General Motors is just about ready to start offering in-house financing once again. Its acquisition of AmeriCredit is complete, pending approval by AmeriCredit's shareholders. The merger is officially effective as of October 1st, 2010 and is an all-cash transaction valued at $3.5 billion.
One of the regular questions relating to the Chevrolet Volt is: what happens to the fuel in the tank if it's not used for extended periods of time and the car is only run on plug power? General Motors officials have said that the engine might periodically run just for the purpose of using up some gas as well as circulating the oil and making sure that all the systems are working properly.
The government of the United States may be actively avoiding any direct involvement in the day-to-day management of General Motors, but that doesn't mean it won't have a say when the time comes for the automaker to go public again. According to The Detroit News, the U.S. Department of the Treasury has hired investment bank Lazard Frères & Co. to provide it with advice on the initial public offering process.
The short version: old General Motors is worthless, new General Motors is... well, less worthless. The Securities and Exchange Commission has already warned us that Motors Liquidation Company, the new name for the leftover scraps of GM, is not expected to return any value to stockholders. Despite this, the stock still has a fractional dollar value assigned to it, and some investors are still trading it. Yesterday, shares dipped 52%, closing at 55 cents.
Earlier this month, General Motors CEO Fritz Henderson said in reference to the possibility that the automaker may move its headquarters from Detroit: "We're looking at, frankly, everything within our business, but it's not like we have that queued up at the top of our list. We don't have any such plan... but if we did it would be motivated by business rationale, which would be cost, efficiency and speed."
Rock, meet hard place. With General Motors handed a directive from the White House to be ultra-aggressive in its restructuring in order to secure more government loans, the automaker is making cuts everywhere and dealers are far from immune. As reported previously, GM's plan to shrink its retailers from nearly 6,300 to 3,700 by the end of 2010 is going to be as painful as a Civil War amputation. Initially, General Motors will deny franchise renewal to dealerships that don't measure up on metrics
At the Plug-In 2008 conference in San Jose CA this week General Motors will be on hand to announce a partnership with the Electric Power Research Institute (EPRI) to promote plug-in vehicles. GM VP for Global Program Management Jon Laukner will be delivering a keynote address at the Plug-in conference on Monday, and the EPRI partnership is expected to be part of the discussion. At this point GM doesn't have any production plug-in vehicles, but will debute two different models in the next two yea