Showing posts with label GM. Show all posts
Showing posts with label GM. Show all posts

Sunday, February 15, 2009

GM considering filing Chapter 11 bankruptcy

http://doubledoublethoughts.blogspot.com - Automaker GM is considering filing for Chapter 11 bankruptcy General Motors Corp, nearing a Tuesday deadline to present a viability plan to the U.S. government, is considering as one option a Chapter 11 bankruptcy filing that would create a new company, the Wall Street Journal said in its Saturday edition.

"One plan includes a
Chapter 11 filing that would assemble all of GM's viable assets, including some U.S. brands and international operations, into a new company," the newspaper said. "The undesirable assets would be liquidated or sold under protection of a bankruptcy court. Contracts with bondholders, unions, dealers and suppliers would also be reworked."

Citing "people familiar with the matter," the story said that
GM could also ask for additional government funds to stave off a bankruptcy filing.

GM declined to comment, the story said.

General Motors and Chrysler LLC face a Tuesday deadline to file restructuring plans to the government in exchange for receiving $17.4 billion in federal loans.

Automakers have struggled as U.S. auto sales have tumbled amid a recessionary economy. U.S. auto sales in January tumbled to a 27-year low.

GM has been in talks with bondholders and the United Auto Workers union to get an agreement on a restructuring that would wipe out about $28 billion in debt for the auto maker, sources have told Reuters. However, it appears unlikely a deal could be reached by the Tuesday deadline, they said.

GM has already announced plans to cut 10,000 salaried workers worldwide, or 14 percent of its staff, impose pay cuts for most remaining white-collar U.S. workers and has offered buyouts to its 62,000 U.S. workers represented by the UAW.

In addition, it is trying to sell its Hummer SUV and Swedish Saab brands and is reviewing the status of its Saturn brand.

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Tuesday, January 6, 2009

Images of new presidential limo leaked

As a candidate, Barack Obama promoted hybrid cars.

Now, As president, he'll be handed the keys to one. Well, Sort of.

Shortly after taking the oath of office, Obama will climb into the Mother of All Hybrids -- part car, part truck and, from the looks of it, part tank.

In keeping with recent tradition, the Secret Service will place a brand-new presidential limousine into service January 20th to drive the new president on the 2-mile jaunt down Pennsylvania Avenue during the inaugural parade.

Already, spy photos of the limo -- with patches of gray primer -- have been leaked out. And already, the reviews have started to come in:

"Ugly as sin," says one car enthusiast on an auto Web site. "Can't we make a hotter ride for our pres?"

"Sheesh," says another, "why don't they just transport the president around in an Abrams tank."

One news agency, noting its 8-inch-thick doors, says the limo can withstand a "direct hit from an asteroid." But GM spokeswoman Joanne K. Krell laughed off the comments.

"And it will fix you a latte if you ask," she jokes.

In truth, the new presidential limo is a Cadillac, Krell said, although it is "not a direct extension of any single model."

"The presidential vehicle is built to precise and special specifications, undergoes extreme testing and development, and also incorporates many of the top aspects of Cadillac's 'regular' cars -- such as signature design, hand-cut-and-sewn interiors, etc.," Krell says.

"Cadillac is honored to serve and renew this great tradition," she said. "And it is entirely appropriate that an American president has at his service a great American vehicle."

For much of the country's history, the Secret Service didn't even drive the president, evidently oblivious to the dangers of asteroids.

In the post-Lincoln horse-and-buggy era, it was customary for a security detail to closely trail the president, according to a Secret Service history.

With the advent of automobiles, the Secret Service acquired a 1907 H. White Steamer to follow Theodore Roosevelt's horse-drawn carriage.

White House chauffeurs drove later presidents, until the Secret Service assumed many of the driving responsibilities after Franklin Roosevelt's death in 1945.

In 1965, Lyndon Johnson was the first president to ride in a bulletproof limo in an inaugural parade, less than two years after his predecessor, John F. Kennedy, was shot and killed while riding in an open car.

Obama should expect two seemingly contradictory feelings when riding in the presidential limousine, said Joe Funk, a retired Secret Service agent who was President Bill Clinton's driver during part of his career.

"I think he will be surprised about how when he's in the limo, it's a cocoon," Funk said. "The everyday noises will be gone, and he will be totally isolated in this protective envelope."

"At the same time, I think he will be surprised at the communication capabilities, how the phones, the satellites, the Internet -- everything is at his fingertips," he said. "So at one end, you are totally removed from society. The other side of the coin is that he can have any communications worldwide at a moment's touch."

Funk says presidents sometimes chat with the agents, and sometimes don't.

"Every day is different, just like every person," he said. "Sometimes they get in the car and they have a lot on their mind. They're involved in reading material, they're involved in the newspaper, they're talking to local dignitaries or they are talking to Cabinet-level."

"Other times, they are interested in sporting events, in doing the crossword puzzle, interested in the feedback they get from talking to the agents -- primarily the supervisor that sits in the front seat," Funk said.

"While the government spares no expense for the presidential limo, the weight of the car makes it less maneuverable and more sluggish than comparable sport utility vehicles," Funk said. "And the door and window frames, which accommodate thick ballistic glass, create large blind spots," he said.

Funk's own experience driving Clinton was uneventful, he says, which is a good thing, considering his line of business.

"I was very lucky. We didn't have any close calls," he says. "Everything was very smooth."

But he still considers the experience a career highlight.

"At the end of the day, if you had a good driving day, you do kind of sit back with a certain amount of pride and say, 'I had the president of the United States in the car with me for an hour, two hours, and I got him from point A to point B safely in conjunction with all the other team members,' " he said. "When it's done, you can sit back and take some pride in knowing that you pulled it off."

Available in any color, as long as it's black

One Internet wag, adding to the rampant speculation about the new car, made this prediction: It will be painted black. But environmentalists may ask, will it be green?

Not likely. Car enthusiasts believe the overweight vehicle burns diesel and will have low mileage. And with diesel costing about $2.40 a gallon Monday, versus $1.67 for gasoline, this new limo can't be called an economy vehicle.

"The limousines of yesteryear were designed just well enough to provide protection to get the president out of the situation," says Ken Lucci, CEO of Ambassador Limousine Inc. and owner of two Reagan-era limos. "In today's case, they [the Secret Service] expect a prolonged attack, and they expect an attack that is a lot more violent than [with] a weapon you can hold in your hand."

"It literally is a rolling bunker," he says. "It just happens to have wheels on it."

It's not a bad vehicle for someone whose job is to fix the economy, even if it won't brew coffee on command.

Sunday, December 28, 2008

GM sues bankrupt supplier


General Motors Corp. is suing a bankrupt automotive supplier for immediate access to specialized parts and equipment, arguing that a delay would hamper the launch of its new Chevrolet Camaro, disrupt assembly operations and cause millions of dollars in damages it can ill afford.

In a filing with the U.S. Bankruptcy Court in Delaware on Christmas Eve, GM accused Cadence Innovation LLC of Troy, Michigan, of "holding hostage" the parts and tooling equipment it needs and breaching the terms of an agreement it signed with the automaker in August.

Cadence, which GM had once hailed as its 2006 supplier of the year, filed for Chapter 11 bankruptcy in August, which became a liquidation proceeding earlier this month.
The automotive supplier makes door panels, airbag covers, consoles and other parts.

GM said it employs "just-in-time" manufacturing where parts are placed into vehicles within hours of delivery. The automaker has on hand parts that can support assembly operations only for several days to a week.

GM wants immediate access to the parts and equipment so it can have a new supplier in place and making parts by Jan. 12 to avoid a major disruption to its assembly operations.
"Even one day's disruption in supply of certain component parts could cause a shutdown of GM assembly operations, disrupting not only GM's business, but the operations of countless suppliers, dealers, customers and other stakeholders," the lawsuit claims.

GM said such a shutdown would cost the company millions of dollars in damages daily at each affected plant. The automaker accused Cadence of refusing to adhere to their August agreement and hampering its efforts to take possession of parts and equipment.

Cadence did not immediately return a call for comment on Friday.

Shares of GM rose 42 cents, or nearly 13 per cent, to $3.67 in afternoon trading. Late Wednesday the U.S. Federal Reserve granted bank holding status to its financing arm, GMAC Financial Services, which made GMAC eligible for funds earmarked for the government's $700 billion bank rescue plan and saved it from possible bankruptcy. The move came just days after the White House threw GM and fellow Detroit automaker Chrysler LLC a $17.4 billion emergency lifeline.

Sunday, November 23, 2008

$25billion for the automakers??


I Was reading an article just a few minutes ago (browser crashed before I could save the link) that discussed whether the government should help out the big 3 automakers, bail them out....



Here's a thought though, Instead of spending $25billion, to bail out these automakers that already make millions of dollars in profits (well, maybe right now they're not, they need this money so they can go back to making millions) why not spend just a fraction of that, to assist the citizens of the country....

I'm sure the total credit card debts that people have right now, that they're having trouble paying due to the poor economy, is far less then $25billion dollars... the population of North America is approximately 514 million people, I'm SURE people's credit card debts aren't a million dollars, well into the thousands maybe, but no where near a million....
So using even $1Billion of that $25billion that they would be giving to the automakers, use that to help out the people of the country...as a good will gesture (a Christmas present if you will) would do way more long term for the country, with people no longer having to worry about there debts, having to scrape together money to pay debts they have, then pay bills and feed there families.... Would really be a morale booster for the entire continent (as I'm using the 514million number to mean all of North America) with people now having money for savings, they can move on with working towards there futures without the stresses they had...

Perhaps also go a little further? earmark $2 billion for persons that are well behind on there mortgages, in danger of losing there homes and ending up on the streets.....

This economic turmoil has been brutal on business, especially "the little guy" those businesses open long hours, working hard to serve the customers, and at the end of the month, barely getting by with just enough business to pay the bills and employee wages... some not being able to last longer then a few months because of it... While you'll see other businesses, some that have been open for 30-50 years, some even more, going under because they can no longer survive due to rising operating costs and with people not having money to spend, business is obviously going to be slow, especially during this holiday season, that so many businesses depend on for more sales to keep them going until next year... these businesses that have been mainstays in communities are going under.... how about $3billion towards assisting small businesses...

Finally, $1millon, spread out as a gift to all 514million (equals $1,945.52 each) people living on this great continent...to truly make these holidays, happy.......

Why not do this instead of handing over a blank cheque of $25billion to the "Big 3" to keep them going so they can continue to make there millions...

But then... an idea like this only makes sense right? and its better to take care of the big guys, make sure they're happy and keep them going, and leave the little guys to fend for themselves... so it's not an idea that would become a reality right? a government that cares for the citizens that elect them rather then the big businesses that line there pockets... naaaah... can't happen right?

Give me your thoughts on this...