Tesla Motors' $2.8 billion offer for SolarCity would boost debt, and speed up cash-burn, analysts say.
It looks like Beijing Automotive Industry Holding Corp. (BAIC), which was recently reported to be taking a look at unnamed European automakers for a potential acquisition, has come to this side of the Pond. The latest news is that BAIC is targeting extended-range plug-in vehicle maker Fisker Automotive for a possible buyout, Automotive News China reports, citing various Chinese media sources. BAIC executives visited Fisker's offices in Southern California last week, according to Automotive News
General Motors would like to cut 2,000 skilled trade workers by March 2011, and the company is reportedly willing to part with $60,000 per employee to reach its goal. Bloomberg reports that The General is offering the hefty incentive to entice its highly paid skilled trades workers at 14 plants across America. Eight of those plants are scheduled for closure and two more facilities could shut down if demand drops off, no doubt making the money look even more attractive.
According to Ford spokesman Mark Truby, "Despite a strengthening in our business, we still have a surplus in employees." Union employees to be specific. As such, Ford has just announced plans to reduce its unionized workforce by offering a buyout package to all 41,000 UAW members currently employed by the automaker.
The Detroit Free Press is reporting that Chrysler is again offering early retirement packages in an effort to entice some of its 23,000 hourly employees to hit the road. The buyout packages are the first offered by post-bankruptcy Chrysler, though the terms of the buyouts are very similar to earlier offerings. The Freep is reporting that all workers with at least one year of service can walk away from their current job and receive $75,000 plus a $25,000 voucher. Those who wish to participate in
Wendelin Wiedeking sat at the helm of Porsche for 16 of the company's most successful years. Under Wiedeking's watch, Porsche blessed the world's roads with the Boxster, Cayman, Carrera GT, Cayenne and now the Panamera. According to Wiedeking's lawyers, he Porsche and Piech families thought that was enough to warrant a 140 million euros ($199 million) payment to get the successful leader to leave the company.
General Motors is looking to reduce its salaried (read: non-unionized) workforce by 5,000 employees by the end of the year, leaving the beleaguered automaker with 27,000 white-collar jobs in total. This 15% head-count reduction is part of an ongoing effort to trim costs as the automaker continues to hemorrhage cash.
Ford is hoping to continue the reduction of both the number of vehicles the automaker will produce and, correspondingly, its hourly blue-collar workforce. In order to make good with the UAW, the same buyout packages available last year are being extended to these unionized workers. The packages have not changed since they were offered to Ford employees in Kentucky in June of 2007. These latest buyout announcements involve workers from plants in either Michigan or Ohio, a further blow to the alre
A key part of Chrysler LLC's agreement last year with the UAW gave the automaker the ability to hire new employees at a fraction of wages and health care of current workers. Since the deal was signed, Chrysler has been trying to show high-cost workers the door. The privately-owned automaker had a goal of 10,000 overall buyouts to cut labor costs, but it doesn't look like the Pentastar is going to get its wish. UAW Vice President General Holiefield told the Detroit Free Press that he didn't think
Once you have cut everyone, who is left to cut? That's the problem facing GM, according to UAW President Ron Gettelfinger. The General has already harvested the low hanging fruit with previous buyouts, but they're embarking on another round to try and further reduce labor costs. We've already covered the specifics of GM's latest buyout offer that attempts to sweeten the enticement to leave so that cheaper labor can be brought in. The new offer was made to 74,000 employees, and Gettelfinger estim
According to an inside source who spoke with Automotive News, Ford will be narrowing down the potential suitors for Jaguar and Land Rover by the end of the week. While not nearly as entertaining, or enticing, as most prime-time match-making shows, the dwindling bidder list confirms a few names that we've heard before and a few others we'll surely get to know soon.
Former Ford exec Nick Scheele is joining former Ford CEO Jacques Nasser as potential buyers of the Blue Oval's remaining British marques. Scheele has joined Ripplewood Holdings as an advisor, as Sir Nick has intimate knowledge of Jaguar from his time as leader of the brand in the 90's, and he was in charge of Ford of Europe when Ford purchased Land Rover. Ripplewood partner and former Chrysler President Tom Stallkamp recruited his old pal Scheele to help analyze the potential purchase. By some a
Back in late February we reported on Chrysler's early retirement and separation program that the automaker hoped would help it shed 13,000 jobs over the next three years. The company was planning on saying goodbye to about 5,700 hourly (read: union) workers this year, of which around 1,000 would be from Canada. That means Chrysler hoped at least 4,700 of its hourly workers in the U.S. would take the buyout offer that offered a lump sum of up to $100,000 to workers willing to leave.
After months of speculation, the Chrysler sale happened without too much fanfare on Monday morning, as Cerberus came out as the top bidder, and several potential investors came away empty-handed. One of the few groups vying for control of Chrysler was its own employees, and Automotive News is reporting that those UAW members feel they never got a real chance.