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We are anticipating an announcement soon from the Administration regarding the restructuring of the U.S. auto industry. We continue to work closely with members of the Task Force and it would not be appropriate for us to speculate on the content of any announcement.
So now you know.
20 Comments on “Bailout Watch 465: GM Statement on U.S. Auto Industry Restructuring Announcement...”
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“We are anticipating an announcement soon from the Administration regarding the restructuring of the U.S. auto industry.”
Jesus Christ, has it REALLY come to this??? The once-iconic leader of the free marketplace???
Rock bottom. I agree… gold, silver, storable food, and guns.
I hope this gets the air time the Pope got when he was shot….
“Hey, breaking news…have you heard? Rick Wagoner has been fired.” repeated every 30 seconds.
With the government (compliments of taxpayers) moving into the drivers seat at these companies, and given their stellar track record at running complex operations like the congressional cafeteria, I’m sure the best and brightest the business world has to offer will line up in droves to take these newly available plum auto executive positions. You know, just like they’re lining up to join the Geithner team at the Treasury Dept…
……………crickets……………………..
Drum roll please . . . . .
ChryCo gets 30 days Death Row reprieve.
GM gets 63 days.
Then it’s government controled bankruptcy, i.e. C11.
ChryCo gets 30 days Death Row reprieve.
GM gets 63 days.
Then it’s government controled bankruptcy, i.e. C11.
No its likely to give them one more chance to “get their shit together” on the concessions they were to have ready by this Tuesday.
Maybe GM will announce the purchase of Tesla Motors…
I hear that Pete DeLorenzo already has a special Autoextremist.com article up. He couldn’t wait until Hump Day, apparently…
Didn’t you hear? Obama is resigning to take over his dream job, CEO of GM!!!
Remind me again how The Messiah knows not only how to rescue American manufacturing but instinctively knows what to do about GM. I’d also like a primer on why they can’t fail and be liquidated like so many other companies before them. How many firms folded without the teat of tax dollars? Do we now ball out investors in politically connected businesses? What about the non-connected businesses? Tough Tits for them?
One last thing: Will there be laws or orders to buy these cars so the government can not only get our money back but make a profit? How about the transplants and the Americans who work there?
Fritz takes the helm.. 60 days to clean house..
Chryco and Fiat must dance before more aid is dropped…
http://www.bloomberg.com/apps/news?pid=20601087&sid=a_13cvHMUUG8&refer=home
This is just an orderly wind down of operations. If they wanted to preserve GM and the suppliers for some greater mission, they would need to set minimum production numbers high enough to keep everyone afloat until the mission is ready to start.
So maybe GM produces cars at 2005 levels until “it” is ready for production and then they shift all resources to building a million units of the “Obama 6000”.
“The Obama 6000! Same features as the 5000, but now with 34% more hope in every mile!”.
Suffice it to say there isn’t a mission.. Just a bunch of old war heros that need a dignified way to move on.
“We are anticipating an announcement soon from the Administration”
And we are anticipating release of March sales numbers this coming Wednesday, which will provide an idea of how many hundred thousand vehicles to offer in the Bankruptcy Grand Slam Inventory Auction.
Looks like the admin let GM and Chrysler die.
Reuters Story
I’m curious to see how y’all react after reading that.
Incidentally, I don’t see why everyone’s parroting Repug talking points about Obama. Not a Dem, but it’s odd considering how both parties have blood on their hands (in regards to this). Or are people just angry because of changes in CAFE standards?
This is what an honest press release would have said:
“Having repeatedly demonstrated our inability to effectively manage what was once the world’s largest, most profitable and most copied corporation; we are now left with nothing worth saying. Just as supplicants in days gone by threw themselves upon the mercy of the court, so to have we thrown ourselves upon the mercy of the federal government. In the future, all questions of strategy and financing will be answered by our new defacto owners. Yours truly, GM’s Shamefaced Management Team”
The Reuter’s story is no big deal. Except that it’s the President’s appointees (aka GOVERNMENT) making this decision.
Again, unconstitutional.
But exactly what we want, yes?
Is it me or is the PTFOA advocating bankruptcy? From a BBC article:
http://news.bbc.co.uk/2/hi/business/7971202.stm
The auto task force appointed by Mr Obama released two reports on Monday on the financial health of both carmakers, saying that Chrysler was “not viable” in its current form.
It demanded a merger with Italy’s Fiat or another carmaker if Chrysler was to survive and said the Obama administration would only provide the company working capital for the next 30 days.
It also said that it would pledge to fund GM’s operations for the next 60 days only, requiring the carmaker to come up with another plan detailing further restructuring.
“While Chrysler and GM are different companies with different paths forward, both have unsustainable liabilities and both need a fresh start,” the task force said.
“Their best chance at success may well require utilising the bankruptcy code in a quick and surgical way.”
Change of course??? Pre-pack Ch.11 on the way?
I don’t understand the horror that everyone’s expressing. This is what the B+B have been rooting for for months.
Is it because you are all surprised at the gov’t hardline stance? That it isn’t the same ol’ same ol’ that everyone assumed was going to happen because it IS the gov’t?
How long before GM is delisted from the Exchange? Tuesday? I’m waiting for Obama’s boys to go after Cerberous once no suitable merger candidate is found. FIAT can’t sustain itself let alone an anvil like Chrysler.
It’s laughable that the clowns in D.C. think that they can run a company when all they are use to is spending and spending money their subjects earn.
This site always makes me laugh! I can just hear the GM boys saying “I know nothing!”
John
” Again, unconstitutional. ”
Care to cite a chapter and verse?