors Corp. filed for bankruptcy protection in court in New York City on Monday, a move that will clear the way for a sweeping reshaping of the iconic company.

"The economic crisis has caused enormous disruption in the auto industry, but with it has come the opportunity for us to reinvent our business," said GM CEO Fritz Henderson.

"We are going to do it once and do it right. The court-supervised process we are pursuing provides us with powerful tools to accelerate and complete our reinvention, as well as strong safeguards for our customers and our business," he said in a written statement.

In its filing in U.S. Bankruptcy Court in the Southern District of New York, GM said it had $82.29 billion US in assets and $172.81 billion in liabilities as of the end of March.

GM will follow the template set by the rapid restructuring of Chrysler LLC. On Sunday night, a U.S. judge approved the sale of most of Chrysler's assets to Fiat. Chrysler entered government-sponsored bankruptcy protection in April and could re-emerge this week.

Canadian Auto Workers president Ken Lewenza said he would be "incredibly surprised" if all of GM's Canadian plants stayed open while the U.S. parent firm is in bankruptcy protection. A similar situation happened at Chrysler's Canadian plants in April.

In advance of the formal announcement from GM, a dealership — Chevrolet-Saturn of Harlem Inc. — filed for bankruptcy protection. The dealership's filing also said a new company — dubbed Auto Acquisition Corp. — will be created to form the "new GM." Auto Acquisition will acquire most of GM's assets as part of the revamp under creditor protection.

The filing confirms that Albert Koch will become GM's chief restructuring officer. He aided Kmart Corp. through its own reorganization under creditor protection.

U.S. President Barack Obama is expected to hold a news conference at the White House at 11:55 a.m. ET to address the bankruptcy announcement and outline the length of the process, which could last from 60 to 90 days in court.

Fritz Henderson, will speak in New York at 12:15 p.m. ET. Prime Minister Stephen Harper, Minister of Industry Tony Clement and Ontario Premier Dalton McGuinty will speak at 1 p.m. ET.

Administration officials told The Associated Press on Sunday the U.S. federal government will pump $30 billion US into GM as it makes its way through bankruptcy court. The automaker has already received $20 billion in government aid.

14 plants expected to close

The U.S. Treasury will get 60.8 per cent of the common equity of the new, revamped GM, while the Canadian and Ontario governments will take a 11.7 per cent stake in GM, and a United Auto Workers trust for health-care expenses would get 17.5 per cent, according to the reports.

Bondholders would receive a 10 per cent stake with the possibility of increasing their share to 25 per cent. Existing owners of GM's current common shares will likely get little, if anything, for their holdings, as often happens in similar situations.

GM also said it will speed up plans to cut 14 plants — which would reduce its number of assembly, powertrain and stamping plants from 47 in 2008 to 34 by the end of 2010 and 33 by 2012.

While none on the plants named on the list is in Canada, GM Canada has already said its hourly workforce will decline from 10,300 in 2008 to 4,400 in 2014. The GM Canada truck plant in Oshawa, Ont., recently ceased production.

If the restructuring process is successful, GM will emerge as a leaner company with a smaller work force, fewer plants and a trimmed dealership network. The company will move forward with four core brands — Chevrolet, Cadillac, Buick and GMC. GM is dropping its Pontiac brand, and looking to sell its Saturn, Saab and Hummer brands.

The bankruptcy represents a dramatic downfall for GM, which was founded in 1908 by William C. Durant, who brought several car companies under one roof, and developed a strategy of "a car for every purse and purpose.

Source;
http://www.cbc.ca/world/story/2009/06/01/gm-bankrutcy-filing.html

Washington Post: U.S. to Steer GM Toward Bankruptcy

Just a update on what's going on in GM land, this is a few days old but still relavant....
Filing Expected as Chrysler Set to Emerge.

By David Cho, Peter Whoriskey and Kendra MarrWashington Post Staff WritersFriday, May 22, 2009

The Obama administration is preparing to send General Motors into bankruptcy as early as the end of next week under a plan that would give the automaker tens of billions of dollars more in public financing as the company seeks to shrink and reemerge as a global competitor, sources familiar with the discussions said.

The move comes as the administration prepares to lift the nation's other faltering car company, Chrysler, from bankruptcy protection as soon as next week, industry sources said.

The shifts into and out of bankruptcy are landmarks in the Obama administration's attempt to broker a historic restructuring of the American auto industry in the space of months.

The legal tactic is viewed by some as the best means of reviving the companies. But the speed of the government-led transformation has triggered complaints that the rights of investors and dealers are being trampled. Meanwhile, fears that a bankruptcy could lead to cascading business failures are spreading throughout GM's vast chain of suppliers.

Under the GM draft bankruptcy plan, the company would receive just short of $30 billion in additional federal loans, a source said.

The figure is a starting point in negotiations between the government and the company, the source said, and could change. A cash injection that large would boost the U.S. investment in GM to nearly $45 billion. The timing of the filing is also fluid, and could happen the first week of June.
The government previously indicated that it planned to take at least 50 percent of the restructured company, and likely would take the right to name members to its board of directors, as it has at Chrysler, where the government will control four of nine seats.

The United Auto Workers retiree health fund is set to own as much as 39 percent of the restructured GM, in exchange for giving up its claim to at least $10 billion that the company owes it. Yesterday, the union announced that it reached an agreement with GM that will reduce the company's labor costs.

Still unknown is what part the Canadian government might play in the ongoing GM restructuring.

GM operates several plants north of the border. The Canadians agreed to invest about $3.5 billion in the Chrysler restructuring and control one of the nine board seats.

In the GM negotiations, the Canadians are poised to make a similar investment, but they are seeking assurances that the share of GM production in their country will remain the same.

"China isn't putting up the money, and Mexico isn't putting up the money," said Tony Clement, Canada's Minister of Industry. "But if we're putting up the money, just as the Americans are, then we have the right to protect our production capacity."

Clement added that the Canadian Auto Workers union would have to make more concessions before the government agrees to get involved in the GM rescue.

"We've basically been joined at the hip with U.S. Treasury on our approach with both Chrysler and GM," he said. "We have officials down here in Washington all the time. We basically review the information together. We devise strategy together and execute strategy together."

Both Chrysler and GM have been saddled with too much in debt and labor costs to compete against rivals from Japan and Korea, industry analysts say.

To alleviate the financial burdens, the Obama administration has engaged for months in negotiations with the union, dealers and creditors in hopes of reducing automaker costs without having to resort to bankruptcy court.

But last month, the administration concluded that the only way to free Chrysler of its debt was to file for Chapter 11, and it is now nearing a similar decision with GM.

The chief obstacle to an out-of-court settlement for GM remains: There has been no agreement between the company and the investors who hold $27 billion worth of GM bonds.

Under orders from the Obama administration, GM has offered to give the bondholders a 10 percent equity stake in the restructured company in exchange for giving up their bonds.
So far, however, the investors have resisted that proposal and if no accord is reached by June 1, GM will follow Chrysler into bankruptcy.

The speed with which the Chrysler bankruptcy has proceeded has given the administration more confidence that the best path for GM may be a similar trip, where the claims of disgruntled creditors and dealers can be more easily resolved.

In the Chrysler proceedings, the court has yet to stand in the way of plans to create a new company led by Italian carmaker Fiat. Chrysler's existing assets would be sold to the new company and the new entity could be up and running as soon as next week.

That's because Chrysler is asking U.S. Bankruptcy Judge Arthur Gonzalez to waive the customary 10-day waiting period before the order approving the sale becomes effective. The hearing on the sale is scheduled for next Wednesday at 10 a.m.

Gonzalez has already granted a similar request to expedite proceedings. Time and again in court, Chrysler executives and attorneys have argued -- and the court has agreed -- that Chrysler's core assets are "wasting" and that an immediate sale must take place to preserve value.

"Subject to the closing conditions, a new Chrysler could emerge as soon as the ink is dry on the judge's order," said Scott Van Meter, managing director of LECG, a consulting firm.

The administration is taking steps to prepare. It is drafting the paperwork for a $4.7 billion loan to sustain Chrysler after it emerges from bankruptcy. On Wednesday, the automaker announced that C. Robert Kidder, former chairman of Borden Chemical and of Duracell International will become the company's new chairman. He will succeed Robert L. Nardelli.

Chrysler still could encounter some delays. The company faces a new legal challenge from pension funds representing Indiana teachers and police officers as well as a state construction fund. The investors, who contend that the automaker's sale violates their rights as senior secured lenders to Chrysler, are seeking to move the bankruptcy proceedings to federal district court, which has authority over the bankruptcy court.

A hearing on the matter is scheduled in district court Tuesday.

There are also challenges outside court. Chrysler has moved to close 789 dealerships on June 9. But Sen. Kay Bailey Hutchison (R-Tex.) has introduced legislation that would withhold federal funding if the automaker does not give dealers an extra 60 days to close down operations and sell remaining inventory. Her amendment has won the backing of a number of other senators.

Judiciary Committee chairman Rep. John Conyers Jr. (D-Mich.) said he hopes to meet with White House officials today to discuss changing Chrysler's bankruptcy plan and GM's future.

Conyers did not outline what he wanted, but a nine-person panel he assembled for a hearing yesterday offered a hint. Liberal consumer advocate Ralph Nader, a conservative Heritage Foundation analyst and minority auto dealers all criticized the automakers' restructuring.
Conyers and other committee members attacked the administration for abusing bankruptcy laws, unfairly eliminating dealerships and jeopardizing consumer safety.

"GM now stands for Government Motors," said Rep. Lamar Smith (R-Tex.). "While the UAW is cashing in, it's the dealers, creditors and American taxpayers who are being forced to cash out."

Source;

http://www.washingtonpost.com/wp-dyn/content/article/2009/05/21/AR2009052104467.html?hpid=topnews

GM registers brankruptcy domains

With the emergence of two domain names GM has registered recently (gmrestructuring.com and gm-restructuring.com), it is becoming clearer that the carmaker is moving toward a filing of Chapter 11 bankruptcy protection before this month ends.

Although the sites are still empty, they are similar to the sites that Chrysler utilized to provide information since it filed Chapter 11 itself. If GM cannot restructure its bond debt, strengthen agreements with union workers and demonstrate that it can be viable before the government set deadline in June 1, then it will have to resort to a filing of Chapter 11 bankruptcy protection. It has been noted that chryslerrestructuring.com offers free access to particular court documents and other details of the proceedings. There is also a report that says the domain name gmfiat.com has also been registered last week in Italy. If there are any agreements between these two carmakers, it will be limited to the European operation of GM’s Opel and Vauxhall.

Source;
http://www.4wheelsnews.com/gm-registers-brankruptcy-domains/

GM to close down 1,700 dealerships by June 1st

GM has accelerated its restructuring as the impending June 1 deadline approaches along with Chapter 11 speculations.

The carmaker has informed its dealers that it will expedite the close down of about 1,700 dealerships, an insider has said. At present, there are around 200 dealers that were shut down in this year’s first quarter.

Although the closure of such large numbers of dealers was not confirmed by GM officially, a spokesman did confirm GM-dealers meetings. The insider refused to comment on what happened behind the closed doors of the meeting. General Motors is counting on either the demise or sale of Saturn and Hummer. If GM succeeds in getting rid of these liabilities, the dealerships for these brands will also follow. GM can get rid half of the 1,700 dealerships it intends to close from the Saturn and Hummer brands alone. This will mean that there will be no buy-outs for the respective dealers together with those which GM will deem to be underperformers, whose franchise will ends by the first of June. Dealership closures will take place, whether GM goes bankrupt or not. One of the suggestions offered for the survival of the dealers is for them to acquire Saturn.

Source;
http://www.autospies.com/news/GM-to-close-down-1-700-dealerships-by-June-1st-43071/

Henderson to take over as GM chief

By Bernard Simon in New York
Published: March 30 2009 14:10 Last updated: March 30 2009 14:10

General Motors announced on Monday that Fritz Henderson, the beleaguered US carmaker’s president and chief operating officer, will replace Rick Wagoner as chief executive, and that a majority of its directors will be replaced.

Mr Wagoner stepped down on Sunday at the request of the White House as part of the widening shake-up at GM, which was the world’s biggest carmaker until last year but is now dependent on government aid for its survival.

Kent Kresa, chairman emeritus of Northrop Grumman, the US aerospace group, has been named GM’s interim non-executive chairman. Mr Wagoner had been executive chairman.

Mr Kresa said in a statement that the board had “recognised for some time that the company’s restructuring will likely cause a significant change in the stockholders… and create the need for new directors with additional skills and experience”.

He added that the board intended to nominate a slate of directors at the next annual meeting, due to be held in August, that would include a majority of new board members.

No decision has yet been taken on which individuals will be nominated or will choose to leave the board.

Mr Henderson, 50, has worked for GM since 1984. Prior to his appointment as chief operating officer, he was chief financial officer and, earlier, head of GM Europe.

In a valedictory statement, Mr Wagoner, 56, said that “GM is a great company with a storied history. Ignore the doubters because I know it is also a company with a great future.”

Source;
http://www.ft.com/cms/s/0/4edc2a2c-1d22-11de-a527-00144feabdc0.html

GM loses $9.6 billion in last quarter bringing the total to $30.9 Billion for 2008

Embattled automaker reports larger than expected in fourth quarter loss and burns through more than $5 billion in cash; says it needs new loans this year.

By Chris Isidore, CNNMoney.com senior writer
Last Updated: February 26, 2009: 9:51 AM ET

NEW YORK (CNNMoney.com) -- General Motors posted a $9.6 billion net loss in the fourth quarter, a period in which its sales plunged and it needed a federal bailout to avoid filing for bankruptcy.

The company also disclosed that it burned through $6.2 billion in cash during the last three months of the year. The company ended the quarter with cash of $14 billion.

If not for the $4 billion federal loan it received in the quarter's closing days, GM's cash level would have fallen below the $11 billion to $14 billion in cash the company has said it needs to continue operations.

Since receiving the first installment of that loan, GM (GM, Fortune 500) has gotten another $9.4 billion in federal assistance. The company asked for an additional $16.6 billion in the turnaround plan it submitted to the Treasury Department last week. GM disclosed Thursday it will need this at least $9 billion of that money in 2009 to weather the current downturn.

The company is expecting to burn through another $14 billion in cash this year, with most of it taking place in the first quarter as the company struggles to deal with weak demand and significant overhead costs.

GM chief financial officer Ray Young said the company's request for more loans was made with that weak outlook in mind.

"We're not forecasting any heroic recovery for the industry in '09," he told investors.
The company also said it anticipates its outside auditors will issue a statement on whether the company is a "going concern." The statement could be important not only to investors but to federal officials who are determining whether the company is viable in the long-term.

If the government determines GM is not viable, it would demand immediate repayment of the company's loans.

The auditor's statement will be included in GM's year-end results filing with the Securities and Exchange Commission. GM disclosed Thursday it had filed for a two-week extension to submit that report.

The company also disclosed that its hourly and salaried pension plans are currently underfunded, on a combined basis, by about $12.4 billion. But GM said it does not anticipate needing to make a further contribution to those funds over the next three years.

GM facing challenges around the globe

As bad as GM's results were, it could have been worse. The company posted a $533 million gain because of the fact that GMAC, the finance unit in which it held a 49% stake during the quarter, got its bond holders to agree to swap debt for equity. GMAC become a bank holding company as a result of the debt swap, which significantly reduced GM's stake in the unit.

Excluding special items, GM lost $5.9 billion, or $9.65 a share, in the quarter. Analysts surveyed by Thomson Reuters had forecast a loss of $7.39 a share, compared to a profit of 8 cents a share on that basis a year ago.

The operating losses were particularly pronounced in GM's core North American market. It lost $3.5 billion before taxes in the quarter, up from a $1.3 billion loss in North America a year earlier.

Revenue in the North American unit plunged about 32% to $19.3 billion. GM's market share also slid 1.7 percentage points to 21%.

But GM, which now sells more than half its vehicles outside of North America, is facing challenges around the globe.

Losses more than quadrupled in Europe, and the company lost money in its Asia-Pacific and Latin America-Africa-Middle East units. GM posted profits in those two regions a year ago.
Overall revenue at GM plunged 34% to $30.8 billion, significantly worse than the Thomson-Reuters forecast of $35.1 billion.

For the full year, GM reported a net loss of $30.9 billion. The automaker has posted net losses of $82 billion over the past four years as its U.S. sales and market share plunged and it closed plants and slashed staff in an unsuccessful effort to stem losses.

Shares of GM fell about 8% in early morning trading Thursday.

Separately, GM rival Ford Motor (F, Fortune 500) filed its own year-end financial statement with the SEC Thursday. Its filing included an "unqualified" statement from the company's outside auditor that "there is no substantial doubt" about Ford's ability to continue as a going concern.

Because it arranged for billions of dollars of asset-backed loans and lines of bank credit years ago before the current credit crunch, Ford is in a much better cash position than GM and privately held Chrysler LLC.

Ford has yet to need federal loans but it has asked the government for a $9 billion line of credit in case the economy deteriorates further.

First Published: February 26, 2009: 7:19 AM ET

Source;
http://money.cnn.com/2009/02/26/news/companies/gm_results/?postversion=2009022607

GM disbands high-performance division

Detroit, Michigan - General Motors has disbanded its High Performance Vehicle Operations unit, according to Automotive News, and said that all high-performance projects are on “indefinite hold.”

The unit is based in the company’s technical centre in Detroit. The engineers have been sent to other divisions.

The unit created low-volume performance versions of GM vehicles, including the Cadillac V cars, Chevrolet Cobalt SS, HHR SS and a V8-powered Chevrolet Colorado.

The company said that if General Motors regains its financial health, the unit could be reinstated.

Source;
http://www.canadiandriver.com/2009/02/18/gm-disbands-high-performance-division.htm

GM, Ford May Face Bankruptcy on Slowdown, S&P Says

Well, these are some pretty intense times with how the stock market has taken a tumble, leading the way is GM and FORD. Times have not been good to either company and it is heavily reflected in how the economy has gone. A healthy domestic car sector is a healthy economy. Let's hope they can turn it around.
Oct. 10 (Bloomberg) -- General Motors Corp., Ford Motor Co. and Chrysler LLC may be forced into bankruptcy by slowing economies and dwindling U.S. auto sales, Standard & Poor's analyst Robert Schulz said.

"Macro factors could overwhelm them at some point'' even as the three biggest U.S. automakers vow to stick with their turnaround plans, Schulz, S&P's lead automotive credit analyst, said today in a Bloomberg Television interview in New York. The companies said they have no plans for a bankruptcy filing.

His assessment underscored the pressure on GM, Ford and Chrysler as the worsening global credit crisis makes it harder for buyers to get loans and dealers to finance their operations. S&P said yesterday it may further trim credit ratings for GM and Ford on forecasts for 2009 auto demand falling to the lowest level since 1992.

With all three companies working to boost cash, any bankruptcy filing would be a last resort, not a "strategic'' decision, Schulz said.

"We don't see that as something they would choose,'' he said. Schulz said the "trigger'' for a forced restructuring under bankruptcy protection would be based on the automakers' ability to preserve liquidity as sales decline. Industrywide U.S. sales slid 27 percent last month, the most in 17 years.

'Not an Option'

"Bankruptcy is not an option GM is considering,'' spokeswoman Renee Rashid-Merem said yesterday. "It would not be in the interests of our employees, stockholders, suppliers or customers.''

Ford and Chrysler also have said they're not considering bankruptcy.

GM rose 7 cents, or 1.5 percent, to $4.83 at 1:40 p.m. in New York Stock Exchange composite trading, while Ford dropped 8 cents to $2. GM slumped to a 58-year low yesterday and Ford closed at its lowest since 1982. Chrysler is closely held.

Operating-cash needs at GM, Ford and Chrysler are "substantial, so if it looked like they were going to be pushing toward that number because of these operating losses and cash usage, that's sort of the point where they'd have to consider'' bankruptcy, Schulz said.

S&P said yesterday that its debt ratings for GM and Ford, already at six steps below investment grade at B-, may be lowered again because the automakers face a "serious challenge'' in 2009.

Barclays Capital reduced its target stock price for GM to $4 today, with analyst Brian Johnson in Chicago citing dwindling global auto demand.

GM's Cash Needs

"With auto sales stalled in the U.S. and beginning to contract in the rest of the world, we believe GM's cash needs are increasing,'' Johnson wrote in a note. "Moreover, the downside risk of greater decline in worldwide auto sales driving greater cash needs is increasing."

GM and Dearborn, Michigan-based Ford lost a combined $24.1 billion last quarter. GM last posted an annual profit in 2004, while Ford hasn't had a full-year profit since 2005.

GM's Rashid-Merem said the automaker still expects to add $15 billion in liquidity by the end of next year, including speeding up plans to cut $10 billion in costs.

Ford has a cash cushion, spokesman Mark Truby said yesterday in response to S&P's report raising the prospect of another ratings cut.

Ford's Borrowing

"We were fortunate to go to the markets at the right time,'' Truby said, referring to $23.4 billion borrowed in late 2006 to help pay for shutting plants and cutting jobs while developing new models.

He said Ford is reviewing its liquidity and will give an update when third-quarter financial results are released. Ford hasn't given a date for the release, which the company typically issues later in October.

Chrysler has no plans to declare bankruptcy, spokeswoman Shawn Morgan said yesterday in an interview.

The automakers won Congress's approval last month for funding a $25 billion loan package to help develop more fuel- efficient vehicles. Those funds will be spread primarily among Ford, GM and Auburn Hills, Michigan-based Chrysler, though other automakers, such as Volkswagen AG, have said they will seek a portion.

Regulators are writing the rules for that borrowing even as auto-market conditions worsen. Industry researcher J.D. Power & Associates estimated yesterday that U.S. industrywide sales will fall to 13.6 million this year and 13.2 million in 2009. Last year's total was 16.1 million.

Industrywide Outlook

Industrywide sales of 13 million autos next year would mean shrinkage in the overall U.S. vehicle fleet, said Erich Merkle, an analyst for consulting firm Crowe Horwath LLP in Oak Brook, Illinois.

"We are going to find people where they may have had three cars and now have two, and two cars now have one, and a lot of that is just because of the economic environment,'' Merkle said. "They may not have the ability to buy a new car and even if they do, they may not be able to get financing for that car.''

Global demand in 2009 may be even worse, with "an outright collapse'' now possible, according to J.D. Power, which is based in Westlake Village, California.

GM may announce further production cuts or plant closures as early as next week, the Associated Press reported today. GM spokesman Tony Sapienza declined to comment on the report in an interview.

In July, GM said it was considering further cuts to its metal stamping and engine plants because of reduced U.S. sales.

GM's 8.375 percent note due July 2033 fell 5.5 cents to 19 cents on the dollar today, yielding 43.9 percent, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

Ford's 7.45 percent note due July 2031 declined 12 cents to 22 cents on the dollar, yielding 33.8 percent.

To contact the reporters on this story: Jeff Green in Southfield, Michigan, at jgreen16@bloomberg.net; Greg Bensinger in New York at gbensinger1@bloomberg.net


Below each logo is a link to the ticker for each company's stock quote in US funds.

Ford Motor Co. General Motors Corp.

Source;

http://www.bloomberg.com/apps/news?pid=20601082&sid=aFTJLqMhYLAs&refer=canada