Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/www.autoblog.com/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2009 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Followup: Auctioneer Kruse ordered to pay bank $1.3M, has jet repo'd]]>http://www.autoblog.com/2009/11/28/followup-auctioneer-kruse-ordered-to-pay-bank-1-3m-has-jet-re/http://www.autoblog.com/2009/11/28/followup-auctioneer-kruse-ordered-to-pay-bank-1-3m-has-jet-re/http://www.autoblog.com/2009/11/28/followup-auctioneer-kruse-ordered-to-pay-bank-1-3m-has-jet-re/#commentsFiled under: ,

The walls are closing in on Dean Kruse, head of the Indiana-based Kruse International auction house. In September, a slew of lawsuits were filed against the company. Further opening the wound, a county court in Indiana has now ordered Kruse to pay more than $1.3 million to a bank in Warsaw -- just one of several debtors seeking money from the company -- for an overdue loan originally in the amount of $4.5 million. Two foreclosure lawsuits in DeKalb County, Indiana, are pending. One is for $6.5 million in unpaid loans. The other is for a loan in default for $7.8 million. Adding to his growing headache, and slowing down his travel, GE's financial arm has asked a federal court to repossess Kruse's million-dollar Cessna corporate jet.

While Kruse isn't talking to the media about his current events, he told The Journal Gazette last month that the recession has been hard on his sales. Compounding his troubles and drying up his cash flow, his longtime business practice of releasing cars to good customers before payment has come back to bite him. Understandably, he told the Gazette that he has since suspended that practice.

[Source: The Journal Gazette]

Followup: Auctioneer Kruse ordered to pay bank $1.3M, has jet repo'd originally appeared on Autoblog on Sat, 28 Nov 2009 14:33:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auctionauction houseAuctionHouseBankruptbankruptcyCessna JetCessnaJetDean KruseDeanKruseKeKalb CountyKekalbCountykruse internationalKruseInternationallawsuitMillionsSat, 28 Nov 2009 14:33:00 EST<![CDATA[REPORT: General Motor still on track for 2010 IPO]]>http://www.autoblog.com/2009/09/28/report-general-motor-still-on-track-for-2010-ipo/http://www.autoblog.com/2009/09/28/report-general-motor-still-on-track-for-2010-ipo/http://www.autoblog.com/2009/09/28/report-general-motor-still-on-track-for-2010-ipo/#commentsFiled under: , ,


While defending the government bailout of America's auto industry, Herb Allison (above), the Treasury Department's assistant secretary for financial stability, said that a General Motors initial public offering is still a go for next year. While Allison still believes it was essential to safeguard the security of our financial system, he claims that the deal to bail out the auto industry has always been seen as a temporary situation:
"Our investments in the automobile industry and other companies that have received exceptional assistance are limited and temporary. Chrysler Financial has already repaid its assistance, and an initial public offering for GM is expected next year," Allison said.
According to The Detroit News, the Treasury is getting things in place to begin selling off their 60.8% equity stake in GM. It will take several years to divest themselves of GM stock, but the IPO should happen sometime in 2010. An initial public offering for Chrysler is still a ways off.

[Source: The Detroit News | Image: Mandel Ngan/AFP/Getty Images]

REPORT: General Motor still on track for 2010 IPO originally appeared on Autoblog on Mon, 28 Sep 2009 16:29:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bailoutbankruptbankruptcygeneral motorsgeneral motors corp.General Motors IPOGeneralMotorsGeneralMotorsCorp.GeneralMotorsIpogmgm bankruptcygm ipoGmBankruptcyGmIpoHerbert AllisonHerbertAllisonIPOreportMon, 28 Sep 2009 16:29:00 EST<![CDATA[REPORT: New GM entitled to $16 billion in federal tax breaks courtesy of Old GM]]>http://www.autoblog.com/2009/08/04/report-new-gm-entitled-to-16-billion-in-federal-tax-breaks-cou/http://www.autoblog.com/2009/08/04/report-new-gm-entitled-to-16-billion-in-federal-tax-breaks-cou/http://www.autoblog.com/2009/08/04/report-new-gm-entitled-to-16-billion-in-federal-tax-breaks-cou/#commentsFiled under: , ,



Due to what appears to be a slight (additional) bending of the rules, the "new," post-bankruptcy General Motors has been allowed to carry the $16 billion net operating loss that was created by the "old" GM. That means that New GM will not have to pay taxes on its profits for a while, because the profits can be written off by the losses.

The issue is that the move, called a "tax-loss carry forward," isn't supposed to be available to the automaker. The tax code contains provisions that prohibit a profitable company from buying an unprofitable company for the sole purpose of claiming the unprofitable company's tax losses - and the type of bankruptcy GM went through should have precluded The General's ability to use the tax loss practice.

Except for the fact that GM was bought by the government, and since the government writes the tax code and collects said taxes, it can decide how it wants to handle the companies it owns. General Motors says the move will bolster its "cash position to the benefit of all parties." Critics, on the other hand, say that GM got a $16 billion unfair head start on Ford. Hat tip to Adrian.

[Source: The Wall Street Journal | Image: Jim Watson/AFP/Getty]

REPORT: New GM entitled to $16 billion in federal tax breaks courtesy of Old GM originally appeared on Autoblog on Tue, 04 Aug 2009 08:27:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bankruptbankruptcychapter 11Chapter11earningsfinancialsgeneral motorsGeneralMotorsgmgm bankruptcyGmBankruptcygovernmentlegaltaxesuawunionsTue, 04 Aug 2009 08:27:00 EST<![CDATA[Karmann Go: Legendary coachbuilder shuts down as last car comes off the line]]>http://www.autoblog.com/2009/06/23/karmann-go-legendary-coachbuilder-shuts-down-as-last-car-comes/http://www.autoblog.com/2009/06/23/karmann-go-legendary-coachbuilder-shuts-down-as-last-car-comes/http://www.autoblog.com/2009/06/23/karmann-go-legendary-coachbuilder-shuts-down-as-last-car-comes/#commentsFiled under: , , , ,


Karmann throughout the years - Click above for high-res image gallery

Troubled coachbuilder and specialty car manufacturer Karmann has gone dark. The firm's final vehicle - a Mercedes-Benz CLK came off the lines on Monday as the legendary company has been shuttered because of insolvency.

Perhaps best known for its Volkswagen-based Karmann Ghia coupe and convertible (shown above), Karmann has actually produced in excess of 3.3 million automobiles for various automakers - mostly convertibles. In recent times, it's been responsible for assembling cars like the Spyker C8, Audi A4 Cabriolet, Chrysler Sebring Convertible, Volkswagen New Beetle Convertible, and the Pontiac G6 Convertible.

According to German's The Local, Karmann actually "went bust last week," though it still hopes to change its focus to parts production if officials are able to successfully reorganize the firm and stay in business. Unfortunately, finger-pointing between the Osnabrück company's management and its unions is preventing any sort of restructuring, let alone a quick turnaround.

The company's 2,240 workers have all apparently been given notice, and their benefits plans will likely be eliminated. Check out more details at the link below and peruse a high-res gallery of Karmann's vehicles (including some of its concept cars) by clicking on the thumbnails below. Thanks for the tip, Gregg.


Gallery: Karmann throughout the years


[Sources: The Local; StraitsTimes]

Karmann Go: Legendary coachbuilder shuts down as last car comes off the line originally appeared on Autoblog on Tue, 23 Jun 2009 16:56:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bankruptbankruptcycoachbuildercoachbuildingcoachbuiltinsolvencyinsolventKarmannKarmann ghiaKarmannGhiasuppliertier-1 supplierTier-1SupplierTue, 23 Jun 2009 16:56:00 EST<![CDATA[REPORT: GM cutting executive pensions, ex-CEO Wagoner to get pinched the most]]>http://www.autoblog.com/2009/06/16/report-gm-cutting-executive-pensions-ex-ceo-wagoner-to-get-pin/http://www.autoblog.com/2009/06/16/report-gm-cutting-executive-pensions-ex-ceo-wagoner-to-get-pin/http://www.autoblog.com/2009/06/16/report-gm-cutting-executive-pensions-ex-ceo-wagoner-to-get-pin/#commentsFiled under: , , ,



With General Motors in bankruptcy, it was only a matter of time before pensions came under scrutiny. The Detroit News is reporting that GM CEO Fritz Henderson has confirmed that executive pensions beyond $100,000 per year will be cut by two-thirds. Recently defenestrated boss Rick Wagoner will likely take the biggest hit of all - he was supposed to receive $22 million over five years as part of his retirement package, but that number will reportedly drop by up to $15 million.

The move by GM mirrors closely that of Chrysler, which also took an axe to its executive retirement pay structure. Ex-CEO and one-time company savior Lee Iacocca lost his company car and may lose some or all of his monthly stipend, and he is now representing 1,200 ex-Pentastar employees protesting the move. Chrysler retirees have been lumped together with the Pentastar's other creditors, and it will be up to a judge to determine what amount they will receive in the months and years ahead.

[Source: Detroit News | Image: Bill Pugliano/Getty]

REPORT: GM cutting executive pensions, ex-CEO Wagoner to get pinched the most originally appeared on Autoblog on Tue, 16 Jun 2009 13:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bankruptbankruptcyexecutive payexecutive pensionsExecutivePayExecutivePensionsFritz HendersonFritzHendersongeneral motorsGeneralMotorsgmIacoccapensionpensionsrick wagonerRickWagonerTue, 16 Jun 2009 13:00:00 EST<![CDATA[REPORT: GM to declare bankruptcy before markets open, chief restructuring officer named]]>http://www.autoblog.com/2009/05/31/report-gm-to-declare-bankruptcy-before-markets-open-chief-rest/http://www.autoblog.com/2009/05/31/report-gm-to-declare-bankruptcy-before-markets-open-chief-rest/http://www.autoblog.com/2009/05/31/report-gm-to-declare-bankruptcy-before-markets-open-chief-rest/#commentsFiled under: , ,



General Motors' bankruptcy endgame appears to be at hand, with word coming out that the automaker will indeed file for Chapter 11 protection early on Monday morning, which in turn is expected to trigger $30.1 billion in U.S. government loans. That funding will arrive on the heels of the $19.4 billion GM has already received since late last year, and Canada is expected to chip in an additional $9.5 billion. In exchange for that $30.1 billion in financing, Capitol Hill will receive a 60% share of GM, while Canada's investment will reportedly net it a 12% stake.

In related news, Automotive News is reporting that GM will appoint Al Koch to a newly created chief restructuring officer post. Koch, a corporate turnaround expert, has already been working with GM since January through his advisory firm, AlixPartners LLP. According to AN, Koch will oversee "bad" GM - that is, the liquidation of assets deemed to be dead weight in the drive to a leaner, more competitive GM (think: Hummer, Saturn, Saab, etc.). Recently minted GM CEO, Fritz Henderson, will continue to lead the corporation and, of course, all warranties will continue to be honored.

As part of the Chapter 11 bankruptcy proceedings, GM will see its stock-trading ticker removed from the Dow and S&P 500 on Monday, with those who have still been stubbornly holding on to stocks effectively losing everything.

President Obama will address the nation on GM's historic bankruptcy beginning at 11:55 a.m. EDT, with Fritz Henderson slated to address media members at around 12:15 p.m. in New York.

[Source: Automotive News - subs. req. | Image: Bill Pugliano/Getty]

REPORT: GM to declare bankruptcy before markets open, chief restructuring officer named originally appeared on Autoblog on Sun, 31 May 2009 23:29:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Al KochAlKochbankruptbankruptcyChapter 11Chapter11Fritz HendersonFritzHendersonGeneral MotorsGeneralMotorsGMObamawhitehouseSun, 31 May 2009 23:29:00 EST<![CDATA[Tier-1 supplier Metaldyne files for Chapter 11 bankruptcy too]]>http://www.autoblog.com/2009/05/31/tier-1-supplier-metaldyne-files-for-chapter-11-bankruptcy-too/http://www.autoblog.com/2009/05/31/tier-1-supplier-metaldyne-files-for-chapter-11-bankruptcy-too/http://www.autoblog.com/2009/05/31/tier-1-supplier-metaldyne-files-for-chapter-11-bankruptcy-too/#commentsFiled under: ,

To the roll call of auto industry titans that have gone or are going bankrupt -- Visteon, Chrysler, GM, Saab, Karmann, ASC, Source Interlink -- we can now add Tier 1 supplier Metaldyne, which filed for bankruptcy for its American operations. Metaldyne makes metal bits for car and truck chassis and NVH components.

The company has been restructuring its costs over the past year and a half, shedding $100 million in expenditures and reducing its debt. Still, as of the filing it had debt of $600 million on $2008 sales of $1.57 billion. Metaldyne's parent company, Asahi Tech Corp in Japan, helped the company lower its debt by about $400 million but has now walked away from further financial support.

There are two private equity firms interested in the company: Carlyle Group, which is looking to buy some of Metaldyne's chassis business, and RHJI, which is already a majority shareholder in Metaldyne's parent, Asahi. RHJI would throw about $100 million at the company and inject additional cash to run the business short term, as well as take on additional liabilities. Until (and if ever) a buyer is decided, Metaldyne is running on $18.5 million in debtor-in-possession financing from Deutsche Bank and customer funding.

[Source: Forbes]

Tier-1 supplier Metaldyne files for Chapter 11 bankruptcy too originally appeared on Autoblog on Sun, 31 May 2009 16:05:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bankruptbankruptcymetaldynesuppliersupplierstier 1Tier1Sun, 31 May 2009 16:05:00 EST<![CDATA[REPORT: Koenigsegg a finalist in bid to buy Saab]]>http://www.autoblog.com/2009/05/29/report-koenigsegg-a-finalist-in-bid-to-buy-saab/http://www.autoblog.com/2009/05/29/report-koenigsegg-a-finalist-in-bid-to-buy-saab/http://www.autoblog.com/2009/05/29/report-koenigsegg-a-finalist-in-bid-to-buy-saab/#commentsFiled under: , , , ,



In a brief article on its website, the UK's Channel4 says that a Swedish newspaper, Dagens Industri, is reporting that supercar maker Koenigsegg is in the running to purchase either a stake in Saab, or the whole kit and caboodle.

According to the report, Koenigsegg is reportedly a front-runner to rescue the fellow Swedish automaker, with the other suitors being the Renco Group, a U.S. investment company, and the Italian automaker Fiat - the latter of which is being denied by both Fiat and Saab.

Automotive News has asked Saab to comment on the report, but spokeswoman Gunilla Gustavs declined, although she did say that the likely bankruptcy of parent company General Motors will not derail Saab's plans. Gustavs apparently did impart that GM plans to disclose a "preferred candidate" in the next few weeks.

If Christian von Koenigsegg and his band of merry men manage to get their hands on Saab, we can't help ourselves from wondering that with their expertise in supercars, perhaps they could bring the Aero X (above) to market. We can dream, can't we?

[Source: Channel4; Automotive News - subs. req.]

REPORT: Koenigsegg a finalist in bid to buy Saab originally appeared on Autoblog on Fri, 29 May 2009 13:58:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bailoutbankruptbankruptcyChapter 11Chapter11dagens industriDagensIndustriGMKoenigseggsaabswedenswedishFri, 29 May 2009 13:58:00 EST<![CDATA[Bloomberg says GM to file for Chapter 11 bankruptcy on Monday]]>http://www.autoblog.com/2009/05/28/bloomberg-says-gm-to-file-for-chapter-11-bankruptcy-on-monday/http://www.autoblog.com/2009/05/28/bloomberg-says-gm-to-file-for-chapter-11-bankruptcy-on-monday/http://www.autoblog.com/2009/05/28/bloomberg-says-gm-to-file-for-chapter-11-bankruptcy-on-monday/#commentsFiled under: , , ,



Despite today's word of coming to terms with its major shareholders on a debt-for-equity swap, Bloomberg is reporting that General Motors will join Chrysler in filing for Chapter 11 bankruptcy on Monday. The move is widely expected, but the news agency is adding a bit of flesh to the story, suggesting that what promises to be the third-largest bankruptcy in U.S. history (after Lehman Bros. and Worldcom) will indeed result in the sale of most of the automaker's assets to a new company (likely the oft-discussed "Good GM"). GM's worldwide assets have been reported to be $91 billion against a total liability of $176.4 billion as of December 31.

A suggested location of the possible bankruptcy filing has not been disclosed. More details in the link below.

[Source: Bloomberg News | Image: Bill Pugliano/Getty]

Bloomberg says GM to file for Chapter 11 bankruptcy on Monday originally appeared on Autoblog on Thu, 28 May 2009 16:02:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bailoutBankruptBankruptcyChapter 11Chapter11General MotorsGeneralMotorsGMThu, 28 May 2009 16:02:00 EST<![CDATA[BREAKING: Visteon reportedly files for Chapter 11 bankruptcy]]>http://www.autoblog.com/2009/05/28/breaking-visteon-reportedly-files-for-chapter-11-bankruptcy/http://www.autoblog.com/2009/05/28/breaking-visteon-reportedly-files-for-chapter-11-bankruptcy/http://www.autoblog.com/2009/05/28/breaking-visteon-reportedly-files-for-chapter-11-bankruptcy/#commentsFiled under: , , , ,



According to Automotive News, Visteon Corp. has filed for Chapter 11 bankruptcy protection. The Michigan-based tier-1 supplier was spun off from the Ford Motor Company back in 2000, and it has struggled ever since. The filing took place in a Delaware courtroom, where the company has listed total assets of $4.58 billion and total debt of $5.3 million.

Visteon's struggles have been well documented, with its ballooning debt, falling sales (down by more than 50% in the first quarter of 2009 alone) resulting in a $681 million dollar loss last year. In fact, back in 2005, Visteon had to ask Ford to step in as part of an agreement that saw the Blue Oval agree to take ownership of all of the supplier's hourly employees who were United Auto Workers members, as well as most of the company's North American facilities.

Despite no longer technically being part of Ford, the Blue Oval is still Visteon's largest customer (accounting for around 31% of its sales last quarter), and according to AN, Visteon says that Ford is still committed to help the company with debtor-in-possession financing and future parts orders while the supplier undergoes restructuring.

[Source: Automotive News (subs. req.)| Image: Jonathan Ferrey/Getty]

BREAKING: Visteon reportedly files for Chapter 11 bankruptcy originally appeared on Autoblog on Thu, 28 May 2009 09:28:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bankruptbankruptcyBlue OvalBlueOvalbreakingbreakingnewschapter 11Chapter11DelawareFordsuppliertier-1VisteonThu, 28 May 2009 09:28:00 EST<![CDATA[REPORT: Visteon books $2M profit. Delphi makes $556M. Wait... wha?!]]>http://www.autoblog.com/2009/05/12/report-visteon-books-2m-profit-delphi-makes-556m-wait-w/http://www.autoblog.com/2009/05/12/report-visteon-books-2m-profit-delphi-makes-556m-wait-w/http://www.autoblog.com/2009/05/12/report-visteon-books-2m-profit-delphi-makes-556m-wait-w/#commentsFiled under: , ,



When is a profit not a profit? When it's the result of bankruptcy prevention measures, like Visteon's report of a $2 million profit during the first quarter of 2009. The auto supplier is reporting that each share earned two cents during the period, compared to a $105 million loss last year. The company's books saw a gain after sending its British operations into Chapter 11, an occurrence that will not be repeated. The one-time nature of the accounting measures doesn't bode well for the next three months, but Visteon also points out that its sales force has been able to secure $240 million of new work between January and March. Despite the new business, Visteon's full-year outlook isn't so rosy, and will likely be down again for 2009.

In unrelated but similar news, fellow Tier-1 supplier Delphi logged a $556-million profit in the first quarter, a number reportedly generated largely by a maneuver that saw them shave $1.2 billion in health care benefits for retired salaried workers. The bankrupt company posted profits of 98 cents per share, but it simultaneously reported that business to General Motors (by far its biggest client) fell by half, and the company posted a 52% quarterly sales drop (to $2.5 billion) as a result.

[Sources: Detroit Free Press]

REPORT: Visteon books $2M profit. Delphi makes $556M. Wait... wha?! originally appeared on Autoblog on Tue, 12 May 2009 18:20:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bankruptDelphisuppliertier-1visteonvisteon bankruptcyvisteon earningsvisteon profitvisteon stockVisteonBankruptcyVisteonEarningsVisteonProfitvisteonstockTue, 12 May 2009 18:20:00 EST<![CDATA[REPORT: If Chrysler liquidates, 38,500 jobs would be lost]]>http://www.autoblog.com/2009/05/01/report-if-chrysler-liquidates-38-500-jobs-would-be-lost/http://www.autoblog.com/2009/05/01/report-if-chrysler-liquidates-38-500-jobs-would-be-lost/http://www.autoblog.com/2009/05/01/report-if-chrysler-liquidates-38-500-jobs-would-be-lost/#commentsFiled under: , , ,



A court filing by the legal firm Jones Day estimates that 38,500 Chrysler workers will lose their jobs if the bankrupt automaker fails to quickly form an alliance with Fiat SpA and is forced to liquidate. In addition, if the deal with Fiat is rejected Chrysler LLC employees will lose $9.8 billion in benefits and $2 billion in pension payments, according to the legal team.

"Time is of the essence," said attorney Corinne Ball. The lawyers, in court seeking to organize the company's 25 affiliates into a one bankruptcy proceeding, stressed in yesterday's so-called first-day pleadings that if Chrysler dissolves, "it will mean the end of an iconic, 83-year-old American car company."

[Source: Bloomberg | Image Source: Bill Pugliano/Getty]

REPORT: If Chrysler liquidates, 38,500 jobs would be lost originally appeared on Autoblog on Fri, 01 May 2009 13:58:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>attorneybankruptbankruptcybankruptcy courtBankruptcyCourtchryslerfiatfiatchryslerjobs lostJobsLostJones DayJonesDaylost benefitslost pensionLostBenefitsLostPensionpensionFri, 01 May 2009 13:58:00 EST<![CDATA[Henderson says GM bankruptcy decision still in doubt; Hummer decision expected before month's end]]>http://www.autoblog.com/2009/04/17/henderson-says-gm-bankruptcy-decision-still-in-doubt-hummer-dec/http://www.autoblog.com/2009/04/17/henderson-says-gm-bankruptcy-decision-still-in-doubt-hummer-dec/http://www.autoblog.com/2009/04/17/henderson-says-gm-bankruptcy-decision-still-in-doubt-hummer-dec/#commentsFiled under: , , , ,



We were on General Motors CEO Fritz Henderson's teleconference with reporters this morning, and while the proceedings were light on revelatory news (okay, there really wasn't any), some important things were clarified:

Namely, Henderson denied that the company has reached a decision on whether to pursue bankruptcy, and officials are still hard at work on a two-track strategy (one with, and one without), with the company's preference still being to keep matters out of the courts. When it comes time to make a decision (June 1), Henderson admitted that "The Treasury would be a key player in that decision," though he didn't rule out his company's own role as being part of the process.

Additionally, Henderson said that the company is still pursuing a "four-core brand strategy," meaning that it plans to keep Chevrolet, Cadillac, Buick, and GMC, with Pontiac still in the mix as a niche brand. Henderson called both GMC and Buick "very profitable," and added that some of the products that GM has in its pipeline that it is most excited about are slated to carry the Buick badge. When asked point blank as to the security of the two brands, however, he declined to guarantee survival of any particular marque in the company's portfolio.

Henderson all but confirmed that the company plans to keep the likewise "highly profitable A.C. Delco parts business, but he acknowledged that a decision looms for Hummer, with final bids from three purchasers expected by next week. The company expects to make a sale decision on the SUV brand by month's end.

In regards to Saab, the GM CEO reiterated that a number of parties are interested in the Swedish brand, and that their "books are open" to serious bidders. Unsurprisingly, Henderson also acknowledged that it is pursuing buyers for Saturn, but he denied that there was only one serious bidder in the mix.

On its European front, Henderson says that "well more than six" parties have expressed interest in Opel, which he characterized as financial and industry players. Henderson said GM expects work to get done within the next two-to-three weeks, and he acknowledged that Germany's cash-for-clunkers and the early success for the new Insignia have helped liquidity issues. As such, Opel can now evidently sustain itself through late in the second quarter, if not further.


[Image: Bill Pugliano/Getty]

Henderson says GM bankruptcy decision still in doubt; Hummer decision expected before month's end originally appeared on Autoblog on Fri, 17 Apr 2009 12:58:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bankruptbankruptcydetroitfritz hendersonFritzHendersongeneral motorsGeneralMotorsGMobama administrationObamaAdministrationThe GeneralTheGeneraltreasury departmentTreasuryDepartmentFri, 17 Apr 2009 12:58:00 EST<![CDATA[Coachbuilder Karmann files for insolvency]]>http://www.autoblog.com/2009/04/08/coachbuilder-karmann-files-for-insolvency/http://www.autoblog.com/2009/04/08/coachbuilder-karmann-files-for-insolvency/http://www.autoblog.com/2009/04/08/coachbuilder-karmann-files-for-insolvency/#commentsFiled under: , ,



The economy has caught up with Karmann, the independent German builder whose name was most famously applied to Volkswagen's '50s roadster, forcing it to file for insolvency. Most recently the company's 3,470 workers were assembling Audi A4 and Mercedes CLK convertibles. Over its 108-year history the brand has done work for a host of marques, building Porsche bodies, the Chrysler Crossfire, the roof system for the Pontiac G6 and Nissan Micra, and the European version of the AMC Javelin. Declining car sales, however, have kept Karmann from being able to fulfill its financial obligations to laid off workers.

[Source: Automotive News, sub req'd. | Photo: ArgentLA]

Coachbuilder Karmann files for insolvency originally appeared on Autoblog on Wed, 08 Apr 2009 08:26:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bankruptbankruptcyearningsfinancialskarmannmanufacturingplantsWed, 08 Apr 2009 08:26:00 EST<![CDATA[TRUST successfully reorganized in Japan, GReddy in the U.S. churning along]]>http://www.autoblog.com/2009/03/12/trust-successfully-reorganized-in-japan-greddy-in-the-u-s-chur/http://www.autoblog.com/2009/03/12/trust-successfully-reorganized-in-japan-greddy-in-the-u-s-chur/http://www.autoblog.com/2009/03/12/trust-successfully-reorganized-in-japan-greddy-in-the-u-s-chur/#commentsFiled under: , ,



This past September, Trust Co. LTD - the parent company of GReddy Performance Products in the U.S. - declared the Japanese equivalent of Chapter 11. According to a release from the aftermarket parts supplier, Trust has successfully completed the reorganization process (known in Japan as Minji-Saisei-Hou) and is hoping to be completely back on its feet within the next few months. During the reorganization, both Trust and GReddy have maintained its workforce here and abroad, developed new components, continued to produce parts and serviced its clients around the world. While we're happy to hear about GReddy's future involvement in the aftermarket, this won't be the first or last filing from a performance part supplier as the auto-apocalypse continues.

Continue reading TRUST successfully reorganized in Japan, GReddy in the U.S. churning along

TRUST successfully reorganized in Japan, GReddy in the U.S. churning along originally appeared on Autoblog on Thu, 12 Mar 2009 18:03:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bankruptbankruptciesbankruptcybankruptcy courtBankruptcyCourtgreddyMinji-Saisei-HoureorganizationtrustThu, 12 Mar 2009 18:03:00 EST<![CDATA[Saab files for bankruptcy in Swedish courts, wants $1B]]>http://www.autoblog.com/2009/02/20/saab-files-for-bankruptcy-in-swedish-courts-wants-1b/http://www.autoblog.com/2009/02/20/saab-files-for-bankruptcy-in-swedish-courts-wants-1b/http://www.autoblog.com/2009/02/20/saab-files-for-bankruptcy-in-swedish-courts-wants-1b/#commentsFiled under: ,

General Motors confirmed this morning that Saab's days as a part of the Detroit-based company are numbered. The Swedish brand has filed paperwork with courts in its home country for reorganization that would lead to its independence. This self-managed reorganization is analogous to the U.S. Chapter 11 bankruptcy process, and would lead to the establishment of an independent entity based in Sweden. In order for that to happen, however, GM needs to line up financing for the new company, which may be problematic. Automotive News reports that as much as $1 billion may be needed to make Saab sustainable on its own.

GM plans to concentrate Saab's engineering, design and manufacturing operations back in Sweden. The brand plans to launch three new products between now and mid 2010: the new 9-3X, 9-5 and 9-4X. The first two are already set to be produced in Sweden, but the new 9-4X crossover was scheduled to be built in Mexico alongside the Cadillac SRX. The Swedish government has already rejected a GM request for funds, so the money will have to come from somewhere else. The official press release from GM can be read after the jump.

[Source: General Motors]

Continue reading Saab files for bankruptcy in Swedish courts, wants $1B

Saab files for bankruptcy in Swedish courts, wants $1B originally appeared on Autoblog on Fri, 20 Feb 2009 08:33:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bankruptbankruptciesbankruptcybankrutpcybreakingreorganizationsaabsaab bankruptcysaab reorganizationSaabBankruptcySaabReorganizationFri, 20 Feb 2009 08:33:00 EST<![CDATA[POLL: Would you buy a car from a company in bankruptcy?]]>http://www.autoblog.com/2008/11/14/poll-would-you-buy-a-car-from-a-company-in-bankruptcy/http://www.autoblog.com/2008/11/14/poll-would-you-buy-a-car-from-a-company-in-bankruptcy/http://www.autoblog.com/2008/11/14/poll-would-you-buy-a-car-from-a-company-in-bankruptcy/#commentsFiled under: ,

In recent weeks, the idea that one or all three of Detroit's automakers could end up filing for chapter 11 bankruptcy protection in the coming weeks or months has gained a lot of momentum. In theory, the advantage of chapter 11 is that it provides protection from creditors while the company is reorganized in a way that it can survive. The company is allowed to continue operating in this mode, thus avoiding a complete shutdown. A number of major airlines have done this and managed to keep operating, although some have ultimately failed anyway. There is a big difference between a plane ticket and a car. With an airline, you buy your ticket, take your flight and then (hopefully) walk away. After the flight, there is no expectation of ongoing service and support. A car is a much larger purchase and expected to operate for 10-15 years. Warranty service is demanded during that time, and spare parts need to be available on an ongoing basis. Given the long-term requirements of a car, a chapter 11 filing could be a death sentence for a manufacturer as customers look elsewhere. So the question we ask you is, "Would you buy a car from a company in bankruptcy?"

View Poll

POLL: Would you buy a car from a company in bankruptcy? originally appeared on Autoblog on Fri, 14 Nov 2008 11:29:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bankruptbankruptciesbankruptcybankruptcy courtBankruptcyCourtFri, 14 Nov 2008 11:29:00 EST<![CDATA[UPDATE: Greddy in U.S. still good to go]]>http://www.autoblog.com/2008/09/12/update-greddy-in-u-s-still-good-to-go/http://www.autoblog.com/2008/09/12/update-greddy-in-u-s-still-good-to-go/http://www.autoblog.com/2008/09/12/update-greddy-in-u-s-still-good-to-go/#commentsFiled under: , , ,



In a follow-up to our previous post about Trust's bankruptcy filing in Japan earlier this week, GReddy - Trust's U.S. arm - has issued a press release (available after the jump) to assure Stateside consumers that all is well and operations will continue in the U.S. unabated.

According to the release, Trust filed for "Minji-saisei-hou" in Japan, the equivalent of Chapter 11 in the States, that will allow the performance parts manufacturer to continue its business while it reorganizes. That process will have "little, if any effect on GReddy Performance Products" in the U.S. GReddy plans to feature three new project vehicles at SEMA this year, and both Trust and GReddy have adequate inventory and personnel to service customers.

Continue reading UPDATE: Greddy in U.S. still good to go

UPDATE: Greddy in U.S. still good to go originally appeared on Autoblog on Fri, 12 Sep 2008 15:59:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bankruptbankruptcygreddytrustFri, 12 Sep 2008 15:59:00 EST<![CDATA[GM stock drops below $10 per share]]>http://www.autoblog.com/2008/07/03/gm-stock-drops-below-10-per-share/http://www.autoblog.com/2008/07/03/gm-stock-drops-below-10-per-share/http://www.autoblog.com/2008/07/03/gm-stock-drops-below-10-per-share/#commentsFiled under: , ,

After Merrill Lynch hinted bankruptcy concerns yesterday, and other Wall Street analysts spread additional gloom, shares of General Motors dropped $1.77 to close at $9.98 -- GM's lowest close in more than 50 years. While GM stock on Tuesday showed a bit of promise on the news that sales only dropped 18.2 percent in June (yes, it was supposed to be worse), nothing could slow the fall on Wednesday. Unfortunately for GM, the light at the end of the tunnel seems a far way off. Sales are plummeting, and those vehicles that do leave the lot are padded with generous financing and rebate offers (experts quickly point out that incentive-laden sales gains are often followed by slowdowns). With eight brands, 13,000 franchises, and a falling market share, many have begun (or continued) to question GM's ability to survive without insolvency.

[Source: Detroit News]

GM stock drops below $10 per share originally appeared on Autoblog on Thu, 03 Jul 2008 19:02:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bankruptbankruptcybankruptcy courtBankruptcyCourtbankrutpcyGeneral MotorsGeneralMotorsInsolvencyStockStock levelsStockLevelsThu, 03 Jul 2008 19:02:00 EST<![CDATA[European coachbuilders will sink or swim in changing market]]>http://www.autoblog.com/2008/01/06/european-coachbuilders-will-sink-or-swim-in-changing-market/http://www.autoblog.com/2008/01/06/european-coachbuilders-will-sink-or-swim-in-changing-market/http://www.autoblog.com/2008/01/06/european-coachbuilders-will-sink-or-swim-in-changing-market/#commentsFiled under: , , , ,

We've posted a number of articles in recent months about coachbuilders like Pininfarina and Bertone finding themselves in financially troubled waters. The difficulties these and other independent manufacturers around Europe are suffering now appear to be part of a larger trend that's forcing these companies to either adapt to the changing market or face extinction.

While major manufacturers once subcontracted the production of niche vehicles - sports cars and convertibles especially - to smaller companies, the larger carmakers have been adapting their assembly lines towards small runs of diverse automobiles, leaving the indie coachbuilders with declining business. As a result, Pininfarina, for example, has been dipping further and further into the red, while Bertone was forced to sell its business on the verge of bankruptcy hearings.

Industry experts now advise that the coachbuilders will have to change their focus in order to survive and return to profitability. Although some have been receiving patronage from wealthy customers seeking original automotive creations like Zagato's Maserati GS and Pininfarina's Ferrari P4/5, that business is sporadic at best. Magna Steyr continues to be awarded contracts from carmakers like BMW, and Karmann is gearing up for an anticipated contact from Kia, but these and other coachbuilders will need to begin looking elsewhere for continued viability. Pininfarina and Bertone can return to their erstwhile core business of automotive design while shutting down or severely downsizing their manufacturing divisions, while emerging markets like China could provide potential contracts in the future. But while there may be a light at the end of the proverbial tunnel, European coachbuilders will need to streamline to reach it.

[Source: Automotive News (subscription required) via Winding Road]

European coachbuilders will sink or swim in changing market originally appeared on Autoblog on Sun, 06 Jan 2008 19:29:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bankruptbertonecoachbuildereuropeanfightfinancial troubleFinancialTroublekarmannmagnamanufacturenichepininfarinasteyrstrugglesurvivalzagatoSun, 06 Jan 2008 19:29:00 EST