**GM preparing for bankruptcy**

[4Vman]

Yes, the Chinese would buy the brand and eventually sell off/phase out the working assets and manufacture OS...

[ltd]

Originally Posted by 4Vman

Yes, the Chinese would buy the brand and eventually sell off/phase out the working assets and manufacture OS...

Would it then change its name to Horden?

[Jason[98.EL]]

A little bit on the GM / Toyota deal in the U.S

Taken from http://money.ninemsn.com.au/article.aspx?id=839954

Toyota to make decision on plant soon
21/07/2009 1:39:36 PM

Toyota's top US executive says the company will make a decision "as quickly as possible" on the fate of its California joint venture plant with General Motors.

Toyota's Yoshi Inaba said on Monday the company is carefully evaluating its options for the Fremont, California, plant, called New United Motor Manufacturing Inc.

General Motors is ending its joint venture with Toyota as part of its downsizing under bankruptcy. The plant currently makes the Pontiac Vibe station wagon for GM and the Corolla compact car and Tacoma pickup truck for Toyota.

Inaba also says Toyota has not made any decisions on its Mississippi plant. The plant was scheduled to start production in 2010, but that plan is on hold because of market conditions in the United States.

Jason

[vztrt]

GM Q2 global sales fall 15%

http://news.brisbanetimes.com.au/bre...0723-dty3.html

GM Q2 global sales fall 15%
July 23, 2009 - 8:54AM

Although General Motors' North American sales dropped sharply last quarter as it headed into US bankruptcy protection, strong growth in its Asia-Pacific region offset much of the decline, and the automaker ended up with global sales down 15 per cent for the quarter.

General Motors Co, which has received $US50 billion ($A61.19 billion) in US government aid and emerged from bankruptcy protection on July 10, said on Wednesday that it sold 1.94 million vehicles worldwide in the April-to-June period, despite a 32 per cent decline in North America.

Much of the North American decline was offset by record sales in China, up 62 per cent compared with the same quarter last year. The company sold more than 450,000 vehicles in China last quarter, not far from its depressed US sales of nearly 538,000.

The automaker said the Asia-Pacific growth led to 72 per cent of its global sales for the quarter coming from outside its home North American market. That's far higher than the normal per centage of around 65 per cent, company officials said.

Mike DiGiovanni, executive director of global market and industry analysis, said during a conference call with reporters and industry analysts that as US sales recover, GM's percentage of overseas sales should drop back to the 60 to 65 per cent range.

"We do expect a gradual recovery in the US market as we proceed into 2010," he said.

The bright spot in GM's global sales, the company said, was that they were up 20 per cent over the first quarter, a sign that the company is recovering from its 40-day stay in bankruptcy protection and from the global economic downturn.

GM says its global market share was 12 per cent, down only slightly from the year-ago quarter despite the company's US bankruptcy filing.

The Detroit automaker says it sold 3.55 million vehicles for the first half of the year, down 22 per cent from the same period last year.

GM said its Asia-Pacific sales were up nearly 38 per cent in the second quarter, and it predicted strong and continuing growth for its Buick, Wuling and Chevrolet brands, especially in China.

GM's first-quarter global sales of just over 1.6 million vehicles fell short of rival Toyota Motor Corp.'s 1.76 million for the period. Toyota remained poised to keep the global sales lead that it took last year. Toyota is scheduled to report second-quarter results on Aug. 4.

Toyota sold more cars and trucks worldwide than any other automaker last year, seizing the crown that GM held for 77 years.

DiGiovanni said automakers are having a tough time selling vehicles in the middle of July in the US as a lot of buyers sit on the sidelines awaiting the government's "cash for clunkers" program to take effect. If the program brings out a lot of buyers, July sales could rise to a seasonally adjusted annual selling rate of over 10 million for the first time this year, he said.

"We're all at the starting gate ready to go," he said of preparations for the government incentive, which would give consumers up to $4,500 to trade in their old, inefficient vehicles for a new cleaner vehicle.

GM has said that because its massive debt and other costs were cut during its bankruptcy stay, it can make money if the US market is at an annual sales level of 10 million to 10.5 million.

The "cash for clunkers" program's final rules will be announced on Friday. Not all vehicles qualify under the legislation. Car shoppers get a voucher worth $3,500 if they trade in a vehicle getting 18 mpg or less for one getting at least 22 mpg. The voucher grows to $4,500 if the new car's mileage is 10 mpg higher than the old vehicle.

GM predicts that the program will raise US sales by 250,000 vehicles through Nov. 1, DiGiovanni said.

DiGiovanni said GM performed better than it expected in the US given the negative publicity about its time under bankruptcy court protection. He said the worst of the news seems to be behind the company, and now it will focus on launching new vehicles.

"We're going to really be able to focus on changing the perceptions of people about the outstanding products that we have," he said. "We can finally turn our attention to selling vehicles, which is going to be a really nice thing to have."

GM's European sales were down 20 per cent in the second quarter, due in large part to uncertainty over its main European brands, Opel and Vauxhall, said Jonathan Browning, GM's vice president of global sales and marketing.

The company is currently in talks with three bidders about selling a controlling interest in its Adam Opel GmbH unit, which created uncertainty in the market, Browning said.

GM is evaluating final bids from the three groups and could make a decision next week.

[vztrt]

GM to appoint new boss at Cadillac

http://www.caradvice.com.au/35750/gm...s-at-cadillac/

GM to appoint new boss at Cadillac

General Motors Company, continuing to shake up management since exiting bankruptcy two weeks ago, plans to name designer Bryan Nesbitt as chief of Cadillac.

The appointment is scheduled to be announced later today and takes effect August 1, said GM spokesman Terry Rhadigan.

Mr Nesbitt, known for penning Chrysler’s PT Cruiser, has spent eight years at GM, where he is currently in charge of North American design.

His move to Cadillac is in line with a strategy outlined by Vice Chairman Bob Lutz on July 10, when he postponed his retirement to take a new role as chief of marketing and communications with oversight of design.

Mr Lutz, 77, said then that he would put design at the centre of GM’s advertising message, and Mr Nesbitt will report to Mr Lutz.

Mr Rhadigan said interim Cadillac general managers Steve Hill and Steve Shannon will be reassigned and their new positions will be announced soon.

Mr Nesbitt has been GM’s vice president of North American design since June 2007, and before that was executive director of design for GM Europe.

He came to GM in 2001 from Chrysler, where he worked with Mr Lutz and designed the PT Cruiser. He later crafted GM’s version of the retro wagon, Chevrolet’s HHR.

[vztrt]

GM takes clean sweep of management

http://www.caradvice.com.au/35833/gm...of-management/

GM takes clean sweep of management

General Motors Company, the US government controlled company that has taken over the ‘good’ parts of GM, has swept the broom through senior management, announcing major changes in more than 20 senior roles.

Most significant, and interestingly indicating a trend for moving senior GM Europe staff back to the US before that business is sold off, Brent Dewar, GM’s European sales chief, has been named the new boss of Chevrolet.

Mr Dewar will become vice president of Chevrolet as part of a sweeping overhaul involving appointments and departures for about two-dozen executives.

As CarAdvice told you yesterday Bryan Nesbitt, currently chief of GM’s North American design, will become general manager of Cadillac.

Susan Docherty, will remain in charge of Buick and GMC as general manager, where she had previously had the title of vice president.

All three brand leaders will report to Bob Lutz, 77, who was named vice chairman of marketing as GM emerged from bankruptcy two weeks ago. He plans to make design the focus of GM’s advertising message.

Ed Peper, who was vice president in charge of Chevrolet, will take responsibility for Cadillac sales as general manager.

The intent is to integrate product design, marketing and advertising while allowing sales to have a separate focus. In that vein,Mr Peper will report to Mark LaNeve, vice president in charge of US sales and service.

Cadillac’s interim general manager, Steve Hill, 49, was named general manager of retail sales support.

The broom has swept several senior managers out the door with Gary Cowger, group vice president, global manufacturing and labour relations; Ralph Szygenda, group vice president and chief information officer; Troy Clarke, group vice president and president, GM North America; Maureen Kempston Darkes, group vice president, GM Latin America, Africa and Middle-East; and Michael Grimaldi, GM Vice President and CEO GM Daewoo all departing the company.

[vztrt]

GM Holden chief replaced

http://www.caradvice.com.au/35845/gm...hief-replaced/

GM Holden chief replaced

The sweeping changes in the General Motors management have filtered down to GM Holden with chairman and managing director, Mark Reuss, being replaced by his sales chief.

GM Holden announced this morning that 46-year-old Alan Batey, would take over the role from September 1.

Mr Batey, currently Holden’s executive director, sales, marketing and after sales, will succeed 45-year-old Mr Reuss, who has been appointed to a senior, as yet unnamed, product development role with General Motors based in the United States.

Mr Reuss entered the most senior revolving door at GM Holden in February last year to become the third chairman and MD in a little over six months.

He was previously executive director of global vehicle integration, safety and virtual vehicle development and has a GM career spanning back to 1983.

Nick Reilly, GM’s recently elevated executive vice president and president of GM International Operations, Nick Reilly, who’s based in China and has responsibility for GM Holden, paid tribute to Mr Reuss’s leadership of Holden through a difficult period and said Mr Batey was an ideal appointment.

The Holden position was among changes announced by Mr Reilly, unveiling the new leadership structure for GM’s International Operations.

“Mark’s leadership during what has been a tumultuous time for the auto industry, both in Australia and globally has been outstanding.

At a time when the industry has been in crisis and where the parent company has been through a Chapter 11 bankruptcy process, Mark has championed the interests of Holden at every turn,” Mr Reilly said.

“He has played a pivotal role in ensuring it is an important part of the new GM. He achieved a great deal in a relatively short time and returns to a key role in GM where he will remain a strong friend of Holden.

“Alan brings extensive leadership experience, exceptional product and commercial knowledge and a real passion for Holden.

“He has worked for GM across four continents and brings crucial continuity of leadership for Holden in what is a highly competitive marketplace.

“It is strong endorsement of the Holden leadership team that the Chairman and MD was able to be selected from within existing ranks,” Mr Reilly said.

Mr Batey was appointed to his sales and marketing role in January 2006 and is also a member of the Holden Board of Directors.

He was previously Vice President of Commercial Operations for GM Daewoo, a position he took on in 2002 when the new business was formed.

He previously held various sales and marketing assignments with Vauxhall before transferred to GM’s European Headquarters in Zurich, Switzerland, and held a number of senior roles in GM’s European operations.

Mr Reilly also revealed that, Mike Arcamone would take over as president and CEO of Gm Daewoo, replacing Michael Grimaldi, who is retiring.

Mr Arcamone joined GM in 1980 and has held several important positions in manufacturing and global purchasing in North America and Europe.

Currently he is vice president of GM Powertrain Europe, and is responsible for 10 manufacturing plants and five engineering lo

[R-Design]

Unlike the G8 it appears that Mr Reuss is "Too good to waste".

[R-Design]

More on Mark Reuss' departure:

Originally Posted by CarPoint

Just 12 months in the job Reuss announced Holden would build a four-cylinder small car locally from late 2010. He later revealed it was one of the first projects he expedited to help secure local manufacturing operations.

Contrary to other reports, he and Holden have not given up on Commodore exports to the US in the wake of the Pontiac brand being axed at the end of the year.

Perhaps now the new Commodore export deal may be a better chance, given that Reuss will be closer to the action.

http://carpoint.com.au/news/2009/hol...h-places-15987

[vztrt]

GM Europe deal trips up on design rights

http://www.goauto.com.au/mellor/mell...257600002536E9

GM Europe deal trips up on design rights

Opel bidders down to two as Chinese car-maker hits GM wall on licence rights

By RON HAMMERTON 27 July 2009

INTELLECTUAL property rights are shaping up as the deal breaker for bidders chasing General Motors Europe’s Opel and Vauxhall in the GM bankruptcy fire sale.

One of the three official bidders, Beijing Automotive Industry Corp (BAIC), has fallen out of the running, blaming failure to reach agreement on intellectual property rights – the ability to freely use GM Europe’s licensed designs and technology in vehicles produced by the new owners.

Talks with one of the remaining bidders, Magna International, have also struggled over design licence royalties, with the German chancellor Angela Merkel – who favours Magna – weighing in on the subject after talks last week failed to reach resolution.

Magna and its rival bidder, Belgian private equity firm RHJ, have both offered to include GM in the new company’s future, with Magna offering a 35 per cent slice to the American company.

RHJ chief executive Leonhard Fischer was quoted in a German newspaper as saying any new-look Opel would need a GM connection.

“Let’s be pragmatic – it won’t work without General Motors,” Mr Fischer told the newspaper, which said the RHJ boss refused to rule out selling GM Europe back to GM once it had been restructured and downsized.

On Friday, BAIC released a statement saying it had failed to reach an agreement with GM on the sale of Opel due to the intellectual property issues.

“In the negotiations over intellectual property, we have been in constant communications with General Motors,” BAIC said. “Regrettably, both parties failed to reach agreement on the issue.”

The Chinese company had wanted to take the Opel brand global – a situation that would not have thrilled GM.

For example, that could have meant a GM Europe-designed and engineered Opel Astra going head to head with the new Chevrolet Cruze – built on the same Delta II platform – in several markets.

GM also would have been reluctant to strengthen a Chinese rival to its own Chinese partner, Shanghai Automotive Industries Corp (SAIC).

Worse, BAIC is partnered with Hyundai – one of the fastest-growing automotive groups in the world.

BAIC’s version of the Hyundai Elantra was the second-best selling model in China in the first half of this year, trailing GM’s Excelle by just 1160 units. This time last year, the Elantra was the 10th best-selling car in China.

In Europe, the trust that took control of Opel in the wake of the GM collapse has said that it will only take a decision on the buy-out “when the necessary pre-conditions have been met and we have received a firm proposal to base out decision on”.

It did not say in the statement what the pre-conditions were.

The trust said it would vote “in favour of the proposal that offers the best commercial concept for the future of Opel”.

The five-person trust includes two GM representatives, two German government members and an independent chairman, American Chamber of Commerce president in Germany, Fred Irwin.

[vztrt]

US government begins divesting GM shares

http://www.caradvice.com.au/36336/us...its-gm-shares/

US government begins divesting GM shares

The United States government has taken its first steps in divesting its 61 per cent stake in General Motors by announcing at a hearing in Detroit today that it intends to sell off the manufacturer in stages.

US Treasury Department senior adviser – and newly appointed car czar – Ron Bloom (pictured above left) said of the move that “it is is GM’s best interest to be sold off in parcels over a period of time rather than all at once”.

Mr Bloom went on to say that he feared that a short period sale of the majority share would push the stock price down and limit the taxpayers’ return on their investment in GM.

The hearing continues. CarAdvice will keep you posted on any developments.

[vztrt]

GM plant closure sees end of Sky, Solstice production

http://www.caradvice.com.au/36723/gm...ce-production/

GM plant closure sees end of Sky, Solstice production

With production having officially stopped at GM’s Wilmington, Delaware assembly plant the Saturn Sky and Pontiac Solstice models’ production (along with their Daewoo and Opel derivatives) have also come to an end.

The last vehicle to roll off the line, a silver Solstice, marks the end of production for the short-lived, Bob Lutz-inspired rear-wheel-drive Kappa platform.

Though not quite the financial success GM had hoped for, demand was generally strong for the models and even for the unexpectedly ultra-limited Solstice Coupe (as pictured above) just arriving in dealerships now.

The plant had been in operation almost continuously for 62 years.

[vztrt]

Holden’s Reuss to lead GM global vehicle engineering

http://www.goauto.com.au/mellor/mell...2576070007627A

Holden’s Reuss to lead GM global vehicle engineering

Another boost for Holden as Reuss is named GM’s new global engineering chief

By TERRY MARTIN 3 August 2009

GM HOLDEN has received another significant boost in the restructured General Motors with the announcement that outgoing chairman and managing director Mark Reuss will become vice-president of global vehicle engineering.

Credited with securing Holden’s manufacturing operations and maintaining it status as an integral member of GM as it sells off non-essential brands and downsizes its global operations, Mr Reuss will now return to Detroit as the architect and overseer of the US auto giant’s vehicle engineering programs worldwide.

As announced late last month, GM Holden’s executive director of sales, marketing and aftersales Alan Batey will replace Mr Reuss at the helm of the Australian operations.

In Detroit, Mr Reuss will replace group vice-president of global engineering Jim Queen, as well as GM North America vice-president of engineering Ed Koerner, both of whom will retire on October 1.

Another former GM Holden chairman, Denny Mooney, who returned to the US in 2007 to become vice-president of global vehicle systems and integration, has also “elected to retire” in October.

Nonetheless, Australia remains well represented at the highest levels of GM with Mr Reuss working alongside another champion of the Holden brand, Bob Luz, who is now vice-president of marketing and communications in the new organisation.

International operations president Nick Reilly, who, along with Mr Lutz, is a member of GM’s executive committee and in recent weeks has reshaped the leadership team outside North America, also said Mr Reuss would remain “a strong friend” of Holden.

“At a time when the industry has been in crisis and where the parent company has been through a Chapter 11 bankruptcy process, Mark has championed the interests of Holden at every turn,” Mr Reilly said.

“He has played a pivotal role in ensuring it is an important part of the ‘New GM’. He achieved a great deal in a relatively short time and returns to a key role in GM where he will remain a strong friend of Holden.”

GM president and chief executive Fritz Henderson made the announcement last week, along with a number of other appointments and retirements that create a “simplified” leadership team.

“Our goal was to streamline our leadership team and put some of our best executives in positions where they can use their diverse perspectives and extensive global experience to create the new GM,” Mr Henderson said.

“The new GM leadership team includes people who have excelled in every area of the auto business, in every region of the world. This new GM team’s experience is unmatched, and it will be invaluable as we renew our commitment to building and selling great cars and trucks and serving the needs of customers around the globe.”

Mr Reuss, 45 - son of former GM President Lloyd Reuss - has worked for GM since 1983 in a number of senior vehicle development positions. He joined Holden 18 months ago from his role as executive director of global vehicle integration, safety and virtual development, a position which made him responsible for all areas of vehicle integration and performance, safety and mathematical design/analysis application for GM product programs worldwide.

Prior to that, he was executive director of North American vehicle systems and architecture.

Having risen through GM’s engineering ranks earlier in his career, Mr Reuss also started the GM Performance division in 2001 and was responsible for all associated production and racing cars. This was in addition to his role as executive director of architecture engineering.

Echoing Mr Reilly’s comments, federal industry minister Kim Carr said late last month that he was confident Mr Reuss’ appointment would be “a very good thing” for Australia.

“Mark Reuss has made a wonderful contribution not just to Holden, but to the broader Australian automotive industry,” Senator Carr said. “It is pleasing to see that General Motors shares our view of his enormous talents.

“It has been very rewarding working with him as he has successfully piloted Holden through some of the most challenging times in its history.

“Mark Reuss joins a growing cadre of global automotive executives with an intimate knowledge of the Australian car industry and its capabilities. That is a very good thing for this country, and we wish him every success.”

Mr Reuss is also president of the Federal Chamber of Automotive Industries (FCAI) and will resign from that position when the FCAI board meets later this month.

Mr Batey, who officially becomes GM Holden chairman and managing director on September 1, will be appointed to the FCAI board at the meeting, while the executive committee will also determine who will serve as president until the next annual general meeting is held in April 2010.

[Joe5619]

Can someone please explain why the ex-MD of Holden (of only 12 months) as the vice-president of global vehicle engineering is a boost for Holden?

That is like say if the premier of NSW becomes the prime minister of Australia it would be a boost to NSW..

[Bossxr8]

Originally Posted by Joe5619

Can someone please explain why the ex-MD of Holden (of only 12 months) as the vice-president of global vehicle engineering is a boost for Holden?

That is like say if the premier of NSW becomes the prime minister of Australia it would be a boost to NSW..

Because motoring journos think the sun shines out of Holdens ar5e. :

[Jason[98.EL]]

Originally Posted by Bossxr8

Because motoring journos think the sun shines out of Holdens ar5e. :

yup agree there

and the only thing out of Fords is well

they need to really open their eyes and look at other cars made here in au not just Holden/asian varients

[vztrt]

New GM benefits from US$16 billion tax loophole – report

http://www.caradvice.com.au/37518/ne...ophole-report/

New GM benefits from US$16 billion tax loophole – report

According to a report published in The Wall Street Journal yesterday, the ‘new’ General Motors could benefit from a massive US$16 billion tax loophole once it emerges from bankruptcy court.

‘New’ GM will be able to claim the tax benefit stemming from operating losses tied to Motors Liquidation Company, better known as the ‘old’ GM.

Known as “tax-loss carry forward”, the strategy is usually safeguarded against in bankruptcy court – preventing entities from buying bankrupt companies only to benefit from the tax loophole – but GM’s “363″ sale allowed the company to benefit from the old company’s losses on a technicality.

“The result seems to retain the cake while eating it,” said Duke law professor Jeffrey Coyne. “They get to sell quickly and without the many procedural protections because this is not a plan. They get to keep the (net operating losses) using a provision that requires the transfer to happen as part of a plan.”

As the bankruptcy sale happened so quickly, GM will likely avoid paying federal taxes for years to come and although some might argue that the US government’s majority ownership of GM makes it a moot point, there are still others set to gain from the tax loophole.

The UAW’s retirement fund now owns 17.5 per cent of GM and will also be exempt from paying taxes for the next several years.

On the other side of the coin, companies like Ford that didn’t take a government handout will be at a disadvantage, paying billions in taxes that GM will avoid.

[vztrt]

Commodore US exports still on the cards

http://www.goauto.com.au/mellor/mell...25760A000C12D7

Holden confirms its is working on export plan to replace lost Pontiac business

By JAMES STANFORD 6 August 2009

GM Holden chairman and managing director Mark Reuss has hinted the company is making headway with an export deal that would see the Commodore return to the US after it was killed off as a Pontiac in April.

Asked at this week’s announcement of new V6 engines for its locally produced cars if he could ‘put a probability’ on the Commodore getting back into the American market, Mr Reuss replied: “I could, I could, but I really don’t want to do it here.

“We have been working on export programs to replace some of the export volume that came out of Elizabeth with Pontiac going away in the United States, and I’ll leave it at that.”

Mr Reuss will return to Detroit next month to take up his new role as General Motors global engineering vice president.

He was one of an inner-core of ten people who guided GM through its recent bankruptcy and ensured Holden would have a role in the new GM.

As reported by GoAuto, GM is keen to introduce the Commodore as a law enforcement vehicle in the US, while other plans to re-badge the car as a Chevrolet seem unlikely to succeed.

A new export deal could be enough for the Elizabeth operation to return to two shifts.

The plant dropped from two shifts to one after a fall in local demand and a dramatic cut in export production in May, but Holden has retained the full workforce by working a half-on/half-off roster and paying 50 per cent of wages for those not working.

Holden denies retaining the workers to avoid a redundancy cost blowout, arguing that it will save money by hanging on to its current employees as it will not have to invest in retraining when resumes the second shift.

It has been generally accepted that the plant would only return to two shift when Elizabeth started producing the Cruze small car mid-way through next year, but Mr Reuss has raised the prospect that it might occur sooner, regardless of any new export deal.

He suggested increased local sales of the Commodore, thanks to the addition of the two lean direct injection V6 engines, could trigger a production increase.

Asked by a reporter if the plant would definitely stay on one shift for at least the rest of the year, Mr Reuss said: “Well, I don’t know, because this thing right here. I think we are way underestimating what we think the retail take up of something this dramatic in fuel efficiency because we have never done this before.”

Mr Reuss said it was difficult to predict if production volume would increase sufficiently to justify the return of the second shift, but said Holden was already seeing some recovery.

“It is kind of like asking me when we will come off the volume we are at today, and I can’t do that,” he said.

“All I can do is fill the place with new programs and new opportunities and I am doing that.

Mr Reuss said once Holden had seen abut six months of recovery, it would look at bringing back the second shift.

[Mark s]

How many times in the past few months have we heard this, it's on, it's off, it's back on again...........G8 failed in the US, just like the Monaro and the Capri back in the 80's. I would have thought the poor sales would have been enough to can it.

Is this fact or if this just the media, this tax stuff as well, I dont what Joe public are going to say about this and all the concessions GM may be getting.

I also wonder about the mums and dads who lost out and how they feel. I wonder if the feeling is Govenment Motors are getting a free ride, while the mums and dads got screwed over big time.

It like the little boy who cried wolf...................................

[vztrt]

REPORT: GM gets out from under its polluted sites scot-free

http://www.autoblog.com/2009/08/07/r...tes-scot-free/

REPORT: GM gets out from under its polluted sites scot-free

by Jonathon Ramsey (RSS feed) on Aug 7th 2009 at 7:01PM

Among those clamoring for attention and payouts from Motors Liquidation Co., the company that assumed General Motors' unwanted assets after its Chapter 11 filing, are the environmental and economic redevelopment departments of state governments. According to reports, when GM exited bankruptcy, its polluted factory and land sites were consumed by the Motor Liquidation, allowing the automaker to avoid the responsibility of cleaning up its mess, and state leaders fear there won't be any money to clean the locations.

Before bankruptcy, GM estimated it had $1.9 billion in environmental issues and litigation liabilites. Motors Liquidation Co., though, has only about $1.2 billion to manage the entire wind-down of its affairs -- and as one might expect, attorneys handling the matter are expected to get a huge chunk of that. The figure to clean up sites in places like Buick City (pictured, before the buildings were demolished), Michigan and Massena, New York has been pegged at $530 million. However, the way it's looking, there won't be anywhere near that much money to get the job done.

The affected areas are afraid they will have to pay for the clean ups or simply let the land go unused. The problem with that: those local governments don't have the money. And they can't expect a developer to spend millions to clean up an old mess. If not Motors Liquidation or GM, civic representatives want the government to foot the bill since the current administration orchestrated the deal. No one knows how it will -- or won't -- be resolved, but the EPA has said that it's in touch with states and Motors Liquidation to "identify any environmental cleanup requirements that existed at the time of bankruptcy."

[Source: Freep | Photo Credit: Plan59]

[phillyc]

Originally Posted by vztrt

REPORT: GM gets out from under its polluted sites scot-free

http://www.autoblog.com/2009/08/07/r...tes-scot-free/

General Motors is the automotive "landcare" equivalent of James Hardie. Leaving behind billions of dollars of DELIBERATELY unfunded liabilities.

[vztrt]

GM brings back workers as it adds shifts, overtime

http://business.theage.com.au/busine...0819-epfe.html

GM brings back workers as it adds shifts, overtime
August 19, 2009 - 7:24AM

General Motors has called back 1350 union workers, its biggest one-time increase in jobs since 2006, as it boosts second-half production, partly in response to demand from the government's "cash for clunkers" program.

GM is adding shifts and overtime as well as restoring weeks of production at select facilities, as sales top expectations, the company said. GM will add shifts at the CAMI plant in Ontario, Canada, where the next generation Chevrolet Equinox and all-new GMC Terrain are built, and Lordstown, Ohio, where it assembles the compact Chevrolet Cobalt, adding back United Auto Workers and Canadian Auto Workers union jobs.

"We are running our plants to maintain maximum flexibility and keep production tightly aligned with customer demand," said Tim Lee, GM group vice president overseeing global manufacturing and labor, said in the statement. "The uptick is an encouraging sign that vehicle sales are turning around and we will ramp up quickly to meet that demand."

The automaker expects July and August sales to top a previous forecast by 60,000 to 70,000 vehicles, Mark LaNeve, the vice president over US sales, said on a conference call.

GM has added Friday shifts at its car plants in Orion Township, Michigan, where it assembles the Chevrolet Malibu and Pontiac G6 sedans, and Lordstown, Ohio, where GM makes the Pontiac G5 and Chevrolet Cobalt compact cars, Chris Lee, a GM spokesman, said yesterday. Those plants had been running four 10-hour days each week.

More Demand

"They're probably seeing some demand that goes beyond what they would deem a boost just from cash-for-clunkers," said Erich Merkle, president of Grand Rapids, Michigan, consulting firm Autoconomy. "There are signs this economy is going to improve fairly quickly."

GM sales of cars and light trucks in the US fell 19 per cent in July, less than the 24 per cent drop analysts expected.

Chief Executive Officer Fritz Henderson, 50, is working to maintain GM's No. 1 spot in the US auto market while returning it to profitability after emerging from bankruptcy on July 10. The company will "definitely" add to production plans, he said August 13, without sharing details.

Ford is boosting production by 26 per cent in the second half, the Dearborn, Michigan-based automaker said August 13. Chrysler Group LLC, based in Auburn Hills, Michigan, is also planning to make more light trucks, said a person familiar with the situation.

Demand Waning

The US government started a $US1 billion program commonly known as "cash for clunkers" in July to encourage people to turn in old, less fuel-efficient vehicles for new vehicles that use less gas. Formally known as the Car Allowance Rebate System, it was expanded by $US2 billion this month.

US auto sales, spurred by the government's "cash for clunkers" program, have fallen 15 per cent from the late July peak, Edmunds Inc's Edmunds.com reported on its Web site, citing its study.

Expression of an intention to buy a new car is off 31 per cent from the peak, Edmunds.com said. Purchase intent is a leading indicator of sales within 90 days, Edmunds.com said.

Bloomberg

[vztrt]

Joint Venture with China on their utes......Hmm Holden ute made in China soon??

http://news.theage.com.au/breaking-n...0831-f4ez.html

GM launches new China light truck joint venture
August 31, 2009 - 9:59AM

US auto giant General Motors and Chinese automaker FAW Group Corp announced a new joint venture Sunday to produce light-duty trucks and vans for China's fast growing commercial vehicle market.

GM China President and Managing Director Kevin Wale said the truck joint venture rounds out the automaker's product portfolio in China, which accounts for more than half of the world's commercial vehicle sales.

"The truck segment is very important. It's growing rapidly like the rest of China," Wale told reporters on a conference call.

The 50-50 joint venture aims to sell between 80,000 and 90,000 vehicles under the FAW brand in 2009 and 100,000 next year, Wale said.

GM has begun building a new plant in northeast Harbin to double the FAW-GM Light Duty Commercial Vehicle Co Ltd's capacity to 200,000 units a year by 2010, including existing FAW factories in Harbin and southwest Qujing, Yunnan province, Wale said.

The company will produce "box-on-the-back"-style trucks designed to carry from to one to four tonnes, Wale said, adding demand was increasing as better roads mean truck transport was replacing rail and waterway shipping.

"It's just a result of the economic growth in China and the constant trading that's going on," he said.

The joint venture has a registered capital of 1.2 billion yuan (175.7 million US dollars) and a total investment of 2 billion yuan, GM said in a statement.

Wale said GM's overall sales in China have remained stronger than anticipated this year and that the automaker expected to revise its full-year sales forecast in the coming weeks.

Despite filing for bankruptcy at home, GM and its joint ventures sold a total of 959,035 vehicles in China in the first seven months of the year, up 42.8 percent from the same period last year, the company has said.

China, GM's second largest market after the US, overtook the United States to become the world's largest car market for the first time in January.

© 2009 AFP

[The Snout]

"Football, Yum Cha, Panda bears and Holden Cars"

[R-Design]

Originally Posted by AFP, September 11, 2009

General Motors said on Thursday it will offer customers a money-back guarantee on its vehicles as the US auto giant struggles to regain consumer confidence.

General Motors said on Thursday it will offer customers a money-back guarantee on its vehicles as the US auto giant struggles to regain consumer confidence following a bankruptcy filing.

The 60-day "Satisfaction Guarantee" promotion is part of a major marketing push which GM says will demonstrate its "confidence in the quality" of its vehicles.

"We know that we'll need to work very hard to get people's attention and encourage them to give Chevy, Buick, Cadillac and GMC a try," said GM vice chairman Bob Lutz.

"We think if consumers give us a fair chance and look at the facts on the things that matter most to them, like design, fuel economy, warranty and safety, our vehicles are the best choices."

GM has also recently introduced a transferable 100,000 mile or five-year warranty on main vehicle parts such as engines and transmissions.

The money-back guarantee covers all Chevrolet, Buick, GMC and Cadillac vehicles, except for medium-duty trucks, sold in the United States between September 14 and November 30.

Customers returning vehicles with less than 4,000 miles driven between 31 and 60 days after purchase will be refunded the purchase price and applicable taxes. Accessories and other fees will not be refunded.

GM has used money-back guarantees in the past to spur sales, most notably in 1990 with a campaign to flog now-defunct Oldsmobile vehicles.

"Consumers watching this ad campaign will be intrigued because of GM's bold statement of confidence in its vehicles," said Jeremy Anwyl, CEO of Edmunds.com. "The risk that GM has in buyers returning its vehicles will be very minimal."

http://www.drive.com.au/Editorial/Ar...ID=65505&vf=12

I'd buy one, just so I could throw the keys back in their face!

What's the record for the number of bankruptcy's for an American Auto Manufacturer in a single calendar year?

[Texas f-150]

i dont even know what the point of saying they are an american car is anymore, they are made in canada and mexico, we build hondas and toyotas in the states...

[Mark s]

Originally Posted by Boss315

http://www.drive.com.au/Editorial/Ar...ID=65505&vf=12

I'd buy one, just so I could throw the keys back in their face!

What's the record for the number of bankruptcy's for an American Auto Manufacturer in a single calendar year?

Didn't Hyundai offer something along the same lines. If you could not meet repayments, you could hand your car back. I wonder how much that did for Hyundai and getting extra sales?

Maybe Texas f-150 would enlighten us. How is consumer confidence in GM at the moment?

Is the company back selling huge amounts of cars and heading towards becoming a force again?

Or are people still very cautious in buying something from the GM range after all that has happened, and is rebuilding the company going to be a monster task?

I know Ohio XB is taking a break from the forums. It would be good to get a feel on how sales are going and again consumer confidence.

I get the impression that Ford are doing better than expected, but I would like know what the feel for GM and if anything has changed?


Cheers
Mark

[Luke Plaizier]

Why is Ohio XB taking a break?


Lukeyson

[Mark s]

Luke

http://www.fordforums.com.au/showthread.php?t=11272803

[vztrt]

Originally Posted by Mark s

Didn't Hyundai offer something along the same lines. If you could not meet repayments, you could hand your car back. I wonder how much that did for Hyundai and getting extra sales?

I believe it was KIA.