Some things are never as they seem. That's especially true when talking about the bankruptcy of General Motors. From afar, it's easy to look at GM's issue being one of decades of mismanagement, poorly built cars, and a certain, too-big-to-fail mindset. But closer to the situation, as the Detroit-based company was well and truly spiraling out of control in 2009, there was much more that the public wasn't able to notice.
Detroit. The Motor City. Motown. Hitsville, USA. Hockeytown. The largest municipality ever to file for bankruptcy in US history. You can add that last one to Detroit's many titles, as Republican Governor Rick Snyder authorized emergency manager Kevyn Orr to file a petition for bankruptcy yesterday.
The czars – all of them – are dead in the House of Representatives. Even though every "czar" position in government had already been vacated, the House passed a spending bill that officially eliminated the role and forbids the White House from naming more. In some cases, automotive and banking bailouts and executive pay especially, the czar himself was as polarizing as the job he had to do, and the enduring, transformative effects of their work can explain why politicians might targe
The government's Auto Task Force was given the difficult task of saving General Motors and Chrysler at a time when the credit markets were frozen and the economy was in chaos. The team ultimately got the job done by ushering the two iconic companies through extraordinarily short bankruptcies.
The Detroit News is reporting that a federal judge has thrown out a portion of the lawsuit brought against the federal government by Delphi retirees. The former employees of the automotive supplier brought suit against the federal government after their pensions were terminated in bankruptcy proceedings. U.S. District Judge Arthur Tarnow dismissed claims against the U.S. Treasury Department, Timothy Geithner, the auto task force, Steven Rattner and Ron Bloom, though the judge did allow the lawsu
Ron Bloom, the former car czar under President Barack Obama, is being asked to clarify some of the statements he made under oath to the United States Congress last month. Three members of the Congressional oversight committee are specifically interested in the Bloom's denial that he remarked "I did all this for the unions" during a farewell speech. Representative Dan Burton, R-Ind., questioned Bloom about the statement at a hearing of the Subcommittee on Regulatory Affairs, Stimulus Oversight an
'Tis the season once again. We were scratching our heads wondering what to get the car-obsessed men and women in our lives, so we made some lists. This first list contains ideas for stuff that goes under the tree, the kind of car gifts that don't cost an arm and a leg but go over well with the auto lovers in your family.
If you've been squirreling away your pennies in anticipation of General Motors' IPO, we've got news for you. The company released a statement this morning announcing that it has increased its stock price from $26 to $29 per share to $32 to $33 per share. Additionally, General Motors is now planning to offer 80 million shares worth of junior preferred stock at a combined value of $4 billion – up from the initial $3 billion. The news comes after Steven Rattner, the former auto advisor for th
Let's try this again. After having his invitation to speak at the Detroit Economic Club rescinded last month, Steven Rattner, the former auto advisor to the Obama Administration, will get another chance to speak to Detroit. The Automotive Press Association is now hosting a lunch where Rattner will speak with members of the media on November 15, just three days before General Motors launches its IPO.
According to Reuters, the Securities and Exchange Commission is set to settle with the former head of the Obama Administration's auto task force, Steven Rattner. Earlier this year, the SEC charged Rattner with participating in a pay-to-play pension program, but the commission is expected to announce today that the former car czar has agreed to pay a fine of more than $5 million and accept a multi-year ban from the securities industry.
Even more terrifying tales of the automotive bailout are emerging from Steven Rattner's new book. CNN Money reports that, according to the text, Chrysler had an even rougher go of things than General Motors. Rattner, who served as the head of the automotive task force, writes that after congress failed to give Chrysler the $7 billion in funding that the company originally asked for, executives began to scramble to find other ways to keep the operation afloat. That includes Pentastar boss Bob Nar
Steven Rattner, former automotive adviser to President Barack Obama, has just written a juicy account of last year's automotive bailout, complete with insights on the coming and goings of CEOs, courting foreign saviors and the General Motors plan to abandon its Renaissance Center headquarters. In his book, "Overhaul: An Insider's Account of the Obama Administration's Emergency Rescue of the Auto Industry," Rattner says that GM wanted to walk away from its expensive towers in downtown Detroit and
Steven Rattner, the man who headed the Auto Task Force, saved Michigan from bankruptcy, shepherded the still-contentious resurrections of General Motors and Chrysler and will soon have a book on his time in the trenches, has said his little lambs are doing better than he expected they would a year ago. Not only are they outstripping the targets set for them, but he thinks the government could get $40 billion of the $50 billion it threw at GM last year.
Planning for the future is perhaps an alien concept to big business – even automakers, with their protracted product development cycles. Take a cue of what not to do from them, then, and start planning now for next Christmas. May we suggest that your 2010 wishlist starts with what's destined to be a hotly-anticipated tome: Steven Rattner's memoir of his spearheading the bailout of General Motors and Chrysler. Tentatively titled "Overhaul," the cloyingly-named book will tell the story of th
Steve Rattner is a man we admire but do not envy. Rattner, a former Wall Street banking type with zero experience in the automotive or manufacturing world, was tasked by President Obama with guiding General Motors and Chrysler through their restructuring efforts. Not a small job, by any means. Or one we would wish on our worst enemies. That said, it was a HUGE job, and huge jobs typically make for great stories. Rattner, in an article he penned himself for CNN's Money doesn't disappoint. At all.
Steve Rattner, the former Wall Street executive who was tapped by the Obama Administration run point for the Auto Task Force, is reportedly stepping down after five months on the job. According to a statement from Treasury Secretary Timothy Geithner, Rattner (above, far right) will now "transition back to private life and his family in New York City." He added, "I hope that he takes another opportunity to bring his unique skills to government service in the future."