It comes as little surprise that General Motors has canceled its contracts with the NHRA teams it had previously been boosting with money, support vehicles and free parts. "I knew it was coming, I was forewarned," Ken Black, NHRA Full Throttle Pro Stock team owner told CompetitionPlus.com. "That's why they filed bankruptcy ... to get rid of all of this stuff."

According to Black, the writing was on the wall when Fred Simmonds, Drag Racing Marketing Manager for General Motors up until last October, left the automaker ahead of its government-backed bankruptcy filing earlier this year. As far as the teams are concerned, the lack of GM sponsorship means they'll either need to purchase their own support vehicles and parts or find a new manufacturer for support, though those options are also limited.

With "Chrysler in the same boat as GM," as Black puts it, the only likely partner is Ford, though its remotely possible Toyota may be interested. Sounds good to us – the new 2010 Prius is already the perfect wedge shape for drag racing.

[Source: Competition Plus | Photo by Rusty Jarrett/Getty]

After a scant six weeks in bankruptcy court, General Motors is on its way out of Chapter 11. U.S. Bankruptcy Court Judge Robert Gerber approved the sale of GM's good assets to a new company lead by the U.S. and Canadian governments and the UAW healthcare fund, but gave vested parties four days to file an objection.

After two requests for a stay were denied on Tuesday and an accident victim's request was denied at the last minute on Thursday, all signs point to an exit from bankruptcy within a few days, and this morning, word from the Detroit News is that the company officially emerged from Chapter 11 at 6:30am this morning. CEO Fritz Henderson has called a 9 am press conference this morning, and one can only assume that he will declare the birth of "New GM."

GM has received $50 billion from the US government to keep the mega-corporation out of liquidation. For its troubles, Uncle Sam will receive a 60% stake in the new company. Canada, which pitched in $9 billion, will be 11.7% owners, while the UAW will receive 17.6%. Old GM will receive 10% of the new company to help creditors recoup some money. The "New GM" will be smaller in almost every way, with four fewer brands, a smaller presence in Europe, fewer employees, and a markedly more attractive balance sheet.

[Sources: The Detroit News; AFP | Image Source: Bill Pugliano/Getty]

*UPDATE: Official press verbiage added after the jump, click here to watch GM's live 9am press conference.

Yesterday, not long after we posted a story about a gay-centered General Motors marketing video for Chevrolet's new Camaro, the video was mysteriously pulled from YouTube. As it turns out, GM itself has copped to the disappearing act, as it reportedly ordered the popular video hosting site to yank the footage.

According to a USA Today article, GM spokesman Dave Barthmuss felt that the video – which featured a pair of so-called 'go go boys in Camaro-branded underwear washing a new 2010 model – was "not appropriate and not in good taste." The footage was filmed as part of a Transformers 2: Revenge of the Fallen gay day promotion at a Hollywood movie theater.

Despite pulling the video, GM has reportedly launched a more concerted campaign to broaden the scope of its marketing efforts as it applies to the Camaro, with more overt efforts to target gays, bisexuals and the transgendered. It is not immediately clear what (if any) effect pulling the footage will have on the rest of the automaker's p.r. efforts.

[Sources: USA Today; Mlive]

Episode #135 of the Autoblog Podcast is here. Chris, Sam and Dan took time out to chat about GM's fast-moving reorganization, Smart's dubious $99/month deal, raising gas taxes as a better way to increase fuel economy, and Shunk's new car dilemma. To wrap up, we hit a question, and that's it – a nice, tidy 65-minute affair. Tell us how we're doing by filling out our survey, if you haven't already, and we'll see you next week. In the meantime, you can drop us a note at Podcast at Autoblog dot com. Thanks for listening!

General Motors has cleared a major hurdle to get out of bankruptcy quickly, as U.S. Judge Robert Gerbe has finally given the automaker the go-ahead to sell off its best assets to a newly formed company that analysts have been calling "New GM". The new GM will include assets like the Chevrolet and Cadillac brands, plus plants and production facilities that haven't scheduled for closure. The old GM will consist of soon-to-be shuttered plants, the Pontiac brand and mountains of debt and liabilities.

Judge Gerbe gave the go-ahead on Sunday because he felt not doing so would cause "immediate and irreparable harm" to the 100-year-old company. The Detroit Free Press is reporting that the Treasury Department was threatening to cut off funding to GM if the sale didn't go through by July 10. Hundreds of GM's debtors requested that the sale be rejected, but Judge Gerbe's ruling likely means that the affected parties won't see much, if any money owed.

GM entered Chapter 11 bankruptcy protection on June 1, and if New GM actually does emerge from bankruptcy this week, the fourth largest bankruptcy in this country's history will have been completed inside of just six weeks. The timeframe is very similar to that of the much smaller Chrysler, which needed only 42 days to exit bankruptcy.

[Source: Detroit Free Press, Photo by Hiroko Masuike/Getty]

Even though Beijing Automotive (BAIC) tendered a non-binding offer for Opel, the company is said to have no chance of actually acquiring the brand. General Motors is still in talks with Magna and its partners, GAZ and Sberbank, and according to Sberbank CEO German Graf, "The choice has been made and the question now is of how to structure the deal."

Observers also feel that the GM-Magna agreement is merely waiting on some dotted I's, crossed T's and that the deal won't fall apart unless Magna blows it up or walks away. That hasn't stopped GM and the German government from creating the appearance of courting other bidders for Opel and Vauxhall, including BAIC and Belgium's RHJ.

BAIC appears to be serious, even if everyone assumes that GM's just using it as a decoy. Magna wants to get the paperwork inked by July 15, and that's around the same time that BAIC wants to make a binding offer for Opel's purchase. It's working with Deutsche Bank and PriceWaterhouse Coopers on its proposal, and we can only assume BAIC will be ready with a bag full of cash in the unlikely event Magna exits stage left.

[Source: Auto News, sub req'd]

Given the state of the market, the Ford Motor Company is on a bit of a roll right now. The Blue Oval posted an 11% decline in volume for June versus the same month in 2008; a far better number than nearly every competitor from Japan or Detroit. Ford also flat-out dominated the market in the Great White North, as the Dearborn, MI-based automaker ranked number one in sales volume for the first time in 50 years.

Ford outpaced perennial market leader General Motors by a substantial (for Canada) 5,000 units. Ford posted 27,408 sales for the month; a 24.6% increase over June 2008. Toyota and Honda also were in the rear view mirror, as the Japanese stalwarts managed sales declines of 17%. Chrysler was a distant fifth place, as bankruptcy and an outdated product lineup conspired to sink sales by 58% verses June 2008. Overall sales in Canada were down 13% on the month.

Ford's increase in sales was due in part to a surprising 41% increase in CUV and SUV sales. The F-150 also posted a healthy 59% increase, with Ford's Edge was up 23%.

[Source: London Free Press]

As of 10 am this morning, General Motors stock was trading at about 80 cents. If you think that is a bit of a bargain, you may be a bit of crazy. With The General apparently almost finished with bankruptcy, there is near certainty that the company's common stock will mean exactly nothing in a manner of days or weeks.

GM is warning investors that the stock grab is a bad idea, releasing a statement reiterating its "strong belief that there will be no value for the common stockholders in the bankruptcy liquidation process, even under the most optimistic of scenarios."

With GM common stock scheduled for oblivion in the near future, it seems likely that any money spent on stock in the struggling company would be more useful as kindling for a bonfire. Since the new GM will be owned by the federal government, unions and shareholders, the stock-buying public likely won't have an opportunity to buy in for months – or more likely, years.

[Source: Detroit News | Image: Scripophily Trader]

Diesel's near-term prospects in America took a huge hit with the revelation that nine diesel-powered 2010 models are on hold. Ford, General Motors, Chrysler, Toyota, Honda, and Nissan have put the kibosh on rolling out more oil burners due to cost and perception issues.

Toyota's obviously on a hybrid run and doesn't want to expel the effort or expense of investing in diesel for the American market -- and having to overcome America's dirty diesel perceptions. The others, as mass market manufacturers, simply need more justification for the cost and complexity of oilburners in order to make the case for consumers to spend more.

Additionally, diesel's benefits are weighted differently according to EPA or CAFE standards. The EPA mileage numbers present diesels well, but CAFE's differing fuel mileage equation makes gas-hybrids look better than diesels, and CAFE is something all automakers are looking at. However, you'll notice that German brands aren't mentioned -- their price premium and European diesel volumes make a worthwhile case for diesels, so those diesel Jetta Sportwagons won't be going away any time soon.

[Source: Automotive News - Sub. Req.]

According to the well-connected boys over at Camaro5, General Motors will indeed produce a Chevrolet Camaro Z28 after all... and they've even scored some details on the hi-po offering.

According to Camaro5 user Hiney1 who attended a special question and answer session at the Carlisle Nationals this weekend (seen above), a Z28 will arrive after the Camaro Convertible, itself expected in the spring of 2011.

The Z28 will reportedly make use of some sort of high-output LS-based engine (C'mon, guys! You're killing us!), and it will incorporate a hood similar to that of the Bumblebee edition, along with a unique grille, the usual spate of graphics and emblems, and perhaps even a tweaked rear-end. Thanks for the tip, Jay!

[Source: Camaro5]