GM wants 16.6 billion more, on top of the 13.4 billion.
02-17-2009, 05:44 PM
#1
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GM wants 16.6 billion more, on top of the 13.4 billion.
02-17-2009, 05:57 PM
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Actually, they're only asking for an additional $4.5B now, and possibly up to $30B total by 2011 if the economy continues to slide. Hummer and Saab are also mentioned with Saturn in the spin-off or close shop by 2011 scenario.
General Motors (NYSE: GM) submitted its viability plan to the U.S. Treasury Department, boosting its loan request by another $4.5 billion, to $22.5 billion. GM said if a new, even lower downside scenario occurs it would need an additional $7.5 billion, or a total of $30 billion by 2011.
General Motors also said it considered, rejected 3 bankruptcy scenarios as part of the plan.
GM will cut 47,000 jobs, 10,000 salaried 37,000 hourly, by year end and close five additional U.S. factories.
General Motors will focus its resources primarily on its core brands: Chevrolet, Cadillac, Buick and GMC. Hummer and Saab, are subject to 'strategic reviews', including their potential sale. A Hummer sale of phase out decision will be made in Q1, with final resolution for both Hummer and Saab no later than 2010. Saturn will remain in operations through the end of the planned life cycle for all Saturn products (2010-2011). In the interim, should Saturn retailer as a group or other investors present a plan that would allow a spin off or sale of Saturn Distribution Corp, GM would be open to any such possibility.
GM dealerships to be cut by a further 25% over the next 4 years.
General Motors also said it considered, rejected 3 bankruptcy scenarios as part of the plan.
GM will cut 47,000 jobs, 10,000 salaried 37,000 hourly, by year end and close five additional U.S. factories.
General Motors will focus its resources primarily on its core brands: Chevrolet, Cadillac, Buick and GMC. Hummer and Saab, are subject to 'strategic reviews', including their potential sale. A Hummer sale of phase out decision will be made in Q1, with final resolution for both Hummer and Saab no later than 2010. Saturn will remain in operations through the end of the planned life cycle for all Saturn products (2010-2011). In the interim, should Saturn retailer as a group or other investors present a plan that would allow a spin off or sale of Saturn Distribution Corp, GM would be open to any such possibility.
GM dealerships to be cut by a further 25% over the next 4 years.
02-17-2009, 06:01 PM
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02-17-2009, 06:12 PM
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Conflicting news on Saturn.
This story has Saturn dealers spinning off into a separate company:
http://online.wsj.com/article/SB1234...googlenews_wsj
Meanwhile this (and others) suggest Saturn is dead:
http://news.moneycentral.msn.com/pro...216&id=9613453
http://jalopnik.com/5155377/gm-to-of...ost-of-pontiac
Thoughts?
This story has Saturn dealers spinning off into a separate company:
http://online.wsj.com/article/SB1234...googlenews_wsj
Meanwhile this (and others) suggest Saturn is dead:
http://news.moneycentral.msn.com/pro...216&id=9613453
http://jalopnik.com/5155377/gm-to-of...ost-of-pontiac
Thoughts?
02-17-2009, 06:20 PM
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I say better to ask for everything it takes to finish the job than to keep cominig back and asking for $4-5 billion at a time. The situation is ugly and getting worse but lay it all on the table and see how much Congress is interested in completing the task and getting the loan back.
Nobody believed that $18B was going to fix everything at GM not with them buring $1B+ away every month at these sales levels.
At the current loan price they can still claim the impact on the economy is much worse and more expensive than the loan value. But their margin is getting thin.
Nobody believed that $18B was going to fix everything at GM not with them buring $1B+ away every month at these sales levels.
At the current loan price they can still claim the impact on the economy is much worse and more expensive than the loan value. But their margin is getting thin.
02-17-2009, 06:41 PM
#8
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Conflicting news on Saturn.
This story has Saturn dealers spinning off into a separate company:
http://online.wsj.com/article/SB1234...googlenews_wsj
Meanwhile this (and others) suggest Saturn is dead:
http://news.moneycentral.msn.com/pro...216&id=9613453
http://jalopnik.com/5155377/gm-to-of...ost-of-pontiac
Thoughts?
This story has Saturn dealers spinning off into a separate company:
http://online.wsj.com/article/SB1234...googlenews_wsj
Meanwhile this (and others) suggest Saturn is dead:
http://news.moneycentral.msn.com/pro...216&id=9613453
http://jalopnik.com/5155377/gm-to-of...ost-of-pontiac
Thoughts?
02-17-2009, 07:00 PM
#10
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Location: Pewee Valley, KY
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It sounds like the Saturn dealers should go talking to Renault and/or Fiat. Aren't both interested in coming back to the States?
02-17-2009, 07:02 PM
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02-17-2009, 07:06 PM
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02-17-2009, 08:56 PM
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I am tired of this. So they want the government to pay them to get even smaller and lay more people off?
The whole reason GM is here was because they gutted their brands. Remember 3 years ago...it was "We will just replace 5 so so models with 3 really good ones, and sell the same amount of cars!" Guess what it failed...and took GM's second best selling car line with it (Pontiac).
Saturn worked when it was marketed as a seperate company..it fails because people now associate it with GM...and in most peoples eyes GM=Fail. Saturn should be spun into it's own company with the stock given to the GM shareholders who are about to be hosed.
What's the worst is that this means that if GM sticks around we are gonna be stuck with boring appliances for the next 10-15 years.
The whole reason GM is here was because they gutted their brands. Remember 3 years ago...it was "We will just replace 5 so so models with 3 really good ones, and sell the same amount of cars!" Guess what it failed...and took GM's second best selling car line with it (Pontiac).
Saturn worked when it was marketed as a seperate company..it fails because people now associate it with GM...and in most peoples eyes GM=Fail. Saturn should be spun into it's own company with the stock given to the GM shareholders who are about to be hosed.
What's the worst is that this means that if GM sticks around we are gonna be stuck with boring appliances for the next 10-15 years.