**GM preparing for bankruptcy**

[ILLaViTaR]

Originally Posted by z80

Remember that GM manufactured cars that no-one wanted, that's the core problem

BIG thirsty cars.

GM Holden have still NFI why Toyota Yaris sells so well.....

If Ford can get over the 4/5/6 litre mentality hurdle then it will flourish.



But I suspect not.

If people weren't stupid enough to think the smaller the cheaper. Then Ford will flourish.

When you add every little thing up, there's bugger all cost between a small and large car. Then there's LPG on the larger car, which has higher safety standards than petrol.

But all the sheep are bahhing over their 4 cent safeway dockets.

That Toyota Prius. Nice fuel economy, pity it always comes at a price, 10k to be exact when the lithium battery goes.

[Gobes32]

GM Holden have done nothing wrong, they are a victim of circumstances. They still sell the most popular car in Australia. And it is wrong to suggest that Holden and Ford in Oz are poorly run because Toyota are looking at a massive loss for the year also. We need to remember that we are in the midst of a global recession and that ALL manufacturing is suffering. If you have a company that manufactures X product at so many units per year to be profitable, and then all of a sudden no one has the money to buy your product, then of course you will be in trouble.......

I do not believe for a second that everything is dandy at Holden, they won't even retrench employees because they cannot afford the payouts. But, it is in our best interests to support our local industry just like they support yours, whatever that may be. When Holden are down, don't sink the boots in, cheer them on and hope that in a few years Australia's manufacturing is back to full production. It is in all of our best interests to have a healthy manufacturing industry.

[vztrt]

Originally Posted by z80

Remember that GM manufactured cars that no-one wanted, that's the core problem

Funny how GM sell cars no one wants yet they are No 1 in the states....

[vztrt]

While it was speculated, the first of the companies to go

http://news.theage.com.au/breaking-n...0602-bufc.html

GM to sell Hummer
June 2, 2009 - 10:24PM

General Motors announced Tuesday that it had signed a framework agreement with an unnamed buyer to sell off its Hummer brand before the end of the third quarter, in a move it said would save 3,000 jobs in the United States.

GM in June said it was considering what to do with its oversized sports utility vehicle, after Hummer sales plummeted 51 percent last year, the deepest drop in the US auto industry.

GM lodged a bankruptcy filing with a US court on Monday, hoping to wipe out debts piled up over decades and to emerge as a viable competitor.

The filing in the same New York court that approved a speedy restructuring for Chrysler late Sunday aims to allow the former world number one carmaker to reemerge within 60 to 90 days.

GM's move comes after years of struggling and losing its crown last year as the world's top automaker. GM last made a profit in 2004, earning 2.8 billion US dollars. It lost nearly 88 billion US dollars from 2005 through the first quarter of 2009.

Hummer does not figure among the limited number of brands GM is considering in its plans to streamline production and return to profitability.

© 2009 AFP

[vztrt]

Lateline story on Holden.

http://mpegmedia.abc.net.au/lateline...38_1769473.wmv

An interesting opint that if the GM bankruptcy drags on it could have an effect on Holden sales.

[vztrt]

Some more news on Holwoo

http://www.theage.com.au/national/ho...0602-bucc.html

Holden gets life in GM bankruptcy
Tim Colebatch and Andrew Heasley
June 3, 2009

THE now-bankrupt General Motors will make Australia the global centre of production for one version of its mid-size car, the Cruze, when it is built here next year under the Federal Government's green car plan.

Holden CEO/chairman Mark Reuss and 6000 Holden workers yesterday celebrated the firm's survival, after GM's chief executive, Fritz Henderson, announced in New York that GM, formerly the world's biggest car maker, would seek bankruptcy protection while it restructures.

"This is an epic day," Mr Reuss said. "We are safe, we are part of the new GM."

GM decided to keep Holden only after two consultant firms had examined every GM subsidiary to decide which would be viable in future. Only three in the Asia-Pacific region made the cut: Holden, Shanghai GM (China) and Daewoo (South Korea).

Mr Reuss thanked the Federal Government, which has pledged $149 million towards the cost of developing an Australian-made Cruze, GM's entry in the growing mid-size market dominated globally by the Toyota Corolla and the Mazda 3.

"We're fortunate to have a Government and a Prime Minister that actually cares about manufacturing," Mr Reuss said after meeting Prime Minister Kevin Rudd. '

At a joint press conference with Mr Reuss, Industry Minister Kim Carr praised Holden's management, unions and workers for "a genuine team effort", which he said had won them and the Australian industry a "historic opportunity … to increase fuel efficiency and reduce greenhouse gas emissions."

Holden will not be part of the GM parent company's bankruptcy, which is intended to last only 90 days, enabling it to undertake a massive downsizing, closing factories, scrapping brands and selling subsidiaries.

In sharp contrast, Mr Reuss predicted that Holden was heading for new growth. Holden has just introduced a Korean-built Cruze to Australia, but in sedan form only. Mr Reuss said two versions would be built in Adelaide, one a hatchback that was shaping up as "something we'll be very proud of here".

Holden's Commodore and the Ford Falcon once dominated Australia's car market. But the Corolla has now displaced them as Australia's top-selling car, with the Mazda 3 third, as buyers demand more fuel-efficient cars. Mr Reuss said Holden would meet that demand for greater efficiency.

Despite losses between 2005 and 2007 totalling about $300 million, Holden was poised to make a profit soon, Mr Reuss said. The bankruptcy "has no direct (effect) on our employees, or dealers or our Holden suppliers, or most importantly, our customers", he said.

Australian Manufacturing Workers Union national secretary Dave Oliver said there was a "collective sigh of relief" from the thousands of workers whose jobs were under threat in Victoria and South Australia.

[vztrt]

Hummer off to the Chinese

http://business.theage.com.au/busine...y.html?page=-1

GM sells Hummer brand to Chinese firm
June 3, 2009 - 7:26AM

General Motors took a key step toward its downsizing on Tuesday, striking a tentative deal to sell its Hummer brand to a Chinese manufacturer, while also revealing that it has potential buyers for its Saturn and Saab brands.

China's Sichuan Tengzhong Heavy Industrial Machinery Co. said Tuesday afternoon that it reached an agreement to acquire the brand from GM for an undisclosed ammount. The Detroit automaker had announced Tuesday morning that it had a memorandum of understanding to sell the brand of rugged SUVs, but it didn't identify the buyer.

Sichuan Tengzhong deals in road construction, plastics, resins and other industrial products, but Hummer would be its first step into the automotive business.

GM said the sale will likely save more than 3,000 U.S. jobs in manufacturing, engineering and at various Hummer dealerships. Tengzhong said it will assume GM's existing agreements with Hummer dealers.

"We will be investing in the Hummer brand and its research and development capabilities, which will allow Hummer to better meet demand for new products such as more fuel-efficient vehicles in the US,'' Chief Executive Yang Yi said in a statement.

As part of the proposed transaction, Hummer will continue to contract vehicle manufacturing and business services from GM during a transitional period. For example, GM's Shreveport, Louisiana, assembly plant would continue to contract to assemble the H3 and H3T through at least 2010, GM said. AM General , makes the larger H2 under contract for GM.

Hummer will keep its existing management team and remain based in the United States, the companies said. Tengzhong said it expects to expand the brand's dealer network worldwide, including to China.

"GM is close to a sale of its Hummer brand, which is good news for the 3000 Americans who will be able to keep their jobs, the two American plants that will remain open and the more than 100 Hummer dealers that should be able to stay in business all around the country,'' White House spokesman Bill Burton said earlier in the day.

On Monday, the Shreveport plant, which has about 800 workers, escaped being among 12 plants that GM said would be shut down by next year. The plant, which employed 3,000 several years ago, also produces Chevrolet and GMC pickups.

Johnny Bell, 59, who has worked at GM for 28 years, said many workers are still concerned about the plant's long-term future.

"Good news is good news, but we want all the news,'' he said. "We're concerned about what happens after 2010.''

GM also said Tuesday that it has 16 buyers interested in purchasing its Saturn brand, while three parties are interested in the Swedish Saab brand.

Chief Financial Officer Ray Young told reporters and industry analysts on a conference call that GM is continuing to pursue manufacturing agreements with a new Saturn buyer.

GM would like to sell the money-losing Saturn brand's dealership network, contracting with the new buyer to make some of its cars while the buyer gets other vehicles from different manufacturers.

At the same time, bridge loan discussions with the Swedish government are progressing, Young said.

GM, which filed for bankruptcy protection in New York on Monday, is racing to remake itself as a smaller, leaner automaker. In addition to its plan to sell the Hummer, Saab and Saturn brands, GM will also phase out its Pontiac brand, concentrating on its Chevrolet, Cadillac, Buick and GMC nameplates.

The company hopes to follow the lead of fellow US automaker Chrysler LLC by transforming its most profitable assets into a new company in just 30 days and emerging from bankruptcy protection soon after.

But GM is much larger and complex than its Auburn Hills-based rival and isn't up against Chrysler's tight June 15 deadline to close its deal with Fiat Group SpA.

Sharon Lindstrom, managing director at business consulting firm Protiviti, said the companies pose different challenges. But as with Chrysler, she notes that the Treasury Department made sure many of GM's moving parts were in order ahead of time so a quick bankruptcy reorganization might be possible.

"They had a lot of their ducks in a row because the terms of the government financing forced them to get all the parties to the table in a very, very short period of time,'' Lindstrom said.

Separately, the German government said Tuesday it paid out the first euro300 million ($US425 million) in bridge loans to GM's Adam Opel GmbH division. The loans are part of a deal to shrink GM's stake in Opel and shield it from GM's bankruptcy protection filing in the US.

Canadian auto supplier Magna International and Russian-owned Sberbank will acquire 55 per cent of Opel.

A sale of the Hummer brand had been expected. Chief Executive Fritz Henderson had said in April that the automaker was expecting final bids from three potential buyers within the month.

Eric Lane, vice president of Baton Rouge, Louisiana-based Gerry Lane Enterprises, which has four dealerships - including one offering Hummers - welcomed the sale.

Lane said a lack of new products and the recession figured into the Hummer equation much more than last year's runup in gasoline prices. "I haven't had a single owner complain about mileage. Nobody buys a Hummer because of the gas. You don't buy a vehicle for $60,000 and worry about the price of gas.''

Critics had seized on the rugged but fuel-inefficient Hummer as a symbol of excess as GM's financial troubles grew and gas prices rose. Sales at Hummer, which is known for models with military-vehicle roots, have been in a steep slide since gasoline prices rose to record heights last summer. For the first five months of this year, Hummer sales are down 64 per cent.

GM nailed down deals with its union and a majority of its bondholders and arranged the Opel deal in order to appear in court Monday with a near-complete plan to quickly emerge with a chance to become profitable.

The government has said it expects GM to come out of bankruptcy protection within 60 to 90 days. By comparison, the judge overseeing Chrysler's case approved the sale of its assets to a group led by Italy's Fiat in just over a month. Some industry observers think Chrysler could emerge as early as this week.

During Monday's hearing, GM attorney Harvey Miller stressed the magnitude of the case and the importance of moving GM through court oversight as fast as possible. He noted that the automaker only has about $2 billion in cash left.

"If there's going to be a recovery of value, it's absolutely crucial that a sale take place as soon as possible,'' Miller said in his opening statement.

The automaker wants to sell the bulk of its assets to a new company in which the US government will take a 60 per cent ownership stake. The Canadian government would take 12.5 per cent of the "New GM,'' with the United Auto Workers union getting 17.5 per cent and unsecured bondholders receiving 10 percent. Existing shareholders are expected to be wiped out.

US Judge Robert Gerber moved swiftly through more than 25 mostly procedural motions during the automaker's first-day Chapter 11 hearing.

Gerber set GM's sale hearing for June 30, putting it on a path similar to that of Chrysler. Objections are due on June 19, with any competing bids required to be submitted by June 22.

Gerber also gave GM immediate access to $US15 billion in government financing to get it through the next few weeks, and interim approval for use of a total $US33.3 billion in financing, with final approval slated to be ruled on June 25. The funds are contingent on GM's sale being approved by July 10. Gerber also approved motions allowing the company to pay certain prebankruptcy wages, along with supplier and shipping costs.

The sheer size of GM makes it a more complicated case than Chrysler.

GM made twice as many vehicles as Chrysler's 1.5 million last year and employs 235,000 people compared with Chrysler's 54,000. GM also has plants and operations in many more countries, meaning it will likely have to strike separate deals to navigate the bankruptcy laws of those places.

Henderson said GM has learned a few things by watching Chrysler's case.

"Certainly the court showed that it can address 363 (sale) transactions in an expeditious fashion,'' Henderson said at a news conference Monday. "Particularly in our case with what will be a very large 363 transaction.''

GM's filing for bankruptcy protection is the largest ever for an industrial company. GM, which said it has $US172.81 billion in debt and $US82.29 billion in assets, had received about $20 billion in low-interest loans before entering bankruptcy protection.

[vztrt]

Obama grilled

http://business.theage.com.au/busine...0602-budj.html

Obama grilled on GM's back-seat driver
Anne Davies, Washington
June 3, 2009

A DAY after General Motors filed for bankruptcy protection — in order to emerge as a slimmer, government-owned company — the questions began piling up about the Obama Administration's real objective in saving the car maker.

Addressing reporters at the White House, President Barack Obama insisted GM had a chance to rise again to "once more be a symbol of America's success". He expressed confidence that the company, which is far more complex than Chrysler, would emerge from bankruptcy quickly — adding that the Government had no desire to run the firm despite taking a majority stake.

But exactly what the United States Government sees as the endgame in investing $US50 million ($A62 million) of taxpayers' money in GM is less clear.

At times the President talked as if taxpayers could expect a turnaround and a big profit on their investment — something GM management has been trying to do for a decade.

Later, at a news conference in New York, GM chief executive Fritz Henderson was more wary about predicting when the car giant might be profitable, even after the radical surgery it will undergo in the next 90 days.

That will include cutting its car-making capacity to a level appropriate for a US market that sells 10 million vehicles a year, down from a peak of 17 million in 2007.

But at other points, the President seemed to aspire to a more modest goal of managing the decline of the nation's automotive sector.

"The collapse of these companies (GM and Chrysler) would have been devastating for countless Americans and brought enormous damage to our economy beyond the auto industry," Mr Obama said.

In the Financial Times, former president Bill Clinton's labor secretary Robert Reich — author of Supercapitalism — wrote: "The only practical purpose I can imagine for the bail-out is to slow the decline of GM to create enough time for its workers, suppliers, dealers and communities to adjust to its eventual demise."

He went on to speculate on whether the $US50 billion would be better spent on retraining and helping the Midwest diversify away from the motor industry.

If Mr Reich is right, there are implications for the Rudd Government's decision to spend $6 billion of Australian taxpayers' money supporting the local car industry. It seems unlikely that GM Holden would survive without the parent.

There was also widespread scepticism about the Obama Administration's claim of being a hands-off owner, given its 60 per cent stake. In his news conference, Mr Obama championed his automotive taskforce's push for GM to switch to smaller, more fuel-efficient cars.

Yet automotive economists repeatedly point out that GM's most profitable — and popular cars — are some of its biggest gas-guzzlers. The Chevy Silverado, which looks like a Holden ute on steroids, and the Cadillac Escalade four-wheel drive, the black beast used in motorcades, are two of the company's more profitable models.

Sales of more efficient, small-engine cars account for only 17 per cent of total sales in the US and the sector is very competitive.

The Obama Administration has put in place tougher efficiency standards for the industry, but an aggressive business plan to meet these might work against GM's financial interests.

[The Snout]

Maybe they should downsize right down and only build for the truck sector.

[vztrt]

Holden stil pursuing exports to the US

http://www.goauto.com.au/mellor/mell...2575C9000CCB36

Holden still pursuing US Commodore sales

Hope yet for Commodore in the US under 'New GM'

By JOHN MELLOR 2 June 2009

DESPITE head office focus clearly elsewhere right now, Holden is still “actively discussing” further Commodore sales to GM in the US to boost profitability of the 'New GM'.

The closing of the Pontiac brand denies Holden valuable incremental export sales that can make the company a profit, and so Holden chairman and managing director Mark Reuss is doing his best to ensure that this potential seam of solid profit for the new GM is not lost on management in Detroit.

The Pontiac G8 version of the Commodore has been selling at nearly 3000 units a month in a market that has halved. This could, at a stretch, indicate a running rate of 72,000 cars a year in normal times.

Strong incentives offered to Pontiac buyers achieved increased sales in a market for GM that was down 50 per cent, showing the car is still touching a sweet spot with some Americans.

Now insiders at Holden are saying the Commodore is being considered for another brand and that Holden “is in active discussions” with that brand. It is most likely Chevrolet, for which Holden already builds cars sold in the Middle East.

The key here is that GM needs to start making money quickly. One way to contribute to that aspiration is to get Holden profitable and the way to do that is to get the Elizabeth plant running at capacity.

Holden was making money up to the introduction of the VE Commodore. Profit was $336 million in 2004.

After spending more than $1 billion in direct capital expenditure and R&D on the new VE Commodore, the company was off the pace by $145 million in 2005 and fell short by $147 million in 2006.

But Holden came close to making money in 2007 when the loss was $6 million.

I understand that Holden was internally projecting for a healthy profit for 2008 until the global financial crisis shredded the numbers – especially the loss of 80 per cent of export sales. I believe they were looking at more than $100 million in profit before the downturn set in and Holden now says that it traded profitably last month.

That is why Holden is so important to GM because it has a strong design and engineering base and it can make money when it gets export business at relatively small volumes by normal motor industry standards. That is one of Holden’s protections and why it is included in the new GM.

A niche model in the US can generate a bonanza on the bottom line at Holden where even 40,000 or 50,000 additional units would be great business for output from Elizabeth.

Production of the Delta platform is also spreading the risk in the Holden portfolio and export plans for that car are set at around 30,000 a year.

Importantly, there are significant short-term gains for the bottom line of Holden if Mr Reuss can get SSV sedans and utes as niche models in Chevrolet showrooms once the Pontiac stock is cleared.

And then they can sell with the good-looking Holden styling rather than that afterthought look of the Pontiac versions which failed to display the Australian cars

[SB076]

Originally Posted by vztrt

Hummer off to the Chinese

http://business.theage.com.au/busine...y.html?page=-1

Interesting the Chinese are going to put money into making the Hummer more fuel efficient - I wouldnt have thought you buy a hummer for fuel economy

As for the second article I find it interesting that the government is pushing GM to make smaller vehicles, but smaller vehicles only make up 17% of new car sales in the US - this could cause problems for GM in future

[Road_Warrior]

Originally Posted by SB076

Interesting the Chinese are going to put money into making the Hummer more fuel efficient - I wouldnt have thought you buy a hummer for fuel economy

As for the second article I find it interesting that the government is pushing GM to make smaller vehicles, but smaller vehicles only make up 17% of new car sales in the US - this could cause problems for GM in future

Seems to me that they may be more interested in the 4x4 and SUV engineering than fuel economy.

[SB076]

Originally Posted by Road_Warrior

Seems to me that they may be more interested in the 4x4 and SUV engineering than fuel economy.

I would suggest that got Hummer at a very good deal, and before not to long the Chinese will be going through Hummer and how it works and taking some of that expertise back overseas to help improve how they manufacture vehicles. I just thought it was an interesting comment the CE of the Chinese company made regarding fuel economy.

[vztrt]

Originally Posted by SB076

As for the second article I find it interesting that the government is pushing GM to make smaller vehicles, but smaller vehicles only make up 17% of new car sales in the US - this could cause problems for GM in future

What I found interesting about the second article is that Holden are trying to export cars into the US when GM are sacking people. Wouldn't Obama and Co wanna keep as many GM employees employed in the US?

[vztrt]

Originally Posted by Road_Warrior

Seems to me that they may be more interested in the 4x4 and SUV engineering than fuel economy.

I'd say so. The Hummer was a military vehicle (I know this version is different) so they would want some of the engineering for their own vehicles....its actually common for their heavy industry brands to be aligned with the military...mind you CAT also does stuff for the military in the US.

[vztrt]

Bit of an explanation on Ch11...also Holden is apart of the 'NEW GM'

http://www.goauto.com.au/mellor/mell...2575CA0007E6B4

GM's new chapter

Broke ain't necessarily broke under the US bankruptcy system

By JOHN MELLOR 2 June 2009

AS the media headlines highlight that the once-great General Motors is broke, it is important to realise that the company is by no means finished.

But GM is not what it was and ownership has effectively moved from the shareholders of Wall Street into the hands of the American and Canadian taxpayers and, ironically, the United Auto Workers (UAW) union.

Americans are taking it hard, with some readers of US business magazines calling it a workers’ collective akin to communism.

GM’s new stakeholders and the people who had invested bonds in GM are now banking on a rebirth of the company unencumbered by the accumulated legacy of generations of arrogance, hubris and unjustified over-confidence that have brought the company to this. You could justifiably ask: who would have thought that GM would ever go broke?

Well, certainly not the people who worked in and ran GM. And that was the problem. Not enough of them believed that this could happen so not enough of them set their minds to the task of preventing it from happening.

Now, fortunately they know that it can and those who are left are even more fortunate that they work in America which is unique in that it gives bankrupts a second chance through the mechanism known as Chapter 11.

Chapter 11 is a halfway house or a safe refuge where companies in difficulties (cannot pay their bills) are protected from the being closed down and sold up by the people who are owed money.

In Australia, this protection does not exist. If the roots of the corporate tree no longer get enough nutrients (cash) for the tree to stay alive, in Australia we chop it down and sell the wood.

In the US, under Chapter 11, they are allowed to prune the dead wood on the tree back to a healthy part and hope it will become strong and bloom again.

So Chapter 11 allows you to reorganise your business without the risk of the people who are owed money selling you up and closing you down.

Within the protection of Chapter 11, the company can then make the changes to agreements and contracts that it could not make before. This is to fast-track changes to old burdensome arrangements that could not normally be revised without years of costly acrimony, negotiations and law suits.

Under Chapter 11 these things go by the board because the revival of the company depends on this lead being lifted from the saddlebags.

In Australia, administrators step in (usually accountant specialists) and take over the running of the company. But in the US, typically the management is not displaced although an administrator is appointed to work with management. So the management is effectively still in control. So it is business as usual as far as the public is concerned.

Airlines such as United, Continental and Delta have all been in Chapter 11 and they continued to fly passengers. Kmart, Toys R Us and the department stores Bloomingdales and Macys have been in and out of Chapter 11 and still opened their doors each day. So it is a uniquely US device although some people argue that all it does is keep companies running that should have been broken up by a liquidator with the various element sold off at low prices to others who can make a going concern of the bit they bought.

GM has been preparing for an “express” Chapter 11 for some time so they can put the actual time in Chapter 11 behind them as quickly as possible. They are talking 60 to 90 days.

So GM has been working with all the stakeholders who are going to see their agreements and arrangements with the company unwound and new arrangements put in place.

But by getting all the ducks in a row beforehand, GM can have all the time-consuming development of new agreements in place so that time is not wasted and uncertainty not prolonged.

In effect, from today, there should be a period of agreements confirmed and signed off in record time so that GM can dazzle the American public and the world by how quickly the company was able to recover.

The key to GM’s strategy will be to use Section 363 under the Chapter 11 arrangements to create a new GM and an old GM. In other words, the bits of GM that are dragging the company down are put in the old GM and the bits that are the basis for the recovery are housed in the new GM when it starts up again.

The old GM is then liquidated.

Holden is seen as part of the New GM along with GM Daewoo (which is the biggest manufacturer of Chevrolets in the world) and Shanghai GM which is variously number one or number two in the market in China.

The three entities are linked by various shareholdings (Holden owns nearly half of GM Daewoo) and are all seen as strengths in the Asia-Pacific for GM.

Holden’s design, engineering and manufacturing expertise is the most advanced for GM in the Asia-Pacific region. Holden is linked to Shanghai GM and GM Daewoo because they are all run out of Shanghai by GM Asia Pacific and they already share common back-office support.

The concept of a pan Asian strategy involving those three is already evolving through the very strong interaction between Holden and Korea and there is a potential for this Asian involvement for Holden to become more formalised as the future of the struggling Thailand assembly operations are resolved.

The old GM is Hummer, Saab and Pontiac division and its network and plants.

Opel is part of the old GM but GM is having a bit each way with the German operations.

GM is retaining 35 per cent of Opel because Opel is a fundamental part of the international technology and design architecture of GM and a key to the DNA of some world car programs.

Vauxhall is part of the deal because Opel makes most of Vauxhall’s cars. Vauxhall makes on a fraction of the cars it sells these days and is basically a sales company for Opel production.

GM, of course, also has a stake in Europe (including the UK) though the growing Chevrolet network supplied by Daewoo.

[barbarian]

Originally Posted by vztrt

I'd say so. The Hummer was a military vehicle (I know this version is different) so they would want some of the engineering for their own vehicles....its actually common for their heavy industry brands to be aligned with the military...mind you CAT also does stuff for the military in the US.

China has its own military version Hummer rip off :

[vztrt]

Well there you go. Maybe buying Hummer they'll be able to make the next model strong.

[JPFS1]

Originally Posted by Gobes32

GM Holden have done nothing wrong, they are a victim of circumstances. They still sell the most popular car in Australia. And it is wrong to suggest that Holden and Ford in Oz are poorly run because Toyota are looking at a massive loss for the year also. We need to remember that we are in the midst of a global recession and that ALL manufacturing is suffering. If you have a company that manufactures X product at so many units per year to be profitable, and then all of a sudden no one has the money to buy your product, then of course you will be in trouble.......

I do not believe for a second that everything is dandy at Holden, they won't even retrench employees because they cannot afford the payouts. But, it is in our best interests to support our local industry just like they support yours, whatever that may be. When Holden are down, don't sink the boots in, cheer them on and hope that in a few years Australia's manufacturing is back to full production. It is in all of our best interests to have a healthy manufacturing industry.

Agreed. But there is another issue here that is making it increasingly difficult for the Australian manufacturer's, and that's the Australian suppliers. Under current circumstances with the drastic drop in local volumes, the suppliers are suddenly adorned with a new level of negotiating power and are screwing Ford on several fronts. Aussie suppliers claim that they are globally competitive, but at the moment that is not so close the truth, but they find themselves in a position of power. There have been some heated moments but I hope Ford take to the their strategies to overcome this (although will spell some pain for current suppliers).

[vztrt]

An opinion piece, on our government and Holden.

http://www.theage.com.au/opinion/res...a4.html?page=1

[turbo4me]

Lets hope Ford don't get in the .....there wont be any money left

[R-Design]

GM sells Saturn to Penske:

Saturn goes into Penske orbit

http://www.goauto.com.au/mellor/mell...2575CF0006B990

[vztrt]

Hold up of Chrysler CH 11 proceedings may cause GM to stay in CH 11 longer.

http://www.goauto.com.au/mellor/mell...2575D0000FDAAD

Court blocks quick Chrysler sale

Chrysler litigation casts doubt on GM’s Chapter 11 plan

By IAN PORTER 9 June 2009

THE planned smooth and quick re-emergence of Chrysler from its Chapter 11 bankruptcy has been thrown into chaos after some superannuation funds challenged the terms of the Chrysler reorganisation.

A US Supreme Court judge froze the Chrysler reorganisation process, sparking concerns that the General Motors bankruptcy process may not be as quick and easy as the US government had hoped.

The decision by Justice Ruth Bader Ginsburg stayed the sale of Chrysler’s good assets to a Fiat-controlled company for an indefinite period, and frustrating the US government's desire for the court to clear the way for the Chrysler deal.

On Tuesday, the Obama administration warned that court delays could have “grave consequences”.

Superannuation funds and consumer groups from Indiana asked the Supreme Court to stop the asset sales because they believe the terms of Chrysler’s reconstruction unfairly favour unsecured creditors over secured creditors.

They claim the reorganisation plan is illegal and that the US treasury department erred when it used bailout funds originally intended for the banking industry.

The court was told by solicitor general Elena Kagan of the US justice department, who represented the administration in court, that blocking the sale could force Chrysler's liquidation.

Ms Kagan defended the use of the bailout funds and said granting a stay beyond June 15 would jeopardise the sale.

Under the deal brokered with Fiat, the Italian car-maker can walk away from the deal if it is not closed by June 15.

The court decision to stay the process was criticised by congressman Gary Peters, whose congressional electorate includes the Chrysler headquarters.

“It is quite clear that the Indiana case is not in the best interests of the people of Indiana,” he said.

“Other stakeholders, including secured lenders and Chrysler’s autoworkers, accepted shared sacrifice because they recognised their interest was better served keeping Chrysler alive rather than forcing liquidation.

“Why the officials who decided to take their objections all the way to the supreme court can’t recognise this is beyond me.

“Indiana officials are fighting over $4.8 million at the risk of costing their state over $20 million in tax revenue, tens of millions more in related costs and putting 4000 of their own people out of work.”

[vztrt]

Holden may still sell in the US

http://www.goauto.com.au/mellor/mell...2575D00000ADC5

GM product chief hints it’s not too late for the G8

GM product chief confirms ‘discussions’ about continued Commodore exports to US

By TERRY MARTIN 9 June 2009

GENERAL Motors vice-chairman of global product development Tom Stephens has confirmed that discussions are taking place about continuing Holden Commodore-based exports to the US under a badge other than the current Pontiac G8, which will be discontinued by the end of this year.

In contrast to reports last week that GM chief executive Fritz Henderson had written in a website blog that there was “no chance” the G8 would be resurrected under another brand, Mr Stephens has told US industry journal Automotive News – and backed comments from Holden management – that rebranding the performance sedan remained an option.

“I know there’s still discussions on it,” said Mr Stephens, adding that Chevrolet might not be the first choice.

“Chevrolet already has several sedans. How many sedans do you need to cover the waterfront?”

As reported last week, GoAuto understands that Holden has put a business case to Cadillac for both short-wheelbase and long-wheelbase VE-based models.

The Australian manufacturer also has ties with GMC and Buick – and Chevrolet remains on the agenda.

Enthusiasts have been calling for the G8 to be reborn as an Impala SS, and as GoAuto revealed in detail in April, the Australian-based National Safety Agency is in talks with a number of North American law enforcement agencies to produce a Commodore-based police car – possibly under, but not necessarily limited to, the Chevrolet brand.

[R-Design]

God bless America.

[vztrt]

Seems the Chinese don't want Tengzhong Heavy Industrial to own hummer

http://www.caradvice.com.au/32365/hu...-chinese-govt/

The Chinese heavy machinery maker that agreed to buy General Motors’ Hummer brand may find the biggest stumbling blocks to the deal in its home country.

Following last week’s surprise announcement that Sichuan Tengzhong Heavy Industrial Machinery and GM had reached an agreement, analysts and Chinese media were buzzing with talk that the two companies might have jumped the gun.

Reuters newsagency says the pitfalls range from regulatory to financing issues.

GM said a day after its bankruptcy filing that it did not expect any regulatory scrutiny from the US government on the deal, part of its attempt to restore profits by focusing on four core brands: Buick, GMC, Cadillac and Chevrolet.

According to Reuters many China watchers say that resistance could actually come from China itself, as Beijing pushes for development of more energy-efficient technologies that go contrary to Hummer’s lineup of big SUVs.

As the world’s second-largest energy user, China is trying to encourage its citizens and industry to be more fuel efficient to lower its energy bill and improve its environment.

The Hummer deal may also not get government approval as Beijing is not encouraging its carmakers to make foreign acquisitions, the official Shanghai Securities News reported, citing people with knowledge of the matter.

“Some people may have views and speculation but the Chinese government has a process that we respect,” the Tengzhong official said.

“We have only just signed an MoU (Memorandum of Understanding), but as we develop our proposals with GM and Hummer we will continue to work with the appropriate authorities.”

Some analysts said Chinese leaders may also be reluctant to let a company with no experience running an overseas operation take on such a high profile and risky acquisition.

“Obviously, Tengzhong is not a well-established company, and its business doesn’t fit well with Hummer, so the deal looks tricky,” said Jeffery Wang, Shanghai-based managing director of investment bank Business Development Asia.

“Apart from that, buying Hummer should be a poor business decision in the long run, as … I don’t think Tengzhong has the ability or resources to turn the business around. … I don’t think any banks would be willing to fund the acquisition by a company without a solid background.”

Tengzhong was in advanced talks with banks, a spokeswoman from Tengzhong told Reuters.

“However, as you would appreciate, the funding can’t be finalized prior to a definitive agreement being signed,” she said.

Little is known about Tengzhong, which is based in the Chinese province of Sichuan, other than it makes special-use vehicles, highway and bridge structural components, construction machinery and energy equipment.

Tengzhong was formed in 2005 through a series of mergers and, according to its Web site, has 4800 employees.

[Wally]

Enthusiasts have been calling for the G8 to be reborn as an Impala SS, and as GoAuto revealed in detail in April

Don't know where GoAuto have been, but the Impala option has been doing the rounds for over twelve months.

[vztrt]

Hmmm I thought GM would still have a market for this. I wonder where it leaves the Ford F-series.

http://www.caradvice.com.au/32344/gm...ruck-business/

GM to Close US Medium-truck business

General Motors in the United States will shut down its medium-duty truck business by July 31 after a four-year search failed to find a buyer.

The operations, which produce the Chevrolet Kodiak and GMC Topkick, were among the first assets GM put up for sale in 2005 after it started losing money.

GM and Navistar International Corporation struck a tentative deal in 2007, but the pact expired last summer without the sale being completed.

GM has moved quickly since it filed for bankruptcy last week to disclose plans for brands and operations that aren’t part of its long-term strategy, and made an official announcement about the truck business earlier today. The carmaker plans a quick sale of its profitable assets by the end of August to a new company.

CEO Fritz Henderson told reporters in Detroit that the truck business had not been successful for years and workers would be deployed to other facilities or offered an attrition program.

GM sold about 20,000 of the vehicles last year, down from roughly 30,000 in 2007, as the US economy sank into a deeper recession.

bout 400 hourly and salaried workers are involved in the production of the medium-duty trucks at a GM plant in Flint, Michigan, spokesman Jim Hopson said.

The Flint plant has more than 2100 employees overall and also builds light pickups, which will remain in production at the plant.

Reuters newsagency says that GM had negotiated with multiple potential buyers.

GM has lost a total of US$88 billion since posting its last annual profit in 2004.

The shutdown of the truck business leaves GM actively searching for a buyer of its Saab brand. Last week, GM reached deals to sell its Hummer and Saturn lines, and has held out a slim hope of finding a buyer for Pontiac, scheduled to shut down by the end of next year.

[EgoFG]

Originally Posted by vztrt

Hmmm I thought GM would still have a market for this. I wonder where it leaves the Ford F-series.

http://www.caradvice.com.au/32344/gm...ruck-business/

In some place that is even better than the biggest selling model in the USA ... ??

[vztrt]

Some more on the Commo staying to the US

http://www.caradvice.com.au/32401/po...-dead-gm-boss/

Pontiac G8 not yet dead.

Just when we thought we’d heard the final nail being hammered into the Pontiac G8 coffin by GM boss Fritz Henderson along comes his product chief and throws another possible lifeline to the US version of the Holden Commodore.

Speaking in an interview with US automotive journal Automotive News, General Motors’ vice chairman of global product planning, Tom Stephens, has said the Pontiac G8 sedan might survive under another GM brand.

Mr Stephens stepped into former GM product boss Bob Lutz’s rather oversized shoes and now has the task of whipping the companies somewhat reduced inventory of brands into shape.

As they are saying the US, Pontiac is toast at the end of the 2010 model year, when it will be closed down, or possibly sold off.

While some Australian media have been putting forward the idea of the US version of the Commodore being badged as a Chevrolet and sold to police forces, Mr Stephens doesn’t seem to strong on that idea.

“I know there’s still discussions on it,” said Mr Stephens. “But Chevrolet already has several sedans. How many sedans do you need to cover the waterfront?”

As Automotive News put it, “The G8, engineered and assembled by GM subsidiary Holden in Australia, has been a bright spot for Pontiac.

With little advertising support, the sporty, rear-drive sedan, which starts at US$29,000, has sold well. Some versions have the same V-8 engine as the Chevrolet Corvette.”

Automotive News says some enthusiasts are lobbying GM to turn the G8 into a Chevrolet Impala SS. The current front-drive Impala SS is being phased out at the end of the 2009 model year.

The reports also suggest the G8 also could morph into a performance sedan for Buick, one of the GM brands that will survive, which has not had a rear-drive performance car since the mid-1980s.

Its also been reported that GM Holden in Australia has put a business case to Cadillac in the US for rear-drive models based on short- and long-wheelbase versions of the VE Commodore.