North American Auto Industry Crisis news **Pontiac's Last Day (page 28)**
04-27-2009, 05:29 AM
#721
Race Director
GM Press Conference is scheduled for 9:00AM EST today, 4/27/09. You can watch it live:
http://gmtv.feedroom.com/
We'll find out soon enough.
http://gmtv.feedroom.com/
We'll find out soon enough.
04-27-2009, 08:30 AM
#722
Senior Moderator
Pontiac is done.
More in the link. http://www.autoblog.com/2009/04/27/o...kills-pontiac/
Im watching the webcast, the G8 will be gone with no plans of bringing it back. If you want a sick deal on them.. be a good time.
<script> var digg_url = 'http://digg.com/world_news/It_s_Official_GM_announces_death_of_Pontiac';</script>Rumors from late last week have come home to roost, and as part of its restructuring efforts, General Motors has just announced that Pontiac will be "phased out by the end of 2010." GM will continue to build its accelerated viability plan around four brands: Chevrolet, Cadillac, Buick, and GMC.
As part of its latest announcement, GM also announced that it plans to have "the resolution" of Saab, Saturn, and Hummer by the end of 2009 "at the latest." In total, GM plans to end up with just 34 nameplates for 2010, as compared to 48 for 2008 – a reduction of some 29%. Further, as part of its viability plan tendered to President Obama's Auto Task Force, the automaker's revised viability plan projects that GM's total market share will dip to 18.4 to 18.9% – the plan is banking on a 19.5 percent share for this year.
A media conference call is scheduled for later this morning and we will have more details and analysis following that, but for now, the official press release after the jump.
As part of its latest announcement, GM also announced that it plans to have "the resolution" of Saab, Saturn, and Hummer by the end of 2009 "at the latest." In total, GM plans to end up with just 34 nameplates for 2010, as compared to 48 for 2008 – a reduction of some 29%. Further, as part of its viability plan tendered to President Obama's Auto Task Force, the automaker's revised viability plan projects that GM's total market share will dip to 18.4 to 18.9% – the plan is banking on a 19.5 percent share for this year.
A media conference call is scheduled for later this morning and we will have more details and analysis following that, but for now, the official press release after the jump.
Im watching the webcast, the G8 will be gone with no plans of bringing it back. If you want a sick deal on them.. be a good time.
04-27-2009, 08:52 AM
#724
Senior Moderator
Chrysler and UAW reach agreement, Fiat alliance one step closer
by Damon Lavrinc on Apr 27th 2009 at 9:27AM
<!-- sphereit start -->
Chrysler, the UAW and the U.S. government reached an agreement late last night that helps pave the way for the partnership between the automaker and Fiat, along with qualifying Chrysler for further government loans.
The deal was struck after a marathon session just four days before the U.S. deadline for Chrysler to ink a deal with Fiat. The UAW agreed to a new round of concessions soon after the CAW ratified its own deal with the automaker on Sunday. The changes to the UAW/Chrysler contact don't involve wage reductions, but the union has agreed to a $10.6 billion cut to the retiree health-care trust (VEBA). The UAW members have until Wednesday to approve the deal.
[Sources: Chrysler, Detroit News]
PRESS RELEASE
Chrysler LLC Statement in Response to UAW and Chrysler Reaching a Tentative Agreement
Auburn Hills, Mich., Apr 26, 2009 - Chrysler LLC Statement in Response to UAW and Chrysler Reaching a Tentative Agreement Attributed to Al Iacobelli, Chief Bargainer and Vice President – Employee Relations:
Chrysler LLC has reached an agreement today with the UAW subject to ratification. We commend the UAW's leadership for their endless determination and perseverance in reaching this tentative agreement especially during these unprecedented economic circumstances that plague the automotive industry.
The provisional agreement provides the framework needed to ensure manufacturing competitiveness and helps to meet the guidelines set forth by the U. S. Treasury Department.
As a result, Chrysler LLC can continue to pursue a partnership with Fiat SpA.
Chrysler management has the utmost respect for thousands of men and women who are an integral part of our manufacturing operations.
<!-- sphereit start -->
Chrysler, the UAW and the U.S. government reached an agreement late last night that helps pave the way for the partnership between the automaker and Fiat, along with qualifying Chrysler for further government loans.The deal was struck after a marathon session just four days before the U.S. deadline for Chrysler to ink a deal with Fiat. The UAW agreed to a new round of concessions soon after the CAW ratified its own deal with the automaker on Sunday. The changes to the UAW/Chrysler contact don't involve wage reductions, but the union has agreed to a $10.6 billion cut to the retiree health-care trust (VEBA). The UAW members have until Wednesday to approve the deal.
[Sources: Chrysler, Detroit News]
PRESS RELEASE
Chrysler LLC Statement in Response to UAW and Chrysler Reaching a Tentative Agreement
Auburn Hills, Mich., Apr 26, 2009 - Chrysler LLC Statement in Response to UAW and Chrysler Reaching a Tentative Agreement Attributed to Al Iacobelli, Chief Bargainer and Vice President – Employee Relations:
Chrysler LLC has reached an agreement today with the UAW subject to ratification. We commend the UAW's leadership for their endless determination and perseverance in reaching this tentative agreement especially during these unprecedented economic circumstances that plague the automotive industry.
The provisional agreement provides the framework needed to ensure manufacturing competitiveness and helps to meet the guidelines set forth by the U. S. Treasury Department.
As a result, Chrysler LLC can continue to pursue a partnership with Fiat SpA.
Chrysler management has the utmost respect for thousands of men and women who are an integral part of our manufacturing operations.
04-27-2009, 09:00 AM
#725
Fahrvergnügen'd
$10.6B is a huge cut.
Why can't they just defer it based upon earnings? If Chrysler never earns over a certain amount, they never have to pay in ...
I feel bad for retirees. They are getting fucked.
Why can't they just defer it based upon earnings? If Chrysler never earns over a certain amount, they never have to pay in ...
I feel bad for retirees. They are getting fucked.
04-27-2009, 09:17 AM
#727
- like all those dealers that are trying to undercut everyone else by saying they'll make it up on volume. 
.I dont think any of them are profitable at the moment.
Code:
For Release: February 26, 2009GM Reports Preliminary Fourth Quarter and Calendar Year 2008 Financial ResultsResults reflect global economic crisis and industry-wide collapse in vehicle demand Fourth quarter adjusted net loss of $5.9 billion, reported net loss of $9.6 billion 2008 adjusted net loss of $16.8 billion, reported net loss of $30.9 billion Structural cost improvement in North America of $3.0 billion in 2008<table border="0" cellpadding="0" cellspacing="0"> <tbody><tr> <td> </td> <td colspan="3" align="center">Calendar Year</td> </tr> <tr> <td> </td> <td width="84" align="right">2008</td> <td width="84" align="right"> 2007*</td> <td width="100" align="right">’08 O/(U) ’07</td> </tr> <tr> <td valign="top" width="325">Revenue (bils.):</td> <td width="84" align="right">$149 </td> <td width="84" align="right">$180</td> <td align="right">$(31)</td> </tr> <tr> <td valign="top" width="325">Adjusted automotive earnings before tax (bils.):</td> <td width="84" align="right"> $(10.4)</td> <td width="84" align="right">$0.6</td> <td align="right">$(11.0)</td> </tr> <tr> <td valign="top" width="325">Reported automotive earnings before tax (bils.):</td> <td width="84" align="right"> $(16.3)</td> <td width="84" align="right">$(1.9)</td> <td align="right"> $(14.4)</td> </tr> <tr> <td valign="top" width="325">Adjusted net income (bils.):</td> <td width="84" align="right"> $(16.8)</td> <td width="84" align="right">$(0.3) </td> <td align="right">$(16.5)</td> </tr> <tr> <td valign="top" width="325">Reported net income (bils.):</td> <td width="84" align="right">$(30.9)</td> <td width="84" align="right"> $(43.3)</td> <td align="right"> $12.4</td> </tr> <tr> <td valign="top" width="325">Reported earnings per share (diluted):</td> <td width="84" align="right"> $(53.32)</td> <td width="84" align="right"> $(76.52)</td> <td align="right">$23.20</td> </tr> <tr> <td valign="top" width="325">Adjusted operating cash flow (bils):</td> <td width="84" align="right">$(19.2)</td> <td width="84" align="right">$(2.4)</td> <td align="right">$(16.8)</td> </tr> <tr> <td valign="top" width="325">* 2007 figures reflect continuing operations</td> <td width="84"> </td> <td width="84"> </td> <td> </td> </tr> </tbody></table>DETROIT – General Motors Corp. (NYSE: GM) today announced its fourth quarter and calendar year 2008 financial results, which were affected by the dramatic deterioration in global economic and market conditions during the year, declining consumer confidence and a 50-year low in per-capita auto sales in the United States. For the 2008 calendar year, GM reported an adjusted net loss, excluding special items, of $16.8 billion, or $29.00 per diluted share. This compares to an adjusted net loss of $279 million, or $0.49 per diluted share in 2007. The 2008 results were driven by the impact of the U.S. recession and subsequent global contagion. Including special items, the company reported a loss of $30.9 billion, or $53.32 per diluted share, compared to a reported loss of $43.3 billion, or $76.52 per diluted share in 2007, which included a non-cash special charge of $38.3 billion in the third quarter related to the valuation allowance against deferred tax assets. “2008 was an extremely difficult year for the U.S. and global auto markets, especially the second half,” Chairman and CEO Rick Wagoner said. “These conditions created a very challenging environment for GM and other automakers, and led us to take further aggressive and difficult measures to restructure our business." “We expect these challenging conditions will continue through 2009, and so we are accelerating our restructuring actions. At the same time, we are continuing our commitment to exciting, fuel-efficient cars and trucks, and the leadership in advanced propulsion technology.” GM total revenue in 2008 was $149 billion, compared with $180 billion in 2007. GM’s core automotive business generated revenue of $148 billion in 2008, down from $178 billion in 2007. The revenue decline was predominantly due to the precipitous drop in sales amid record low consumer confidence in the U.S. and sharply lower sales across all of GM’s operating regions due to economic turmoil in the global markets. Global industry sales in 2008 were down 5 percent, or 3.6 million vehicles, versus 2007 levels, and U.S. industry sales fell by 18 percent, or nearly 3 million units.<table border="0" cellpadding="0" cellspacing="0"> <tbody><tr><td width="315"> </td> <td colspan="3" align="center"> Fourth Quarter</td> </tr> <tr> <td valign="top" width="325"> </td> <td width="84" align="right">2008</td> <td width="84" align="right"> 2007*</td> <td width="100" align="right">’08 O/(U) ’07</td> </tr> <tr> <td valign="top" width="325">Revenue (bils.):</td> <td width="84" align="right"> $30.8</td> <td width="84" align="right"> $46.8</td> <td align="right"> $(16.0)</td> </tr> <tr> <td valign="top" width="325">Adjusted automotive earnings before tax (bils.):</td> <td width="84" align="right"> $(4.0) </td> <td width="84" align="right">$(0.8) </td> <td align="right">$(3.2)</td> </tr> <tr> <td valign="top" width="325">Reported automotive earnings before tax (bils.):</td> <td width="84" align="right"> $(6.4) </td> <td width="84" align="right">$(1.2) </td> <td align="right">$(5.2)</td> </tr> <tr> <td valign="top" width="325">Adjusted net income (bils.):</td> <td width="84" align="right"> $(5.9) </td> <td width="84" align="right">$0.05 </td> <td align="right">$(5.9)</td> </tr> <tr> <td valign="top" width="325">Reported net income (bils.):</td> <td width="84" align="right"> $(9.6) </td> <td width="84" align="right">$(1.5) </td> <td align="right">$(8.1)</td> </tr> <tr> <td valign="top" width="325">Reported earnings per share (diluted):</td> <td width="84" align="right"> $(15.71)</td> <td width="84" align="right"> $(2.70) </td> <td align="right">$(13.01)</td> </tr> <tr> <td valign="top" width="325">Adjusted operating cash flow (bils):</td> <td width="84" align="right"> $(5.2)</td> <td width="84" align="right"> $(1.3) </td> <td align="right">$(3.9)</td> </tr> <tr> <td valign="top" width="325">* 2007 figures reflect continuing operations</td> <td> </td> <td> </td> <td> </td> </tr> </tbody></table>In the fourth quarter 2008, GM posted an adjusted net loss of $5.9 billion or $9.65 per diluted share, compared to adjusted net income of $46 million, or $0.08 per diluted share in the year-ago period. Including special items, the company reported a net loss of $9.6 billion, or $15.71 per diluted share in the fourth quarter 2008, compared to a net loss of $1.5 billion, or $2.70 per diluted share in the year-ago period. The fourth quarter 2008 results reflect special items totaling $3.7 billion. Special charges include:
- $1.1 billion impairment charge primarily relating to actions being taken regarding the Hummer and Saab brands
- $1.0 billion charge relating to adjustments to the value of deferred tax assets in various countries outside of the U.S.
- $900 million of restructuring and capacity-related costs
- $660 million increase to the Delphi reserve relating to the valuation of future pension obligations
- $610 million of gross goodwill impairments in Europe and North America
- $533 million net gain relating to GM’s portion of the GMAC bond exchange gain, net of an impairment taken on GM’s holdings in GMAC
GMNA
<table border="0" cellpadding="0" cellspacing="0"> <tbody><tr> <td valign="top" width="325">
</td> <td colspan="3" valign="top" width="267">
GM North America (GMNA) posted an adjusted loss before tax of $2.1 billion in the fourth quarter 2008 (reported loss of $3.5 billion), compared to an adjusted loss before tax of $1.1 billion in the fourth quarter 2007 (reported loss of $1.3 billion). These results were impacted by significant declines in U.S. industry volume, leased vehicle residual adjustments, increased incentives and unfavorable product mix, partially offset by favorable cost performance, SFAS 157 adjustments and foreign exchange. For 2008, GMNA posted an adjusted loss before tax of $9.4 billion (reported loss of $14.1 billion), compared to an adjusted loss before tax of $1.5 billion in the year-ago period, excluding special items (reported loss of $3.3 billion).
As a result of GM’s ongoing restructuring initiatives to adapt to current economic conditions, significant actions have been taken to reduce its structural cost. In North America, GM reduced structural cost from $33.8 billion to $30.8 billion, or $3.0 billion, during 2008.
Fourth Quarter
</td> </tr> <tr> <td valign="top" width="325">
</td> <td valign="top" width="84">2008
</td> <td valign="top" width="84">2007
</td> <td valign="top" width="100">’08 O/(U) ’07
</td> </tr> <tr> <td valign="top" width="325">Revenue (bils.)
</td> <td valign="top" width="84">$19.3
</td> <td valign="top" width="84">$28.1
</td> <td valign="top" width="99">$(8.8)
</td> </tr> <tr> <td valign="top" width="325">Adjusted earnings before tax (bils.)
</td> <td valign="top" width="84">$(2.1)
</td> <td valign="top" width="84">$(1.1)
</td> <td valign="top" width="99">$(1.0)
</td> </tr> <tr> <td valign="top" width="325">Reported earnings before tax (bils.)
</td> <td valign="top" width="84">$(3.5)
</td> <td valign="top" width="84">$(1.3)
</td> <td valign="top" width="99">$(2.2)
</td> </tr> <tr> <td valign="top" width="325">GM market share
</td> <td valign="top" width="84">21.0%
</td> <td valign="top" width="84">22.7%
</td> <td valign="top" width="99">(1.7)p.p.
</td> </tr> </tbody></table> GME
<table border="0" cellpadding="0" cellspacing="0"> <tbody><tr> <td valign="top" width="310">
</td> <td colspan="3" valign="top" width="286">
For the fourth quarter 2008, GM Europe (GME) posted an adjusted loss before tax of $956 million (reported loss of $1.9 billion) versus an adjusted loss before tax of $215 million in the year-ago period (reported loss of $445 million). The decline in fourth quarter earnings was largely attributable to the lower industry volume across the region, unfavorable model mix and unfavorable foreign exchange and commodity hedging, partially offset by strong cost performance. For 2008, GME posted an adjusted loss before tax of $1.6 billion (reported loss of $2.8 billion), compared to adjusted income before tax of $55 million in the year-ago period, excluding special items (reported loss of $524 million).
Fourth Quarter
</td> </tr> <tr> <td valign="top" width="310">
</td> <td valign="top" width="104">2008
</td> <td valign="top" width="82">2007
</td> <td valign="top" width="100">’08 O/(U) ’07
</td> </tr> <tr> <td valign="top" width="310">Revenue (bils.)
</td> <td valign="top" width="104">$6.4
</td> <td valign="top" width="82">$10.7
</td> <td valign="top" width="100">$(4.3)
</td> </tr> <tr> <td valign="top" width="310">Adjusted earnings before tax (mils.)
</td> <td valign="top" width="104">$(956)
</td> <td valign="top" width="82">$(215)
</td> <td valign="top" width="100">$(741)
</td> </tr> <tr> <td valign="top" width="310">Reported earnings before tax (mils.)
</td> <td valign="top" width="104">$(1,890)
</td> <td valign="top" width="82">$(445)
</td> <td valign="top" width="100">$(1,445)
</td> </tr> <tr> <td valign="top" width="310">GM market share
</td> <td valign="top" width="104">9.1%
</td> <td valign="top" width="82">9.2%
</td> <td valign="top" width="100">(0.1)p.p.
</td> </tr> </tbody></table> GMLAAM
<table border="0" cellpadding="0" cellspacing="0"> <tbody><tr> <td valign="top" width="325">
</td> <td colspan="3" valign="top" width="271">
In the fourth quarter, GMLAAM posted an adjusted loss before tax of $154 million (reported loss of $181 million), down from adjusted income of $424 million in the fourth quarter of 2007 (reported income of $424 million). Fourth quarter results were impacted by lower industry volume in Brazil, Venezuela and other key markets, and unfavorable foreign exchange, offset by favorable model mix and pricing. For the year, GMLAAM posted adjusted earnings before tax of $1.3 billion (reported income of $1.3 billion), which was comparable to 2007 adjusted earnings of $1.3 billion (reported income of $1.3 billion). Despite a slowdown in the fourth quarter, GMLAAM achieved record revenue of $20.3 billion and sales volume of almost 1.3 million vehicles for the calendar year.
Fourth Quarter
</td> </tr> <tr> <td valign="top" width="325">
</td> <td valign="top" width="89">2008
</td> <td valign="top" width="79">2007
</td> <td valign="top" width="102">’08 O/(U) ’07
</td> </tr> <tr> <td valign="top" width="325">Revenue (bils.)
</td> <td valign="top" width="89">$4.7
</td> <td valign="top" width="79">$6.0
</td> <td valign="top" width="102">$(1.3)
</td> </tr> <tr> <td valign="top" width="325">Adjusted earnings before tax (mils.)
</td> <td valign="top" width="89">$(154)
</td> <td valign="top" width="79">$424
</td> <td valign="top" width="102">$(578)
</td> </tr> <tr> <td valign="top" width="325">Reported earnings before tax (mils.)
</td> <td valign="top" width="89">$(181)
</td> <td valign="top" width="79">$424
</td> <td valign="top" width="102">$(605)
</td> </tr> <tr> <td valign="top" width="325">GM market share
</td> <td valign="top" width="89">16.2%
</td> <td valign="top" width="79">17.3%
</td> <td valign="top" width="102">(1.1)p.p.
</td> </tr> </tbody></table> GMAP
<table border="0" cellpadding="0" cellspacing="0"> <tbody><tr> <td valign="top" width="337">
</td> <td colspan="3" valign="top" width="258">
GMAP posted an adjusted loss before tax of $879 million for the fourth quarter (reported loss of $917 million), compared to adjusted income of $72 million in the year-ago period (reported income of $72 million). GMAP fourth quarter earnings were impacted by lower industry volume, unfavorable pricing, unfavorable foreign exchange and commodity hedging, partially offset by favorable model and mix and continued favorable cost performance. For the year, GMAP posted an adjusted loss before tax of $664 million (reported loss of $800 million) compared to adjusted income of $744 million (reported income of $681 million) for 2007.
GMAC
In the fourth quarter, GMAC Financial Services (GMAC) reported net income of $7.5 billion, driven largely by the company’s December bond exchange, compared to a net loss of $724 million in the fourth quarter of 2007. Excluding the $11.4 billion gain on its bond exchange, GMAC’s results in the fourth quarter reflected a net loss of $4.0 billion, driven primarily by losses in North America automotive finance and continued losses at Residential Capital, LLC (ResCap). GMAC reported net income of $1.9 billion in 2008, compared with a net loss of $2.3 billion in 2007.
GM realized an adjusted loss of $4.7 billion attributable to GMAC, as a result of its 49 percent equity interest for the year, and an adjusted loss of $1.9 billion for the fourth quarter. This excludes a fourth quarter net gain of $533 million related to GM’s portion of GMAC’s bond exchange gain that was largely offset by an impairment of GM's investment in GMAC.
Cash and Liquidity
Cash, marketable securities and readily available assets of the Voluntary Employees Beneficiary Association (VEBA) trust totaled $14.0 billion as of Dec. 31, 2008, down from $27.3 billion on Dec. 31, 2007. GM had adjusted automotive operating cash flow of negative $5.2 billion in the fourth quarter, and ended the 2008 calendar year with adjusted automotive operating cash flow of negative $19.2 billion, largely due to lower volume across GM’s global operations and negative working capital.
On Dec. 31, 2008, GM entered into a loan agreement with the U.S. Department of Treasury (UST) for funding of $13.4 billion, payable in three tranches. The initial installment of $4.0 billion was provided to GM on Dec. 31, 2008, followed by subsequent installments of $5.4 billion and $4.0 billion on Jan. 21, 2009 and Feb. 17, 2009, respectively.
In accordance with the terms of the loan, GM submitted to the UST on Feb. 17, 2009 a comprehensive global restructuring plan that demonstrates GM’s long-term viability. GM is working with its key stakeholders as the company implements the actions outlined in the plan, to create a revitalized, more cost competitive company, dedicated to developing world-class vehicles and leading advanced propulsion technologies.
As a result of year-end measurements of GM’s net pension obligations, it was determined that the U.S. hourly and salaried qualified pension plans are currently underfunded, on a combined basis, by approximately $12.4 billion. Several factors contributed to the underfunded status, including service and interest costs; lower asset returns; lower discount rates; changes in actuarial assumptions; various hourly initiatives including the UAW special attrition program, VEBA agreement, Delphi pension transfer and IUE contract; and salaried initiatives including the pension benefit changes relating to the elimination of post-65 retiree healthcare and the salaried retirement program. While no additional pension contributions are anticipated over the next three years, the funded status of the pension plan is subject to a number of variables. GM will continue to analyze its pension funding strategies going forward.
GM intends to take advantage of the extension of the time required to file its 2008 10-K, which the SEC rules allow by filing Form 12b-25. This provides GM with up to 15 additional days in which to file its 2008 10-K, without being considered “late” by the SEC. The company believes this is a prudent step to take at this critical time as it allows more time for thorough review of the extensive financial and other disclosures regarding the events that occurred at year-end 2008 and during early 2009. Additionally, as a result of the bond exchange, GM’s 2008 10-K will contain information regarding executive compensation, which would not normally be disclosed until the proxy statement is issued for GM’s annual stockholder meeting.
Finally, GM anticipates receiving a “going concern” opinion from its auditors in the 2008 10-K. GM and its auditors must determine whether there is substantial doubt about GM’s ability to continue as a going concern. GM’s Viability Plan filed with the UST on Feb. 17, 2009, included a request for additional funding from the UST, as well as support from other governments outside of the U.S. GM requires this funding in 2009 to continue operations until global automotive sales recover and its restructuring actions generate benefits, resulting in the company being able to fund its own operating requirements.
Fourth Quarter
</td> </tr> <tr> <td valign="top" width="337">
</td> <td valign="top" width="77">2008
</td> <td valign="top" width="79">2007
</td> <td valign="top" width="102">’08 O/(U) ’07
</td> </tr> <tr> <td valign="top" width="337">Revenue (bils.)
</td> <td valign="top" width="77">$2.6
</td> <td valign="top" width="79">$5.3
</td> <td valign="top" width="102">$(2.7)
</td> </tr> <tr> <td valign="top" width="337">Adjusted earnings before tax (mils.)
</td> <td valign="top" width="77">$(879)
</td> <td valign="top" width="79">$72
</td> <td valign="top" width="102">$(951)
</td> </tr> <tr> <td valign="top" width="337">Reported earnings before tax (mils.)
</td> <td valign="top" width="77">$(917)
</td> <td valign="top" width="79">$72
</td> <td valign="top" width="102">$(989)
</td> </tr> <tr> <td valign="top" width="337">GM market share
</td> <td valign="top" width="77">7.2%
</td> <td valign="top" width="79">7.3%
</td> <td valign="top" width="102">(0.1) p.p.
</td> </tr> </tbody></table>
04-27-2009, 11:42 AM
#728
04-27-2009, 06:46 PM
#729
I feel the need...
Personally, as hard as it hurts Motown and its surrounds - Chrysler is dead and Fiat will nibble on the remains. As for GM, the debtholders are waiting for Team Obama to blink, me thinks this time they won't. A painful reorganization is in order and GM will re-emerge on the other side much smaller after bariatric surgery.
04-28-2009, 01:43 AM
#730
Race Director
http://www.businessweek.com/autos/au...s+%2B+analysis
A separate deal with Chrysler will give the 74-year old labor organization 55% of the privately held Chrysler.
Union members can pretty much burn those picket signs they threaten to drag out every few years when contracts get re-negotiated. Threatening a strike at a GM or Chrysler facility, or even a parts plant that supplies one of the automakers, would be shooting themselves in both feet as long as they hold such large stakes in the companies.
In the Chrysler deal, the union is losing cost-of-living adjustments to pay, and accepting stiffer limits on over-time pay and a reduction in paid holidays. For all practical purposes, union pay and benefits are practically the same now as non-union workers employed by Toyota and Honda in the U.S.
04-28-2009, 04:19 AM
#731
I feel the need...
^^ That's only one part of the equation. It was widely expected that the Unions would come back to the bargaining table to accept major givebacks, what choice to they have?
This means nothing if creditors can't agree on terms. As I understand Chrysler creditors, they have more leverage since they have secured positions and would make out better in liquidation than GM. There are simply too many claims on GM and creditors would be fighting over crumbs which is why the Gov't has more leverage to wield a big stick.
This means nothing if creditors can't agree on terms. As I understand Chrysler creditors, they have more leverage since they have secured positions and would make out better in liquidation than GM. There are simply too many claims on GM and creditors would be fighting over crumbs which is why the Gov't has more leverage to wield a big stick.
04-28-2009, 04:36 AM
#732
I feel the need...
Too little, too late for GM and Chrysler
Last-ditch restructuring plans may not be enough to make GM and Chrysler viable for the long haul - even if it keeps them from bankruptcy in the short-term.
http://money.cnn.com/2009/04/27/news...ex.htm?cnn=yes
NEW YORK (CNNMoney.com) -- With bankruptcy looming at General Motors and Chrysler LLC, both troubled automakers have announced new moves to try and avoid that fate.
But even if the companies are able to stay out of bankruptcy in the near-term, several experts believe it may be too little too late to save both companies for the long-haul.
GM proposed Monday to cut more brands, plants and workers, and eliminate $44 billion in debt and other obligations by issuing a sizeable amount of additional stock to pay off creditors, the government and union trust funds.
The company is hoping to reach an agreement with those three parties on this new plan by the end of May or it could be forced into bankruptcy.
Late Sunday, Chrysler announced a tentative labor deal with the United Auto Workers union that it says meets the goals set out by the Treasury Department to turn around the company.
But Chrysler must still reach deals with Italian automaker Fiat on an alliance and get its own creditors to agree to take pennies on the dollar for the $7 billion in secured loans they have made to the company. And it has until only this Thursday to get all three deals in place.....
But even if the companies are able to stay out of bankruptcy in the near-term, several experts believe it may be too little too late to save both companies for the long-haul.
GM proposed Monday to cut more brands, plants and workers, and eliminate $44 billion in debt and other obligations by issuing a sizeable amount of additional stock to pay off creditors, the government and union trust funds.
The company is hoping to reach an agreement with those three parties on this new plan by the end of May or it could be forced into bankruptcy.
Late Sunday, Chrysler announced a tentative labor deal with the United Auto Workers union that it says meets the goals set out by the Treasury Department to turn around the company.
But Chrysler must still reach deals with Italian automaker Fiat on an alliance and get its own creditors to agree to take pennies on the dollar for the $7 billion in secured loans they have made to the company. And it has until only this Thursday to get all three deals in place.....
04-28-2009, 07:37 AM
#733
Fahrvergnügen'd
GM should go into bankruptcy and re-organize.
I hate to be cold but there are a lot of people at GM who have systematically run that company into the ground that should be fired.
It's not just unions (whom I dislike on principle) that caused this. Incompetent, feckless executive leadership has killed GM.
Chrysler has been a mess for a long time. Except for the Caravan, Viper, and Grand Cherokee, has that company done anything notable since the 60s?
Ford, who has been run just as poorly by the unparalleled doofuses in the Ford family, seems to have finally hired the right guy to get that company's head out of its ass.
I hate to be cold but there are a lot of people at GM who have systematically run that company into the ground that should be fired.
It's not just unions (whom I dislike on principle) that caused this. Incompetent, feckless executive leadership has killed GM.
Chrysler has been a mess for a long time. Except for the Caravan, Viper, and Grand Cherokee, has that company done anything notable since the 60s?
Ford, who has been run just as poorly by the unparalleled doofuses in the Ford family, seems to have finally hired the right guy to get that company's head out of its ass.
04-28-2009, 10:05 AM
#734
Safety Car
Honda Still in the Black
Honda has made some very tough decisions over the past 12 months to reduce costs, including canceling development of its V10-powered NSX successor and pulling out altogether from the 2009 F1 season, but the moves deserve commendation as they have helped the carmaker remain profitable at a time when vehicle sales are reaching 20 to 30 year lows. While many rivals, including industry juggernaut Toyota, are posting or expecting multi-billion dollar losses, Honda has booked a profit of $1.42 billion, though this is still down 77% from the previous year.
The fourth quarter of the fiscal year ending March 31st 2009 took its toll, with Honda losing almost $1.9 billion during this time. However, despite the grim outlook, Honda expects to stay in the black for the current year, defying forecasts it could plunge to its first ever annual loss since its founding back in 1948.
The U.S. was one of the worst affected markets for Honda, with sales in March alone dipping 36% to just over 88,000 vehicles. This compares with an annual decline in Honda’s global sales of about 17% - the first decline in almost nine years.
Still, Honda stands to bounce back faster than many of its rivals due to a product range that centers on compact cars and hybrids, a lineup that is more attune to current consumer trends across the globe. Some important models include the compact Civic and Fit (Jazz), as well as the new Insight Hybrid.
The fourth quarter of the fiscal year ending March 31st 2009 took its toll, with Honda losing almost $1.9 billion during this time. However, despite the grim outlook, Honda expects to stay in the black for the current year, defying forecasts it could plunge to its first ever annual loss since its founding back in 1948.
The U.S. was one of the worst affected markets for Honda, with sales in March alone dipping 36% to just over 88,000 vehicles. This compares with an annual decline in Honda’s global sales of about 17% - the first decline in almost nine years.
Still, Honda stands to bounce back faster than many of its rivals due to a product range that centers on compact cars and hybrids, a lineup that is more attune to current consumer trends across the globe. Some important models include the compact Civic and Fit (Jazz), as well as the new Insight Hybrid.
04-28-2009, 12:23 PM
#736
Race Director
http://www.businessweek.com/autos/au...temp_top+story
Chrysler LLC and the U.S. Treasury Dept. have reached an agreement with banks and private equity firms holding $6.9 billion of the automaker’s debt. Those firms have agreed to take $2 billion and a small equity stake in the company, paving the way, it seems, for Chrysler to avoid bankruptcy and complete an alliance with Italian automaker Fiat.
04-28-2009, 12:34 PM
#737
The sizzle in the Steak
Thread Starter
If FIAT is smart, they wait for Chrysler to go into BK...then pick up the assets they want.
04-28-2009, 04:08 PM
#739
Someday, an RS6 Avant+
Subaru is doing OK as well
Nice to see someone else is doing well during these times:
From the Subaru website
From the Subaru website
Subaru of America, Inc. Announces Quarterly Sales Increase and Best Ever Monthly Sales for Forester
Cherry Hill, NJ, April 1, 2009 -- Subaru announced that year-to-date sales were up 2-percent with 41,532 units sold in 2009 versus 40,881 units sold in 2008. For the month of March there was a 3-percent sales decrease over last year’s March results.
The 2009 Subaru Forester continues its record-breaking streak with its best monthly sales ever. Sales for the Forester increased 47-percent over last year's March Forester sales - a total of 6,802 units sold in March 2009, versus 4,615 units sold in March 2008.
"In March, Forester set an all-time sales record, capping a month where it received the top rating for Roof Strength from IIHS and won the best new small Crossover from Kiplinger Personal Finance." said Tim Colbeck, senior vice president of sales, Subaru of America, Inc. "The Forester has been a major driver of our success this year, leading the brand to a 2-percent year-to-date sales increase over 2008. As our market share grows to record levels this reinforces that the safety, durability and value of Subaru products continue to resonate with consumers."
Cherry Hill, NJ, April 1, 2009 -- Subaru announced that year-to-date sales were up 2-percent with 41,532 units sold in 2009 versus 40,881 units sold in 2008. For the month of March there was a 3-percent sales decrease over last year’s March results.
The 2009 Subaru Forester continues its record-breaking streak with its best monthly sales ever. Sales for the Forester increased 47-percent over last year's March Forester sales - a total of 6,802 units sold in March 2009, versus 4,615 units sold in March 2008.
"In March, Forester set an all-time sales record, capping a month where it received the top rating for Roof Strength from IIHS and won the best new small Crossover from Kiplinger Personal Finance." said Tim Colbeck, senior vice president of sales, Subaru of America, Inc. "The Forester has been a major driver of our success this year, leading the brand to a 2-percent year-to-date sales increase over 2008. As our market share grows to record levels this reinforces that the safety, durability and value of Subaru products continue to resonate with consumers."
04-28-2009, 04:43 PM
#740
The new Forester is excellent. I wish it had come out when I bought my CR-V. IMO it's definitely at the top of its class segment. I can't say the same for the rest of the lineup though.
04-28-2009, 06:25 PM
#742
Team Owner
iTrader: (1)
Join Date: Sep 2002
Location: Fontana, California
Age: 47
Posts: 30,991
Received 582 Likes
on
346 Posts
U.S. Government, UAW to own 89% of General Motors
http://www.leftlanenews.com/us-gover...al-motors.html
http://www.leftlanenews.com/us-gover...al-motors.html
04-28-2009, 06:47 PM
#743
Moto Enthusiast
Join Date: Aug 2005
Location: Sacramento, CA
Age: 46
Posts: 596
Likes: 0
Received 0 Likes
on
0 Posts
04-28-2009, 08:25 PM
#744
6G TLX-S
U.S. Government, UAW to own 89% of General Motors
http://www.leftlanenews.com/us-gover...al-motors.html
http://www.leftlanenews.com/us-gover...al-motors.html
Sounds very bad.
04-28-2009, 09:34 PM
#745
ShellZV6
Exactly my thinking.... what the hell are they thinking still holding onto GMC? I like the Sierra more than the Silverado but aside from that I could care less about any of the GMC counterparts. and when my friend said his mom (who is Chinese) had a Buick I was surprised at first then I remembered how Buick has a strong foothold in China.... usually Asians are not fond of American cars, aside from the male members of my family (myself included )
And I hope the G8 GXP is cheap
that'd be sweet
)And I hope the G8 GXP is cheap
that'd be sweetlol actually its not at all i went to pontiac the other day cause i wanted the GXP they dont wanna budge they didnt wanna take ne money of the vehicle they wanted 41,000 for it and then they said gmc aint leasing ne more and u have to buy the GXP and it was 600 a month..no thank u..lol keep it.. so i decided to get a 08 ACura TL type S it was cheaper and will prolly last me longer ne way..lol but the GXP is a beast..lol
04-28-2009, 11:39 PM
#746
Punk Rocker
GM should go into bankruptcy and re-organize.
I hate to be cold but there are a lot of people at GM who have systematically run that company into the ground that should be fired.
It's not just unions (whom I dislike on principle) that caused this. Incompetent, feckless executive leadership has killed GM.
Chrysler has been a mess for a long time. Except for the Caravan, Viper, and Grand Cherokee, has that company done anything notable since the 60s?
Ford, who has been run just as poorly by the unparalleled doofuses in the Ford family, seems to have finally hired the right guy to get that company's head out of its ass.
I hate to be cold but there are a lot of people at GM who have systematically run that company into the ground that should be fired.
It's not just unions (whom I dislike on principle) that caused this. Incompetent, feckless executive leadership has killed GM.
Chrysler has been a mess for a long time. Except for the Caravan, Viper, and Grand Cherokee, has that company done anything notable since the 60s?
Ford, who has been run just as poorly by the unparalleled doofuses in the Ford family, seems to have finally hired the right guy to get that company's head out of its ass.
300C, Ram, new Charger, and Challenger......
Btw, I'd love to see the G8 re-badged as a Chevy, perhaps the new Impala or something....
04-29-2009, 02:02 AM
#748
Race Director
04-29-2009, 02:39 AM
#749
6G TLX-S
04-29-2009, 05:25 AM
#750
Someday, an RS6 Avant+
This could be partly true. At least with an ownership stake, they won't go on strike. Kind of like Russian Roulette with a semi-auto pistol. You can but why?
04-29-2009, 06:50 AM
#751
Safety Car
Hoo Ray
Hopefully, tho, they will bring us long awaited items like the ZDX's 6 speed sometime in the future.
04-29-2009, 08:56 AM
#752
Race Director
It wasn't the whoring out of the platform/engines that saved them - everyone does that. It was keeping the line on prices (and keep the incentives down), cut spending fast (like NSX and F1 program), cut production and having the motorcycle side of the house (which is doing well) help with the bottom line.
04-29-2009, 10:33 AM
#753
The sizzle in the Steak
Thread Starter
FIAT CEO Marchionne: Expect temporary bankruptcy for Chrysler
Fiat CEO Sergio Marchionne told Ken Lewenza, president of the Canadian Auto Workers union, that Chrysler will likely seek Chapter 11 bankruptcy protection from the United States government, even if it is the “surgical bankruptcy” sources inside the White House are calling it.
Lewenza told Reuters that Marchionne “was careful” about predicting the future for Chrysler. Chrysler and Fiat have until tomorrow to wrap up their alliance plans and present them to the U.S. government before funding is pulled.
“He said: ‘You know, Ken, a lot of things can happen in two days, but if I was a betting man, I would suggest Chrysler is going to fall into Chapter 11,’” Lewenza said.
Marchionne apparently told Lewenza that the Canadian plants would be safe during the merger, even if the automaker officially goes into bankruptcy.
Fiat Vice Chairman John Eklann was a little more mum about the potential for Chrysler to go into bankruptcy.
“There are lots of variations of Chapter 11. We need to be patient until Thursday,” he told the Associated Press.
Chrysler’s four primary debt holders - J.P. Morgan, Citibank, Goldman Sachs and Morgan Stanley, have agreed to accept cash in the amount $2 billion for the $6.9 billion in secured debt, but some of the 42 other banks that hold Chrysler debt say they are unwilling to let Chrysler go for that little.
“Without having all 46 banks, it would still be necessary for Chrysler to go through what we call our ’surgical bankruptcy’ - 30-day type of process — in order to in effect drag along any banks that choose not to participate,” an unnamed government source told the Detroit News.
Still, analysts say that the deal reached with the four large banks - who hold about 70 percent of Chrysler’s debt - will prevent the company from being liquidated.
About 87 percent of Chrysler’s Canadian plant workers ratified concessions that are aimed at helping Chrysler stay afloat and to merge with Fiat.
Lewenza told Reuters that Marchionne “was careful” about predicting the future for Chrysler. Chrysler and Fiat have until tomorrow to wrap up their alliance plans and present them to the U.S. government before funding is pulled.
“He said: ‘You know, Ken, a lot of things can happen in two days, but if I was a betting man, I would suggest Chrysler is going to fall into Chapter 11,’” Lewenza said.
Marchionne apparently told Lewenza that the Canadian plants would be safe during the merger, even if the automaker officially goes into bankruptcy.
Fiat Vice Chairman John Eklann was a little more mum about the potential for Chrysler to go into bankruptcy.
“There are lots of variations of Chapter 11. We need to be patient until Thursday,” he told the Associated Press.
Chrysler’s four primary debt holders - J.P. Morgan, Citibank, Goldman Sachs and Morgan Stanley, have agreed to accept cash in the amount $2 billion for the $6.9 billion in secured debt, but some of the 42 other banks that hold Chrysler debt say they are unwilling to let Chrysler go for that little.
“Without having all 46 banks, it would still be necessary for Chrysler to go through what we call our ’surgical bankruptcy’ - 30-day type of process — in order to in effect drag along any banks that choose not to participate,” an unnamed government source told the Detroit News.
Still, analysts say that the deal reached with the four large banks - who hold about 70 percent of Chrysler’s debt - will prevent the company from being liquidated.
About 87 percent of Chrysler’s Canadian plant workers ratified concessions that are aimed at helping Chrysler stay afloat and to merge with Fiat.
04-29-2009, 10:36 AM
#754
Fahrvergnügen'd
lol actually its not at all i went to pontiac the other day cause i wanted the GXP they dont wanna budge they didnt wanna take ne money of the vehicle they wanted 41,000 for it and then they said gmc aint leasing ne more and u have to buy the GXP and it was 600 a month..no thank u..lol keep it.. so i decided to get a 08 ACura TL type S it was cheaper and will prolly last me longer ne way..lol but the GXP is a beast..lol
04-29-2009, 11:21 AM
#756
The sizzle in the Steak
Thread Starter
04-29-2009, 01:25 PM
#757
Senior Moderator
04-29-2009, 01:42 PM
#758
Race Director
iTrader: (1)
Join Date: Oct 2006
Location: Charlotte(home) /Raleigh (school), NC
Age: 35
Posts: 11,395
Likes: 0
Received 0 Likes
on
0 Posts
I cant image how happy the people at Ford are for not expecting govt money. GM and Chrysler need to go Chapter 11 before its too late.
04-29-2009, 04:27 PM
#759
Senior Moderator
^ Your wish.....
REPORT: Obama planning to announce Chrysler bankruptcy tomorrow
REPORT: Obama planning to announce Chrysler bankruptcy tomorrow
According to a report by Bloomberg citing the usual unnamed sources, President Obama will announce tomorrow that Chrysler will file for Chapter 11 bankruptcy while continuing to work on its alliance with Fiat.
Bloomberg's source made it clear that the there are still several loose ends and the plan "is not finished yet," but it will likely involve Chrysler's strongest assets being bundled and sold to a new entity. In that scenario, Fiat would become a 20% owner of the Auburn Hills-based automaker, the UAW retiree health-care trust would take a 55% percent stake and the government would gobble up the rest. Essentially, it's the same out-of-court deal initially proposed, but now, with all the benefits (and hurdles) of bankruptcy protection.
No surprise then that Fiat's CEO, Sergio Marchionne, was right in his assessment (see below), nor is it a shocker to anyone that's been following Chrysler's trials and tribulations over the last week and beyond.
[Source: Bloomberg | Image Source: Bill Pugliano/Getty]
Bloomberg's source made it clear that the there are still several loose ends and the plan "is not finished yet," but it will likely involve Chrysler's strongest assets being bundled and sold to a new entity. In that scenario, Fiat would become a 20% owner of the Auburn Hills-based automaker, the UAW retiree health-care trust would take a 55% percent stake and the government would gobble up the rest. Essentially, it's the same out-of-court deal initially proposed, but now, with all the benefits (and hurdles) of bankruptcy protection.
No surprise then that Fiat's CEO, Sergio Marchionne, was right in his assessment (see below), nor is it a shocker to anyone that's been following Chrysler's trials and tribulations over the last week and beyond.
[Source: Bloomberg | Image Source: Bill Pugliano/Getty]
04-29-2009, 05:23 PM
#760
The sizzle in the Steak
Thread Starter
Enter the lawsuits from all the dealers.