Latest on GM unheavals...
 

"SteveB" wrote in message
...

"HK" wrote in message
m...

GM, Chrysler Must Revamp Plans to Get More U.S. Aid (Update2)


By John Hughes

March 30 (Bloomberg) -- General Motors Corp. and Chrysler LLC must
overhaul their recovery plans with deeper concessions to justify further
taxpayer aid, and bankruptcy may ultimately be their best chance, an
Obama administration official said.

The administration demanded the resignation of GM Chief Executive Officer
Rick Wagoner, and the company said he will be replaced by Fritz
Henderson, its president and chief operating officer. GM will also
replace most of its board and must increase reliance on producing more
fuel-efficient vehicles, under findings to be announced today at the
White House by President Barack Obama.

Chrysler will get $6 billion in aid only if it completes a partnership
with Italian carmaker Fiat SpA in 30 days, said the administration
official, who spoke to reporters and declined to be identified before
Obama presents the decision. Unless it combines with Fiat, Chrysler won't
get any more U.S. help because it isn't viable as a stand-alone company,
the administration found.

Auburn Hills, Michigan-based Chrysler values its proposed technology
sharing with Turin-based Fiat at $8 billion to $10 billion. Assuming the
accord between the two companies is approved, Fiat will produce its first
model with Chrysler in 2011, Fiat CEO Sergio Marchionne has said.

Detroit-based GM sought as much as $16.6 billion in additional aid after
receiving $13.4 billion since December. Chrysler sought $5 billion after
receiving $4 billion. Both had to show progress by the end of this month
in matters such as GM's need to reduce unsecured debt by two-thirds.

Shares Plunge

General Motors fell as much as 57 cents, or 21 percent, to 2.15 euros and
was down 15 percent as of 10:18 a.m. in Frankfurt. The stock has plunged
22.6 percent this year in Germany. GM tumbled 87 percent in New York
Stock Exchange composite trading last year, the most among the 30 stocks
in the Dow Jones Industrial Average.

Neither company completed the tasks, the administration official said.
The aid plans submitted to the government Feb. 17 don't warrant
additional assistance, the administration concluded. GM's plan to cut
unsecured debt by two-thirds wasn't sufficient, and Chrysler's debt was
far beyond what the company could sustain, the official said.

GM's plan wouldn't lead to success even in an improved economy, the
administration found. The new strategy sought by the administration would
focus on sustainable profit and significant changes in brands, workforce,
nameplates and the retail network. Board member Kent Kresa will serve as
GM's interim chairman.

Kresa is a former chairman and chief executive of Northrop Grumman Corp.,
the third-largest U.S. defense company. He is also chairman of Avery
Dennison Corp., which develops self adhesives for consumer products.

Kresa, Henderson Comment

It's "not yet known" who the board will nominate to constitute the new
majority of directors at the next annual meeting, Kresa said in a
statement posted on GM's Web site. Wagoner said in a separate statement
that Henderson is "an excellent choice" to replace him and "the ideal
person" to lead the company through restructuring.

GM, which will continue to receive an undisclosed amount of government
aid as it develops a new plan over 60 days, will get greater guidance
from the Treasury and outside advisers in the process than previously,
according to the administration. The government was silent on how much
more aid GM may receive if it devises a successful plan.

Chrysler's plan included assumptions that were unrealistic or overly
optimistic, according to the administration. Chrysler is being required
to get greater concessions from the United Auto Workers than its plan
requires and must get rid of the vast majority of outstanding secured
debt.

The government will support Chrysler for 30 days as it attempts to make
final its agreement with Fiat. Chrysler has proposed giving Fiat a 35
percent stake in the company.

Chrysler Corp., as it was known then, took out $1.2 billion in
government-backed loans in 1980 and repaid the money in 1983.

Quick Bankruptcy

Both companies' best chance at success may include a quick and surgical
bankruptcy, according to the administration. Unlike a liquidation or
conventional bankruptcy, a structured process would make it easier for
the companies to clear away liabilities.

The bankruptcy process could be as short as 30 days, and the government
would provide so-called debtor-in-possession financing for the companies
if needed, according to the administration. Still, bankruptcy isn't the
administration's first choice, the official said.

To help encourage car sales, the administration will back warranties so
consumers who buy cars during the restructuring have confidence the
guarantees will be honored even if the companies go out of business,
according to the administration.

Edward Montgomery, an economist and former Labor Department deputy
secretary, will be appointed to a new post of Auto Recovery Director to
help communities hurt by job losses in the industry.

Sorry, but the upheaval will happen when the people get tired of the White
House firing private citizens. If it ever happens, that is.

The White House, particularly Big Lips should have nothing to do with
this. The company should float or sink on its own. Just like any other
business in the USA.

Steve

Agreed, government is a major part of the problem, this is like the wolf
crying wolf and there are two wolves destroying middle class America.
Actually three wolves:

- government waste in size and cost
- bank gouging and costs
- corporate execitve and board corruption

The three culprets of this depression, and no one has yet to finger
government. But government is at least as guilty in lining their rich
buddies pockets.

We need a revolution. Say get rid of the senate, in this day and age let
the people vote directly. It is much harder to corrupt 330M normal people
than to corrupt just a few hundred senators and congress people. It isn't
like a mule has to go from California to DC in 4 weeks like 250 years ago.

We need democracy to go right to the people, none of this corruption for 3
years and repent just before an election crap.

Latest on GM unheavals...
 

On Mon, 30 Mar 2009 23:02:08 -0400, Wayne.B wrote:

On Mon, 30 Mar 2009 18:04:12 -0400, wrote:

Dump Buick, Olds, Pontiac, Gmc. Keep Chevy and Cadillac. That
overstuffed Corp needs to get lean, mean, and green in order to survive.
( An admittedly oversimplistic approach)

Buick has been the best of the bunch for quality, something that Detroit
could use a little more of.

It's my understanding that Buick will be kept. It is considered one of
GM's "core" brands, along with Chevrolet, Cadillac, and GMC. Pontiac
will be shrunk to a niche brand, and Saturn, Hummer, and Saab will be
gone.

Latest on GM unheavals...
 

On Mon, 30 Mar 2009 09:45:07 -0400, Eisboch wrote:


I keep repeating myself. Chapter 11 is the way to go. It would allow
renegotiation of *all* contracts including debt, suppliers and union
under the guidance of a federal bankruptcy court to ensure fairness.

It also appears that the White House is finally coming around to the
same conclusion.

Or, something to be considered, Obama just gave GM a pretty good
bargaining chip. If any of the co-parties were holding out for a better
deal with government money flowing, they just got a wake-up call. Deal
with GM now, in earnest, or deal with a bankruptcy Judge for X on the
dollar.

Latest on GM unheavals...
 

On Mon, 30 Mar 2009 21:45:49 -0600, Canuck57 wrote:


We need a revolution. Say get rid of the senate, in this day and age
let the people vote directly. It is much harder to corrupt 330M normal
people than to corrupt just a few hundred senators and congress people.
It isn't like a mule has to go from California to DC in 4 weeks like 250
years ago.

We need democracy to go right to the people, none of this corruption for
3 years and repent just before an election crap.

Yeah, mob rule, that's the ticket. Our forefathers founded a Republic,
and IMO correctly so. There's an easier way to rid ourselves of
corruption, vote the bums out. I'd also suggest campaign finance
reform. If we eliminate the incestuous relationship between campaign
finance and corporate welfare, we can demand that our politicians do our
work, not spend their time looking for $$ to get them reelected.

Latest on GM unheavals...
 

thunder wrote:
On Mon, 30 Mar 2009 21:45:49 -0600, Canuck57 wrote:


We need a revolution. Say get rid of the senate, in this day and age
let the people vote directly. It is much harder to corrupt 330M normal
people than to corrupt just a few hundred senators and congress people.
It isn't like a mule has to go from California to DC in 4 weeks like 250
years ago.

We need democracy to go right to the people, none of this corruption for
3 years and repent just before an election crap.

Yeah, mob rule, that's the ticket. Our forefathers founded a Republic,
and IMO correctly so. There's an easier way to rid ourselves of
corruption, vote the bums out. I'd also suggest campaign finance
reform. If we eliminate the incestuous relationship between campaign
finance and corporate welfare, we can demand that our politicians do our
work, not spend their time looking for $$ to get them reelected.


Conservatives like mob rule, because they think with the help of
riler-uppers like Limbaugh, Hannity, Beck, et al, they can control the
mob and shape what passes for thinking.

--
Palin & Bachmann in 2012 -
All Stupidity All the Time

Latest on GM unheavals...
 

thunder wrote:
On Mon, 30 Mar 2009 23:02:08 -0400, Wayne.B wrote:

On Mon, 30 Mar 2009 18:04:12 -0400, wrote:

Dump Buick, Olds, Pontiac, Gmc. Keep Chevy and Cadillac. That
overstuffed Corp needs to get lean, mean, and green in order to survive.
( An admittedly oversimplistic approach)
Buick has been the best of the bunch for quality, something that Detroit
could use a little more of.

It's my understanding that Buick will be kept. It is considered one of
GM's "core" brands, along with Chevrolet, Cadillac, and GMC. Pontiac
will be shrunk to a niche brand, and Saturn, Hummer, and Saab will be
gone.


When Saturn was first announced, I had high hopes for the idea. I've not
followed the brand, but it seems to have fallen flat. I wonder why.

No loss on Hummer, and Saab has become just another car brand, instead
of a low volume manufacturer that appealed to iconoclasts.





--
Palin & Bachmann in 2012 -
All Stupidity All the Time

Latest on GM unheavals...
 

"HK" wrote in message
m...
Don White wrote:
"John H" wrote in message
...
FWIW, I wouldn't join the union, and advised new teachers not to do
so. The 'legal protection' which was a big union selling point was
available through home owners insurance as a rider.

The local steward wasn't too happy with me,
--

John H


Neither were the students from what I hear!



It figures that Herring was a freeloading scumbag, sucking down benefits
others worked for, but unwilling to pay his share of the costs.


Typical , working for the army all his life...I doubt he even paid for his
own ass wipe.

Latest on GM unheavals...
 

thunder wrote:
On Mon, 30 Mar 2009 23:02:08 -0400, Wayne.B wrote:

On Mon, 30 Mar 2009 18:04:12 -0400, wrote:

Dump Buick, Olds, Pontiac, Gmc. Keep Chevy and Cadillac. That
overstuffed Corp needs to get lean, mean, and green in order to survive.
( An admittedly oversimplistic approach)
Buick has been the best of the bunch for quality, something that Detroit
could use a little more of.

It's my understanding that Buick will be kept. It is considered one of
GM's "core" brands, along with Chevrolet, Cadillac, and GMC. Pontiac
will be shrunk to a niche brand, and Saturn, Hummer, and Saab will be
gone.

GMC = Trucks
Chevy = Low end vehicles
Buick = Mid-level vehicles
Cadilac = High end vehicles.

Everything else should be thrown in the crapper.

Latest on GM unheavals...
 

thunder wrote:
On Mon, 30 Mar 2009 21:45:49 -0600, Canuck57 wrote:


We need a revolution. Say get rid of the senate, in this day and age
let the people vote directly. It is much harder to corrupt 330M normal
people than to corrupt just a few hundred senators and congress people.
It isn't like a mule has to go from California to DC in 4 weeks like 250
years ago.

We need democracy to go right to the people, none of this corruption for
3 years and repent just before an election crap.

Yeah, mob rule, that's the ticket. Our forefathers founded a Republic,
and IMO correctly so. There's an easier way to rid ourselves of
corruption, vote the bums out. I'd also suggest campaign finance
reform. If we eliminate the incestuous relationship between campaign
finance and corporate welfare, we can demand that our politicians do our
work, not spend their time looking for $$ to get them reelected.

Each entity registered with the IRS may make a maximum donation of $2500
per year to a political organization that is registered with the IRS.
All donations are funneled through the IRS. No bundling of checks at
work and passing them from the big boss to the Congressman or Senator.
Even the influence field.

Latest on GM unheavals...
 

On Mar 31, 8:14*am, "Don White" wrote:
"HK" wrote in message

m...



Don White wrote:
"John H" wrote in message
. ..
FWIW, I wouldn't join the union, and advised new teachers not to do
so. The 'legal protection' which was a big union selling point was
available through home owners insurance as a rider.

The local steward wasn't too happy with me,
--

John H

Neither were the students from what I hear!

It figures that Herring was a freeloading scumbag, sucking down benefits
others worked for, but unwilling to pay his share of the costs.

Typical , working for the army all his life...I doubt he even paid for his
own ass wipe.- Hide quoted text -

- Show quoted text -

You pay to have your ass wiped? Now THAT'S an "unheaval"