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[Auto Task Force says no more money for auto bailouts... probably]]>http://www.autoblog.com/2009/06/11/auto-task-force-says-no-more-money-for-auto-bailouts-probably/http://www.autoblog.com/2009/06/11/auto-task-force-says-no-more-money-for-auto-bailouts-probably/http://www.autoblog.com/2009/06/11/auto-task-force-says-no-more-money-for-auto-bailouts-probably/#commentsFiled under: , ,



To date, the U.S. government has reportedly given General Motors, Chrysler, their financial institutions and various industry suppliers about $80 billion in taxpayer money, and Congress wants to know when we're going to get that money back. The Senate Banking, Housing and Urban Affairs Committee held a hearing with the Auto Task Force for the first time to discuss the state of the government loans, as well as whether or not taxpayers will ever be paid back.

According to task force senior adviser Ron Bloom, there is "a reasonable probability" that some or all of the money will be paid back, but he was by no means "highly confident" that the money would be returned to taxpayers. He does, though, see "reasonable scenarios where taxpayers get their money back."

Bloom was a bit more certain, however, about the prospects of the auto industry receiving still more money from the government. Bloom said that it was the Obama administration's "absolute intent" not to provide future funding to the bailed out automakers, but he followed that with "never say never." That's far from a guarantee, but it would appear that more money doesn't seem to be in the plans.

During his testimony, Bloom also reiterated that the administration was a "reluctant shareholder" in the automakers, and that the government intends to get out the car business as soon as possible. When Alabama senator Richard Shelby (R) pressed for a timeline for the government to exit GM ownership, Bloom admitted that there was "no specific target" set.

[Source: The Associated Press via MSNBC | Image: Chip Somodevilla/Getty]

Auto Task Force says no more money for auto bailouts... probably originally appeared on Autoblog on Thu, 11 Jun 2009 19:03:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Auto Task Forceautomotive task forceAutomotiveTaskForceAutoTaskForcebailoutbridge loanBridgeLoanobamaRon bloomRonBloomSenateThu, 11 Jun 2009 19:03:00 EST<![CDATA[Officially, Official: GM files for Chapter 11 bankruptcy]]>http://www.autoblog.com/2009/06/01/officially-official-gm-files-for-chapter-11-bankruptcy/http://www.autoblog.com/2009/06/01/officially-official-gm-files-for-chapter-11-bankruptcy/http://www.autoblog.com/2009/06/01/officially-official-gm-files-for-chapter-11-bankruptcy/#commentsFiled under: , , ,



The die is cast: General Motors has filed for bankruptcy. As expected, the automotive giant filed for Chapter 11 bankruptcy protection this morning in a New York court, listing $82 billion in assets and $172 billion in debts.

As we told you earlier, the century-old company will gain extensive assistance from the U.S. government, the former chipping in $30 billion in financing (GM has already received over $19 billion), that latter of which is expected to work extensively with the automaker as it goes through bankruptcy proceedings that will see the company's assets split into "Good GM" and "Bad GM," the latter of which will be liquidated.

According to the Detroit Free Press, the Obama administration has said that it will manage its holdings in GM (the government gets a 60% stake) in a "hands-off" non-interference fashion, with no White House employees serving on the board or being employed by the automaker. However, Capitol Hill will get the chance to influence company proceedings, as it will vote on core issues of governance that include "selecting the company's board of directors and major corporate transactions." While that may not equate to day-to-day management decisions, the government will certainly have the ability to influence company plans through appointments and such decision-making processes.

You can read more about the filing and the ramifications at the link below.

[Source: Detroit Free Press | Image: Michael Heiman/Getty]

Officially, Official: GM files for Chapter 11 bankruptcy originally appeared on Autoblog on Mon, 01 Jun 2009 09:26:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bailoutbreakingbreakingnewsbridge loanBridgeLoanGeneral MotorsGeneralMotorsGMGovernment MotorsGovernmentMotorsObamaMon, 01 Jun 2009 09:26:00 EST<![CDATA[BREAKING: BBC says Magna has agreed to take majority stake in Opel from GM]]>http://www.autoblog.com/2009/05/29/breaking-bbc-says-magna-has-agreed-to-take-majority-stake-in-op/http://www.autoblog.com/2009/05/29/breaking-bbc-says-magna-has-agreed-to-take-majority-stake-in-op/http://www.autoblog.com/2009/05/29/breaking-bbc-says-magna-has-agreed-to-take-majority-stake-in-op/#commentsFiled under: , , , , ,



According to the BBC News, supplier Magna International has come to terms with General Motors to purchase a majority stake in its European Opel division. While an agreement has been reached between the two parties, the German government - which has agreed to provide financial assistance for Opel - needs to sign off on the matter. Magna and GM have signed a memorandum of understanding that will reportedly help Opel secure some 1.5 billion euros ($2.1B USD) in bridge loans, as well as shore up protections against creditors in the event of a GM bankruptcy.

For its part, Magna will reportedly pour somewhere between 500-700 million euros into Opel, and it plans to cut 10% of the marque's workforce in Germany - about 2,500 employees.

Interestingly, GM will reportedly hold on to a 35% stake in the brand, while Opel workers themselves will end up with 10% of the company. No word yet on what will happen to Vauxhall, Opel's UK twin. Thanks to everyone for the tips!

[Source: BBC]

BREAKING: BBC says Magna has agreed to take majority stake in Opel from GM originally appeared on Autoblog on Fri, 29 May 2009 13:27:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>breakingbreakingnewsbridge loanBridgeLoanGeneral MotorsGeneralMotorsGermanGMmagnamagna internationalMagnaInternationalsupplierVauxhallFri, 29 May 2009 13:27:00 EST<![CDATA[DetNews columnist warns of the dangers of nationalizing GM]]>http://www.autoblog.com/2009/04/29/detnews-columnist-warns-of-the-dangers-of-nationalizing-gm/http://www.autoblog.com/2009/04/29/detnews-columnist-warns-of-the-dangers-of-nationalizing-gm/http://www.autoblog.com/2009/04/29/detnews-columnist-warns-of-the-dangers-of-nationalizing-gm/#commentsFiled under: , ,



Detroit News columnist Daniel Howes has penned a commentary on what he believes the "mind-numbing" future could be if the White House and the United Auto Workers end up with majority control of General Motors.

Howes fears that a government-and-UAW-controlled boardroom would end up an echo chamber, with both parties worried mainly about maintaining jobs and recouping their investments first. Those left on the outside - and poorer for it - would be the "short-changed" investors and "neutered" bondholders. Ford would also be left to deal with the repercussions of having the government as its next door competitor.

The scenario he paints could be considered slightly alarmist, and frankly, there's a nice hopscotch through American history of the government taking previously unheard of steps when dealing with labor and private enterprise. Howes is also presenting a scenario in which the government fails to execute efficient oversight of the company that it has repeatedly said it does not want to own, and he also lets those "wiped out" investors and "neutered" bondholders completely off the hook for responsibility for GM's current state. As a Ford representative said, "it's uncharted waters for us." That goes for the rest of the country as well... and we won't know the future's tale until it's told.

[Source: Detroit News]

DetNews columnist warns of the dangers of nationalizing GM originally appeared on Autoblog on Wed, 29 Apr 2009 16:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bailoutbridge loanBridgeLoandaniel howesDanielHowesfederalizegmgovernmentnationalizeUAWWed, 29 Apr 2009 16:00:00 EST<![CDATA[REPORT: UAW agrees to ban strikes?(!)]]>http://www.autoblog.com/2009/04/29/report-uaw-agrees-to-ban-strikes/http://www.autoblog.com/2009/04/29/report-uaw-agrees-to-ban-strikes/http://www.autoblog.com/2009/04/29/report-uaw-agrees-to-ban-strikes/#commentsFiled under: , ,



According to a post on The Detroit Bureau, a key stipulation in the tentative contract reached between the United Auto Workers and Chrysler is that the union's right to strike will be all but eliminated for at least the next few years.

As quoted in the story, Harley Shaiken, a labor relations specialist at UC-Berkeley, notes that the so-called "no strike" portion of the agreement was arrived at "in the context that it will take anywhere from three to five years for this company to recover." According to TDB, the provisos of the bridge loan means that a strike would be viewed as a default on the agreement, including any local strikes.

The same contract apparently calls for binding arbitration (instead of strikes) on financial issues for any contract arrived at in 2011, and the same arrangement will be in effect in 2015 if Chrysler still owes money to the Treasury Department.

The contract goes in front of the UAW's 28,000+ members for a vote today. Click on the link below for more details.

[Source: The Detroit Bureau | Source Image: Bill Pugliano/Getty]

REPORT: UAW agrees to ban strikes?(!) originally appeared on Autoblog on Wed, 29 Apr 2009 14:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Auburn HIllsAuburnHillsbailoutbridge loanBridgeLoanChryslercontractHarley ShaikenHarleyShaikenlabor relationsLaborRelationsnegotiationsThe Detroit BureauTheDetroitBureauUAWUnionUnited Auto WorkersUnitedAutoWorkersWed, 29 Apr 2009 14:00:00 EST<![CDATA[REPORT: GM lobbying Congress for $7B in tax relief]]>http://www.autoblog.com/2009/02/02/report-gm-lobbying-congress-for-7b-in-tax-relief/http://www.autoblog.com/2009/02/02/report-gm-lobbying-congress-for-7b-in-tax-relief/http://www.autoblog.com/2009/02/02/report-gm-lobbying-congress-for-7b-in-tax-relief/#commentsFiled under: , , ,

Ask for a little help from the government, and the next thing you know you're asking for the government to protect you from the very help it's giving you. General Motors is restructuring its debt load by offering equity shares instead of cash to debt holders, namely the government and the UAW. The UAW transaction concerns the VEBA health care fund in that GM wants to pay its obligation to the fund with shares.

The issue is that this transaction is a debt-asset swap and comes with a distressed asset tax (DAT) of $7 billion. The DAT was codified in 1986 to prevent companies from buying money-losing companies just to avoid paying taxes. In GM's case, the debt-asset swap counts as corporate income, but GM can claim it's 2008 losses against that income, greatly reducing its tax bill.

If the tax isn't waived, GM will need to immediately return $7 billion of the money it was just given. It is talking to the Treasury Department, but so far it's been no dice. GM has been lobbying to have a waiver provision put in the economic stimulus bill currently being wrangled over in the Senate, yet there's also been no movement there, either. It's almost inconceivable that the government will demand GM pay the tax. It's equally hard to believe that this is even taking place.

[Source: Detroit News via Market Watch]

REPORT: GM lobbying Congress for $7B in tax relief originally appeared on Autoblog on Mon, 02 Feb 2009 10:59:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bridge loanBridgeLoanearningsfinancialsgmgm bailoutgm bridge loanGmBailoutGmBridgeLoangovernmenttaxuawMon, 02 Feb 2009 10:59:00 EST<![CDATA[Saab not long for the U.S. market, GM unsure of other brands' futures]]>http://www.autoblog.com/2009/02/02/saab-not-long-for-the-u-s-market-gm-unsure-of-other-brands-fut/http://www.autoblog.com/2009/02/02/saab-not-long-for-the-u-s-market-gm-unsure-of-other-brands-fut/http://www.autoblog.com/2009/02/02/saab-not-long-for-the-u-s-market-gm-unsure-of-other-brands-fut/#commentsFiled under: , , , , ,



Let's go ahead and get it out there: General Motors doesn't have a plan for Saab, Saturn, or HUMMER - it has a bunch of hopes, ideas and proposals. The best that GM can do with Saab is try to extricate the brand from its entangled web, which might make it more attractive to a buyer. That includes moving 9-3 and 9-5 production to Sweden and being "engaged with the Swedish government" on a plan for Saab's future. But GM has admitted that "Saab is not a U.S. strategy," and the code behind that statement is probably, "We get rid of or kill it."

GM's focus is on Chevrolet, Cadillac, Buick and GMC, and Pontiac "will shrink substantially." The other brands appear to be waiting out their death row sentences on appeal. Saturn, like Saab, is so entrenched in GM that an outside buyer is a remarkably dim prospect. Saturn production is funded until 2012 (for now), but unless GM finds a partner or folds it into the mothership, it would appear to have no future beyond then. HUMMER is living like a medieval leper, locked up in a shed outside the castle walls.

But let's also get this out there: there are two ways out of this impasse. One of them is to spend a lot of money assisting GM. The other is to let GM fail and spend a lot of money cleaning up after GM. (Remember our perspective on "a lot of money:" Citibank got $45 billion after a couple of phone calls and recently had to be asked by the Obama administration not to spend $50 million on a French corporate jet.)

In two weeks GM is supposed to "show that it is likely to achieve long-term profitability and has a positive net present value." Let's be honest: there is no way GM (nor Chrysler) can prove long term viability in the next 15 days. (Neither could many companies if they had to.) If GM's viability plan is rejected, the government could ask for its $13.4 billion dollars back, which would be the equivalent of taking GM out back and shooting it. And that would be the equivalent of emptying another ammo clip into the economy's slowly-beating heart. All of which is to say that we have no idea how this will play out, but we're pretty sure that this is only the beginning of the beginning.

[Source: Automotive News, sub req'd]

Saab not long for the U.S. market, GM unsure of other brands' futures originally appeared on Autoblog on Mon, 02 Feb 2009 10:29:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>auto industry bailoutAutoIndustryBailoutbridge loanBridgeLoanbuickchevroletearningsgmgm bailoutgm bridge loanGmBailoutGmBridgeLoangmcgovernmenthummerpontiacsaabsaturnMon, 02 Feb 2009 10:29:00 EST<![CDATA[UAW agrees to suspend GM job banks on Feb 2]]>http://www.autoblog.com/2009/01/28/uaw-agrees-to-suspend-gm-job-banks-on-feb-2/http://www.autoblog.com/2009/01/28/uaw-agrees-to-suspend-gm-job-banks-on-feb-2/http://www.autoblog.com/2009/01/28/uaw-agrees-to-suspend-gm-job-banks-on-feb-2/#commentsFiled under: , , ,

The UAW idled Chrysler's jobs bank earlier this week, and as of February 2, the UAW and General Motors will shut down the job bank it also maintains for its workers. GM is paying the 1,600 workers currently in the system 85% of their on-the-job wages. As of February 3, they will receive a measure of supplemental pay from GM and can apply for unemployment, the total of which should come to 72% of their former pay. The move potentially leaves Ford's jobs bank as the only one left running, but Ford has yet to comment on its status.

[Source: The Detroit News]

UAW agrees to suspend GM job banks on Feb 2 originally appeared on Autoblog on Wed, 28 Jan 2009 15:22:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>auto industry bailoutAutoIndustryBailoutbridge loanBridgeLoanfinancialsgmjob bankJobBankjobs bankJobsBankmanufacturingplantsuawunionWed, 28 Jan 2009 15:22:00 EST<![CDATA[GM plans to trim 400 dealers per year until 2012]]>http://www.autoblog.com/2009/01/26/gm-plans-to-trim-400-dealers-per-year-until-2012/http://www.autoblog.com/2009/01/26/gm-plans-to-trim-400-dealers-per-year-until-2012/http://www.autoblog.com/2009/01/26/gm-plans-to-trim-400-dealers-per-year-until-2012/#commentsFiled under: , ,



Dealership rationalization was something General Motors was looking at well before the economy went pear-shaped. GM still has more than 6,300 dealerships in the U.S., and it is even more important now to start shedding some of that financial burden. That is why The General told dealers at the NADA conference that it plans to get rid of 1,600 dealerships by 2012.

GM's initial viability plan to Congress proposed an eventual reduction to 4,000 dealerships. No one knows yet, though, how GM plans to do that. GM said it will explain the dealer elimination plan in the follow-up viability plan it submits to Congress on February 17. Said one GM dealer, "They basically said, 'We're looking for strong dealers, and if you're not a strong dealer, you better evaluate your options."

GM did say that 400 dealers per year being shut isn't a firm number, simply a target. Nevertheless, dealers are none too happy. Some dealers say GM is using GMAC to force dealers out by setting capital requirements beyond a dealer's reach. GM says it has no intention of using GMAC in such a way. When the time comes, dealership liquidation will be be judged market by market, and based on a number of factors including age, location, volume, capitalization and customer satisfaction. While the plan will obviously save GM money in the long term and make it more efficient, in the short term it is going to cost GM a fortune to close 1,600 locations.

[Source: Automotive News, sub req'd, Photo by Justin Sullivan/Getty]

GM plans to trim 400 dealers per year until 2012 originally appeared on Autoblog on Mon, 26 Jan 2009 14:43:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bridge loanBridgeLoancongressdealerdealersdealershipdealershipsgmgm bailoutgm dealersgm dealershipsGmBailoutGmDealersGmDealershipsnadaMon, 26 Jan 2009 14:43:00 EST<![CDATA[GM funds Saturn through 2012]]>http://www.autoblog.com/2009/01/26/gm-funds-saturn-through-2012/http://www.autoblog.com/2009/01/26/gm-funds-saturn-through-2012/http://www.autoblog.com/2009/01/26/gm-funds-saturn-through-2012/#commentsFiled under: , , ,



The good news: Saturns will remain in production until 2012 or 2013... at least. The bad news: the Saturns currently being produced might not get any new updates or engineering before then. That's the bitter and the sweet that GM revealed to Saturn dealers at the NADA conference.

On the warm, fuzzy side of things, dealers are -- for the moment -- just happy to hear that Saturn isn't "going away in 30 days." While on the cold, dark side of reality it's clear that GM doesn't have much money, doesn't know how much it's ultimately going to get in loans, and can't fully fund all of its brands. That means that refreshing and re-engineering the current offerings might have to wait until the crystal ball is a little clearer.

It also means that Saturn could still be killed, it simply won't happen for another three or four years. Saturn's general manager said the brand's future should be known in the next three or four weeks and that the prime directive of the future will be to operate with a profitable business model, which has only happened once in Saturn's 20 years.

[Source: Automotive News - Sub. Req.]

GM funds Saturn through 2012 originally appeared on Autoblog on Mon, 26 Jan 2009 10:33:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bridge loanBridgeLoanfinancialsgmmanufacturingnadaproductionsaturnsaturn dealersSaturnDealersMon, 26 Jan 2009 10:33:00 EST<![CDATA[Chrysler job bank going on hiatus Monday]]>http://www.autoblog.com/2009/01/25/chrysler-job-bank-going-on-hiatus-monday/http://www.autoblog.com/2009/01/25/chrysler-job-bank-going-on-hiatus-monday/http://www.autoblog.com/2009/01/25/chrysler-job-bank-going-on-hiatus-monday/#commentsFiled under: , , ,

The UAW jobs bank is a kind of employment limbo in which workers get paid a portion of their salary but don't work while they wait for their job to open up again. Last year, there were about 3,500 people in this so-called bank of jobs. It is the kind of benefit that can perplex an outsider, because someone can remain in the job bank for years and still get a wage from the company, plus supplemental pay from the company, plus unemployment benefits, plus insurance.

That was the kind of thing that Congress zeroed in on when it created stipulations for granting GM and Chrysler $17.4 billion in bridge loans. The intent was to get domestic automaker costs in line with those of foreign automakers by not paying people who aren't actually working. Due to that, Chrysler's job bank will officially end on Monday, with workers still in the bank being moved to another quizzical state: "enhanced layoff." Those folks will keep their insurance and should receive some kind of job benefits.

The union has told its members that "these provisions will only be in effect until such time as the mandates from the U.S. Treasury Department have been clarified," which would appear to leave the possibility open for a return of the job bank. Chrysler has only said is is working "with its UAW partners to comply with the terms and conditions outlined." GM is still wrangling with the UAW over its job bank. Ford, having sat out the government bailout, hasn't clarified its position on the matter.

[Source: Freep]

Chrysler job bank going on hiatus Monday originally appeared on Autoblog on Sun, 25 Jan 2009 09:35:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bridge loanBridgeLoanchryslerearningsfinancialsjob bankJobBankjobs bankJobsBankuawunionSun, 25 Jan 2009 09:35:00 EST<![CDATA[Followup: GM receives second gov't loan installment of $5.4 billion ]]>http://www.autoblog.com/2009/01/22/followup-gm-receives-second-govt-loan-installment-of-5-4-bill/http://www.autoblog.com/2009/01/22/followup-gm-receives-second-govt-loan-installment-of-5-4-bill/http://www.autoblog.com/2009/01/22/followup-gm-receives-second-govt-loan-installment-of-5-4-bill/#commentsFiled under: , ,

Cue the angels! General Motors reports that it has received the second installment of the $13.4 billion government loan that it was promised by former President Bush late last month. Sure, it may have arrived a few days late, leading GM's coffer-keepers to anxiously check their mailboxes every few minutes, but it showed up with time to spare before The General ran out of funds to pay the bills on March 31st.

For those keeping track, GM's total draw from the bridge loan so far rings the taxpayers' registers to the tune of $9.4 billion, leaving $4B still to come at a later date. In order to keep the money, GM must go back to Congress by February 17th with a full progress report detailing how it is fairing in reducing its current $28 billion in debt.

[Source: Automotive News - sub. req'd]

Followup: GM receives second gov't loan installment of $5.4 billion originally appeared on Autoblog on Thu, 22 Jan 2009 15:28:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>auto bailoutAutoBailoutbailoutbridge loanBridgeLoangm bailoutgm bridge loanGmBailoutGmBridgeLoanThu, 22 Jan 2009 15:28:00 EST<![CDATA[GM warns it could be out of cash by March 31 if second $5.4M loan is delayed]]>http://www.autoblog.com/2009/01/21/gm-warns-it-could-be-out-of-cash-by-march-31st-if-second-5-4m-l/http://www.autoblog.com/2009/01/21/gm-warns-it-could-be-out-of-cash-by-march-31st-if-second-5-4m-l/http://www.autoblog.com/2009/01/21/gm-warns-it-could-be-out-of-cash-by-march-31st-if-second-5-4m-l/#commentsFiled under: , ,

General Motors is ringing the alarm bell over a delay in the second installment of its bridge loan. Chrysler faced the same thing when it was waiting on its first installment, but eventually got its money in time.

GM puts the delay down to having to fill out a great deal of paperwork and having to wait on the Treasury to finish doing the ballroom-and-cocktail circuit during a little thing called the presidential inauguration. GM President Fritz Henderson said the money should arrive "in the next several days." And even though it's still only January, just in case you needed a reminder, he also said "If we don't get our second installment ... we'll run out of cash" by March 31. Cue the wailing and gnashing of teeth...

[Source: Detroit Free Press]

GM warns it could be out of cash by March 31 if second $5.4M loan is delayed originally appeared on Autoblog on Wed, 21 Jan 2009 19:01:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>auto industry bailoutAutoIndustryBailoutbailoutbridge loanBridgeLoanearningsfinancialsfritz hendersonFritzHendersongeneral motorsGeneralMotorsgmWed, 21 Jan 2009 19:01:00 EST<![CDATA[REPORT: French government calls for auto execs to forego bonuses]]>http://www.autoblog.com/2009/01/21/report-french-government-calls-for-auto-execs-to-forego-bonuses/http://www.autoblog.com/2009/01/21/report-french-government-calls-for-auto-execs-to-forego-bonuses/http://www.autoblog.com/2009/01/21/report-french-government-calls-for-auto-execs-to-forego-bonuses/#commentsFiled under: , , , , ,

The French government has put €6 billion ($7.79 billion USD) on the table for car companies. And as part of the effort to make sure that every drop of the money goes toward maximizing performance and retaining jobs, the French government has asked that Peugeot/Citroen and Renault company bosses take a pass on their bonuses.

Renault responded by saying that its execs were told seven months ago that there would be no extra fat for them. Peugeot/Citroen said its remuneration committee would determine the fate of executive bonuses when its 2008 results are known next month. The French government probably won't make executive compensation a key component of the deal, but just as in the U.S., French auto execs are likely looking at their banking industry counterparts and wondering: "Why is all the heat on us?"

[Source: Automotive News, sub req'd]

REPORT: French government calls for auto execs to forego bonuses originally appeared on Autoblog on Wed, 21 Jan 2009 18:29:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>auto industry bailoutAutoIndustryBailoutbailoutbonusesbridge loanBridgeLoancitroeneuroeuropeexecutive bonusExecutiveBonusexecutivesfinancingfrancegovernmentgovernment loansGovernmentLoanspeugeotpsarenaultWed, 21 Jan 2009 18:29:00 EST<![CDATA[Deadline passes without word on critical GMAC bond-exchange vote]]>http://www.autoblog.com/2008/12/29/deadline-passes-without-word-on-critical-gmac-bond-exchange-vote/http://www.autoblog.com/2008/12/29/deadline-passes-without-word-on-critical-gmac-bond-exchange-vote/http://www.autoblog.com/2008/12/29/deadline-passes-without-word-on-critical-gmac-bond-exchange-vote/#commentsFiled under: , ,

GMAC, General Motors' finance arm, was granted bank holding status, but there is still no word on whether the bond buyback was successful. The deadline for GMAC to have converted enough of its bonds - said to be 75 percent - into $28 billion in liquidity was on Friday, December 26, at 11:59 p.m. In return for bondholders converting their bonds to those of lesser value, they would receive a higher dividend.

Two weeks ago, GMAC said it found a slew of new bondholders, but didn't say whether the new participants would put it above the threshold. Now more than two days past the deadline, GMAC has only said "We have not yet issued final results but intend to in the near term." This kind of silence usually means that things didn't go as planned, but other plans are afoot. While it's not impossible, we'd be shocked if GM had fulfilled The Fed's requirements by the deadline and chose to remain quiet about it.

After all, success for GMAC means success for GM. But bankruptcy for GMAC - which could happen without access to TARP funds - could mean something very close to doom for a lot of dealers and for GM. Our guess is that GMAC and The Fed are trying to figure out the best way forward, because it is certain that the government doesn't want to see its $17.4 billion dollar investment go bust because GM lost on a side bet less than a month later.

[Source: New York Times]

Deadline passes without word on critical GMAC bond-exchange vote originally appeared on Autoblog on Mon, 29 Dec 2008 13:28:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>auto bailoutAutoBailoutbank holding companyBankHoldingCompanybridge loanBridgeLoanearningsfinancialgmgmactarp fundtarpfundMon, 29 Dec 2008 13:28:00 EST<![CDATA[Blame Game: Survey says who's at fault ? Management or union?]]>http://www.autoblog.com/2008/12/27/blame-game-survey-says-whos-at-fault-management-or-union/http://www.autoblog.com/2008/12/27/blame-game-survey-says-whos-at-fault-management-or-union/http://www.autoblog.com/2008/12/27/blame-game-survey-says-whos-at-fault-management-or-union/#commentsFiled under: , , , ,



Each month, the American Pulse Survey seeks respondents' opinions regarding various political, pop culture and economic issues. Seeing that the auto bailout is a hot topic these days, it is unsurprising that much of the latest survey centered on the $17.4 billion in so-called bridge loans to the Detroit 3 automakers. So, who's to blame for the Motor City's downfall? Survey says: bad management (78.8 percent), the UAW (63.8 percent) and global economic uncertainty (57.7 percent); so say 4,117 Americans.

59.1 percent of respondents believe that the union should offer concessions to the automakers. Lastly, about half of Americans surveyed say that they are just as likely to consider a car from Detroit as they were before all this mess started.

Oh, just two more nuggets: The survey also notes that those surveyed find that "Grandma Got Run Over By a Reindeer" is the most annoying Christmas song, and 6.7 percent of respondents still believe in Santa. Amazingly, we're not kidding.

[Source: MSNBC]

Blame Game: Survey says who's at fault ? Management or union? originally appeared on Autoblog on Sat, 27 Dec 2008 10:58:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>17.4American Pulse SurveyAmericanPulseSurveyAPSauto bailoutAutoBailoutBail OutBailOutbridge loanbridge loansBridgeLoanBridgeLoansdetroit bailoutdetroit bridge loansDetroitBailoutDetroitBridgeLoansUAWUnionSat, 27 Dec 2008 10:58:00 EST<![CDATA[BREAKING: Bush greenlights $17.4 billion Auto Rescue/Bailout package]]>http://www.autoblog.com/2008/12/19/breaking-bush-greenlights-14-7-billion-auto-rescue-bailout-pac/http://www.autoblog.com/2008/12/19/breaking-bush-greenlights-14-7-billion-auto-rescue-bailout-pac/http://www.autoblog.com/2008/12/19/breaking-bush-greenlights-14-7-billion-auto-rescue-bailout-pac/#commentsFiled under: , , ,



President George W. Bush will doubtlessly be remembered for many things things, but his parting legacy may yet be his eleventh-hour pledge of $17.4 billion in low-interest loans to General Motors and Chrysler (Ford Motor Company has said it does not require relief at this time).

The funding will reportedly come from the Troubled Asset Relief Program (TARP), the financial industry bailout package signed off on this fall. Up front, the White House will earmark $17.4 billion in short-term financing for December and January, and in February, another $4 billion will be disbursed, provided it can draw the funds from the second half of TARP's $700 billion.

More details are doubtlessly coming, but the bridge loans appear to hinge largely on whether General Motors and Chrysler are deemed "viable" enterprises by the government. In the terms of the agreement, that means that the automakers must prove whether they have a "positive net present value, taking into account all current and future costs, and can fully repay the government loan." There's no word yet on how they will prove said viability, but we expect to learn more soon. In the meantime, expect for both General Motors and Chrysler to stick to their previous production suspension announcements.

Politico has more specifics on the bailout here.

UPDATE: Press releases from General Motors, Ford and Chrysler have been added after the jump.

[Sources: ABC NEWS, Politico, Photo by Brendan Hoffman/Getty]

Continue reading BREAKING: Bush greenlights $17.4 billion Auto Rescue/Bailout package

BREAKING: Bush greenlights $17.4 billion Auto Rescue/Bailout package originally appeared on Autoblog on Fri, 19 Dec 2008 09:32:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>ABC NewsAbcNewsBailoutBig 3Big3breakingBridge loanBridgeLoanBushChryslerDetroit 3Detroit3General MotorsGeneralMotorsGMLoanMullalyNardelliPoliticoTARPTroubled Asset Relief ProgramTroubledAssetReliefProgramWagonerWhite HouseWhiteHouseFri, 19 Dec 2008 09:32:00 EST