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[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[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[GM suing supplier to keep Camaro production going]]>http://www.autoblog.com/2008/12/27/gm-suing-supplier-to-keep-camaro-production-going/http://www.autoblog.com/2008/12/27/gm-suing-supplier-to-keep-camaro-production-going/http://www.autoblog.com/2008/12/27/gm-suing-supplier-to-keep-camaro-production-going/#commentsFiled under: , , , , ,



Every time GM turns a corner it seems to come face to face with another obstacle. The latest setback concerns supplier Cadence, LLC, which provides interior parts for the 2010 Camaro. Cadence declared bankruptcy in August, and is now in liquidation proceedings. To GM's chagrin, joining Cadence in its descent into commercial tar pits are the specialized machines that GM needs to make parts for the Camaro.

If GM can't get the tooling, there are certain to be disruptions at assembly plants and then on down the food chain. The General would then need to pay to have the tooling made again while it looks for another supplier, a cost GM describes as "substantial." GM would like to have a new supplier in place by January 12, 2009 because Camaro production is slated to begin on February 16, with deliveries in mid-March.

So far, it's unclear as to who actually owns the machines in question - Cadence or GM - and Cadence has had nothing to say on the matter. Regardless, if GM doesn't get its way, then it has to spend a chunk of the money it just fought for to recover old ground. The most recent precedent isn't promising: Chrysler tried to get the tooling from bankrupt parts supplier Plastech, and was denied. Thanks for the tip, Jerry!

[Source: The Wall Street Journal]

GM suing supplier to keep Camaro production going originally appeared on Autoblog on Sat, 27 Dec 2008 09:31:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>2010 camaro2010Camarobankruptcybankruptcy courtBankruptcyCourtcadence llcCadenceLlccamarochevrolet camaroChevroletCamarogmlegalmanufacturingpartssuppliersSat, 27 Dec 2008 09:31:00 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[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[GM's CFO expects Delphi deal in 30 to 60 days]]>http://www.autoblog.com/2006/05/12/gms-cfo-expects-delphi-deal-in-30-to-60-days/http://www.autoblog.com/2006/05/12/gms-cfo-expects-delphi-deal-in-30-to-60-days/http://www.autoblog.com/2006/05/12/gms-cfo-expects-delphi-deal-in-30-to-60-days/#commentsFiled under: ,

The word is out that General Motors' Chief Financial Officer Fritz Henderson told a meeting of investment analysts this week that he expects a deal with Delphi and the United Auto Workers within 30 to 60 days - a prediction that left some analysts shaking their heads, believing that Henderson is being overly optimistic given the complexity of the situation.

Although saying that the bankruptcy court judge is strongly encouraging Delphi and the unions to reach a consensus agreement, a GM spokesperson stopped short of confirming Henderson's prediction of a settlement timeline.

Henderson is undoubtedly praying for a quick settlement to the Delphi mess, as the likely alternative - a messy strike that would shut down GM production - would blow the company's fragile recovery strategy out of the water.

[Source: Reuters]

GM's CFO expects Delphi deal in 30 to 60 days originally appeared on Autoblog on Fri, 12 May 2006 16:04:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>auto workersbankruptcy courtdelphiuawunited auto workersFri, 12 May 2006 16:04:00 EST<![CDATA[Delphi, unions fight it out in court]]>http://www.autoblog.com/2006/05/10/delphi-unions-fight-it-out-in-court/http://www.autoblog.com/2006/05/10/delphi-unions-fight-it-out-in-court/http://www.autoblog.com/2006/05/10/delphi-unions-fight-it-out-in-court/#commentsFiled under: ,

Bankrupt auto parts manufacturer Delphi and the unions representing its 33,0000 workers had their first day in court Tuesday, as the U.S. Bankruptcy Court opened its hearing on Delphi's request for permission to terminate its labor contracts with the unions.

Although Delphi says that it would not necessarily exercise the authority to terminate the contracts, preferring to reach a negotiated settlement with the unions, the UAW counter that the unions would effectively be negotiating with a gun to their heads - hardly the sort of scenario that would lead to an equitable settlement.

Encouraging the parties to continue to negotiate in parallel with the hearing, Judge Robert Drain suggested that the judicial process will not be over quickly - the three days originally scheduled to hear arguments from both sides are unlikely to be sufficient to hear all of the 32 witnesses scheduled to appear, and after the hearing is over, the Judge Drain has 30 days to reach his decision.

Meanwhile, the UAW strike vote process is likely to grant union leaders the authority to call a strike against Delphi as early as May 14. No amount of contingency planning will protect General Motors in the event of a shutdown of its largest supplier, and the automaker would be forced to close its doors in a matter of days, with a potentially devastating impact on its recovery plans. No wonder Rick Wagoner, GM's CEO, said Tuesday that helping Delphi and the unions resolve their issues is at the top of GM's to-do list.

[Source: Detroit News]

Delphi, unions fight it out in court originally appeared on Autoblog on Wed, 10 May 2006 14:33:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bankruptcybankruptcy courtdelphijudge drainlabor contractuawunionWed, 10 May 2006 14:33:00 EST