**GM preparing for bankruptcy**

[Road_Warrior]

Sounds to me like they don't know what the hell they are on about. The CEO puts the kybosh on it one day, the next day a subordinate says its still a goer. WTF.

[Wally]

I think you'll find it's powerplays for a better seat in the new structure.

[vztrt]

Edward Whitacre may be the new GM boss

http://www.goauto.com.au/mellor/mell...2575D1000FDE31

Phone boss to chair new GM

The man who rebuilt US phone giant AT&T is tapped to head the 'New GM'

By IAN PORTER 10 June 2009

THE US treasury department has approved the selection of retired phone company boss Edward Whitacre jun to chair the board of directors of ‘New GM’ when it emerges from its Chapter 11 bankruptcy proceedings.

Mr Whitacre, 67, will take over from interim chairman Kent Kresa, 71 – a former chief executive of Northrop Grumman – who will continue as a director of the new company.

GM says six other members of the current board will most likely retire, and it is seeking four replacements.

The appointment of a separate chairman in contrast with the usual US practice of combining the chairman and chief executive roles, signals that the US government wants the board to retain its independence and not be dominated by management.

Mr Whitacre retired two years ago after a 44-year career with AT&T. His 17 years as chief executive was highlighted by a string of acquisitions which culminated in the 2006 $US86 billion ($A107 billion) takeover of BellSouth Corporation.

Mr Whitacre’s appointment was announced in a statement by Mr Kresa, who said it marked an auspicious beginning for New GM.

“We look forward to working with him to complete the reinvention of GM and maximise the enormous potential of this new enterprise.”

Richard Perez, who worked closely with Mr Whitacre when both men were serving on the San Antonio city council in Texas, told Reuters he was “tickled” that Mr Whitacre had been given the job.

“He has a vision for bringing things together and making them work, and growing them, and that’s what GM needs right now,” Mr Perez said.

“It was floating too long on the sea of not knowing what the hell they were doing. I think he is going to refocus the mission of the organisation and turn it back into its glory days.”

Mr Whitacre is still on the boards of Exxon Mobil Corporation and Burlington Northern Santa Fe Corporation.

[Dave_au]

For all those interested on the technical side of Insolvency and comparisons between the US Chapter 11 Bankruptcy Provisions and our Voluntary Administration Provisions in the Corps Act:

http://www.businessspectator.com.au/...ument&src=srch

[mcnews]

Well they haven't stopped testing G8s anyway... There was one with test plates etc. on it heading up to the Black Spur today. And by the way, on the upper parts of the Spur today was plenty of snow. People were making snowmen at the Dom Dom Saddle picnic grounds on the Spur, lol.

[naddis01]

I have been told they made an MY10 G8 pilot only 2 weeks ago.

[vztrt]

GM boss Defects to GAZ

http://www.caradvice.com.au/32762/gm...cts-to-russia/

GM boss 'defects' to Russia

Bo Andersson, who resigned as General Motors’ purchasing chief on Friday, has agreed to become chairman of Russian carmaker GAZ.

GAZ, Russia’s second-largest automaker, said shareholders would request a special meeting to add Mr Andersson’s name to list of board candidates to be elected at a June 29 annual meeting.

The move will put Mr Andersson, 53, in a position to revive GM’s Opel unit. GAZ, along with Russia’s largest lender, Sberbank, and Canadian auto-parts supplier Magna International, is in line to buy Opel as GM sheds assets in bankruptcy. GAZ is controlled by businessman Oleg Deripaska.

Russia hopes that with GAZ as industrial partner, the deal will tap Opel’s expertise to provide a chance of a technical breakthrough for its ailing car industry.

Mr Andersson is currently a consultant for the GAZ board and an adviser on car building to Deripaska.

“The ex-vice president of GM, Bo Andersson, has expressed his agreement to take the post of the chairman of the board of directors,” GAZ said in a statement.

“There were preliminary discussions with him about the possibility of his election as the head of the board of directors, and the shareholders hope that his candidature will be elected.”

After his sudden departure from GM “to pursue other career interests,” Mr Andersson was quoted by a Swedish news agency on Friday saying he had a new job as CEO at a company he did not name.

Mr Andersson had been GM’s group vice president for purchasing and supply chain since 2001. He was instrumental in cutting $2 billion annually from the automaker’s parts bill.

He spent more than two decades at GM after earlier posts at Saab. GM took its initial stake in the Swedish automaker in 1989 and is now trying to sell it. A buyer is expected to be named this week.

More recently, Mr Andersson worked with the US Treasury to help stabilize the supply base through a federal payment program that provided credit to suppliers.

[vztrt]

More on the Hummer sale

http://www.caradvice.com.au/32742/hu...efore-october/

Hummer going Chinese before October

Get used to this name: “Sichuan Tengzhong Heavy Industrial Machinery” (STHIM), the new owner of GM’s once popular Hummer brand has announced that it aims to finalise the deal before October.

STHIM General Manager Yang Yi said in an interview with the Us industry publication Autonews that his company has no intentions of transferring Hummer equipment or technology to China. Interestingly the Chinese company will also not take on any debt accrued by the current business.

Reports from China indicate that STHIM is not even well known by the Chinese so the deal has been a bit of surprise to everyone. Insiders say the Chinese bought Hummer for much less than the US$500 million price tag GM was asking for. Some even suggest it may have been as little as US$100 million in cash.

STHIM currently only manufacturers special-use vehicles plus bridge and highway components so their ability to maintain a brand as large as Hummer is still to be determined. However the Chinese company intends to keep the current Hummer management team to keep things in order for the time being.

The idea is to take Hummer global, away from its current 70 per cent sale base in the States to establish it self in more emerging markets. “We want to make a green Hummer,” Mr Yang said.

“Tengzhong and Hummer are very aware of the government’s fuel-efficiency requirements,” he said. “Hummer has already achieved substantial progress in this area.”

Whatever the future holds for Hummer, it should be interesting either way. STHIM’s complete lack of experience in both overseas markets and in the automobile industry could either be a blessing for Hummer to reinvent it self or a disaster waiting to happen.

[vztrt]

Saab expects to be sold by Friday

http://www.caradvice.com.au/32781/sa...ale-by-friday/

Saab expects sale by Friday

Saab has said it is likely to unveil its new owner this week, and that three quarters of its creditors had agreed to a proposed write-down of the brand’s debt.

Saab is not commenting on who its new owner could be but reports say General Motors is close to selling the loss-making brand to Swedish luxury sports car maker Koenigsegg.

Saab spokeswoman Gunilla Gustavs said an announcement should come soon.

“I think that during this week, chances are good. It could be anytime now,” she said.

Saab sought protection from creditors in February and has been granted an extension of its business reorganisation until August 20 to line up a new owner and restructure.

aab was put up for sale by parent General Motors earlier this year. The Swedish carmaker has said it needs US$1 billion in financing to see it through the economic crisis and has asked creditors to write off 75 per cent of the company’s 10.6 billion crown (US$1.4 billion) debt, most of which is owed to GM.

The company said more than 80 per cent of its creditors had agreed to write down the value of their Saab debt.

Saab needs support from 75 per cent of creditors, as well as from creditors holding 75 percent of its debt, for the write-down to be carried out, a process that has to be approved by a Swedish district court on Wednesday.

“We are well above that, which is good. That makes Wednesday more or less a formality,” Ms Gustavs said.

The Swedish government said last week it had authorized its debt office to begin talks with the GM unit on state loan guarantees.

Koenigsegg believes it can rescue Saab, Baard Eker, a co-owner, said at the weekend.

Mr Eker, who holds 49 per cent of Koenigsegg, told the Norwegian Dagbladet newspaper that the company “has several good solutions to bring into Saab.”

Mr Eker, a Norwegian entrepreneur, said obstacles may still emerge which could potentially stop the sale, but he did not reply negatively when asked about Saab’s comments that a deal could be in place next week, according to the paper.

Koenigsegg’s has less than 50 employees and turns out only a handful of US$1 million super cars a year.

GM, which filed for Chapter 11 protection June 1, put Saab up for sale after deciding to cut its 20-year ties with the brand.

Saab produced nearly 100,000 cars last year, about 1 per cent of GM’s global output. GM has held talks with a number of potential buyers for Saab, including Fiat and Chinese automakers.

[vztrt]

Fritz Henderson could be signalling the death nail on the G8?

http://www.caradvice.com.au/32905/gm...er-pontiac-g8/

The fate of the Commodore-based Pontiac G8 seems to be a rather touchy subject for General Motors CEO, Fritz Henderson, who is still reluctant to elaborate on the reasoning behind the car’s pending withdrawal from US sales.

Mr Henderson participated in yet another web chat yesterday on the company’s FastLane Blog - this time exclusively with members of the motoring media - and still did not provide an appropriate rationale for scrapping the model along with Pontiac.

While other questions even attracted a friendly personal greeting from Mr Henderson, in regards to the Pontiac G8 he could not have been more blunt and elusive - even ignoring the majority of the question.

This response is in stark contrast to the tone carried by Mr Henderson previously throughout the session.

It is certainly disappointing that Mr Henderson would not provide a valid response, however it is likely the G8’s fate had been sealed even before Pontiac’s demise.

Earlier reports predating any pending closure of Pontiac were already predicting that the G8 would not carry over to the next-generation model, citing limited corporate resources and fear of rising fuel-economy standards as the main motives.

With Pontiac scheduled to be phased out by 2010, this would seemingly provide a convenient scapegoat for GM to cull the less-than-frugal sedan as the company shifts toward a greener image.

[XplosiveR6]

Originally Posted by Fritz Henderson

I am not a fan of rebadging.

HAAHAHA Is that the biggest contradiction you have ever heard? His whole company is based around Re-badging brands and misinforming the consumer!!

[vztrt]

Obama has slipped in popularity, with one reason being the government helping GM.

http://news.theage.com.au/breaking-n...0618-cihr.html

Obama slips in popularity poll
June 18, 2009 - 9:49AM

US President Barack Obama's popularity has slipped and most Americans oppose his push to close the Guantanamo Bay prison and his rescue of General Motors, according to a new survey.

.......

And 56 per cent said they opposed Washington's financial intervention to save the troubled automaker, while 35 per cent supported it, and 69 per cent say they are concerned "a great deal" or "quite a bit" about that effort.

[mrbaxr6t]

I have read a couple of the more recent pages, what is the fate of the camaro concept? (chevy) you know the one thats been coming for the last 5 years or so I think that vehicle is a stunning looker I think it will be a shame to not see it on the roads.

Sorry if this has been covered somewhere

[vztrt]

Originally Posted by mrbaxr6t

I have read a couple of the more recent pages, what is the fate of the camaro concept? (chevy) you know the one thats been coming for the last 5 years or so I think that vehicle is a stunning looker I think it will be a shame to not see it on the roads.

Sorry if this has been covered somewhere

I knew there was article from Go Auto

http://www.goauto.com.au/mellor/mell...2575D0008081D5

[vztrt]

China to Block sale of Hummer.

http://business.theage.com.au/busine...0626-czcu.html

China set to block Hummer purchase
June 26, 2009 - 2:50PM

China's planning agency is likely to reject a Chinese company's bid to acquire General Motors' Hummer unit on the grounds that its hulking sports utility conflicts with Beijing's energy-saving goals, state radio reported.

The National Development and Reform Commission is also likely to say the Chinese buyer, a maker of construction machinery, lacks the expertise to run Hummer, China National Radio said late on Thursday. It cited no source for the information.

Foreign acquisitions in China require regulatory approval. The government has said environmental criteria have risen in importance in vetting potential industrial projects.

Sichuan Tengzhong Heavy Industrial Machinery Corp, a private company, emerged as the surprise prospective buyer of Hummer this month after GM sought court protection from its creditors. Both companies refused to say how much the Chinese company offered for the unit.

Hummer is one of the best-known brands that a Chinese company has tried to buy.

AP

[Bossxr8]

Originally Posted by vztrt

China to Block sale of Hummer.

http://business.theage.com.au/busine...0626-czcu.html

Thats amusing, China is probably the most polluting country on the planet.

[Gaz]

that's purely because of size and industry though...

in terms of energy generation from 'renewable' sources such as wind and hydro they are world leaders.

[vztrt]

GM will continue to take on liability claims in the future.

http://news.theage.com.au/breaking-n...0629-d1sm.html

GM to be liable for future claims
Bree Fowler
June 29, 2009 - 11:03AM

General Motors Corp has agreed to take on responsibility for future product liability claims, removing what could have been a sizable roadblock on the automaker's path to a quick sale of its assets and emergence from bankruptcy reorganisation as a new company.

As part of its government-backed restructuring plan, GM wants to sell the bulk of its assets to a new company and leave behind unprofitable assets and other liabilities such as product-related lawsuits. A hearing on the proposed sale is scheduled for Tuesday.

But in a concession to consumer groups and state officials who had threatened to block the sale because of product liability concerns, the new company will now assume responsibility for future claims involving vehicles made by the old company, according to documents filed in federal bankruptcy court in New York on Friday.

Under the automaker's previous plan, "New GM" would not have assumed any liability for future claims related to GM vehicles made before the sale and creation of the new company. That meant that consumers who wanted to file a lawsuit related to a defective GM vehicle would have had to seek compensation from "Old GM", a collection of mostly unprofitable assets left over after the sale, where there likely would be nothing left to pay their claims.

But under the new plan, "New GM" will not assume liability for already pending claims against the automaker and those people will still be forced to seek compensation from "Old GM".

"The fact that 'New GM' will protect consumers injured by defective 'Old GM' cars is a positive development for public safety," The Ad Hoc Committee of Consumer Victims of Chrysler and GM said in a statement released Saturday.

But the group said more needs to be done, noting that GM's concession doesn't help people that have already been hurt by its vehicles. It also said consumers hurt by fellow automaker Chrysler LLC still have little recourse.

As part of its plan to sell most of itself to a group led by Italy's Fiat Group SpA and emerge from bankruptcy reorganisation, Chrysler also asked the judge overseeing its case for permission to leave behind its past and future product liability claims.

Consumer groups, as well as several individuals with pending claims against Chrysler, objected and some even took their arguments to the Supreme Court before the sale was ultimately approved and the automaker emerged from court oversight shortly thereafter.

GM, which filed for Chapter 11 on June 1, has said it wants to spend no more than 60 to 90 days under bankruptcy protection and that a key part of meeting that goal will be a quick sale of the company's assets.

Under the deal brokered with President Barack Obama's administration, the US government will get a 60 per cent ownership stake in the new GM. The Canadian government will get 12.5 per cent, with the United Auto Workers union taking a 17.5 per cent share and unsecured bondholders receiving 10 per cent. Existing GM shareholders are expected to be wiped out.

Even with the resolution of the product liability issues, GM still faces numerous objections to the sale, including ones filed by a group of its unsecured bondholders, a handful of states and cities and individual retirees and shareholders.

While noting the "painful" sacrifices being made by many parties in GM's bankruptcy process, including individuals injured by GM products, an administration official said Sunday there is nothing "exceptional" about the automaker's bankruptcy terms.

"The outcome for all involved would have been far worse had the government not intervened in the restructuring and General Motors had liquidated," the official said in an e-mailed statement, declining to be identified.

© 2009 AP

[vztrt]

GM is asking the court for a quick bankruptcy.

http://www.goauto.com.au/mellor/mell...2575E60010D915

We have 10 days to sell or die: GM boss

Henderson plea to US bankruptcy court to approve GM sale or it will face liquidation

By RON HAMMERTON 1 July 2009

GENERAL Motors must get approval to sell its main assets to ‘New GM’ by July 10 or face liquidation, GM CEO Fritz Henderson told a New York bankruptcy court in a gruelling five-hour appearance on the witness stand last night.

Lawyers representing bondholders and other parties objecting to the sale queued up to grill Mr Henderson – the first witness in a hearing in which GM is seeking court approval for the sale.

An unflustered Mr Henderson told them that the US government would withdraw access to funding for GM’s restructuring if it did not emerge from Chapter 11 bankruptcy by the deadline.

Under the plan, “good” assets such as the Chevrolet, Cadillac and Buick brands will be sold to New GM – a new company 60 per cent owned by the US treasury, 17.5 per cent by the United Auto Workers union, 12 per cent to the Canadian government and the remaining 10 per cent by GM bondholders.

Among the assets to be left in the “old GM” to be liquidated is GM’s share in the New United Motor Manufacturing (NUMMI) assembly plant, which it has operated as a joint venture with Toyota since 1984.

GM announced on Monday that it was walking away from the Californian plant, leaving Toyota with a difficult choice between coming up with a revised manufacturing plan for the factory or simply shutting it.

Mr Henderson admitted to the bankruptcy hearing that the cost of winding down the remains of the GM could reach $US1.2 billion ($A1.5b), although only $US950 million ($A1.17b) would be left to cover the costs.

He also said there were signs of renewed confidence in the US car market – a situation he partly attributed to the recent successful emergence of Chrysler from similar Chapter 11 bankruptcy reorganisation.

GM’s sale application has the support of President Obama’s auto industry task force, which also drove the Chrysler sale to a new company led by Italy’s Fiat SpA.

The hearing is expected to last at least another day.

Meanwhile, GM’s withdrawal from its NUMMI arrangement with Toyota might end up being another drain on US treasury coffers, as the Japanese company is reported to be considering asking for US government aid to keep the plant open.

A local congressman for San Francisco’s Bay Area, Pete Stark, was quoted in the Silicon Valley MercuryNews as saying government assistance was a possibility to keep the plant open and save the jobs of its 5000 workers.

The plant makes the Toyota Corolla and GM’s Corolla-based Pontiac Vibe, which is going out of production with the imminent demise of the Pontiac brand in the US.

Bloomberg newsagency reported that Toyota had offered to build a version of its Prius hybrid for GM at the plant in an effort to keep the joint venture open.

However, with GM’s Chevrolet Volt extended-range plug-in hybrid about to go into production, such an offer was unlikely to woo GM into staying.

NUMMI – one of the largest manufacturing operations in the San Francisco area – was Toyota’s first foot in US manufacturing, and as such holds a special place in Toyota lore. New Toyota president Akio Toyoda once worked at the plant.

The Japanese company will be mindful of the social repercussions of shutting the factory, but it is also under pressure to streamline its operations in the wake of its recent ¥461 billion ($A6b) loss for the financial year ending March 31.

Mr Toyoda has pledged to give Toyota’s North American operations more autonomy, but he has also pledged to cut Toyota’s worldwide costs by ¥800 billion ($A10.34b).

[vztrt]

AGE Article

http://news.theage.com.au/breaking-n...0701-d4jk.html

GM returns to court to seek speedy bankruptcy exit
Amandine Ambregni
July 1, 2009 - 11:59AM

General Motors is set to head back to court to seek approval for a speedy exit from bankruptcy protection by selling off its best assets to a new company in which the US government will hold a majority stake.

Judge Robert Gerber plowed through a host of motions Tuesday linked to GM's plan to emerge as a leaner, small company unburdened by old debts and supported by billions in government loans.

Facing a courtroom filled with lawyers representing dozens of creditors objecting to the plan, Gerber tried to keep things moving by warning the "hundreds of lawyers here" that while "I'm gonna keep my cool" he expected "questioning more focused on what is important."

"People seem to have forgotten why we are here, what we're trying to achieve," Gerber said on the first day of the hearing that is expected to last several days.

GM chief executive officer Fritz Henderson was peppered with questions about the automaker's financial problems prior to bankruptcy, the government bailout and how the new company will be structured financially.

He stuck largely to the line of defense presented by GM's lawyers: bankruptcy was the "only viable solution" to avoid liquidating the largest US automaker.

"Business is doing better," Henderson said during five hours of testimony.

"The sales are better than expected, but are still terrible" and are down between 20 and 30 percent compared with a year ago.

GM has some "good products" in showrooms and is benefiting from a solid marketing campaign and the public's belief that it will rapidly exit bankruptcy, he said.

Gerber could order GM to modify its plan to meet some of the 850 objections mounted by creditors or the automaker could reach a deal outside of court in order to speed up the process.

Should Gerber dismiss the objections and grant GM the green light, creditors are given the right to appeal.

But the precedent established by Chrysler's rapid-fire bankruptcy makes it unlikely they will succeed in blocking the automaker's swift emergence.

GM, which filed for bankruptcy protection on June 1 after reaching agreements with its main union and the bulk of its major creditors, is said to be planning to launch the new company in mid July.

That would be well ahead of the 60 to 90 day timeframe predicted by President Barack Obama's administration, which spearheaded the process.

Chrysler, which is about a third of the size, spent 40 days in bankruptcy protection and even an appeal to the Supreme Court did not block its sale to a new company run by Italy's Fiat.

Like Chrysler, GM's weaker assets will be liquidated through the New York bankruptcy court, but the new GM will not be burdened by the lengthy process.

The cost of liquidating GM's remaining assets could surpass the 950 million dollar Treasury department estimate and could be as high as 1.2 billion, Henderson said, adding that the administration is pushing for a speedy emergence.

"They're likely concerned about the business status during the bankruptcy process," he told the court.

The US government will own 60.8 percent of the capital in exchange for some 50 billion US dollars in emergency loans, Canada will have 11.7 percent and a United Auto Workers retiree health care trust fund will hold 17.5 percent.

Creditors holding GM bonds will swap 27.1 billion US dollars in debt for a 10-percent stake and warrants allowing them to buy an additional 15-percent stake.

Officials said the Obama administration has no intention of nationalizing General Motors over the long term and will not be participating in its day-to-day operations.

While the hearing could take several days given the number of complaints filed, most observers consider it a mere formality as the plan's approval is expected to be assured.

"There's no suspense at all!" said one legal source who has followed the case but is not participating.

"It's like Judge Gerber doesn't want the case to face the same difficulties Chrysler had."

© 2009 AFP

[ltd]

Very interesting indeed. Government Motors will certainly have its task cut out for it.

[imugli]

Originally Posted by naddis01

I have been told they made an MY10 G8 pilot only 2 weeks ago.

I saw a G8 ST (Ute) the other day. Normally I wouldn't have looked twice - I see quite a few Camaro / G8 / LHD Statesman's etc - but thought it was interesting given that this was the first one I'd seen and that the ute export program was given the boot ages ago. I would have thought the proto's would have been crushed if they weren't of any further use?

[vztrt]

Go Auto Article

http://www.caradvice.com.au/34022/ne...a-step-closer/

New GM moves one step closer

General Motors has taken a step closer to the creation of the “New GM” that will be its corporate future with its chief executive telling a US bankruptcy court that the sale of GM’s main assets to the government-backed “New GM” must win court approval in order for the iconic carmaker to survive.

Fritz Henderson told the court that if the sale is not approved by July 10 and GM loses access to government funding, the company would be forced to liquidate.

He testified on the first day of a hearing at which the carmaker is seeking court approval for the sale just 30 days after filing for Chapter 11.

“Business is doing better” at GM, Mr Henderson said, as customers, suppliers, workers and others anticipate the completion of a successful deal. He added that the company had originally hoped to repay its loans to the government and restructure outside of bankruptcy.

Mr Henderson said during questioning that while sales in June were not as bad as expected, they were still down.

“We do not expect to make money in June of 2009,” he said.

Part of the reason business is better is the success of Chrysler’s asset sale out of bankruptcy, Mr Henderson said.

“The 363 transaction with Chrysler did go relatively quickly. It provided some buyers assurance that this can go relatively quickly,” he said.

Mr Henderson also discussed the ouster of former GM CEO Rick Wagoner, saying that Mr Wagoner told him that he had been asked to step down by Steve Rattner, head of President Obama’s autos task force.

The GM sale hearing, before Judge Robert Gerber, is expected to continue for at least two days, as the company faces objections and questions from its creditors committee, a group of dissenting bondholders, those with liability and asbestos claims against the company, as well as unions and dealerships.

If the deal is approved, GM will be able to sell its best assets, including Chevrolet and Cadillac, under Section 363 of the bankruptcy code to a “New GM” while the US Treasury would provide billions of dollars in financing.

GM’s old assets would remain behind in bankruptcy court to be liquidated.

A successful sale would mark the second big victory for the Obama administration’s autos task force, which earlier this month also helped broker the sale of Chrysler LLC to a group led by Italy’s Fiat SpA. The US Supreme Court cleared the way for that deal to go through on June 9.

Mr Henderson said during questioning by GM’s lawyer that the company spends US$26 million a month to pay the benefits to members of several unions that have about 150 active employees in the company.

No competing bidders have emerged as an alternative to the US government’s US$60 billion financing for GM, including a proposed equity investment of US$50 billion that would give the US Treasury a 60 per cent ownership stake.

Under the plan, the United Auto Workers union would gain a 17.5 per cent stake in New GM, the Canadian government would own about 12 per cent, and GM bondholders are expected to get about 10 per cent.

GM has said more than 50 percent of its bondholders support the deal, but a group of small bondholders mounted a challenge to the sale in court on Tuesday.

[Wally]

Mr Henderson said during questioning by GM’s lawyer that the company spends US$26 million a month to pay the benefits to members of several unions that have about 150 active employees in the company.

Say what!

[Bud Bud]

Originally Posted by Wally

Say what!

Wow! You said it!
$26,000.000 div by 150 individuals = $173,333.33 a month or $43,333.33 a week or $8,666.66 a day on average! What a rort!

Maybe this is amongst some of the toxic debt they are trying to remove from their books.

[EgoFG]

Originally Posted by Bud Bud

Wow! You said it!
$26,000.000 div by 150 individuals = $173,333.33 a month or $43,333.33 a week or $8,666.66 a day on average! What a rort!

Maybe this is amongst some of the toxic debt they are trying to remove from their books.

But the money actually goes to the retirement benefits of the unnumbered 'inactive' (ie retired) employees so the maths doesn't help

[vztrt]

Holden not so secure.....

http://business.theage.com.au/busine...0702-d6md.html

Holden running on empty with bumpy road ahead
Michael West and Marc Moncrief
July 3, 2009

HOLDEN'S financial accounts depict a company in strife at the end of 2008 and auditors Deloitte duly noted its uncertain future in the company accounts.

Thanks to its deteriorating financial position and the Chapter 11 bankruptcy of its US parent company, General Motors Corporation, Deloitte said Holden was subject to "material uncertainty regarding continuation as a going concern".

Deloitte partner Clive Mottershead said Holden's "interdependence" with the now bankrupt GM, combined with the car maker's $US70 million ($A86.8 million) annual loss and the fact that current liabilities exceeded current assets by about $US250 million, cast uncertainty over the Australian operations.

"These conditions … indicate the existence of a material uncertainty which may cast significant doubt about (its) ability to continue as a going concern", Mr Mottershead said.

Holden's directors, in the notes to the financial statements, say they are confident in the car maker's future, but the confidence is dependent on a series of funding initiatives falling into place, including government money to help GM — primarily from the US and Canada — and a $200 million lifeline from an unnamed third party that relates to the Australian operations and is contingent on the US parent emerging from bankruptcy.

Apart from publicised revenue of $5.8 billion and a net loss of about $70 million during 2008, the financial statements also show that obligations on the company's defined-benefits super scheme blew out by $100 million to $623 million.

Despite the prospect of government assistance in Australia, and the company's losses, Holden "upstreamed" dividend payments to its parent company GM Australia, which is in turn owned by the failed GM Corporation in the US. Last year, GM Holden paid $46.8 million to GM Australia (owned by GM Corp), down from $111.8 million the year before.

Gearing rose to 60 per cent during the year and the recession, and its impact on consumer demand, would indicate that things were unlikely to have improved much for Holden since the balance date.

[EgoFG]

Originally Posted by vztrt

Holden not so secure.....

http://business.theage.com.au/busine...0702-d6md.html

I would love to see a comparative article on FoA

[vztrt]

More on GM

http://news.theage.com.au/breaking-n...0703-d6va.html

GM bankruptcy exit hearing closes
July 3, 2009 - 8:14AM

The fate of General Motors (GM) has been placed in the hands of a New York judge who must decide whether the largest US carmaker can execute a swift exit from bankruptcy protection by selling its best assets to a new company.

"We're adjourned," Judge Robert Gerber said about 4.00pm on Thursday (0600 AEST, Friday) after three days of hearings in which a host of creditors mounted objections to the plan that will create a leaner GM unburdened by old debts and supported by billions in government loans.

GM's lawyers and chief executive officer argued that the asset sale is the only way to save the struggling carmaker from a devastating liquidation through the more lengthy Chapter 11 bankruptcy process.

Gerber did not indicate when he would publish his decision and told the various parties to send their final requests to him by email.

Sources close to the case said the decision could come as early as this weekend as several lawyers said they could file their final motions on Friday and Saturday.

In the precedent-setting case of rival Chrysler's bankruptcy, the judge published his approval of the asset sale on the weekend on the court's website.

Under the proposed plan, the US government will own 60.8 per cent of the capital in exchange for about $US50 billion ($A61.77 billion) in emergency loans.

Canada, which also provided billions in loans, will have 11.7 per cent and a United Auto Workers retiree health care trust fund will hold 17.5 per cent.

Creditors holding GM bonds will swap $US27.1 billion ($A33.48 billion) in debt for a 10 per cent stake and warrants allowing them to buy an additional 15 per cent stake.

© 2009 AFP

[vztrt]

And some more

http://www.caradvice.com.au/34226/gm...-not-approved/

GM could be liquidated if sale not approved

A federal bankruptcy judge will decide the immediate fate of GM’s effort to quickly sell its best assets to a group funded by the US government, after a three-day court hearing concluded on yesterday.

The iconic manufacturer wrapped up the final day of its sale hearing in US bankruptcy court in Manhattan by asking Judge Robert Gerber for approval to sell its best assets to a “New GM” funded by the US government.

GM is seeking approval for the sale just one month after filing for bankruptcy protection. Judge Gerber asked GM’s attorneys to submit papers to him by Friday and is expected to rule before July 10, the date after which the government has said it could stop funding GM.

In court on Thursday, a group of dissenting bondholders urged Judge Gerber to block the sale, calling it the first attempt at “Chapter 11 nationalisation” and arguing the government was trying to circumvent the law.

But GM’s lead bankruptcy attorney, Harvey Miller of law firm Weil Gotshal & Manges, told Judge Gerber that anything but approval of the sale would have “catastrophic” and “irreversible” consequences for GM and the auto industry.

“The objectors are asking your honor to play Russian roulette,” Mr Miller told Judge Gerber, in response to claims from the bondholder group that GM could pursue a more traditional Chapter 11 reorganisation plan rather than a fast track sale.

“These are assets that will deteriorate in value, and that deterioration will be felt by all stakeholders,” Miller said, noting that June auto sales this week showed GM was losing market share to Ford Motor Co.

This week GM’s chief executive, Fritz Henderson, and Harry Wilson, a senior member of the Obama administration’s autos task force, told the court the sale is GM’s only option for survival. Henderson said he does not expect GM to make money in 2009.

If the deal were approved, “New GM” plans to operate the best parts of the old company, like Chevrolet and Cadillac, with a less-expensive workforce, smaller dealer network, and much less debt. The “old GM,” which would include unpopular brands and unneeded factories and liabilities, would be liquidated in bankruptcy court.

Source: Reuters