Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/www.autoblog.com/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2013 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Treasury to begin selling off more GM stock]]>http://www.autoblog.com/2013/05/09/treasury-to-begin-selling-off-more-gm-stock/http://www.autoblog.com/2013/05/09/treasury-to-begin-selling-off-more-gm-stock/http://www.autoblog.com/2013/05/09/treasury-to-begin-selling-off-more-gm-stock/#commentsFiled under: , ,

GM Rencen with American flags

Reuters reports that earlier this week the US Treasury announced the sale of another tranche of General Motors stock. It didn't say how many of the 241.7 million shares it holds in the automaker it would sell, nor exactly when - the discretion apparently intended to keep hedge funds from profiting from the situation. The government's ownership is broken down into common and diluted shares, representing close to 18 percent of the company at the moment, down from the 60.8 percent it owned in 2009 after GM's bankruptcy. This follows a share sale in February, when Treasury sold 17.2 million shares for $489 million.

Although GM's share price is nowhere near the $70-per-share or so that Treasury would need to break even, the department has reiterated that the point of the Troubled Asset Relief Program (TARP) wasn't to make money but to save jobs. GM's share price has, however, almost edged back to its November 2012 IPO price of $33. At the time of writing, shares were trading for $32.10. Based on the timetable Treasury gave in December, it should be fully divested of its GM ownership within a year from now.

Treasury to begin selling off more GM stock originally appeared on Autoblog on Thu, 09 May 2013 09:29:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bailoutfinancial crisisgeneral motorsgmgm bankruptcygm stocktarptreasurytroubled asset relief programThu, 09 May 2013 09:29:00 EST http://www.autoblog.com/feed/20561573/article-comments.xml http://www.autoblog.com/feed/2013/05/09/treasury-to-begin-selling-off-more-gm-stock/20561573/article-detail.xml 20561573 http://www.blogcdn.com/www.autoblog.com/media/2013/01/gyi0061332043_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2013/01/gyi0061332043.jpg <![CDATA[Treasury sold off $489M of GM stock in February]]>http://www.autoblog.com/2013/03/12/treasury-sold-off-489m-of-gm-stock-in-february/http://www.autoblog.com/2013/03/12/treasury-sold-off-489m-of-gm-stock-in-february/http://www.autoblog.com/2013/03/12/treasury-sold-off-489m-of-gm-stock-in-february/#commentsFiled under: , ,

General Motors' Renaissance Center headquarters with trees

The Detroit News reports that the US Treasury sold off around 17.2 million shares of General Motors stock in February worth $489 million. The move is part of a plan to rid the government of GM stock by March, 2014. All told, the government has regained $29.8 billion of the $49.5 billion it took to bail out GM in 2008 and 2009. The feds sold off nearly half the country's stake in the automaker when the company went public in 2010, and now taxpayers own around 19 percent of the manufacturer. Moving forward, the Treasury will disclose how many shares it has sold each financial quarter.

Earlier this year, the government named Citigroup Inc. and JPMorgan Chase & Co. to manage the sale of GM stock. The duo will receive around $3 million for handling the sale, though the government has opted to keep its trading plan under wraps to keep hedge funds from taking advantage of the situation. The plan does place limits on exactly how much stock can be sold at any given time, however. Six smaller brokerages will handle the sale of the Treasury's GM common stock.

Treasury sold off $489M of GM stock in February originally appeared on Autoblog on Tue, 12 Mar 2013 16:31:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bailoutcitigroupgeneral motorsgmgm bailoutgm stockjp morganjpmorgan chasestocktarptreasuryus treasuryTue, 12 Mar 2013 16:31:00 EST http://www.autoblog.com/feed/20498903/article-comments.xml http://www.autoblog.com/feed/2013/03/12/treasury-sold-off-489m-of-gm-stock-in-february/20498903/article-detail.xml 20498903 http://www.blogcdn.com/www.autoblog.com/media/2013/03/general-motors-renaissance-center-hq-with-trees_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2013/03/general-motors-renaissance-center-hq-with-trees.jpg <![CDATA[Bob Lutz pokes fun at Ed Whitacre's GM memoir]]>http://www.autoblog.com/2013/03/04/bob-lutz-pokes-fun-at-ed-whitacres-gm-memoir/http://www.autoblog.com/2013/03/04/bob-lutz-pokes-fun-at-ed-whitacres-gm-memoir/http://www.autoblog.com/2013/03/04/bob-lutz-pokes-fun-at-ed-whitacres-gm-memoir/#commentsFiled under: , ,



Any time Bob Lutz gets hired on for a gig putting pen to paper, we're for it. Case in hilarious point is this book review Lutz has penned for the readers of Forbes, wherein Maximum Bob gives good quote after good quote about Ed Whitacre's American Turnaround. Whitacre's book, you'll remember, focuses on the former General Motors CEO's time dealing with the aftermath of the automaker's bankruptcy.

Lutz doesn't take long to call out as fallacy the notion that Whitacre had a lot to do with the turnaround. From the title of his editorial (How Ed Whitacre Saved GM In Just 10 Months, And Other Fables) onward, Lutz jabs at the notion of Whitacre' effectiveness. In one passage he characterizes the CEO's tenure as being filled with, "... wandering around uncovering employees who were insufficiently entrepreneurial, cautious or didn't have enough 'can-do' spirit."

But, if there's a paragraph that succinctly summarizes Lutz's 'respect' for Whitacre and his time as CEO, it's got to be this gem:

Ed's most notable contribution to design was a comment I recall at a Cadillac styling session. Professing to know nothing about cars (true), he nevertheless opined that Cadillacs had the look of "old-fashioned Choo-choo trains".

We digested that opaque bit of input and elected to stay with what we had.


Good stuff, Bob, we miss you man. Click through here to read the rest of Lutz's short, funny summary.

Bob Lutz pokes fun at Ed Whitacre's GM memoir originally appeared on Autoblog on Mon, 04 Mar 2013 08:43:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>american turnaroundbailoutbob lutzed whitacregeneral motorsgmMon, 04 Mar 2013 08:43:00 EST http://www.autoblog.com/feed/20485254/article-comments.xml http://www.autoblog.com/feed/2013/03/04/bob-lutz-pokes-fun-at-ed-whitacres-gm-memoir/20485254/article-detail.xml 20485254 http://www.blogcdn.com/www.autoblog.com/media/2013/03/bob-lutz-ed-whitacre-628_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2013/03/bob-lutz-ed-whitacre-628.jpg <![CDATA[Treasury says auto bailout tally drops to $20.3 billion]]>http://www.autoblog.com/2013/02/12/treasury-says-auto-bailout-tally-drops-to-20-3-billion/http://www.autoblog.com/2013/02/12/treasury-says-auto-bailout-tally-drops-to-20-3-billion/http://www.autoblog.com/2013/02/12/treasury-says-auto-bailout-tally-drops-to-20-3-billion/#commentsFiled under: , , ,

US Treasury Building with traffic

In December, the US Treasury announced that it was going to sell all of its shares in General Motors within 12 to 15 months. The first tranche of the 500-million total shares was purchased by GM, which took 200 million of them at $27.50 per share. That price represents an eight-percent premium over the market price at the time. The remaining 300 million shares will be sold "through various means in an orderly fashion."

Of the $418 billion disbursed through the Troubled Asset Relief Program (TARP), a report in Automotive News indicates that "about 93 percent" has been paid back, and the latest figures put Treasury's loss from the program overall at $55.58 billion. That's a $4.1 billion improvement on the last figure, when the expected red ink added up to $59.68 billion. The auto industry's portion of that loss is estimated to be $20.3 billion, a 16-percent drop from the earlier estimate of $24.3 billion.

The Treasury now owns 19 percent of GM, but if all goes well, there will be no more cause for anyone to utter "Government Motors" by the end of Q1 next year. A loss of some kind is still expected, however. Although GM's stock price is close to $29 at the time of this writing, that's still $4 below its IPO price and well below the $72 share price necessary for the government to come out even on its GM investment. On second thought, maybe the ribbing will continue.

Treasury says auto bailout tally drops to $20.3 billion originally appeared on Autoblog on Tue, 12 Feb 2013 18:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bailoutchryslerfinancial crisisgeneral motorsgmgm bankruptcytarptreasurytroubled asset relief programTue, 12 Feb 2013 18:00:00 EST http://www.autoblog.com/feed/20458654/article-comments.xml http://www.autoblog.com/feed/2013/02/12/treasury-says-auto-bailout-tally-drops-to-20-3-billion/20458654/article-detail.xml 20458654 http://www.blogcdn.com/www.autoblog.com/media/2013/02/us-treasury-building_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2013/02/us-treasury-building.jpg <![CDATA[Ailing Peugeot writes-down over $5.5B in assets]]>http://www.autoblog.com/2013/02/11/ailing-peugeot-writes-down-over-5-5b-in-assets/http://www.autoblog.com/2013/02/11/ailing-peugeot-writes-down-over-5-5b-in-assets/http://www.autoblog.com/2013/02/11/ailing-peugeot-writes-down-over-5-5b-in-assets/#commentsFiled under: , , , ,

Assembly line at Peugeot plant with worker and sign

As Europe's economy continues to suffer, so do automakers. One of the latest pieces of bad news comes from French carmaker Peugeot which says it will write down its assets by $5.53 billion. The figure represents almost 29-percent of the company's property, valued at $19.4 billion in June. Peugeot says it will also take a second-half charge of $325 million for "onerous contracts." Speaking of onerous, The Detroit News notes the "write-downs are more than double Peugeot's current market value." Yipes.

"This calculus results from cautious assumptions about the European economic environment," Chief Financial Officer Jean-Baptiste de Chatillon is quoted as saying in the article. "We think that this European car market will remain affected by the crisis for a long time."

With European auto sales falling the most in almost 20 years, Peugeot executives see little chance of improvement. Peugeot's sales dropped 13 percent in 2012 and Chatillon said markets could fall another 5 percent this year.

Efforts to right the ship include cutting 17 percent of its French workforce, closing a factory near Paris and selling off assets. The French government has offered $9.3 billion in bond guarantees that await European Union review. In addition, an alliance between General Motors and Peugeot authored last year was meant to save the two companies $2 billion in annual cost savings and sales improvements over 5 years, but it's currently under review.

Ailing Peugeot writes-down over $5.5B in assets originally appeared on Autoblog on Mon, 11 Feb 2013 17:58:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bailouteuropean financial crisisfinancial crisisgeneral motorsjean-baptiste de chatillonpeugeotMon, 11 Feb 2013 17:58:00 EST http://www.autoblog.com/feed/20456383/article-comments.xml http://www.autoblog.com/feed/2013/02/11/ailing-peugeot-writes-down-over-5-5b-in-assets/20456383/article-detail.xml 20456383 http://www.blogcdn.com/www.autoblog.com/media/2013/02/peugeot-plant-line-opt_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2013/02/peugeot-plant-line-opt.jpg <![CDATA[US Treasury signals it will sell off remaining GM shares]]>http://www.autoblog.com/2013/01/18/us-treasury-signals-it-will-sell-off-remaining-gm-shares/http://www.autoblog.com/2013/01/18/us-treasury-signals-it-will-sell-off-remaining-gm-shares/http://www.autoblog.com/2013/01/18/us-treasury-signals-it-will-sell-off-remaining-gm-shares/#commentsFiled under: , ,

GM Renaissance Center with flags

True to its word, the US Treasury Department has taken steps today to rid itself of its remaining 300-million shares of General Motors stock. The Treasury has engaged both JP Morgan and Citigroup Global Markets to handle the sale of the remaining shares, reports the Detroit Free Press.

After divesting itself of 200 million shares last month, the government agency said that it would shed its remaining investment in the automaker throughout 2013. Today, the Treasury still owns some 19 percent of GM.

When the Treasury sold stock back to GM last month, it was at a price of some $27.50 per share, or above what the issue was then trading at in the open market. More recently, GM stock has been seeing closer to $29 per share in the marketplace, offering some hope that the final "cost" to the taxpayer will be less than expected. With that said, the plan remains to sell off in segments, rather than all at once, as a way of disrupting the market as little as possible.

Obama officials are on record has having said that, even if the US Government ultimately loses money on the investment in GM stock - a virtual certainty according to the reports we've read so far - the jobs saved by the automaker bailout make this a net win for the country.

US Treasury signals it will sell off remaining GM shares originally appeared on Autoblog on Fri, 18 Jan 2013 16:28:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bailoutgeneral motorsgmgm stockobamaobama administrationus governmentus treasuryFri, 18 Jan 2013 16:28:00 EST http://www.autoblog.com/feed/20433372/article-comments.xml http://www.autoblog.com/feed/2013/01/18/us-treasury-signals-it-will-sell-off-remaining-gm-shares/20433372/article-detail.xml 20433372 http://www.blogcdn.com/www.autoblog.com/media/2013/01/gyi0061332043_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2013/01/gyi0061332043.jpg <![CDATA[GM to buy 200 million shares back from US Treasury]]>http://www.autoblog.com/2012/12/19/gm-to-buy-200-back-million-shares-from-us-treasury/http://www.autoblog.com/2012/12/19/gm-to-buy-200-back-million-shares-from-us-treasury/http://www.autoblog.com/2012/12/19/gm-to-buy-200-back-million-shares-from-us-treasury/#commentsFiled under: , ,

General Motors Renaissance Center headquarters with American flags

General Motors announced in a press release today that it plans to buy 200 million shares of its own common stock back from the US Department of the Treasury, for $27.50 per share - some $5.5 billion in total. The transaction is expected to close before the end of the year. The move by the Treasury marks a significant first step in a plan to divest itself of GM holding entirely over the course of the next 12 to 15 months, "subject to market conditions."

After this large buyback, the Treasury will still hold some 300 million shares of the automaker's stock - roughly equal to a 19-percent stake. Treasury officials say that sale of the rest of the shares will begin as early as next month, "through various means and in an orderly fashion." The government plans to fully divest itself of GM shares over the next 12 to 15 months.

The $27.50 per share figure represents an eight-percent premium over the current share price, and was agreed upon after negotiations between GM and Treasury officials.

Previously, the government department had seemed reluctant to sell off its post-bailout stake in GM, as to do so at current market prices would mean a large loss of investment for the Treasury. Reports have varied, but it the "break even" point for the government has usually been pegged at roughly $50 per share.

According to the Treasury's own press release, the government invested a total of $49.5 billion in 2008 and 2009 to help secure GM. With this latest buyback added in, the agency has "more than $28.7 billion" of its original investment.

Find press releases from both the Treasury Department and GM, below.

Continue reading GM to buy 200 million shares back from US Treasury

GM to buy 200 million shares back from US Treasury originally appeared on Autoblog on Wed, 19 Dec 2012 09:13:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bailoutbuybackgeneral motorsgmstock buybacktreasuryus department of treasuryus treasuryWed, 19 Dec 2012 09:13:00 EST http://www.autoblog.com/feed/20407140/article-comments.xml http://www.autoblog.com/feed/2012/12/19/gm-to-buy-200-back-million-shares-from-us-treasury/20407140/article-detail.xml 20407140 http://www.blogcdn.com/www.autoblog.com/media/2012/12/gm-rencen-headquarters-with-flags_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2012/12/gm-rencen-headquarters-with-flags.jpg <![CDATA[UAW trust demands Fiat pay $342M for Chrysler shares]]>http://www.autoblog.com/2012/11/13/uaw-trust-demands-fiat-pay-342m-for-chrysler-shares/http://www.autoblog.com/2012/11/13/uaw-trust-demands-fiat-pay-342m-for-chrysler-shares/http://www.autoblog.com/2012/11/13/uaw-trust-demands-fiat-pay-342m-for-chrysler-shares/#commentsFiled under: , , ,

Bob King, UAW president addressing the faithful

Last month, we brought you the latest news in a rather tenuous ordeal between Fiat and the United Auto Workers over the future of the Italian automaker's stake in Chrysler. The union contended that Fiat failed to make an adequate offer for the 3.3-percent stake that was sought. Fiat offered $139.7 million for the shares in July, which the UAW rejected.

We now have word of the union's counter offer of $342 million - more than double what Fiat proposed. According to Reuters, the entity in question is the UAW's healthcare trust, known as Voluntary Employee Beneficiary Association, or VEBA, which currently owns 41.5 percent of the American automaker. Fiat boss Sergio Marchionne has voiced his intent to eventually purchase the trust's full 41.5 percent stake in Chrysler as part of a long-term unification plan.

Following the initial offer from Fiat, the trust refused to sell the 3.3 percent share in July, which resulted in a lawsuit brought by Fiat. As part of this counteroffer, VEBA has brought a counter suit, as well as a statement claiming that the initial Fiat offer was "substantially below market value."

VEBA originated from the 2007 auto bailouts, in which retiree medical benefits were shed off into their own entity to facilitate restructuring of the automakers. Rather than taking cash to fund its restructuring, VEBA took the Chrysler stock, which is the center of this current conundrum. According to a spokesperson for the trust, "sale of the called shares at the price calculated by Fiat would constitute a transaction prohibited by federal law." At this time, neither the automaker, the trust, nor the Securities and Exchange Commission have commented on the proposed transaction.

UAW trust demands Fiat pay $342M for Chrysler shares originally appeared on Autoblog on Tue, 13 Nov 2012 13:01:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bailoutchryslerchrysler stockfiatlawsuitsergio marchionneuawunited auto workersvebaTue, 13 Nov 2012 13:01:00 EST http://www.autoblog.com/feed/20378640/article-comments.xml http://www.autoblog.com/feed/2012/11/13/uaw-trust-demands-fiat-pay-342m-for-chrysler-shares/20378640/article-detail.xml 20378640 http://www.blogcdn.com/www.autoblog.com/media/2012/11/uaw-boss-bob-king_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2012/11/uaw-boss-bob-king.jpg <![CDATA[Bailout and gas prices hot buttons in Presidential debate]]>http://www.autoblog.com/2012/10/17/bailout-and-gas-prices-hot-buttons-in-presidential-debate/http://www.autoblog.com/2012/10/17/bailout-and-gas-prices-hot-buttons-in-presidential-debate/http://www.autoblog.com/2012/10/17/bailout-and-gas-prices-hot-buttons-in-presidential-debate/#commentsFiled under: , , , ,



The pros and cons of the auto bailout and concerns about the rising price of gasoline have been a political football throughout this election season. So, it should come as no surprise that the auto industry was brought up more than a few times in last night's heated presidential debate.

Roughly a minute into the debate, the subject was raised by President Obama when asked a question about unemployment. The President's answer: "I want to build manufacturing jobs in this country again. Now when Gov. Romney said we should let Detroit go bankrupt, I said we're going to bet on American workers and the American auto industry and it's coming back."

Romney countered by pointing out that Obama followed the Governor's advice offered in his New York Times editorial "Let Detroit Go Bankrupt" from 2008. Romney stated that the President did, in fact, let Chrysler go bankrupt, and pointed out, "My plan was to have the company go through bankruptcy... and come out stronger." Obama retorted that Romney's view of taking the automakers into bankruptcy did not provide them with any way to stay open, and would have lost a million jobs in the process.

The candidates also spoke on energy and oil production, primarily in response to questions of recently spiking gas prices. The President pointed out that oil production on federal land is at its highest in 16 years and natural gas production is at its highest levels in decades. Romney responded by saying that overall oil production is down 14 percent as a result of cutting licenses for drilling. Additionally, Romney criticized Obama for blockage of the Keystone oil pipeline.

Surprisingly, yesterday's bankruptcy filing of A123 Systems was not brought up, though Republicans, including Romney, have criticized the Obama administration's investment in electric cars as well as grants and loans for battery makers. If Tuesday's Chapter 11 filing was not mentioned last night, it will most certainly come up in the days and weeks to come.

Bailout and gas prices hot buttons in Presidential debate originally appeared on Autoblog on Wed, 17 Oct 2012 10:44:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>a123 systemsbailoutfiskermitt romneypresidentpresident obamapresidential debateteslaWed, 17 Oct 2012 10:44:00 EST http://www.autoblog.com/feed/20352468/article-comments.xml http://www.autoblog.com/feed/2012/10/17/bailout-and-gas-prices-hot-buttons-in-presidential-debate/20352468/article-detail.xml 20352468 http://www.blogcdn.com/www.autoblog.com/media/2012/10/1542471751350453311526-opt_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2012/10/1542471751350453311526-opt.jpg <![CDATA[WSJ: Feds turned down GM request to sell its remaining shares [w/video]]]>http://www.autoblog.com/2012/09/17/wsj-feds-turned-down-gm-request-to-sell-its-remaining-sh/http://www.autoblog.com/2012/09/17/wsj-feds-turned-down-gm-request-to-sell-its-remaining-sh/http://www.autoblog.com/2012/09/17/wsj-feds-turned-down-gm-request-to-sell-its-remaining-sh/#commentsFiled under: ,

GM logoThe Wall Street Journal released a report today, which indicated that the U.S. Treasury Department is unwilling to sell off its stake in General Motors, because to do so now would lead to a very large loss on the investment for the government.

GM proposed the buyback plan to the Treasury Department, earlier this year.

The Treasury currently holds a 26.5-percent stake in GM, or roughly 500 million shares. WSJ reported Friday that the government would stand to lose about $15 billion if it sold all of its GM stock for the roughly $24 the shares now command. Further, the share price would need to $53 before the Treasury would be able to break even on its investment in the automaker.

The newspaper did report that the Treasury might be willing to sell off its GM assets if the share price was in the $30-range.

Check out some more commentary about the situation from WSJ, in the video below.

Continue reading WSJ: Feds turned down GM request to sell its remaining shares [w/video]

WSJ: Feds turned down GM request to sell its remaining shares [w/video] originally appeared on Autoblog on Mon, 17 Sep 2012 14:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bailoutgeneral motorsgmtarpu.s. treasury departmentwall street journalMon, 17 Sep 2012 14:30:00 EST http://www.autoblog.com/feed/20325328/article-comments.xml http://www.autoblog.com/feed/2012/09/17/wsj-feds-turned-down-gm-request-to-sell-its-remaining-sh/20325328/article-detail.xml 20325328 http://www.blogcdn.com/www.autoblog.com/media/2012/09/gm-logo-1340042915_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2012/09/gm-logo-1340042915.jpg <![CDATA[Horsepower Politics]]>http://www.autoblog.com/2012/09/13/horsepower-politics/http://www.autoblog.com/2012/09/13/horsepower-politics/http://www.autoblog.com/2012/09/13/horsepower-politics/#commentsFiled under: ,

The Role Autos Are Playing In Deciding Our Next President



He was elected to the U.S. Senate in 1942 and served a dozen years during which his most memorable act was introducing the bill that added the words, "under God" into the Pledge of Allegiance. But to both his friends and foes alike, Homer S. Ferguson had a more important agenda that earned him the sobriquet "the Senator from General Motors."

As the recent Supreme Court decision commonly referred to as "Citizens United" only underscored, money has always played a part in politics. And for much of the 20th Century, few had the sort of money to invest in influencing government like the auto industry, especially giant GM.

But something curious has happened in the world of horsepower politics over the last few years. General Motors, in particular, has become as much a topic of debate as the force influencing the discussion. And where you stand on the subject could very well influence how you vote in this November's presidential election.

Paul EisensteinPaul A. Eisenstein is Publisher of TheDetroitBureau.com and a 30-year veteran of the automotive beat. His editorials bring his unique perspective and deep understanding of the auto world to Autoblog readers on a regular basis.

Continue reading Horsepower Politics

Horsepower Politics originally appeared on Autoblog on Thu, 13 Sep 2012 16:57:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto bailoutbailoutbarack obamachryslerdebateseisensteineisenstein on autoblogelectiongeneral motorsgmmitt romneytarpThu, 13 Sep 2012 16:57:00 EST http://www.autoblog.com/feed/20319419/article-comments.xml http://www.autoblog.com/feed/2012/09/13/horsepower-politics/20319419/article-detail.xml 20319419 http://www.blogcdn.com/www.autoblog.com/media/2012/09/gyi0057541416-opt_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2012/09/gyi0057541416-opt.jpg <![CDATA[BMW suing Saab Automobile Parts for $3.2M]]>http://www.autoblog.com/2012/08/24/bmw-suing-saab-automobile-parts-for-3-2m/http://www.autoblog.com/2012/08/24/bmw-suing-saab-automobile-parts-for-3-2m/http://www.autoblog.com/2012/08/24/bmw-suing-saab-automobile-parts-for-3-2m/#commentsFiled under: , , , ,

Saab 9-3 Convertible Independence Edition - front three-quarter view

Saab might be all but dead, but that's not stopping automakers that were once involved with the Swedish brand from attempting to reclaim losses. According to a Fox Business report, BMW has filed a 2.6 million Euro suit ($3.2 million USD) with a Swedish district court against Saab Automobile Parts for deliveries that went unpaid.

In 2012, Saab Automobile AB signed an agreement BMW that would see the German automaker deliver four-cylinder gas engines for its 9-3 range.

The suit also asserts that Saab ordered a large number of spare parts, and no payments were made to BMW. At the time, Saab was far from liquid, and filed for bankruptcy in December of last year.

Though Saab was left with assets that totaled $500 million, the Swedish automaker's debts amounted to $2 billion, a part of which include the unpaid BMW deliveries.

According to the report, Lennart Stahl, CEO of Saab Automobile Parts AB has said "Our lawyers will now go through the lawsuit carefully and see if anything new has been added before we decide hat to do." This only adds to the fallout from the Saab closure. Recently, Saab's owner, Spyker filed suit with General Motors for $3 billion, claiming that the U.S. automaker, through its leadership, played a large part in bankrupting the brand.

BMW suing Saab Automobile Parts for $3.2M originally appeared on Autoblog on Fri, 24 Aug 2012 18:41:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>4-cylinder9-3bailoutbmwchapter 11engineinline 4saab 9-3Fri, 24 Aug 2012 18:41:00 EST http://www.autoblog.com/feed/20308408/article-comments.xml http://www.autoblog.com/feed/2012/08/24/bmw-suing-saab-automobile-parts-for-3-2m/20308408/article-detail.xml 20308408 http://www.blogcdn.com/www.autoblog.com/media/2012/08/saab-93_thumbnail.jpeg http://www.blogcdn.com/www.autoblog.com/media/2012/08/saab-93.jpeg <![CDATA[Feds expect greater loss on auto bailout]]>http://www.autoblog.com/2012/08/20/feds-expect-greater-loss-on-auto-bailout/http://www.autoblog.com/2012/08/20/feds-expect-greater-loss-on-auto-bailout/http://www.autoblog.com/2012/08/20/feds-expect-greater-loss-on-auto-bailout/#commentsFiled under: , ,



The saga of the U.S. Treasury's involvement with General Motors has become the theater of call and response: the call is Treasury announcing how much it stands to lose on its bailout of GM, the response is a turgid chorus of "Government Motors!" and "They should have died!" peppered with a few defenders trying to make themselves heard. Well, here we go again, since the latest Treasury report filed states that it stands to lose $25.1 billion on the 500 million shares of GM stock it still owns.

There are two qualifiers with this, the first being that the estimate is low; it was made when GM's stock price was $22.20, but at the close of trading on of August 17 the stock price was $22.01. The second and much more important qualifier is that Treasury only loses $26 billion, give or take, if it actually sells the stock. Treasury's report to Congress on the state of its investment doesn't mean a sale is imminent, it's just an update. The only thing we've heard about the date of a sale is that Treasury has no immediate plans on such, preferring to wait until the market catches up to the progress it feels GM has made.

At one time the government expected to lose $44 billion on the auto bailout. Even if it takes a $26 billion bath on GM and adds the $1.3 billion loss on Chrysler, that's still a 33-percent improvement on what could have been. And that's called "looking at the bright side."

Feds expect greater loss on auto bailout originally appeared on Autoblog on Mon, 20 Aug 2012 08:56:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto bailoutbailoutgeneral motorsgmgm bailoutgm bankruptcygm ipogm stocktreasuryus treasuryMon, 20 Aug 2012 08:56:00 EST http://www.autoblog.com/feed/20302237/article-comments.xml http://www.autoblog.com/feed/2012/08/20/feds-expect-greater-loss-on-auto-bailout/20302237/article-detail.xml 20302237 http://www.blogcdn.com/www.autoblog.com/media/2012/08/gyi0064600965-opt_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2012/08/gyi0064600965-opt.jpg <![CDATA[Watchdog says White House needs exit strategy for GM, Ally]]>http://www.autoblog.com/2012/07/12/watchdog-says-white-house-needs-exit-strategy-for-gm-ally/http://www.autoblog.com/2012/07/12/watchdog-says-white-house-needs-exit-strategy-for-gm-ally/http://www.autoblog.com/2012/07/12/watchdog-says-white-house-needs-exit-strategy-for-gm-ally/#commentsFiled under: , ,

President Barack Obama ponders the Chevrolet Cruze at DC Auto Show

Christy Romero, a special inspector general examining the corporate bailouts that came in the wake of 2008's financial crisis, has some advice for the U.S. government: "Treasury should develop a concrete exit plan for GM and Ally." She is referring, of course, to the 30-percent stake that the government still holds in General Motors and the 74-percent stake it holds in Ally Financial, formerly known as GMAC when the Treasury pumped $17 billion into it.

For its part, the government says it already has an exit plan and Romero doesn't offer any further advice to guide that plan in some other direction. With the calls for Treasury to divest coming even more frequently during the U.S. Presidential race, Treasury has repeatedly stated the same thing: it is waiting for the right time to maximize its return, thereby minimizing the loss to the U.S. taxpayer.

With 500 million GM shares in its portfolio, the government needs those shares at $52-per in order to recoup the remainder of its initial $50 billion investment. Shares are right around $20, which would mean a highly unpalatable Greek haircut if the government gave up its position. Recent GM moves have also led the Treasury to believe that there is unlocked value in the company that the market simply hasn't reacted to yet; however, that sentiment was voiced two months ago and the stock price still hasn't budged.

Ally Financial is a different conundrum, one that the Treasury seems to be much more eager to divest itself of. The financial firm has paid back $5.4 billion of its TARP loan and filed IPO paperwork a year ago, but there's still not even a potential date for an offering, and no one seems to have any idea when it will pay off the rest of the funds. While plans are debated for an offering or a breakup of the company, Treasury has suggested that GM buy back Ally, but GM hasn't indicated any desire to do so.

So in effect, nothing has really changed, but at least now we have more figures in the government suggesting that the government get out of GM.

Watchdog says White House needs exit strategy for GM, Ally originally appeared on Autoblog on Thu, 12 Jul 2012 11:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>allyally financialbailoutchristine romerochristy romerogeneral motorsgmgm bankruptcytarptreasuryu.s. treasuryThu, 12 Jul 2012 11:30:00 EST http://www.autoblog.com/feed/20275981/article-comments.xml http://www.autoblog.com/feed/2012/07/12/watchdog-says-white-house-needs-exit-strategy-for-gm-ally/20275981/article-detail.xml 20275981 http://www.blogcdn.com/www.autoblog.com/media/2012/07/obama-ponders-chevy-cruze_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2012/07/obama-ponders-chevy-cruze.jpg <![CDATA[Lutz stumps for Romney despite opposition to auto bailout]]>http://www.autoblog.com/2012/06/15/lutz-stumps-for-romney-despite-opposition-to-auto-bailout/http://www.autoblog.com/2012/06/15/lutz-stumps-for-romney-despite-opposition-to-auto-bailout/http://www.autoblog.com/2012/06/15/lutz-stumps-for-romney-despite-opposition-to-auto-bailout/#commentsFiled under: , , , ,

Bob Lutz in front of reporters

Bob Lutz has put Republican presidential candidate Mitt Romney's numerous past comments about the automotive bailout behind him, according to Automotive News. During a recent episode of "The Kudlow Report" on CNBC, the former auto executive made it clear he now backs Romney for the 2012 presidential election, saying "[Romney] now says he was totally in favor of [the bailout] and suggested it."

In 2008, Romney wrote an op-ed for The New York Times titled, "Let Detroit Go Bankrupt." The piece adamantly opposed the government bailout in favor of a managed bankruptcy for both General Motors and Chyrsler. He has maintained his opposition to the auto bailouts publicly along the campaign trail, and Lutz's comment is the first news we've heard of the candidate's apparent change of heart. As recently as February 18, Lutz himself criticized the presidential candidate for his stance, especially for suggesting that the automakers simply needed to borrow from banks. According to Lutz, the banks were in worse shape than either of the imperiled manufacturers.

But that was then. Lutz now says he forgives Romney for his earlier statements, and that his support has more to do with opposing President Barack Obama than it does any actual faith in Romney's policies. Lutz said, "You know, all is forgiven. It depends on who [Romney's] opponent is."

While speaking with The Detroit News recently, Romney said that if elected, he would quickly sell the U.S. Treasury's stake in GM. He's also criticized the Obama Administration's proposed fuel economy requirements and support of electric vehicle manufacturing and development. Having helped usher the Chevrolet Volt to market, Lutz is a major proponent of electric vehicles.

Lutz stumps for Romney despite opposition to auto bailout originally appeared on Autoblog on Fri, 15 Jun 2012 09:32:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>2012 presidential electionautomotive bailoutbailoutbarack obamabob lutzbob lutz supports romneyelectionlutzmitt romneyobamaFri, 15 Jun 2012 09:32:00 EST http://www.autoblog.com/feed/20259290/article-comments.xml http://www.autoblog.com/feed/2012/06/15/lutz-stumps-for-romney-despite-opposition-to-auto-bailout/20259290/article-detail.xml 20259290 http://www.blogcdn.com/www.autoblog.com/media/2012/06/bob-lutz-with-reporters_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2012/06/bob-lutz-with-reporters.jpg <![CDATA[Romney vows to dump federal stake in GM quickly]]>http://www.autoblog.com/2012/06/05/romney-vows-to-dump-federal-stake-in-gm-quickly/http://www.autoblog.com/2012/06/05/romney-vows-to-dump-federal-stake-in-gm-quickly/http://www.autoblog.com/2012/06/05/romney-vows-to-dump-federal-stake-in-gm-quickly/#commentsFiled under:



With a multi-volume list of issues that a presidential hopeful could discuss, we aren't sure why Mitt Romney keeps circling back to the auto industry bailouts, but here we are again. He's lately swinging his stick at the U.S. Treasury Department for not having sold its 26.5-percent stake in General Motors, accusing it of holding back on the stock sale to avoid having to report a multi-billion dollar loss before the election.

At GM's current stock price, the government would lose about $16 billion by sellings its 500 million shares, a number that hasn't much changed from several months ago. Romney said the government has "no reason" for not selling, and a report of his interview with The Detroit News says that "he'd sell the stock quickly if he wins the White House." A Treasury spokesman responded with "We have to balance maximizing recovery for the taxpayers with the speed of exit."

On top of that, Romney said that if he becomes POTUS, he would take another look at Corporate Average Fuel Economy standards, believing that "The best approach is to try and build vehicles that people want, rather than having the government telling the companies what they must make." It's a line we've heard (and even uttered) often, but the nexus of government regulations, consumer desires, viable business models and long-term industry concerns is a moving target shifty enough to confuse quantum physicists.

Either way, it's clearly fair to expect more jabs from Romney at President Obama and the auto bailout as the campaign season grinds toward election day.

Romney vows to dump federal stake in GM quickly originally appeared on Autoblog on Tue, 05 Jun 2012 11:32:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto industry bailoutbailoutcafecorporate average fuel economygeneral motorsgmgovernment motorsmitt romneyobama administrationstock pricetarpus treasuryTue, 05 Jun 2012 11:32:00 EST http://www.autoblog.com/feed/20251752/article-comments.xml http://www.autoblog.com/feed/2012/06/05/romney-vows-to-dump-federal-stake-in-gm-quickly/20251752/article-detail.xml 20251752 http://www.blogcdn.com/www.autoblog.com/media/2012/06/romney-in-detroit_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2012/06/romney-in-detroit.jpg <![CDATA[Treasury has no plans to sell remaining GM stock quite yet]]>http://www.autoblog.com/2012/05/11/treasury-has-no-plans-to-sell-remaining-gm-stock-quite-yet/http://www.autoblog.com/2012/05/11/treasury-has-no-plans-to-sell-remaining-gm-stock-quite-yet/http://www.autoblog.com/2012/05/11/treasury-has-no-plans-to-sell-remaining-gm-stock-quite-yet/#commentsFiled under: , ,

General Motors headquarters

General Motors stock has been languishing for months, failing to climb past $30 per share since July of last year. Trading at around $22 per share today, the optimism that surrounded the company's emergence from bankruptcy and initial public offering in November 2010 has all but vanished. So it's no wonder that the United States Treasury has decided to sit on its GM shares, with no plans to sell of its remaining 26 percent stake in the automaker.

According to The Detroit News, the Treasury believes that GM is underpriced given the changes that have happened at the company. Assistant Treasury Secretary Time Massad told the News, "Our perspective is that the company has made real progress, but the market hasn't given them as much credit for that as it might."

The government stands to lose $15 billion on the bailout at today's stock prices, according to the report. Of the $49.5 billion spent on the bailout, the government has already recouped roughly $23 billion in reducing its stake in GM from the 61 percent it once held. GM shares would have to more than double in value to $53 for the Treasury to break even in liquidating the 500 million shares it still owns, according to the report.

Treasury has no plans to sell remaining GM stock quite yet originally appeared on Autoblog on Fri, 11 May 2012 13:29:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto bailoutbailoutgeneral motorsgmgm ipogm stockUS TreasuryFri, 11 May 2012 13:29:00 EST http://www.autoblog.com/feed/20236222/article-comments.xml http://www.autoblog.com/feed/2012/05/11/treasury-has-no-plans-to-sell-remaining-gm-stock-quite-yet/20236222/article-detail.xml 20236222 http://www.blogcdn.com/www.autoblog.com/media/2012/05/gmrexterior02-opt_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2012/05/gmrexterior02-opt.jpg <![CDATA[Romney claims credit for auto industry recovery, still opposes bailout]]>http://www.autoblog.com/2012/05/08/romney-claims-credit-for-auto-industry-recovery-still-opposes-b/http://www.autoblog.com/2012/05/08/romney-claims-credit-for-auto-industry-recovery-still-opposes-b/http://www.autoblog.com/2012/05/08/romney-claims-credit-for-auto-industry-recovery-still-opposes-b/#commentsFiled under: , ,



The Detroit News reports presidential hopeful Mitt Romney believes he deserves credit for the auto industry's recovery, despite the fact that he adamantly opposes the bailout. While speaking with a Cleveland, Ohio television station, Romney said he deserves "a lot of credit" because he supported the idea of managed bankruptcy. But both President George W. Bush and President Barack Obama believed General Motors and Chrysler couldn't survive the process without backing from the United States Treasury.

Meanwhile, in a 2008 opinion article for The New York Times, Romney warned the bailout would mean the end of the American automotive industry, saying "It won't go overnight, but its demise will be virtually guaranteed."

Through the lens of hindsight, we know that statement was a bit exaggerated. Both Chrysler and GM are on the right path, with the companies posting profits in North America. The Detroit News reports the auto bailout is an important topic in two crucial swing states: Ohio and Michigan.

Romney claims credit for auto industry recovery, still opposes bailout originally appeared on Autoblog on Tue, 08 May 2012 11:29:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto bailoutbailoutbarack obamageorge w bushmitt romneyromneyromney bailoutTue, 08 May 2012 11:29:00 EST http://www.autoblog.com/feed/20233579/article-comments.xml http://www.autoblog.com/feed/2012/05/08/romney-claims-credit-for-auto-industry-recovery-still-opposes-b/20233579/article-detail.xml 20233579 http://www.blogcdn.com/www.autoblog.com/media/2012/05/romney2012.f2b48b03eac24a76a46035a581fed3b6_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2012/05/romney2012.f2b48b03eac24a76a46035a581fed3b6.jpg <![CDATA[GM CEO Akerson makes less than his peers]]>http://www.autoblog.com/2012/04/27/gm-ceo-akerson-makes-less-than-his-peers/http://www.autoblog.com/2012/04/27/gm-ceo-akerson-makes-less-than-his-peers/http://www.autoblog.com/2012/04/27/gm-ceo-akerson-makes-less-than-his-peers/#commentsFiled under: , ,

GM CEO Dan Akerson

You wouldn't think $7.7 million is something to complain about, but then again, you're probably not in the running to be CEO of General Motors. Despite the fact that GM is no longer the largest company in the world - or, depending on whom you ask, even the largest carmaker - it's a big job. On most days, we imagine it's a pretty thankless one too. So when you compare the salary of GM CEO Dan Akerson to that of his cross-town rival at Ford, perhaps $7.7 million does seem like chump change compared to Alan Mullaly's 2011 compensation of $29.5 million.

And according to a report in The Detroit News, GM apparently isn't happy to see its CEO sitting in third place among Big Three CEOs when payday comes. GM's proxy statement filed with the Securities and Exchange Commission yesterday said that the company is having an "extremely difficult" time hiring qualified executives because of limits to compensation set by the U.S. Treasury Department. The Treasury has capped the amount Akerson and other execs can make as part of GM's 2009 bailout.

Here's a thought: Maybe GM just needs to do a better job emphasizing all the benefits that come with working for the General, like getting to drive a Chevrolet Volt gratis.

GM CEO Akerson makes less than his peers originally appeared on Autoblog on Fri, 27 Apr 2012 14:01:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>akersonbailoutdan akersonexecutive compensationgeneral motorsgmFri, 27 Apr 2012 14:01:00 EST http://www.autoblog.com/feed/20225853/article-comments.xml http://www.autoblog.com/feed/2012/04/27/gm-ceo-akerson-makes-less-than-his-peers/20225853/article-detail.xml 20225853 http://www.blogcdn.com/www.autoblog.com/media/2012/04/akerson-opt_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2012/04/akerson-opt.jpg <![CDATA[Treasury suggests GM buy back troubled Ally Financial]]>http://www.autoblog.com/2012/03/28/treasury-suggests-gm-buy-back-troubled-ally-financial/http://www.autoblog.com/2012/03/28/treasury-suggests-gm-buy-back-troubled-ally-financial/http://www.autoblog.com/2012/03/28/treasury-suggests-gm-buy-back-troubled-ally-financial/#commentsFiled under: ,

Ally Financial logoBack when Ally Financial was known as GMAC Financial, the U.S. Treasury gave it $17.2 billion in TARP funds to weather the global economic crisis. GMAC is now Ally Financial, and although it has repaid $5.4 billion of what it was loaned, there doesn't seem to be a clear path for repaying the outstanding amount. Bloomberg reports that Ally's mortgage unit, Residential Captial (ResCap), is teetering on the ledge of bankrupcty, and its banking operations didn't perform well in the Federal Reserve's stress tests that assess a bank's health.

An IPO for the entire company faces dim prospects (one was rumored back in April of 2011), so in a private equity ploy, the Treasury would like Ally to divvy itself up and sell the pieces to unlock value. Estimates are that the pieces could fetch $23.1 to $28.6 billion. The plan is supported by Elliott Management Corp, a shareholder that holds 2.3 percent of Ally stock. However, Ally's CEO and its board don't want to break the company up, and the Treasury - which holds 74 percent - doesn't want to lean on the leadership too hard for fear of "appearing as a heavy-handed owner."

In addition, the looming bankruptcy of ResCap will have an unknown effect on Ally's ability to do anything. Before the mortgage implosion, GMAC's auto unit was struggling and ResCap was restructured as a separate entity so that it wouldn't be dragged down by the captive finance department. The situation is reversed now, with ResCap in trouble and the captive finance arm supporting itself, but Elliot feels that the restructuring won't be enough to shield Ally from perhaps 18 months of litigation and billions in claims.

Ally execs feel differently, but no one will know until the trigger is pulled and the courts weigh in. With the Treasury reluctant to compel a move, it could be some time before it sees its $11.8 billion again.

Treasury suggests GM buy back troubled Ally Financial originally appeared on Autoblog on Wed, 28 Mar 2012 10:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>allyally financialbailoutgmacgmac financialmortgagerescapresidential capitaltarptreasurytreasury departmentWed, 28 Mar 2012 10:30:00 EST http://www.autoblog.com/feed/20202452/article-comments.xml http://www.autoblog.com/feed/2012/03/28/treasury-suggests-gm-buy-back-troubled-ally-financial/20202452/article-detail.xml 20202452 http://www.blogcdn.com/www.autoblog.com/media/2011/03/ally-bank-logo-250op_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2011/03/ally-bank-logo-250op.jpg -1 2