Category: Chapter 11

By on June 17, 2009

Earlier this afternoon, I filed a Freedom of Information Act (FOIA) request with Uncle Sam re: the Stimulus Package spending on 27,205 Chrysler, Ford and GM vehicles. What we want to know: the models purchased. Why we want to know it: is Uncle Sam spending U.S. bailout bucks to purchase vehicles made outside of the United States? And how fuel efficient are these vehicles? As saving jobs and the environment were the two rationales behind the authorization, we feel the government should reveal this information. So far the GSA, Speaker Nancy Pelosi and Senator Jack Reed (one of RF’s RI homies) have either ignored or flat out denied our request. So I’ve filed the FOIA request using my own name/address as follows:

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[powerpress]
By on June 17, 2009

When GM CEO Fritz Henderson logged-in for a live media-only chat on GM’s FastLane blog, the headline takeaway was “I am not a fan of rebadging.” Ha! Since returning to the scene of the crime, I’ve discovered that there’s plenty of other grist for a zombie watcher’s mill—such as the fact that Henderson appeared eleven minutes late. The first words off his keyboard: “I am here.” I would have gone for “Je pense, donc je suis,” only I don’t think GM’s main man knows the difference between badonk and donc. Henderson starts with a defense of the Hail Mary-ette Chevrolet Cruze that sounds a lot like a PR spiel from 1976 (Chevy Vega). It goes downhill from there.

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By on June 16, 2009

As you’ve no doubt guessed, the above quote comes courtesy of an Obama administration official. Showing infinite reserves of credulity and restraint, the Detroit News straight-up reports that “Larry Summers, the White House’s chief economic adviser, said in an interview that Congress shouldn’t interfere in the running GM and Chrysler . . . ‘We’ve been very clear that companies needed to be run commercially, rather than politically.'” Although I was recently, correctly admonished by several of our Best and Brightest for profanity, I’m going to use my last expletive here: that’s fucking awesome.

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[powerpress]
By on June 16, 2009

China Business News [via Gasgoo] reports that Automotive Industry Holding (BAIC) is miffed. They’re walking from any Opel, Saab and Volvo deals. BAIC will not engage in more talks— for the time being. China Business Daily claims to have a source on the inside.

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[powerpress]
By on June 15, 2009

As a shareholder in New New Chrysler, I’m not happy to hear that Fiat doesn’t have firm idea when Chrysler will resume production. On the other hand, the whole Chrysler food chain is broken, from factories that have no reason to exist to dealers who’ve been terminated with extreme prejudice, and all the suppliers in between. But here’s the kicker. This quote arrives accompanied by the glad tidings that the Conner Avenue plant is back on-line! Our Best and Brightest will know that this is the factory that makes the Dodge Viper, the over-powered death car that Chrysler wanted to sell to some poor sucker as a discreet business. But couldn’t. More indignity? Automotive News [sub]: “On May 15, Chrysler received a $5.5 million offer from Devon Motor Works to buy the Viper operation, with no assumption of liabilities, and to lease the plant for one year. Devon Motors was founded by Scott Devon, CEO of Cole’s Quality Foods Inc., of Grand Rapids, Mich., a maker of frozen garlic bread and toast, a receptionist at Cole’s said at the time.” Well, she should know.

[powerpress]
By on June 15, 2009

Snickers in Detroit, horrors in Rüsselsheim: Suddenly departed Government Motors purchasing chief Bo Andersson is taking a job in Russia. He will be Putin charge as chairman of Russian automaker Gorkovsky Avtomobilny Zavod, better known as hapless GAZ.
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[powerpress]
By on June 15, 2009

What a difference a weekend makes. On Friday, I spoke with House Speaker Nancy Pelosi’s PR person. She promised to help us identify the models involved in Uncle Sam’s purchase of 17,205 Chrysler, Ford and GM vehicles (as part of the economic stimulus package). Talk about backing away . . . Not only did Pelosi press secretary Drew Hammill deny making any such promise, her e-mail asked us to remove our story. No chance. I stand by my report. Oh, and “we do not have the information on what types of vehicles GSA has ordered. You will have to get that information from them.” As you know (and I told Hammill), the GSA stonewalled that request. Meanwhile, here’s a question: does this mean that Speaker Pelosi doesn’t care what percentage of these vehicles will be US made? Or how much more fuel efficient they will be than the vehicles they replace? If, as stated, this purchase was designed to create jobs and help the environment, how can she support it without knowing those crucial details? How, indeed.

[powerpress]
By on June 15, 2009

Why would GM’s VP of sales and marketing for North America expect his company’s [remaining] dealers to contact their elected representatives to support Government Motors’ dealer cull? Times two when you consider that GM is planning on making another round of dealer cuts in the future. “Hey. It’s Mark LaNeve. Thanks for lobbying for our downsizing. Oh, by the way, you’re next.” No, I’m not making this up. Here’s the e-mail, complete with fill-in-the-blanks phone script. [Thanks to you-know-who-you-are.]

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By on June 14, 2009

OK, I missed this one: an Automotive News [sub] Op-Ed by Mike Jackson, GM’s former marketing and advertising Veep [thanks for the heads-up, Frank]. In his piece, Jackson rips Government Motors a new one. Well, not exactly. ‘Cause excoriating GM for past mistakes would require Jackson to admit his own role in the debacle. Jackson can’t do that. That would be too much like taking the same sort of personal accountability for which the ex-exec now calls. Less enigmatically, Jackson’s rant tells GM what it should do, you know, now that he’s got the hell out of town. First up: culture. “Streamline the organization structure. Get rid of the cancerous GM lifers. The new GM must be nimble and evoke emotion and passion. Have the leaders of the divisional brand teams report directly to the office of the CEO, rather than through four layers as they have done.” More? Of course there’s more.

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[powerpress]
By on June 13, 2009

Click here to download the famous Elmer Johnson GM memo.

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By on June 12, 2009

Hi Robert – Per your mention of Sen. Corker, I just wanted to clarify that GM ASKED for a meeting with Sen. Corker and other Tennessee officials this week to discuss Spring Hill. They also asked our state to submit a proposal for the new sub-compact plant they plan to put in Michigan, Wisconsin or Tennessee.
 
Thanks,
 
Laura Lefler
Press Secretary
U.S. Senator Bob Corker
[powerpress]
By on June 12, 2009

If we’ve learned anything from animated cats over the last several decades, it’s that opposites can attract (and that music video directors get all the good drugs). But if there are serious doubts among analysts about the Fiat-Chrysler hookup, imagine what they’re saying about the Saab-Koenigsegg deal. After all, the buying firm sells one-of-a-kind cars for a cool million dollars a pop while the purchased firm can’t sell reworked GM offerings at zero-percent interest. Is there something rotten in the state of Sweden?

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[powerpress]
By on June 12, 2009

Creative Global Investments analyst Sabine Blümel takes on the Fiat-Chrysler marriage at just-auto.com [sub] and she seems unable to find anything positive to say about the deal. “A three-way alliance, also including GM Europe, and even better, also GM Latin America, would have given [Fiat Group] a full-range product portfolio and an extended and strengthened geographic footprint,” says Blümel. Take GM’s Opel or Latin American ops out of the picture, and you’ve got a nasty case of the not-so-muches on your hands. “We see little potential strategic benefit for the Fiat and our concerns regarding the benefits for Fiat from the alliance have, if anything, increased since the alliance plan was first announced,” is the verdict.

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[powerpress]
By on June 12, 2009

GM LETTERHEAD

June __, 2009

VIA Federal Express

[DEALER ENTITY CORPORATE NAME] 

[DEALER ADDRESS] 

To All GM Dealers in the US Who Received a Participation Agreement:

First and foremost, thank you for your continued support and efforts on GM’s behalf in these difficult times.  As we indicated when we sent you the June 1, 2009 letter agreement (the “Participation Agreement”), GM wants your dealership to be part of GM’s future and our whole focus is to try to improve, together, the GM dealer network.  We are gratified that, through Monday, June 8, we have received ______ signed Participation Agreements, indicating broad dealer support of our objectives for the dealer network.  

We have, however, received thoughtful and insightful questions and comments from individual dealers, the NADA and the National Dealer Council (the “NDC”) regarding the Participation Agreement. In response, we have had discussions with the NADA and the NDC. As a result of those discussions, we are writing to provide clarity on several points addressed in the Participation Agreement, as well as to amend certain terms and conditions of the Participation Agreement. Again, our whole focus here is to work with GM dealers to insure that both GM and the dealer body are best positioned to compete in this challenging environment and more importantly in the future.

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[powerpress]
By on June 12, 2009

The German government is sending strong signals to GM to move on the Opel deal with Magna — or else. Their message: “Get on with it, or Opel will be Chinese.”

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