Autoblog

German lawmakers said to oppose Opel loans, argue GM is healthy enough on its own

Jonathon Ramsey — Thu, 20 May 2010 18:20:00 EST

Filed under: Europe, Government/Legal, Plants/Manufacturing, GM, Earnings/Financials, Opel

General Motors isn't finished with Opel, but the German government would apparently like to be finished with General Motors. Michael Fuchs, a senior member in Angela Merkel's ruling CDU party, has reportedly declared "The discussion ... about financial aid for Opel must be ended once and for all."

This is the same Fuchs that a year ago didn't want to consider giving any money to GM before The General tried to sell Opel because he felt that the money might end up supporting GM's American operations. Now, his reasons against are because of the rise in GM's financial fortunes - trumpeting the paying off of loans (kind of), potential bank acquisitions and recent quarterly profits can have an adverse effect on loans. Germany has also been playing the role of Europe's financial guarantor as of late and is tired of being seen as a euro trough.

Opel CEO Nick Reilly says he's still waiting on word from Germany and a few other governments about aid for Opel. If GM doesn't get the $3 billion it seeks to restructure the company as it, we're guessing it will channel its inner David Copperfield and show a few countries how to make a factory and thousands of jobs disappear. The bell has rung on the next round in the saga.

[Source: The Wall Street Journal]

German lawmakers said to oppose Opel loans, argue GM is healthy enough on its own originally appeared on Autoblog on Thu, 20 May 2010 18:20:00 EST. Please see our terms for use of feeds.

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Chrysler won't suspend NASCAR program, will reduce funding

Jonathon Ramsey — Thu, 18 Dec 2008 19:39:00 EST

Filed under: Motorsports, Chrysler, Dodge, Ford, GM, Toyota

A rubber bullet has been dodged: NASCAR can still count on sponsorship dollars and involvement provided by the Detroit 3. Chrysler has stated that it will reduce the funds that flow from its taps into NASCAR, but won't leave the sport. As far as marketing and advertising goes, the "stock cars" still pay. Mike Acavitti, who runs the motorsports program at Dodge, said "We have to get our expenses in line with our revenues," but also said that "We're not going to pull out. We are going to throttle back. NASCAR is not exempt from anything else that we do to market and promote vehicles."

Chrysler is cutting back 30% on its NASCAR spend, but will still honor its current contracts. Ford has said it's reducing its NASCAR fund by 20%, and GM says that it, too, will be doling out a smaller NASCAR allowance and letting track sponsorships lapse to go along with its getting out of the Yankees business. Even Toyota plans to spend less on NASCAR. No matter what, though, NASCAR isn't going anywhere -- after all, even if all of the car companies and all of the other sponsors left, the guys in the overalls could always race, you know... stock cars.

[source: Reuters via Speedzzter]

Chrysler won't suspend NASCAR program, will reduce funding originally appeared on Autoblog on Thu, 18 Dec 2008 19:39:00 EST. Please see our terms for use of feeds.

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Would GM shed Saab, Saturn and Pontiac to secure gov't aid?

Jonathon Ramsey — Fri, 28 Nov 2008 10:15:00 EST

Filed under: Government/Legal, GM, Pontiac, Saab, Saturn

When ants need to cross some dangerous span in order to get to the thing they want, certain ants in the colony will sacrifice themselves to build a bridge that other ants can cross. That's how you get the honey. In GM's case, the honey is a $12 billion government lifeline. The dangerous span is, well, extinction. And the sacrificial ants in this case could be Pontiac, Saturn, and Saab.

Before the government would start writing checks (to the automakers, at least), Congress told GM (and Ford and Chrysler) to come back with a plan that gave some indication of long-term viability and a return to financial health. Supposedly, as part of such a plan, GM has looked at "shedding" the three brands in question, which would eliminate the massive costs associated with production, marketing and sales. But that would happen after massive payouts, some serious upheaval and tens of thousands of job losses. It would leave GM with Chevrolet, GMC, Buick, and Cadillac... which, since it's in ruthless survival mode, makes us wonder what kind of crush GM has on GMC. GM will release a 10-to-12 page plan to the public making its case and Congress has scheduled a hearing on the matter for December 5th.

In the article, the word "shedding" is used to describe what GM would do with Saturn, Pontiac, and Saab. But we don't know where and how they would shed them. Saturn is a misfit child (not really Saturn's fault), Pontiac is unsure of itself (except when it comes to the G8 triplets and the Solstice), and Saab sold about 33,000 cars in America last year and 125,000 around the world. With the state of lending and credit markets, it would probably be easier to buy a pterodactyl than get a loan to buy one of GM's brands. HUMMER's already been on the block so long it's about to get arrested for loitering. So is "shedding" a euphemism for "bye-bye..."? We'll know soon enough. Thanks to all who tipped in.

[Source: Bloomberg]

Would GM shed Saab, Saturn and Pontiac to secure gov't aid? originally appeared on Autoblog on Fri, 28 Nov 2008 10:15:00 EST. Please see our terms for use of feeds.

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Detroit Three pass credit check, $25 billion in gov't loans approved

Chris Tutor — Wed, 01 Oct 2008 12:31:00 EST

Filed under: Government/Legal, Green, Chrysler, Ford, GM, Earnings/Financials

While the U.S. banking industry is still waiting for Congress to give it a $700 billion hand, President Bush signed into law last night the spending bill that gives U.S. automakers $25 billion in loans to get their collective act together.

But unlike when a bank deems you worthy of their money, the Big Three won't be getting any cash for some time. Despite the companys' CEOs saying repeatedly how they were desperate for help and how automotive life as they know it would end if they didn't get financial help, there's at least a 60-day delay until they can cash this check.

Written into the bill is a clause requiring the Energy Department to come up with regulations that will determine who gets what and when. The agency has 60 days to do this, but could take much longer, as much as 18 months according to a department spokesperson.

Desperate or not, looks like GM, Ford and Chrysler are now at the mercy of the Energy Department.

[Source: Wall Street Journal]

Detroit Three pass credit check, $25 billion in gov't loans approved originally appeared on Autoblog on Wed, 01 Oct 2008 12:31:00 EST. Please see our terms for use of feeds.

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