Welcome to Just Commodores, a site specifically designed for all people who share the same passion as yourself.

New Posts Contact us

Just Commodores Forum Community

It takes just a moment to join our fantastic community

Register

GM Bankruptcy seems almost certain in early June

Reaper

Tells it like it is.
Joined
Aug 15, 2004
Messages
6,493
Reaction score
11,463
Points
113
Location
SE Suburbs, Melbourne
Members Ride
RG Z71 Colorado, 120 Prado , VDJ200, Vantage
GM early payments: Another bankruptcy signal

Automaker agrees to about $2 billion in early payments to suppliers, ahead of deadline for possible bankruptcy.


NEW YORK (CNNMoney.com) -- In another sign the company is preparing for a possible bankruptcy filing within the next two weeks, General Motors has agreed to speed up payments to 1,500 suppliers who provide it with the parts it needs to make cars in North America.
The company typically pays its suppliers during the first week of every month. The next payment was originally scheduled for June 2. But GM spokesman Dan Flores said the June payment has been moved up to May 28 to help its suppliers in the face of current "market uncertainty."
That uncertainty is due to the fact that under bankruptcy law, once a company has filed for bankruptcy court protection, it is not allowed to make payments to people or entities it owes money while a judge sorts out how much to pay each creditor.
Thus the five-day difference in payment could make a great deal of difference to the suppliers, since GM faces a June 1 deadline from the Treasury Department to win concessions from its bondholders and unions, and to make other structural changes.
If it can't win agreement from those groups, the company may file bankruptcy on June 1, an option that CEO Fritz Henderson said is "probable" given the difficulty in getting agreements from the various groups, particularly its bondholders.

GM early payments: Another bankruptcy signal - May. 14, 2009
 

vztrt

New Member
Joined
Jan 14, 2006
Messages
393
Reaction score
6
Points
0
Age
40
Location
NTH Suburbs Melbourne
Members Ride
VXII Exec
GM are closing 1100 dealers in the US. Trying to avoid Ch11.

GM culls 1,100 dealers across US
By Washington correspondent Kim Landers and wires


The troubled US car giant General Motors says it will cut nearly 40 per cent of its dealers as part of its reorganisation plans as it struggles to avoid bankruptcy.

General Motors has almost 6,000 dealers across the United States.

It has started notifying 1,100 of what it calls "underperforming and small sales" dealers that their franchises will be terminated late next year.

GM plans to scrap almost 2,300 dealers.

The announcement comes one day after Chrysler asked a bankruptcy court judge to shut down almost 800 of its dealers.

General Motors has until June 1 to complete a major restructuring plan or be forced into bankruptcy too.

GM vice president Mark LaNeve said many of the dealers notified this week were selling 35 or fewer vehicles per year.

Additionally, GM said it would also likely sever ties with about 470 Saturn, Hummer and Saab dealers as it sheds those brands.

"We have said from the beginning that our dealers are not a problem but an asset for General Motors," said Mr LaNeve.

"However it is imperative that a healthy, viable GM have a healthy, viable dealer body that can not only survive but prosper during cyclical downturns. It is obvious that almost all parts of GM, including the dealer body, must get smaller and more efficient."

Mr LaNeve told a conference call that although GM does not incur direct costs from the dealers, the sales outlets must be able to invest in the brand to keep GM viable.

If dealers only sell a small number of cars, "over time they can't afford to invest in their business to the degree their competition can," Mr LaNeve said.

The reduction of the dealer network is one step in the deep restructuring GM is trying to undertake.

Mr LaNeve says it still must win additional concessions from bondholders and its main labor union to implement the plan.

- ABC/AFP
 

Dave Q

Lumina
Joined
May 21, 2009
Messages
16
Reaction score
0
Points
0
Location
Sydney
Members Ride
VZ Lumina
It doesnt surprise me that the General is in trouble.

Apart from the measures above, the fact is that they have to produce a whole new model range with much better efficencies, more luxury and much smaller engines.

The Vectra was a more suitable size for a lot of people, but it was too expensive and couldnt compete with its competition.

Like the Camry for example. The same car in a six or four cylinder version. Why couldnt the General modify the Commodore, make it lighter, sharper with a few mods and smaller engine? It sells OK now, but what happens when the new body shape starts to date and petrol hits those nasty highs again?

People arent having as many kids now as they used to, most of drive alone or with one other. For extra storage the car manufacturers should be thinking of going up, not so much making cars longer or wider....

Ive just got my first holden for many years. Its a smooth drive. However,simple things like changing an interior light globes, number plate globes etc are much more difficult than in Subaru's and Toyotas.

Why is it so hard to replace console and dashboard lights? Why cant the design be improved to make this easier so as to help people customise their interiors? Look at iGoogle, that lets you customise your own internet home page. Thousands of people are joining up.

These days a lot of people want to individualise their car, or upgrade components, the General hasnt made that process exactly cheap or easy. The stories of people having trouble with Holden spare parts and servicing abound this site. It doesnt have to be that way. Holden should be putting a rocket up its dealers about being responsive and friendly. It should introduce real rewards and discounts for long standing customers.

Ive known dealers to offer rubbish on trade-ins on their own vechiles, bought a few years ago. Not just rubbish deal but a very arrogant attitude. That sale was lost and that customer was lost forever to that dealer.

Soon all the petrol stations in NSW will be required to sell E10. Why isnt the General making its car more E10 freindly? Where is the special gizmo that will lift performance on E10? I hope thats under development.

The Commodore is a great car and its been the leader in its class for ages, the new shape is edgy and quite attractive. But the interior of the Omega is very bland. It offers very little to excite or be proud of. I suppose as the base model, thats the idea. Theres some good ideas such as the handbrake that flattens into the console. Thats clever and worthwhile. But with the same amount of money, dabbling in second hand euros or japs, I could buy a lot more luxury and ecomony for the same dollars.

I hope that Holden survives GM being wound up and the importance of a local car industry in a country with such great distances and urban designs based on roads, needs to be embraced and supported...even subsidized.

But times are tough and the General needs to get going.
 
Last edited:

Reaper

Tells it like it is.
Joined
Aug 15, 2004
Messages
6,493
Reaction score
11,463
Points
113
Location
SE Suburbs, Melbourne
Members Ride
RG Z71 Colorado, 120 Prado , VDJ200, Vantage
GM bondholders shun tender offer; bankruptcy nears

GM bondholders shun tender offer; bankruptcy nears

DETROIT/NEW YORK (Reuters) – General Motors Corp has failed to persuade enough bondholders to accept a debt-for-equity swap, setting the stage for the largest-ever U.S. industrial bankruptcy within days.

The event marks a critical disappointment for GM, the largest U.S. automaker and once considered the bellwether of U.S. manufacturing. A popular ad for the automaker once stated that "What's good for General Motors, is good for the USA."

"I would say this is a sound rejection of an unsuitable offer," said Pete Hastings, a credit analyst at Morgan Keegan who has followed GM. "I have been saying for some time that this thing was dead on arrival and we were just waiting for the doctor to pronounce it dead. Now that's happened."

The largest U.S. automaker had so far failed to gain anywhere near the 90 percent of bondholder support desired to stave off bankruptcy, two sources familiar with the discussions told Reuters on Tuesday. Bondholders have until midnight to make their final decision on the tender.

As of midday Tuesday, the source said the company had only a "low-single-digit" percentage interest from bondholders.

But bondholders have balked at proposals that they forgive debt in exchange for a 10 percent stake in a restructured company.

GM had no comment on the bond exchange. The automaker said it would detail results of the exchange on Wednesday morning. Reuters sources said GM could file for bankruptcy some time after midnight Tuesday, but before June 1.

THE WAITING GAME

While the failure to reach a bondholder deal is a severe blow, GM did reach an agreement on Tuesday with the leadership of the United Auto Workers (UAW) union.

The key for GM's negotiations with the UAW has been how the two sides restructured payment terms on $20 billion that the automaker still owes to a trust fund for retiree health care (the Voluntary Employee Beneficiary Association, or VEBA).

The UAW agreed to take 17.5 percent of common stock in a restructured GM, a person familiar with the terms told Reuters.

The union would also be paid $6.5 billion in preferred stock and would be granted a $2.5 billion note.

A deal on those terms would mean that the union was successful in taking on less risk than it would have under an earlier proposal from GM that would have given it 39 percent of the automaker's common stock.

As part of the plan, GM will offer buyouts to all UAW employees. Workers with 20 years or more will be offered $115,000 and a $25,000 voucher toward purchase of a new GM vehicle.

The UAW rank-and-file will vote on the contract on Wednesday and Thursday. Union officials who met in Detroit on Tuesday unanimously endorsed the pact after a briefing with UAW President Ron Gettelfinger, a person at the meeting said.

Current shareholders would be left with just 1 percent of a restructured company.
GM bondholders shun tender offer; bankruptcy nears - Yahoo! News

I don't get it. Accept the deal and you get 10% of what will essentially be a profitable company. Don't and you will end up with around 1%. I don't understand the logic :bang: Surely they understand by now it's not about getting their cash back. The game is to mitigate any loss by any (legal) means possible. Heck - eventually they may actually come out in front, although I wouldn't be betting the house on that happening any time soon.

Reaper

CalaisV60th_001.jpg
 

greenfoam

New Member
Joined
Jan 13, 2005
Messages
7,902
Reaction score
128
Points
0
Age
102
Members Ride
VP Executive R-spec
The US government said they will keeping pumping money into GM to keep it running no matter what so there doesn't seem to be anything to loose. The Government will own the majority of GM anytime soon, will be exciting to see what kind of cars Obama likes to build. He will be like Homer except electric :)
 

Full Spectrum

Bro it's a VW your Audi!
Joined
Dec 6, 2003
Messages
2,411
Reaction score
16
Points
0
Location
Melbourne
Website
www.news.com.au
Members Ride
Berlina V6
Hopefully after bankruptcy they can actually run it lol. GM needs to cut more in NA and stop talking about it.
Stop looking outside the box.
 

Wombat

New Member
Joined
Nov 28, 2003
Messages
425
Reaction score
16
Points
0
Age
59
Location
Bluff, Queensland
Members Ride
VX-II Lumina Sedan
All the auto makers over there shot themselves in the foot in the nineties with those useless great gas guzzling SUV's...they thought it was what the market wanted and needed, so they tooled up to build Dodge Rams, Ford F250's, and Chev Suburbans by the truckload, and then oil prices went up, and no one wanted them, thus more money down the toilet retooling the plants to make smaller more fuel efficient cars, and acres of unsold trucks...

The US industry needs a good shake up...as does a lot of places. Look at the standard equipment levels of cars from Japanese and Korean makers...and those cars can't be called cheap and nasty buzzboxes anymore.
 

Dave Q

Lumina
Joined
May 21, 2009
Messages
16
Reaction score
0
Points
0
Location
Sydney
Members Ride
VZ Lumina
All the auto makers over there shot themselves in the foot in the nineties with those useless great gas guzzling SUV's...they thought it was what the market wanted and needed, so they tooled up to build Dodge Rams, Ford F250's, and Chev Suburbans by the truckload, and then oil prices went up, and no one wanted them, thus more money down the toilet retooling the plants to make smaller more fuel efficient cars, and acres of unsold trucks...

The US industry needs a good shake up...as does a lot of places. Look at the standard equipment levels of cars from Japanese and Korean makers...and those cars can't be called cheap and nasty buzzboxes anymore.

The japs are still in front of the Koreans for mine.

But we should be out in front of both of them by virtue of our world class designers and innovators.

For example, why couldnt we implant solar panels on the roof of cars to recharge batteries and run electrical systems?

Why are the doors of a Lumina so heavy compared with the Aurion?

Why is servicing so expensive?

Why dont we have a fan that will automatically sense and then expell hot air from the car on an intermittant basis when it is parked in the sun?

Why arent we building cabin air filters like they are in the USA?

Can we build a car that we can add to when we need more passenger and luggage space?
 

Reaper

Tells it like it is.
Joined
Aug 15, 2004
Messages
6,493
Reaction score
11,463
Points
113
Location
SE Suburbs, Melbourne
Members Ride
RG Z71 Colorado, 120 Prado , VDJ200, Vantage
Today is the day.

Obama team confident of returning GM to profitability | The Australian

GENERAL Motors will file for Chapter 11 bankruptcy early today in the US, marking the humbling of an American icon that once dominated the global car industry and setting up a high-stakes gamble for US taxpayers.

The question now facing 56,000 auto workers, 3600 GM dealers and the Obama administration is this: Will it work?

The Government, which will own a majority of the company, is wagering upwards of $US30 billion ($37.4 billion) that it can return GM to profitability, reversing a decades-long decline by shearing away liabilities and creating a freshly competitive car-maker by the end of the northern summer.

The reorganisation faces myriad risks, ranging from legal challenges to the uncertainty of when consumer demand for new cars will rebound. In becoming GM's new owner, the Government is also entering largely unexplored terrain filled with political minefields, notably the possibility of meddling by Congress in the company's daily operations and business plans.


Obama team confident of returning GM to profitability

* Font Size: Decrease Increase
* Print Page: Print

UPDATE: Kevin Helliker | June 01, 2009
Article from: The Wall Street Journal

GENERAL Motors will file for Chapter 11 bankruptcy early today in the US, marking the humbling of an American icon that once dominated the global car industry and setting up a high-stakes gamble for US taxpayers.
General Motors headquarters, Detroit

Unknowns: The reorganisation at GM faces myriad risks, including legal challenges and the uncertainty of when consumer demand for new cars will rebound. Picture: Bloomberg

The question now facing 56,000 auto workers, 3600 GM dealers and the Obama administration is this: Will it work?

The Government, which will own a majority of the company, is wagering upwards of $US30 billion ($37.4 billion) that it can return GM to profitability, reversing a decades-long decline by shearing away liabilities and creating a freshly competitive car-maker by the end of the northern summer.

The reorganisation faces myriad risks, ranging from legal challenges to the uncertainty of when consumer demand for new cars will rebound. In becoming GM's new owner, the Government is also entering largely unexplored terrain filled with political minefields, notably the possibility of meddling by Congress in the company's daily operations and business plans.

Even if a new GM emerges swiftly from bankruptcy, the administration will face a thicket of challenges, including closing more than a dozen factories and shedding the Pontiac, Saturn, Saab and Hummer brands. Shepherding these unwanted parts of GM - the so called Old GM - through liquidation in court could take years, with potential extra costs to taxpayers if the process bogs down.

GMC2008033142104_PV.jpg
 
Top