**GM preparing for bankruptcy**

[vztrt]

http://www.autoblog.com/2011/08/11/c...idst-fears-of/

CEO Akerson buys 10,000 more shares of GM stock amidst fears of recession
By Chris Shunk RSS feed
Aug 11th 2011 11:28AM

The past couple of weeks have been incredibly difficult for the stock market, with some of the largest drops in the history of the Dow. And even though Ford and General Motors recently posted massive second quarter profits, domestic auto shares are indeed taking a beating. In fact, GM stock has dropped by 25 percent in only a few weeks, down to $23.92 at closing on Wednesday.

So, does a massive stock drop mean that it's time to cut and run? Not for GM CEO Dan Akerson. The Detroit Free Press reports that the chief executive picked up another 10,000 shares of GM stock at $25.05 per share. Akerson now reportedly owns 103,600 shares, which would translate into about $2.47 million worth of GM stock.

We're guessing Akerson is buying GM stock now to show investors that he believes in the future of the company, but some analysts feel the stock is a good buy on its own. Bloomberg analysts feel GM stock will trade at about $42 per share in 12 months. Goldman Sachs seems to agree, predicting that the stock could hit $40 in the next year. But while the future looks good at GM, analysts warn that a sustained recession could further drop auto shares over the next year.

News Source: The Detroit Free Press

[Resurrection]

More about insider purchases:

http://www.zerohedge.com/news/presen...ider-purchases

The New GM is starting to smell like the Old GM.

[vztrt]

http://www.autoblog.com/2011/08/22/g...before-bankru/

GM claims not responsible for Impala problems from before bankruptcy
By Aaron Richardson RSS feed
Aug 22nd 2011 9:29AM

General Motors and its lawyers say the company isn't responsible for design flaws or defects caused by "Old GM," which refers to the pre-bankruptcy company General Motors Corp. (now known as Motors Liquidation Co.).

The company has asked that a lawsuit brought by a Pennsylvania woman over faulty tie rods on the 2007-2008 Chevrolet Impala be dismissed on grounds that "New GM" is not responsible for the old company's gaffes.

The General's lawyers say the company is responsible for claims against warranties set up under the old company, but never agreed to take responsibility for defects. Slick move, boys.

News Source: Reuters

[janddbone]

That is pathetic...

[vztrt]

http://www.autoblog.com/2011/09/02/g...ed-as-advisor/

GM announces Bob Lutz retained as advisor
By Jeff Glucker RSS feed
Sep 2nd 2011 2:15PM

The man nicknamed "Maximum" isn't completely retired yet.

General Motors has announced that it has retained Bob Lutz as an advisor. Executives at GM will be able to reach out to Lutz and tap into his knowledge base, which was garnered from a career in the automotive industry lasting over four decades.

Since retiring from GM in 2010, Lutz has supplied information to executives on an informal basis. Now the assistance will be provided on an official retainer, presumably on a more frequent (or at least regularly scheduled) basis.

PRESS RELEASE

General Motors Retains Bob Lutz as Advisor
2011-09-02

DETROIT – General Motors today announced the retention of former Vice Chairman Robert A. "Bob" Lutz to provide counsel to the senior leadership team of the company.

Lutz will be available to executives on a part-time consultancy basis effective immediately. He brings a wealth of experience built over the course of more than 40 years in the industry, including two stints at GM. He has also been a senior executive at Ford, Chrysler, BMW and was CEO of Exide Batteries.

Lutz has been providing advice to GM executives informally since retiring from the company in 2010.

[vztrt]

http://www.autoblog.com/2011/09/05/c...in-new-memoir/

Cheney admits he disagreed with Bush on GM bailout in new memoir
By Zach Bowman RSS feed
Posted Sep 5th 2011 10:01AM

Former United States Vice President Dick Cheney didn't hold back when it came time to write his memoir of his time in office. Cheney has taken shots at everyone from Colin Powell to Condoleezza Rice, and according to The Detroit News, the VP wasn't thrilled about the idea of pulling General Motors out of financial dire straits. The memoir reveals that Cheney would have preferred that the Bush Administration hadn't bailed out General Motors with a $13.4 million rescue package and that he was disappointed, "but not surprised" that the Obama Administration took further steps to keep the world's largest automaker afloat.

Cheney said that he felt that bankruptcy was the right option.

Even so, the former vice president defended the $700 billion Troubled Asset Relief Program designed to pull U.S. banks out of hot water, saying that the U.S. government was the only body able to protect the banking system from collapse. Private companies, Cheney said, should be judged by the marketplace.

News Source: The Detroit News

[Keepleft]

Should have let those banks fail, even BofA.

[vztrt]

http://www.autoblog.com/2011/09/17/g...n-labor-talks/

GM and UAW reach tentative labor agreement
By Alex Nunez RSS feed
Sep 17th 2011 9:06AM

Contract negotiations between General Motors and the United Auto Workers have led to a tentative agreement on a new labor deal, pending ratification by membership.

Specifics of the four-year contract, agreed upon last night at around 11:00 PM, have not been released, but in an official announcement on its website, the UAW says that the deal includes improvements in both health-care coverage and profit sharing for its 48,500 GM workers. UAW boss Bob King also said that the proposed contract will lead to the rehiring of laid-off workers, the creation of new jobs, and the repatriation of some jobs that had been moved offshore.

In its coverage of the GM/UAW labor agreement, Bloomberg says that it's not yet clear whether higher-than-usual signing bonuses will be used to help ensure the contract's acceptance by the union rank and file.

With General Motors out of the way, Bloomberg reports that the union will likely shift focus to Chrysler. It appears that Ford, which has not received a no-strike pledge from the UAW, will need to wait until the Chrysler contract is settled to work on its new deal with the union.

UPDATE: In a follow-up to its initial article on the new GM/UAW deal, Bloomberg reports that sources with knowledge of the contract's specifics say that pay for entry-level workers will rise by $2.00 to $3.00 per hour.

Furthermore, UAW members will reportedly be paid a signing bonus of $5,000 each if the tentative contract is ratified. That would be a new record signing bonus (workers received $3,000 each for signing the 2007 contract), but well short of the $8,000 to $10,000 number that had seen speculation last week.

News Source: Bloomberg, UAW

[vztrt]

http://www.autoblog.com/2011/10/03/g...ew-labor-deal/

GM earns higher credit rating with new labor deal
By Chris Shunk RSS feed
Oct 3rd 2011 10:31AM

General Motors recently came to an agreement with the United Auto Workers on a new contract, and it appears at least one ratings agency likes the fine print. Automotive News reports that Standard & Poor's has raised GM's rating from BB- to BB+, while also giving the rating outlook a bump from "positive" to "stable." That ratings bump now makes GM one step below investment grade in the eyes of S&P.

As you might imagine, the ratings jump has everything to do with The General's ability to earn the almighty dollar. S&P said in a statement that GM's two-year profit streak, strong cash flow and solid performance around the globe were the catalysts for the ratings change.

Now that GM has received a pat on the back from S&P, could Ford be next? Looks like it. The ratings agency announced that The Blue Oval will be considered for an upgrade once the company completes its UAW contract talks. S&P currently has Ford rated at BB-.

News Source: Automotive News ? sub. req.

[gtfpv]

anyone seen that new mortein add about how they might kill off louie the fly . seriously .

[vztrt]

http://www.autoblog.com/2011/11/15/o...wn-by-a-third/

One year after IPO, GM stock is down by a third
By Zach Bowman RSS feed
Posted Nov 15th 2011 2:29PM

It's been a full year since the General Motors Initial Public Offering, and the company's stock isn't performing as well as anyone in Detroit or Washington, D.C. would like. As The Detroit News notes, the stock has dipped by 30 percent from its initial price, thanks in part to troubles in Europe and internal dissatisfaction with the company's profit margins. As of last Wednesday, the company's stock fell by 10.9 percent to $22.31 when GM announced that its fourth-quarter earnings wouldn't make any gains over 2010. That news has prompted the U.S. Treasury, which still holds a 27-percent stake in General Motors, to hold off indefinitely on selling its remaining 500 million shares.

The Detroit News reports that if the government were to sell off its stake in the company at current trading prices, the country would lose around $15 billion on the country's investment in GM. Even with the indefinite hold on selling off the shares, the federal government has readjusted its projected losses on the automotive bailouts from $14.33 billion to $23.6 billion.

News Source: The Detroit News

[Resurrection]

Take at look at GM's inventory levels!

http://www.zerohedge.com/news/gm-cha...ll-time-record

[Lotte]

Originally Posted by Nikked

I know toyota share plastics, we had problems gettin a BA falcon side skirt, each one we got had a toyota camry skirt in a ford box

I think Ford going down if holden goes down is not as likly as it seems. If the worse does come and holden pack it up, the Government would have to answer to lots of angry workers/voters. The government would then do all it can to keep ford alive.

At the moment they both share Continental. At least until the VE stops....

[bobthebilda]

Originally Posted by Resurrection

Take at look at GM's inventory levels!

http://www.zerohedge.com/news/gm-cha...ll-time-record

You gotta love the General Motors / Holden business plan. Build the cars, sell them to the dealership (lend the dealership the money to buy the car), and book the profit. I wonder if we might start to see Holdens cruze sales start to replicate the chevy cruze (nothing worse than buyers word of mouth). Chevy cruze going from 28,000 a month to 14,000 a month is going to equate to 1400 a month for Holden.

[Joe5619]

It has been a few months coming (OK.. allot more than a few months), but I'm no longer worried about Ford's local plant, but very very very worried about Holden’s local plant (we need all 3 here)... GM seem to have learnt nothing.. I thought they had new management after they went broke??

[Gobes32]

They have 3.5 months worth of stock sitting in the dealer network!!!! Makes you wonder how many cars Holden have sitting in it's dealer network?

[vztrt]

2808 units sold this month won't help stock levels. Seeing as they would easily do 3500+ each month.

[phillyc]

Originally Posted by vztrt

2808 units sold this month won't help stock levels. Seeing as they would easily do 3500+ each month.

Can only force feed the dealers for so long. And it has been a long time.

I wonder what figure GM Holden can conjure up for December 2011 to retain the best selling car title that is coveted by them?

[Resurrection]

http://www.zerohedge.com/news/gms-ch...-economy-fraud

Stuffing dealers with unsold cars is also occurring in Germany, not just USA.

[RASER]

Originally Posted by Joe5619

It has been a few months coming (OK.. allot more than a few months), but I'm no longer worried about Ford's local plant, but very very very worried about Holden’s local plant (we need all 3 here)... GM seem to have learnt nothing.. I thought they had new management after they went broke??

Really?????, FoA will pull out of assymble sooner rather than latter

GM is back in profit, and the most produced brand on the planet, thanks to China, how quickly things turn around

Rick W ex-CEO is still a scammer all the same!

[mik]

yes government motors has done ok, i can sorta see down the track there will probably end up being only one or two car makers in decades to come, the greenies will specify all cars will be eco boxes, about the size of a fiat 500 , and only one color white so they reflect as much sun as possible and not promote global warming .

[galaxy xr8]

Deleted..

[SA_GT]

Perhaps, it will never be profitable for any car company to manufacture vehicles in Australia without bringing back high tariffs on imported crap and propping up the car industry. The entire manufacturing sector is in meltdown and China bound.

[Resurrection]

The new GM desperately seeking more cash:

http://www.businessweek.com/news/201...-expand-credit

[boris]

Originally Posted by SA_GT

Perhaps, it will never be profitable for any car company to manufacture vehicles in Australia without bringing back high tariffs on imported crap and propping up the car industry. The entire manufacturing sector is in meltdown and China bound.

Are tariffs a form of propping up local industry, or are they away of evening out the playing field when one country has much lower standards of living, low wages, exploits human and natural resources?

[Nikked]

Originally Posted by Resurrection

The new GM desperately seeking more cash:

http://www.businessweek.com/news/201...-expand-credit

The wound is bleeding out and the dressing has failed to plug, so more transfusions are needed?

[DRU842]

Originally Posted by boris

Are tariffs a form of propping up local industry, or are they away of evening out the playing field when one country has much lower standards of living, low wages, exploits human and natural resources?

Tariffs, in their original form, were a form of protection to allow an industry to establish itself against foreign competition.
Your second suggestion alludes to 'Dumping' where a product is exported for a lower price than its sold in its home market.
Both forms of protection then levy duties to level the playing field.
Proof is in the eye of the beholder/lawyer!

[graham7773]

Up front I have to say that I like both the Falcon and the Commodore but I think us Ford fans need to look a bit closer to home re car makers going out of business. By the way, Govco have donated several hundred millions of $$$s to Ford Australia in the past few years. I found this info which throws some more light on FoMoCo's position in Aus.

Ford Australia’s attempts to reverse the losses with the introduction of fuel-efficient versions of the Falcon are not proving as successful as it initially planned. Ford launched the new LPG-powered Falcon EcoLPi in July 2011 and followed it up with the four-cylinder petrol-powered Falcon EcoBoost in April 2012. At the launch of both variants, Ford said it believed each would eventually account for around 25 per cent of total Falcon sales, making half of all Falcons sold either an EcoBoost or EcoPLi variant. Since the launch of the EcoBoost, the two have accounted for just 21 per cent of total Falcon volume, leaving them well shy of their target.

Falling Falcon sales are compounding the financial pain for Ford Australia. In May, the company reported its biggest deficit on record: a $290 million post-tax loss for 2011.

The latest job cuts come 14 months after Ford Australia shed 240 workers from its Broadmeadows and Geelong plants – again due to falling demand for its vehicles – with daily vehicle production at the time sliced from 260 cars to 209 and currently 148

The future of Ford Performance Vehicles was also cast into doubt last month when FPV confirmed the sacking of then-general manager Rod Barrett and around a dozen other Melbourne-based employees.
Looks like none of the big car makers are doing very well.

[boris]

Originally Posted by DRU842

Tariffs, in their original form, were a form of protection to allow an industry to establish itself against foreign competition.
Your second suggestion alludes to 'Dumping' where a product is exported for a lower price than its sold in its home market.
Both forms of protection then levy duties to level the playing field.
Proof is in the eye of the beholder/lawyer!

Ahh spoken like a true capitalist

[Resurrection]

The new GM continues to operate like the old GM:

http://media.gm.com/content/dam/Medi...ales%20Nov.pdf

5% increase in sales mostly due to increase in dealer inventory levels:

http://www.zerohedge.com/news/2012-1...g-soars-record