Treasury Gives GMAC $7.5 Billion
from Manufacturing.net
 The U.S. government could eventually own a majority stake in GMAC Financial Services following its latest $7.5 billion aid package to the ailing auto financing company. To keep loans flowing to would-be buyers of GM and Chrysler vehicles and shore up its capital position, the Treasury Department agreed Thursday to provide GMAC with $7.5 billion in loans. The new aid marks the second time the government has stepped in to prop up the former lending unit of General Motors Corp. More 
GM Bondholders to Reject Offer, Gird for Bankruptcy
from Reuters via Forbes
GM's biggest bondholders of some $27 billion in unsecured debt plan to flat-out reject GM's current offer for a 10 percent equity stake, a spokesman for the creditors said. Bondholders last month pushed for a 58 percent stake in GM, which President Obama's Auto Task Force has signaled is unrealistic. More
Opinion: Why a GM Bankruptcy Would Be a Disaster
from BusinessWeek
There's a strong probability the decision to push GM into bankruptcy will be disastrous. The mere threat of bankruptcy caused GM's U.S. sales to fall by 50 percent in the first quarter from already depressed levels. If GM were to declare Chapter 11 bankruptcy, sales would decline even further. More
Obama Confident GM Can Thrive After Restructuring
from USA Today
President Obama said in an interview released Saturday he was confident General Motors would thrive after restructuring, but he made no mention whether the ailing automaker might have to enter bankruptcy to complete reorganization. Obama, in an interview with the C-SPAN cable television network, said he wanted the government to get out of the auto business as soon as possible, and he said if some auto jobs never return, the government will work to ensure workers are effectively retrained. More
Economist: Pricier Oil Means Less Globalization
from NPR
Just last summer, oil was surging toward $150 a barrel and gas prices were hitting $4 a gallon. The recession brought those prices crashing down, and today it may seem like high oil prices are one of the few economic problems that we don't have to worry about. But Canadian economist Jeff Rubin says what we saw last summer was a glimpse of our future. In his new book, Why Your World Is About to Get a Whole Lot Smaller, Rubin contends that oil, which is currently around $60 a barrel, will quickly top $100 a barrel when the world economy rebounds. More
New Doubts Raised on Opel Rescue Bids
from BusinessWeek
The future of General Motors' European subsidiaries, including its Vauxhall plants at Ellesmere Port and Luton and Opel factories in Germany, was thrown into confusion when a German minister floated the possibility that none of the bids on the table for the business might succeed. More
Toyota: Not Mulling Providing Hybrid Technology to GM
from The Wall Street Journal
Toyota Motor Corp. said that it isn't considering providing its technology for hybrid vehicles to General Motors Corp. (GM), denying a report earlier in the day. The Yomiuri Shimbun, citing unnamed sources, said Toyota was considering giving GM its patented technology for increasing fuel economy by controlling the movement of the engine and the motor. More
Study: Honda is Suppliers Favorite, Ford Improving
from The Detroit Free Press
A study evaluating the relationships between auto suppliers and six major automakers shows that Honda Motor Co. has the best rapport with its parts makers, and that Ford Motor Co. has made strides to improve its relationship with suppliers.More
Wind Industry Wants Government Lift
from The Detroit News
When it comes to new sources of electricity, few things have moved faster over the past decade than wind. But the wind-power industry is looking for a bit of stability: a commitment from the federal government that could help pull it out of the doldrums of the past six months by guaranteeing it a place in the country's long-term energy mix. And industry officials are cautiously optimistic that they'll get their wish. More
|
