GM plans comeback ahead of schedule
General Motors is preparing to relaunch itself as a leaner company by mid-July, a month earlier than envisaged when the Detroit carmaker filed for bankruptcy protection on June 1.
The judge overseeing GM’s chapter 11 case has set today (June 19) as the deadline for objections to its restructuring plan for most parties.
Barring a surprise, GM and its advisers are confident that none of the roughly 500 objections submitted so far will derail the timetable.
Most of the objections raised so far relate to suppliers’ concerns about the amount and timing of payments by the ‘new’ GM under contracts taken on by the existing company.
Assets of the ‘old’ GM will remain in chapter 11 to be sold or wound down for the benefit of creditors. (Financial Times: June 19).
Fiat calls for restructuring of global motor industry
Fiat has called for a ‘serious restructuring’ of the global automotive industry if it is to be economically viable.
The manufacturer, which is restructuring itself in the wake of its takeover of Chrysler, said the move was ‘absolutely necessary’ to address production overcapacity.
Fiat has predicted that utilisation of carmaking capacity in Europe will fall 65% this year.
PricewaterhouseCoopers has estimated that the industry has near-record capacity to make 86 million units this year, compared with the 55m vehicles that carmakers will actually build. (Financial Times/The Times: June 19).
Showing posts with label GM. Show all posts
Showing posts with label GM. Show all posts
Monday, June 22, 2009
Monday, June 15, 2009
AUTO HEADLINES
Fiat could still take the driving seat at GM
The deal to sell the European arm of General Motors faces the risk of collapse, thereby opening the door once again for Fiat.
Insiders have hinted at a ‘cooling’ towards GM’s preferred bidder, Canadian car parts firm, Magna International.
It means weeks of more uncertainty for 5,000 British workers at Vauxhall, which is owned by GM.
Officials in Germany, where the bulk of GM’s European operations are based, have revealed that the door remains open for Fiat, which was once thought to be in the driving seat to acquire GM Europe, and for Chinese companies.
German Economy Minister Karl-Theodor zu Guttenberg says his officials were still talking to potential investors in Vauxhall and Opel which have not yet been made public.
He said: “We are still in contact with other investors.” It is understood that China’s fifth largest carmaker, BAIC, is in the running alongside Fiat and another unnamed Chinese investor.
UK Government officials are due to meet Magna executives in London next week. (National newspapers: June 12).
Swedish sports car group poised to buy Saab
Koenigsegg, the Swedish producer of supercars, is set to buy Saab, General Motors’ up-for-sale Swedish-based company.
GM is expected to shortly announce that it is in exclusive sales talks with the company and its allied Norwegian investors. The deal is likely to be closed by early summer.
The development would mark bankrupt GM’s third move to dispose of a car brand in less than a fortnight, part of its plan to focus on four core brands. It follows last week’s announcement of the sale of Hummer to China’s Sichuan Tengzhong Heavy Industrial Machinery and of Saturn to Penske Automotive Group, the dealership chain.
The decision follows talks this week between the three shortlisted bidders and GM at its European headquarters in Zurich.
Koenigsegg ‘has the best overall offer’, a person close to the deal said. Further details were not immediately available.
The privately owned company, based near Malmo, sold 18 cars last year and is said to be interested in applying its knowledge of niche models to a higher-volume carmaker.
Koenigsegg beat bids from Renco, US investor Ira Rennert’s holding company that bought and turned round the maker of Humvee, and Merbanco, a group of private investors in Wyoming. (FT.com: June 12).
The deal to sell the European arm of General Motors faces the risk of collapse, thereby opening the door once again for Fiat.
Insiders have hinted at a ‘cooling’ towards GM’s preferred bidder, Canadian car parts firm, Magna International.
It means weeks of more uncertainty for 5,000 British workers at Vauxhall, which is owned by GM.
Officials in Germany, where the bulk of GM’s European operations are based, have revealed that the door remains open for Fiat, which was once thought to be in the driving seat to acquire GM Europe, and for Chinese companies.
German Economy Minister Karl-Theodor zu Guttenberg says his officials were still talking to potential investors in Vauxhall and Opel which have not yet been made public.
He said: “We are still in contact with other investors.” It is understood that China’s fifth largest carmaker, BAIC, is in the running alongside Fiat and another unnamed Chinese investor.
UK Government officials are due to meet Magna executives in London next week. (National newspapers: June 12).
Swedish sports car group poised to buy Saab
Koenigsegg, the Swedish producer of supercars, is set to buy Saab, General Motors’ up-for-sale Swedish-based company.
GM is expected to shortly announce that it is in exclusive sales talks with the company and its allied Norwegian investors. The deal is likely to be closed by early summer.
The development would mark bankrupt GM’s third move to dispose of a car brand in less than a fortnight, part of its plan to focus on four core brands. It follows last week’s announcement of the sale of Hummer to China’s Sichuan Tengzhong Heavy Industrial Machinery and of Saturn to Penske Automotive Group, the dealership chain.
The decision follows talks this week between the three shortlisted bidders and GM at its European headquarters in Zurich.
Koenigsegg ‘has the best overall offer’, a person close to the deal said. Further details were not immediately available.
The privately owned company, based near Malmo, sold 18 cars last year and is said to be interested in applying its knowledge of niche models to a higher-volume carmaker.
Koenigsegg beat bids from Renco, US investor Ira Rennert’s holding company that bought and turned round the maker of Humvee, and Merbanco, a group of private investors in Wyoming. (FT.com: June 12).
Tuesday, June 2, 2009
IN THE NEWS
GM files for bankruptcy in US
A new chapter in the 101-year history of General Motors was has started today (Monday, June 1) following the company’s decision to file for Chapter 11 bankruptcy protection in the United States.
In a statement GM said: “Pending approvals, the ‘New GM’ is expected to launch in about 60 to 90 days as a separate and independent company from the ‘current GM’ with two distinct advantages: it will be built from only GM’s best brands and operations, and it will be supported by a stronger balance sheet due to a significantly lower debt burden and operating cost structure than before.”
US President Barack Obama is due to make a statement explaining why the American government was supporting the move.
The decision to file for bankruptcy protection makes GM, until last year the world’s largest carmaker, the largest bankruptcy of an industrial business in history and the third largest corporate failure in US history.
Chapter 11 bankruptcy protects GM from its creditors, while it restructures the business.
The announcement will trigger a shutdown at GM’s 47 plants across North America and the factories will remain closed until the company is able to emerge from the Chapter 11 process.
As part of GM’s bankruptcy package, the US government is expected to offer the company a further $30 billion of new loans.
The restructuring is likely to see more than a dozen North American plans close, relations severed with around 40 per cent of GM’s current dealers and four of GM’s eight brands - Pontiac, Saturn, Hummer and Saab - sold or disappear.
If all goes to plan, the ‘new’ GM will emerge within two to three months and include four brands - Chevrolet, Cadillac, Buick and GMC - as well as operations in Latin America and Asia. The unwanted businesses - mostly plants and properties - will remain in Chapter 11 to be sold or wound down.
In the ‘new’ GM it is expected that the US Treasury and the Canadian government will together hold 72.5 per cent, the United Auto Workers union will have a 17.5 per cent stake, leaving 10 per cent for unsecured bondholders. (GM: June 1/National newspapers: June 1/May 31).
Vauxhall cars to be badged Opel?
Vauxhall cars in Britain will be rebranded under the Opel name in an effort to appeal to the Russian car market, according to the former managing director of Rover.
Professor Kevin Morley, who is now director of business studies at the University of Warwick, said the involvement of Russian companies in the deal to save Opel and Vauxhall would lead to thousands of cars being imported into Russia under the Opel brand.
“No one in Russia knows what a Vauxhall is,” he said. “I’m sure we’ll see Vauxhall the brand disappear soon after the deal. Vauxhalls in the UK will sell here as Opels.” (The Times Online: June 1).
‘New’ Chrysler could emerge within 48 hours
A ‘new’ Chrysler could emerge from bankruptcy protection on Wednesday (June 3) after a judge today (Monday, June 1) ruled in favour of the sale of the slimmed down company.
The bankruptcy court approved the sale of most of Chrysler’s assets to Fiat, the US and Canadian governments and the United Auto Workers union for a $2 billion cash payment to senior lenders.
Under the terms of the deal, Fiat will control 20 per cent of Chrysler, while 68 per cent will be owned by a union trust, and the two governments will share 12 per cent. The two governments have agreed to provide about $8bn in loans to the new Chrysler.
Bankruptcy judge Arthur Gonzalez said in his written ruling that the only alternative to the sale would have been the ‘immediate liquidation’ of Chrysler. (BBC.co.uk/Financial Times: June 1).
A new chapter in the 101-year history of General Motors was has started today (Monday, June 1) following the company’s decision to file for Chapter 11 bankruptcy protection in the United States.
In a statement GM said: “Pending approvals, the ‘New GM’ is expected to launch in about 60 to 90 days as a separate and independent company from the ‘current GM’ with two distinct advantages: it will be built from only GM’s best brands and operations, and it will be supported by a stronger balance sheet due to a significantly lower debt burden and operating cost structure than before.”
US President Barack Obama is due to make a statement explaining why the American government was supporting the move.
The decision to file for bankruptcy protection makes GM, until last year the world’s largest carmaker, the largest bankruptcy of an industrial business in history and the third largest corporate failure in US history.
Chapter 11 bankruptcy protects GM from its creditors, while it restructures the business.
The announcement will trigger a shutdown at GM’s 47 plants across North America and the factories will remain closed until the company is able to emerge from the Chapter 11 process.
As part of GM’s bankruptcy package, the US government is expected to offer the company a further $30 billion of new loans.
The restructuring is likely to see more than a dozen North American plans close, relations severed with around 40 per cent of GM’s current dealers and four of GM’s eight brands - Pontiac, Saturn, Hummer and Saab - sold or disappear.
If all goes to plan, the ‘new’ GM will emerge within two to three months and include four brands - Chevrolet, Cadillac, Buick and GMC - as well as operations in Latin America and Asia. The unwanted businesses - mostly plants and properties - will remain in Chapter 11 to be sold or wound down.
In the ‘new’ GM it is expected that the US Treasury and the Canadian government will together hold 72.5 per cent, the United Auto Workers union will have a 17.5 per cent stake, leaving 10 per cent for unsecured bondholders. (GM: June 1/National newspapers: June 1/May 31).
Vauxhall cars to be badged Opel?
Vauxhall cars in Britain will be rebranded under the Opel name in an effort to appeal to the Russian car market, according to the former managing director of Rover.
Professor Kevin Morley, who is now director of business studies at the University of Warwick, said the involvement of Russian companies in the deal to save Opel and Vauxhall would lead to thousands of cars being imported into Russia under the Opel brand.
“No one in Russia knows what a Vauxhall is,” he said. “I’m sure we’ll see Vauxhall the brand disappear soon after the deal. Vauxhalls in the UK will sell here as Opels.” (The Times Online: June 1).
‘New’ Chrysler could emerge within 48 hours
A ‘new’ Chrysler could emerge from bankruptcy protection on Wednesday (June 3) after a judge today (Monday, June 1) ruled in favour of the sale of the slimmed down company.
The bankruptcy court approved the sale of most of Chrysler’s assets to Fiat, the US and Canadian governments and the United Auto Workers union for a $2 billion cash payment to senior lenders.
Under the terms of the deal, Fiat will control 20 per cent of Chrysler, while 68 per cent will be owned by a union trust, and the two governments will share 12 per cent. The two governments have agreed to provide about $8bn in loans to the new Chrysler.
Bankruptcy judge Arthur Gonzalez said in his written ruling that the only alternative to the sale would have been the ‘immediate liquidation’ of Chrysler. (BBC.co.uk/Financial Times: June 1).
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