While the government and new GM CEO Fritz Henderson hinted that bankruptcy might be a possibility for the American car company, bankruptcy experts disagreed that a bankruptcy, even a quick one, could bring GM to profitability.
If customers are scared away by a bankrtupcy, GM would have little hope of survival. A bankruptcy judge could rid [...]
Author Archive
Will Bankruptcy Create Successful GM?
March 31st, 2009
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GM Bailout
Tags: GM Bailout, GM bankruptcy
Obama Ousts GM CEO
March 30th, 2009
The Obama administration, as part of its oversight of GM due to the company’s $13.4 billion bailout taken in December, has asked and received the resignation of the company’s CEO Rick Wagoner. Forbes terms the move “Orwellian.” Forbes mentions that Ford Motor Co. is no doubt delighted that they did not go down the road [...]
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Ford bailout, GM Bailout
GM Chief Asks for Supplier Assistance
March 18th, 2009
General Motors CEO Rick Wagoner asked the federal government to help assist its auto parts suppliers, which are on shaky ground and would be even more so if GM files for bankruptcy.
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GM Bailout
Sweden Will Back Saab If It Can Also Get Private Financing
February 24th, 2009
The government of Sweden announced that it would provide backing for a loan that Saab might receive from the European Investment Bank if the Swedish automaker can find a private backer that will provide half the financing required for the deal.
Prime Minister Fredrik Reinfeldt announced the plan, which came on the heels of former GM [...]
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Car industry, GM Bailout
Tags: Saab, Sweden Saab
Four Hard Ways to Fix Detroit
February 23rd, 2009
CNN outlines four ways Detroit can be fixed, all at a high cost. CNN estimates the final price tag for a simple bailout could top out at $130 billion for the federal government. In addition to the $39 billion GM and Chrysler have requested, parts dealers and suppliers have asked for bailouts, and consumers may [...]
GM Canada’s Restructuring Plan on Right Track
February 23rd, 2009
The Industry Minister of Canada said GM Canada’s plan for viability, presented to the Canadian government last Friday, is on the right track but no decision will be issued yet on any emergency aid to the Canadian wing of the troubled American automaker.
The minister, Tony Clement, told the Canadian Broadcasting Corporation (CBC): “We have to [...]
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Chrysler bailout, GM Bailout
Delphi’s Salaried Employees Protest Proposed Benefit Cuts; Hearing Tomorrow
February 23rd, 2009
Delphi, the parts maker that has been spun off from GM and in bankruptcy since 2005, has submitted a request to a bankruptcy judge to relieve the company of its health and benefit obligations to salaried retirees, beginning April 1st. With the change, Delphi would be relieved of $70 million in obligations per year and [...]
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Car industry
Germans Debate Bailout of GM’s Opel Brand
February 23rd, 2009
Members of Germany’s Parliament debated whether to grant state aid to ailing GM German subsidiary Opel. Some lawmakers argued that the bailout money would simply go to GM’s troubled American branch.
Christian Democrats party leader Christian Fuchs argues that GM will receive the money and argues against the bailout.
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GM Bailout
The Incredible Shrinking GM and Chrysler
February 22nd, 2009
If they emerge from their current economic difficulties, GM and Chrysler will be “lesser players on the world stage” according to CNN.
The “sadly shrunken companies” are hard to predict for the short term, but the long term CNN’s auto editor finds easier: Chrysler will be “a bit player in the American market and remain a [...]
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Chrysler bailout, GM Bailout
Tags: Chrysler bailout, GM Bailout
Sander Levin Asks for More Bailouts in USA Today
February 21st, 2009
Michigan Rep. Sander Levin, brother of Senator Carl Levin, makes the case for America bailing out the auto industry as the second half of a debate that ran on USA Today’s editorial page.
Levin argues that the auto companies helped create the middle class and is part of the “fabric of our nation.” Levin blames the [...]
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Chrysler bailout, GM Bailout