The Federal Reserve approved GMAC as a bank holding company on Christmas Eve, allowing GMAC, GM’s financial arm, to tap into federal rescue funds for financial services and further shore up GM’s bank balance.
GMAC provides about 75% of financing for GM dealerships and has been frozen out of the credit markets since taking a $7 [...]
Archive for December, 2008
GMAC Approved as Bank, Can Receive Bailout for Financial Sector
December 25th, 2008
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GM Bailout
Buy Ford?
December 25th, 2008
Dave Burris of Delaware Politics recommends his readers buy Fords (or at least Ford stock) in recognition of Ford not partaking in the government bailout money.
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Ford bailout
Reaction to Automaker Bailout: Would Money Be Better Spent on Workers?
December 24th, 2008
Nicole Ashley Hamilton writes:
“All this talk about how we need to save the auto industry because it employs so many people. But by the time they finish shrinking enough to be viable, it’s going to be like 3 guys running a used car lot. By the time it’s over, how many jobs are we going [...]
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Uncategorized
Chrysler Seeks to Cut Costs for March Bailout Deadline
December 24th, 2008
Chrysler is hoping to cut costs dramatically before a March deadline imposed by the federal government as a caveat for providing bailout money. Chrysler announced the move to shareholders as part of a webcast last week.
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Chrysler bailout
Auto Companies– Banks, Dressed Up As Automakers?
December 23rd, 2008
Stephanie Mencimer makes the case that Bush’s auto bailout will not help consumers buy cars. Her reasoning: many are already bogged down with existing auto loans, issued by the Big Three, with 85% of loan-holders in negative equity. Most of these car buyers owe $4,400 more than their cars are worth.
According to Mencimer, Detroit has [...]
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Chrysler bailout, GM Bailout
Canadian Bailout for GM, Chrysler
December 21st, 2008
As they had announced they would yesterday, today Canada released details of its own bailout of the American car industry. Canada’s bailout will consist of $3 billion in aid ($4 billion in Canadian currency). Canadian Prime Minister Stephen Harper made the move after a Canadian federal government panel found that 600,000 Canadians would be out [...]
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Chrysler bailout, GM Bailout
Canadian Bailout for Auto Companies
December 20th, 2008
On the heels of George W. Bush’s announcement of an American bailout for Chrysler and GM, the Canadian government said Friday that it would announce a plan to bail out the same two car companies on Saturday. Canada has said that it will provide about 20 percent of the bailout funds that the US does.
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Chrysler bailout, GM Bailout
Chrysler Closes All Plants for a Month, Ford Closes for Three Weeks
December 20th, 2008
Chrysler said Wednesday it would be closing all of its 30 American factories for a month (rather than the customary two weeks) due to the holidays.
The move is in response to declining auto sales and affects 46,000 union workers at Chrysler’s plants, which now will not re-open until January 19th. It is intended to allow [...]
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Chrysler bailout, GM Bailout
Bush Announces Bailout for GM, Chrysler
December 20th, 2008
President George W. Bush announced that he would provide low-cost loans to GM and Chrysler, provided that they can create a plan for “viability” in the next three months. Chrysler and GM have said they would have to declare bankruptcy without the loans, with major payments due to suppliers in January that they can’t pay [...]
Chrysler Dealerships Nearly Bankrupt Chrysler’s Fund for Loans
December 19th, 2008
When Chrysler announced that it might have to declare bankruptcy, its dealerships rushed to acquire loans from its finance division to the tune of $60 million a day, strapping Chrysler for $1.5 billion since July.
The CEO of Chrysler Financial, Thomas Gilman, asked for an end to the “troubling” requests and told dealers to only apply [...]
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Chrysler bailout