J.P. Morgan: GM likely to survive, bonds a ‘buy’
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Automotive News | November 11, 2008 - 11:00 am EST
 
 
NEW YORK (Reuters) — General Motors’ extremely distressed debt is an attractive investment as the automaker has several options to improve its liquidity and survive the economic downturn, according to credit analysts at J.P. Morgan.
GM’s bonds have tumbled [...]

White House endorses accelerated auto-loan funds
queryvar=”white,house,endorses,accelerated,auto-loan,funds”;

Automotive News | November 11, 2008 - 10:45 am EST
 
 
WASHINGTON (Reuters) - The White House today said it was open to considering any proposals from Congress to accelerate loans to the ailing U.S. auto industry from funds already appropriated.
"We’re open to ideas from Congress to accelerate funds they’ve already appropriated [...]

Lawmakers prepare industry-aid bills for lame-duck session
Pelosi to call for ‘emergency and limited financial assistance’
queryvar=”lawmakers,prepare,industry-aid,bills,for,lame-duck,session”;

Harry Stoffer
Automotive News | November 11, 2008 - 3:14 pm EST
 
 
WASHINGTON — Key members of Congress said today they are preparing emergency legislation that would provide more federal aid to the auto industry.
House Speaker Nancy Pelosi, D-Calif., said a bill [...]

 
UAW board member: ‘We’re worried’ about retiree health care benefits
queryvar=”uaw,board,member:,were,worried,about,retiree,health,care,benefits”;

Jeremy Smerd
Automotive News | November 11, 2008 - 10:19 am EST
 
 
Caretakers of the UAW’s health care trust are concerned that the slumping fortunes of the Detroit 3 could leave retirees without health care benefits.
"Obviously, we’re as worried as you are," said Teresa Ghilarducci, a board [...]

November 11, 2008

In the end, GM shareholders might get stuck with nothing

Analyst sees 1 year for stock

BY SUSAN TOMPOR
FREE PRESS COLUMNIST
Could General Motors Corp. — and all those Chevys and Cadillacs — soon be worth absolutely nothing?
OK, we all know nobody’s going to hand over the keys to a Cadillac CTS for free, let [...]

Tuesday, November 11, 2008
Daniel Howes
Commentary: Detroit will never be the same

It’s over, folks.
No matter what comes of the increasingly frantic Detroit bailout talks in Washington, or General Motors Corp.’s desperate bid to keep its critical cash hoard from disappearing, or Chrysler LLC’s next move to avoid bankruptcy, or Ford Motor Co.’s flimsy insistence that its [...]

Monday, November 10, 2008
GM will lay off another 1,900 workers in early 2009
Robert Snell / The Detroit News
DETROIT –General Motors Corp. said in a regulatory filing today it will indefinitely lay off 1,900 workers at its stamping and powertrain facilities starting in the first quarter of 2009.
Those layoffs come on top of GM’s announcement Friday [...]

Monday, November 10, 2008
Analysts: Bailout would send GM stock even lower
David Shepardson / Detroit News Washington Bureau
General Motors Corp.’s shares plunged more than 31 percent to their lowest level in more than 55 years after two analysts downgraded the Detroit automaker’s stock and said it could be worth little or nothing if the company gets [...]

 
David Barkholz
Automotive News | November 10, 2008 - 4:35 pm EST
 
 

Don Runkle
Photo credit: WILLIAM JORDAN

 
 
DETROIT — The Detroit 3 may not survive their cash crises unless the federal government supplements any emergency loans with consumer cash incentives to spur auto sales, [...]

 
GM makes salaried workers take more vacation
queryvar=”gm,makes,salaried,workers,take,more,vacation”;

Jamie LaReau
Automotive News | November 10, 2008 - 11:43 am EST
 
 
DETROIT — In an effort to conserve cash, General Motors will require thousands of salaried workers to take two additional vacation days in December. Those days will be taken on top of GM’s two-week holiday shutdown next month.
The [...]

 
GM stock plunges 23% after analysts’ reports
Shares reach 62-year low
queryvar=”gm,stock,plunges,23%,after,analysts,reports”;

Automotive News | November 10, 2008 - 10:00 am EST

 
DETROIT (Reuters) — General Motors will likely fall below its minimum cash needs of $11 billion to $14 billion in the first quarter of 2009 if the troubled automaker does not receive additional funding, said an analyst [...]

 
Wagoner: GM needs federal help before Obama takes office
queryvar=”wagoner:,gm,needs,federal,help,before,obama,takes,office”;

Jamie LaReau
Automotive News | November 10, 2008 - 4:40 pm EST

GM CEO Rick Wagoner

 
DETROIT — General Motors CEO Rick Wagoner says GM’s financial distress is so dire that it must line up financial assistance from Washington before President-elect Barack Obama takes office in January.
“This is an [...]

November 10, 2008

Why auto executives are ruling out going bankrupt

Slashing of jobs, shredding of benefits still would offer no guarantee of survival

BY JUSTIN HYDE
FREE PRESS WASHINGTON STAFF
Over more than a century, Detroit’s autoworkers have survived two world wars, recessions and oil spikes, but a bankruptcy by a U.S. automaker would finally knock their destiny [...]

Monday, November 10, 2008
Big banks back off consumer car loans
Credit for buyers tight as many banks take wait-and-see approach to vehicle business.
Bryce G. Hoffman / The Detroit News
Despite a $700 billion bailout, the nation’s big banks are not in any rush to get back into the automotive lending business — more bad news for an [...]

Monday, November 10, 2008
Support grows to aid auto industry
Gordon Trowbridge / Detroit News Washington Bureau
Heading into what could be a critical week for the domestic auto industry, top aides to President-elect Barack Obama and key lawmakers voiced support Sunday for immediate aid to the cash-starved companies.
But it remains an open question as to just what [...]

Monday, November 10, 2008
Daniel Howes
Big 3’s hopes rest with Washington
U.S. automakers issue ultimatum to Congress: Bailout or bankruptcy.But GM, Ford must persuade taxpayers

America’s political leaders have a choice to make, and very soon:
Do they want the country to keep its own independent automakers, a hallmark of major economic power around the world? Or are they [...]

 
GMAC: We’re nobody’s captive
queryvar=”gmac:,were,nobodys,captive”;

Donna Harris
Automotive News | November 10, 2008 - 12:01 am EST
 
 
GMAC Financial Services is edging away from the basic business strategy it has pursued since it began in 1919: helping General Motors sell vehicles by providing GM dealers and customers with credit.
Last week, company CFO Robert Hull said GMAC no longer [...]

 
Life at 11 million: Slash, rethink
Suppliers, dealers, retail groups must adjust — or crash
queryvar=”life,at,11,million:,slash,rethink”;

Amy Wilson
and Pat Scott
Automotive News | November 10, 2008 - 12:01 am EST
 
 
DETROIT — Auto dealers and suppliers are moving heaven and earth to adjust to an annual auto sales rate not seen in a quarter century: fewer than 11 [...]

The options: Bailout now or disaster
Auto bankruptcy would spread pain deep into economy
queryvar=”the,options:,bailout,now,or,disaster”;

David Sedgwick
Automotive News | November 10, 2008 - 12:01 am EST

ENLARGE

Talking heads: From left, Ford’s Alan Mulally, GM’s Rick Wagoner, Chrysler’s Bob Nardelli and the UAW’s Ron Gettelfinger pleaded their [...]

November 9, 2008

U.S. autoworkers optimistic about Obama’s plans

BY SARAH A. WEBSTER and BRENT SNAVELY
FREE PRESS BUSINESS WRITERS
As unlikely as it might seem right now — with the U.S. auto industry begging for government money to stay alive and sales at a 25-year low — workers see glimmers of hope for Detroit’s once-mighty Big Three [...]

November 9, 2008

Handicapping the Detroit 3’s prospects

Here’s some handicapping on the prospects of Detroit’s three automakers:
Chrysler
Chrysler, by most accounts, is the worst off of the Big Three.
The Auburn Hills automaker has indicated that it lost more than $1 billion during the first half of this year, and analysts doubt that the private company has enough [...]

Sunday, November 9, 2008
Obama aide hedges on auto bailout
Gordon Trowbridge / Detroit News Washington Bureau
President-elect Barack Obama’s incoming chief of staff on Sunday called the auto industry "essential" to the U.S. economy, but stopped short of adopting congressional Democrats’ call for the domestic carmakers to get part of the $700 billion Wall Street bailout package.
Despite [...]

 
Democrats urge Paulson to weigh aid for automakers
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Automotive News | November 8, 2008 - 7:00 pm EST
 
 
WASHINGTON (Reuters) — The top U.S. congressional Democrats urged Treasury Secretary Henry Paulson today to consider providing aid to troubled U.S. automakers as part of the Bush administration’s corporate bailout efforts.
The letter from House of Representatives Speaker Nancy Pelosi [...]

November 8, 2008

GM grapples to avoid filing bankruptcy as cash vanishes

 
BY KATIE MERX
FREE PRESS BUSINESS WRITER

General Motors Corp., for 77 years the world’s largest automaker and an icon of American industry, revealed a dire financial outlook Friday that has the company teetering on the edge of bankruptcy.
Ford Motor Co. delivered its own grim forecast — [...]

November 8, 2008

Shared sacrifice is way to sell auto bailout

BY TOM WALSH
FREE PRESS COLUMNIST
Detroit’s captains of industry had already pawned the fancy candlesticks and sold off most of the furniture. Friday, they publicly pleaded poverty, admitting they may not survive much longer without massive infusions of government cash or adoption by a benevolent rescuer.
Now, [...]

Saturday, November 8, 2008
Ford treads in deepening water
Bryce G. Hoffman / The Detroit News
Ford Motor Co. is trying to pull off a delicate balancing act as Detroit’s Big Three continue to slide toward the brink of bankruptcy: convincing Wall Street and consumers that its financial woes are not as severe as those facing its crosstown [...]

 
GM may run out of cash by mid-2009
S&P lowers GM debt rating, citing ‘unabated’ cash burn
queryvar=”gm,may,run,out,of,cash,by,mid-2009″;

Jamie LaReau
Automotive News | November 7, 2008 - 11:07 am EST

 
DETROIT — General Motors, battling “unprecedented economic and credit market turmoil,’’ reported its fifth straight quarterly loss today and warned that it may not have enough cash to operate [...]

 
Hyundai, Chrysler in talks as GM pulls out
queryvar=”hyundai,chrysler,in,talks,as,gm,pulls,out”;

Automotive News | November 8, 2008 - 12:01 am EST

 
DETROIT(Reuters) — South Korea’s Hyundai Motor Co. has had talks with Chrysler LLC owner Cerberus Capital Management LP about a potential acquisition of the U.S. automaker’s Jeep brand and possibly other assets, people with knowledge of the talks told [...]

 
 
Saturday, November 8, 2008
Layoffs, losses spell more gloom for Big 3 employees
Autoworkers worried about the future
Nathan Hurst and Jennifer Chambers / The Detroit News
Big Three workers across southeast Michigan left office buildings and factories Friday afternoon under bleak skies that reflected a souring mood in their workplaces.
Struck by news that General Motors Corp. is running [...]

 
GM posts 5th straight quarterly loss, may run out of cash by mid-2009
S&P lowers GM debt rating, citing ‘unabated’ cash burn
queryvar=”gm,posts,5th,straight,quarterly,loss,may,run,out,of,cash,by,mid-2009″;

Jamie LaReau
Automotive News | November 7, 2008 - 11:07 am EST

 
DETROIT — General Motors, battling “unprecedented economic and credit market turmoil,’’ reported its fifth straight quarterly loss today and warned that it may not [...]

November 7, 2008

GM to lay off 3,600 indefinitely, slow down production at 10 plants

By KATIE MERX and JEWEL GOPWANI
FREE PRESS BUSINESS WRITERS
General Motors Corp. today announced temporary shutdowns and plans to indefinitely lay off about 3,600 workers at 10 plants beginning early next year.
 
GM said nine plants have been scheduled for an additional down [...]

November 7, 2008

GM announced $5 billion more in cost-cutting measures

By KATIE MERX
FREE PRESS BUSINESS WRITER
General Motors Corp. has targeted $5 billion in cost-cutting measures in addition to $15 billion it already planned to conserve and save in a plan announced July 15.
Shortly before noon, GM said it will:
• reduce 2009 capital spending by $2.5 [...]

Friday, November 7, 2008
GM, Cerberus end Chrysler tie-up talks
David Shepardson and Christine Tierney / The Detroit News
General Motors Corp. and Cerberus Capital Management LP have called off talks about a possible deal to transfer Chrysler LLC’s automotive operations to GM.
"GM has recently explored the possibility of a strategic acquisition that it believed would generate significant [...]

Friday, November 7, 2008
GM reports $2.5B loss, says federal aid essential
Detroit News staff and wire reports
General Motors Corp. reported today a $2.5 billion third-quarter loss as tight credit, a stock market crisis, stalled consumer spending and a declining housing market have led to fewer vehicle sales and pushed the automaker closer to running out of [...]

 
Sources say Chrysler cash drains away as crisis deepens
queryvar=”sources,say,chrysler,cash,drains,away,as,crisis,deepens”;

Automotive News | November 7, 2008 - 9:15 am EST

ENLARGE

Chrysler CEO Bob Nardelli

 
DETROIT (Reuters) - Chrysler LLC is rapidly burning through cash and [...]

Friday, November 7, 2008
Daniel Howes: Commentary
Big 3 face an uphill fight in Congress

The humbling could be worse: Detroit’s automakers could be asking their Japanese rivals for a bailout.
Instead, the Big Three brass worked Washington on Thursday in a bid for speedy, multi-billion-dollar help from House Speaker Nancy Pelosi. This is the San Francisco Democrat whose [...]

Friday, November 7, 2008
Huge losses, cuts expected at GM
Detroit News staff and wire reports
General Motors Corp. will report its third-quarter earnings Friday, and cuts are expected at various levels to try and curtail future losses.
The company is spending billions more than it’s making amid the worst economic crisis in decades and struggling to obtain financing [...]

 
Ford posts $2.7 billion operating loss, cuts production
queryvar=”ford,posts,$27,billion,operating,loss,cuts,production”;

Amy Wilson
Automotive News | November 7, 2008 - 6:58 am EST
 
 
DETROIT — Ford Motor Co. posted a $2.7 billion operating loss in the third quarter and took further steps to cut costs in the wake of plummeting consumer confidence and tighter credit availability.
The net loss of $129 [...]

Auto industry aid requests exceed $50 billion
queryvar=”auto,industry,aid,requests,exceed,$50,billion”;

Harry Stoffer
Automotive News | November 6, 2008 - 2:48 pm EST

House Speaker Nancy Pelosi

 
WASHINGTON — The U.S. automobile industry’s requests for federal assistance now exceed $50 billion.
The CEOs of General Motors, Ford Motor Co. and Chrysler [...]

 
Chrysler offers 2,400 buyouts in Ill. plant
queryvar=”chrysler,offers,2,400,buyouts,in,ill,plant”;

Bradford Wernle
Automotive News | November 6, 2008 - 5:37 pm EST
 
 
DETROIT — Chrysler LLC will offer buyouts next week to more than 2,400 workers at an Illinois assembly plant as the money-losing automaker boosts efforts to trim its work force.
The plant, in Belvidere, will become the 20th Chrysler [...]