**GM preparing for bankruptcy**

[vztrt]

http://theage.drive.com.au/motor-new...226-1b92g.html

Profit and loss for Holden's parent company
Barry Park
February 26, 2011

New GM earns $8900 a minute while its excised part loses $76 a second.

General Motors - the US car maker that last year flirted dangerously with bankruptcy -- has posted a $4.7 billion profit for 2010.

However, today's result — the first annual run of black ink the rebirthed car maker has had in six years — is marred by a $2.4 billion calendar year loss posted by the underperforming assets that were rolled into a separate business as GM last year split itself into two.

Motors Liquidation, as the bad part of GM is now known, still has $35 billion in liabilities written against its 2010 financial year performance, documents filed with the Securities and Exchange Commission reveal.
Advertisement: Story continues below

While new GM celebrates its $135 billion in revenue by handing a productivity bonus ranging between $3200 and $4300 over to almost 50,000 workers, old GM earned just $30 million from rental and other income, with expenses outweighing the income five-fold.

GM's turnaround has taken just over a year. The car maker lost $4.3 billion in 2009, and posted its first quarterly profit in four years earlier this year.

Its accounts show that GM International Operations, which includes the GM Holden car-making division in Australia, reported earnings of $300 million in the last quarter of 2010, down slightly on the $400 million earned in the same quarter the previous year.

Holden flagged earlier this year that it had turned around after 2010's record $210 million loss, and now expects to return to profitability when the company's annual results are announced later this year.

It follows a five-year run of losses for the Australian subsidiary totalling more than half a billion dollars.

[1TUFFUTE]

omg i seriously didnt realize it was that bad for GM and even Holden here.

[vztrt]

http://www.autoblog.com/2011/02/25/t...-shares-early/

Treasury aims to sell GM shares early

by Zach Bowman (RSS feed) on Feb 25th 2011 at 2:02PM

According to The Detroit News, the United States Treasury Department is planning on quickly eliminating its shares of General Motors stock rather than trying to maximize the government's return on its investment. The news comes from Austan Goolsbee, chairman of the Council of Economic Advisors, who said that the government is interested in quickly shedding its 33 percent stake in the automaker due to the fact that it never wanted to be a shareholder in the automaker to begin with. The Detroit News reports that if the Treasury Department decided to sell its stake in GM at its current trading price, the government would lose something on the order of $10 billion.

That's out of the $49.5 billion bailout that GM received from the government.

GM shares are currently trading at their lowest levels since the company went public, thanks largely to an overall market dip. The drop came even with GM reporting its first profit since 2004.

The Detroit News reports that so far, the federal government has reclaimed $23.1 billion of its investment in GM, and that in order to recuperate the $26.4 billion, GM stock would need to trade at $53 per share. The company is trading at $33.02 at the time of this writing.

[Source: The Detroit News]

[aussie muscle]

the government would lose something on the order of $10 billion.

they don't care, it's not their money.

[vztrt]

http://www.autoblog.com/2011/03/05/r...-old-gm-sites/

Report: Judge approves plan to clean up "Old GM" sites

by Zach Bowman (RSS feed) on Mar 5th 2011 at 12:33PM

General Motors has been given the go-ahead to begin selling off the remaining old GM assets as part of the automaker's restructuring plan. According to The Detroit News, a federal bankruptcy judge approved the plan after a day-long hearing. Judge Robert E. Gerber is expected to issue a written opinion on the matter within the next few days, and the sale's confirmation date is set to be announced on March 31.

As part of the move, 610 million shares of old GM stock will be cancelled. Creditors have submitted verified claims of around $29.5 billion, and as part of the plan, those entities will receive $5 billion in new GM stock and warrants. That figure equates to around 15 percent of all new-GM stock.

In addition, Gerber moved to approve a $773 million environmental trust designed to help fund and oversee the cleanup of 89 former General Motors plants in 14 states. An additional plan is in the works to address additional environmental issues.

Those include an extra $536 million to cover cleanup costs and $300 million for demolition costs and property taxes.

Gerber's decision means that the last remaining embers of the old GM are officially dying out. The Detroit News reports that the company should cease doing business by no later than December 15.

[Source: The Detroit News]

[Bossxr8]

So what happens to the debt when Old GM is wound up?

Who wears the costs?

[irish2]

Originally Posted by Bossxr8

So what happens to the debt when Old GM is wound up?

Who wears the costs?

The creditors will be paid whatever is left over after all assets are sold. The assets won't cover the debts so the creditors cop it.

[vztrt]

http://www.autoblog.com/2011/03/10/r...mann-named-re/

Report: CFO Liddell leaving GM, Treasurer Dan Ammann named replacement

by Zach Bowman (RSS feed) on Mar 10th 2011 at 1:31PM


General Motors has announced that Chris Liddell (above left), the company's vice chairman and chief financial officer, is leaving the automaker. Liddell joined GM in January 2010 and was instrumental in guiding the manufacturer through its recent initial public offering. At this point, the reasons for Liddell's departure remain unclear.

According to Automotive News, Liddell was initially viewed as one possible successor to Ed Whitacre as CEO of GM, though that changed when Whitacre unexpectedly announced his plans to retire.

Since then, Dan Akerson has been picked to lead GM.

Dan Ammann (above right), who currently serves as the automaker's treasurer, will succeed Liddell. Ammann has been with GM for less than a year, having joined the company in March of 2010. Before joining the automotive industry, he served as the managing director and head of industrials investment banking at Morgan Stanley for four years. Hit the jump for the full press release.

[Sources: General Motors, Automotive News – sub. req.]

Press Release

GM Announces CFO Transition

2011-03-10

* Chris Liddell Steps Down After Record IPO
* Treasurer Dan Ammann to assume CFO Role

DETROIT – General Motors Vice Chairman and Chief Financial Officer Chris Liddell today announced that he will leave the company April 1, 2011, having completed the largest public offering in history and stabilizing the company's financial operations. Liddell, 52, joined GM in January, 2010 and led the company's financial and accounting operations on a global basis.

"Chris was a major contributor during a pivotal time in the company's history," said Dan Akerson, GM chairman and CEO. "He guided the company's IPO process and established a good financial foundation for the future."

In addition to the successful IPO, Akerson recognized Liddell's leadership over the last year noting four quarters of sustained profitability, a strengthened balance sheet and the elimination of material weakness in the financial reporting process.

Dan Ammann will succeed Liddell as General Motors chief financial officer, effective April 1, 2011. Ammann, 38, is currently GM vice president, finance and treasurer.

"Dan's depth of knowledge of the financial community and our business will be instrumental as we continue to earn the trust of global investors and customers," said Akerson. "He is held in high regard on Wall Street and within the company and, as we move our financial strategy forward, his credibility and leadership will be invaluable."

Ammann has played a major role in the key financial decisions at the new GM. He has been actively engaged in setting the financial strategy and reducing debt. Ammann was also integral in the IPO process.

"We've made great strides this last year in setting the financial strategy for the company," said Ammann. "Chris and I have worked together very closely during this time and I am committed to a seamless transition and to building on what we started."

Since joining the company in March, 2010, Ammann has led the GM Treasurer's Office, based in New York, with operations around the world. Prior to GM, Ammann was managing director and head of Industrials Investment Banking for Morgan Stanley and was instrumental in many high profile assignments spanning a variety of technology, service, and manufacturing clients.

"I came to General Motors to be part of something great," said Liddell. "My objective was to help rebuild this iconic company and I am particularly pleased that through this process, we have also developed a strong successor in Dan Ammann."

A successor for Ammann in GM's Treasurer's Office will be announced at a later date.

[vztrt]

http://www.autoblog.com/2011/03/18/g...eferred-stock/

General Motors issues second quarter dividend on preferred stock

by Chris Shunk (RSS feed) on Mar 18th 2011 at 10:29AM

There are two main categories of General Motors stock; common and preferred. The preferred stock costs more, but that added price tag comes with a few extra perks. For example, preferred stock represents ownership in the company, and those shares receive priority over common stock in the event of a liquidation. GM's pricier stock also appears to have another perk – quarterly dividends.

GM announced today that preferred shareholders will receive a dividend of 59 cents per share on June 1. Anyone who holds the shares by May 15, 2011 will have rights to the extra coin, which adds up to $59.4 million for the automaker. The dividend will be the second of the year, as The General shelled out another 65 cents per share in January. Hit the jump to look over GM's brief press release.

[Sources: General Motors, ABC News | Image: Spencer Platt/Getty]

Press Release

Detroit – General Motors Company (NYSE: GM) today announced its Board of Directors has approved a second quarterly dividend of $0.594 per share on its Series B mandatory convertible junior preferred stock. The dividend is payable June 1, 2011 to Series B holders of record as of May 15, 2011. The dividend is cumulative. The total amount of the dividend is approximately $59.4 million.

[Buntz]

If only the Government had the foresight to make GM an off for Holden.

[vztrt]

http://www.autoblog.com/2011/03/22/b...aintiffs-chal/

Bloomberg: Unintended acceleration Toyota plaintiffs challenging NASA findings

by Jeff Glucker (RSS feed) on Mar 22nd 2011 at 4:00PM

Plaintiffs in the unintended acceleration class action case against Toyota are striking back against the findings laid out by NASA. It was the National Aeronautics and Space Administration that produced research showing electronics were not to blame for any sudden acceleration-related issues.

According to Bloomberg, the plaintiffs in the case maintain that NASA didn't dig deep enough. Toyota's computer systems utilize eight million lines of code, yet NASA only looked through 280,000. Lawyers for the plaintiffs have filed paperwork stating they plan to bring in experts who'll contradict NASA's findings.

Toyota maintains that any issues of unintended acceleration were related to stuck accelerator pedals, faulty floor mats and driver error – two out of three of which have been addressed with recalls.

[Source: Bloomberg]

[vztrt]

http://www.autoblog.com/2011/03/27/r...d-off-workers/

Report: GM recalling 2,000 laid-off workers

by Aaron Richardson (RSS feed) on Mar 27th 2011 at 3:01PM

According to the United Auto Workers, General Motors will recall another 2,000 of its laid-off workers by September. The UAW told The Detroit News that most of the recalls will affect southern Michigan, where the economic downturn and subsequent cutbacks hit hardest.

While the General hasn't specified its timeline yet, UAW officials say the workers will be back building cars by September. With laid-off employees back at work, GM will be able to start hiring again, though the company didn't provide a timeline for new hires.

The recalls show that General Motors is making progress on its road to recovery after several dire years and the death of four of its brands. According to GM brass, they're starting a third shift of 750 workers at the Flint, Michigan truck plant, 600 for a second shift to build Cadillacs in Lansing, and 1,550 to build small cars in Lake Orion, Michigan.

[Source: The Detroit News]

[Buntz]

Missed this one?

Report: Akerson's leadership, pricing strategies at GM drawing more fire

We know he's not a "car guy" but some think General Motors CEO Dan Akerson might not be a guy fit for a car company period. Akerson comes from the telecommunications world, and it seems some analysts believe it's that background that's driving him to cut costs and drive sales by means of heavy incentives and rebates.

GM has seen strong sales to start 2011, but other automakers are quick to point out these gains come courtesy of instant gratification tactics. By initially devaluing its product, GM also diminishes its future resale value. Additionally, customers shopping for a General Motors product will expect an incentive or rebate when they show up at their local dealership.

We haven't seen March sales figures yet, but as it was the month GM ended its current run of incentives and rebates, it will be interesting to see if sales take a dip as a result. Early estimates say that's the case, but we'll have to wait for the monthly By the Numbers to be sure.

[Bossxr8]

They haven't learnt their lesson have they.

They went bankrupt selling millions of cars for no profit. Same old, same old.

[Buntz]

Originally Posted by Bossxr8

They haven't learnt their lesson have they.

They went bankrupt selling millions of cars for no profit. Same old, same old.

Hopefully they do again so we can buy Holden off them.

[Bossxr8]

Originally Posted by Buntz93ED

Hopefully they do again so we can buy Holden off them.

Ford just sold off all their loss making offshoots like JLR and Volvo, why would they want another one?

[Buntz]

Originally Posted by Bossxr8

Ford just sold off all their loss making offshoots like JLR and Volvo, why would they want another one?

Firstly they didn't make JLR and Volvo. Second;y. I didn't mean Ford... I meant the Australian Government. With Australian business investors of course.

[vztrt]

Originally Posted by Buntz93ED

Firstly they didn't make JLR and Volvo.

And??

The money to cover the large losses were coming from somewhere.

[Buntz]

Originally Posted by vztrt

And??

The money to cover the large losses were coming from somewhere.

I'm not disputing The losses of JLR and Volvo... just Boss describing them as 'offshoots'.

[Paxton]

Originally Posted by Buntz93ED

I'm not disputing The losses of JLR and Volvo... just Boss describing them as 'offshoots'.

What exactly were they then, if not offshoots?

[Buntz]

Originally Posted by Paxton

What exactly were they then, if not offshoots?

Sub brands. Offshoots seems to indicate they were created by Ford.

[vztrt]

http://www.autoblog.com/2011/03/28/g...formerly-gmac/

GM sells of $1 billion in shares of Ally, formerly GMAC

by Chris Shunk (RSS feed) on Mar 28th 2011 at 8:30AM

Before General Motors sold its controlling stake of GMAC (now Ally Financial) to Cerberus, the company's captive finance arm was among its largest profit centers. But as the company's debt piled up, it sold off the lion's share of GMAC to keep collectors at bay. But almost as fast as that happened, the auto industry and the global economy took a dive, and GMAC began to reject most every loan The General threw its way.

Fast forward to 2011, and GM has announced the sale of its $1 billion worth of Class A shares of Ally. The sale of the company's outstanding shares will allow the automaker to claim an additional $300 million profit for the first quarter of 2011. Chief financial officer Chris Liddell says that the automaker is "taking another step forward in our strategy to strengthen and simplify the company's balance sheet."

Even with GM's announced preferred stock sale, the automaker will still own 9.9 percent of Ally's common shares. Hit the jump to read over GM's announcement.

[Source: GM]

Press Release

DETROIT – General Motors Company (NYSE: GM) today announced the sale of all of its shares of Fixed Rate Perpetual Preferred Stock, Series A, of Ally Financial Inc. in a registered public offering for a total of $1.0 billion.

The shares, which represent 100 percent of the Ally Series A preferred stock outstanding, have an aggregate liquidation preference of $1 billion.

"Today, we are taking another step forward in our strategy to strengthen and simplify the company's balance sheet," said Chris Liddell, vice chairman and chief financial officer.

The transaction will result in a book gain of $0.3 billion to be recorded in the first quarter of 2011. Following the sale, GM's investment in Ally Financial will consist of a 9.9 percent interest in Ally common stock.

The offering was underwritten by Credit Suisse, BofA Merrill Lynch, Deutsche Bank Securities and Barclays Capital. This news release shall not constitute an offer to sell or the solicitation of an offer to buy any security.

[Buntz]

I feel sorry for the guys at Autoblog sometimes. All those podcasts with submitted questions from the readers. Every week it's like... "Is Ford gonna doa RWD sedan to combat GM, and Chrysler already?" or "When's Falcon coming over here?"

[Resurrection]

The New GM us starting to smell like the old GM

http://www.zerohedge.com/article/cha...st-loans-and-h

[Resurrection]

Originally Posted by Buntz93ED

I feel sorry for the guys at Autoblog sometimes. All those podcasts with submitted questions from the readers. Every week it's like... "Is Ford gonna doa RWD sedan to combat GM, and Chrysler already?" or "When's Falcon coming over here?"

It appears Dearborn is the only one who doesn't want the Falcon in the US.

[Buntz]

Originally Posted by Resurrection

It appears Dearborn is the only one who doesn't want the Falcon in the US.

You can't introduce a model that outshines everything they make in the U.S.

P.S. There is a new GM?

[Resurrection]

Originally Posted by Buntz93ED

P.S. There is a new GM?

Old GM now called Motors Liquidation Company

New GM

[Buntz]

Originally Posted by Resurrection

Old GM now called Motors Liquidation Company

New GM

I know. You can reorganize... and relaunch the company under the same name... but it's still GM. And they are still operating from the past, and this kind of dealing is to be expected.

Ford on the other hand. Lets just say Bill knew what needed to be done, and Alan has now taken the company 180 degrees.

[vztrt]

http://www.autoblog.com/2011/04/01/r...ipo-paperwork/

Report: Ally Financial files IPO paperwork

by Chris Shunk (RSS feed) on Apr 1st 2011 at 9:21AM

Ally Financial, formerly GMAC Financial, has filed the paperwork necessary for an Initial Public Offering. The Detroit News reports that the filing will go to the Securities and Exchange Commission for approval before Ally can go public; a process that could take months. The federal government, which owns 74 percent of the lending arm due to its $17.2 billion 2009 bailout, is the only party listed as a stockholder.

The next step for Ally Financial is to go on a tour to entice investors to buy into the financial firm in advance of the SEC's decision. Ally isn't yet close to announcing a price for the stock, nor has the government disclosed the amount of shares it plans to unload, but the DetNews reports that the fed plans to net $5.5 billion from the transaction. The government also owns $5.9 billion in convertible preferred stock.

General Motors still owns 9.9 percent of Ally Financial, but the automaker reportedly won't participate in the sale. The General did announce previously that it sold its preferred stock, though, for $1 billion.

[Source: The Detroit News]

[vztrt]

http://www.autoblog.com/2011/05/04/g...1-in-11-years/

Report: GM projected to have most profitable Q1 in 11 years

by Chris Shunk (RSS feed) on May 4th 2011 at 1:00PM

Most automakers have already reported earnings for the first quarter of 2011, but General Motors is still busy counting its loot. We don't know how well the largest automaker in the United States fared, but Bloomberg reports that GM could post a profit of $1.74 billion for the quarter. That would be a 63 percent improvement versus Q1 2010 and the best first quarter for GM in 11 years. A first quarter profit would also be the fifth consecutive quarterly profit for The General – a significant task given the fact that the automaker exited bankruptcy protection less than two years ago.

GM's profit is expected because of the automaker's successful quarter in the U.S. and China. The automaker sold 26 percent more vehicles in the U.S. during Q1 2011 than it did in the first quarter of 2010, while car buyers in China appear to be picking up as many GM products as they can.

In the short term, analysts are questioning whether a solid profit statement will affect the company's stock. GM is still trading at levels close to the same $33/share when the company's IPO was released. The stock briefly climbed to nearly $39/share before dropping back down into the low $30 range. Analysts claim that GM stocks could take a turn for the better due to supply chain issues for Japanese automakers. The General is reportedly in a good position to reap additional sales as the result of its competitors' issues.
[Source: Bloomberg | Images: Bill Pugliano/Getty]