GM still not out of the poo

[EgoFG]

Hmmm and here is some breaking news

http://media.gm.com/servlet/GatewayS...34&docid=57205

It seems that the significant sale of the Saturn Brand has fallen through and the brand will be wound down instead.

That will hurt the GM bottom line as they would have assumed a larger value for Saturn than they will now realise,

I hope the Opel/Vauxhall deal fairs better

[vztrt]

http://www.cbsnews.com/stories/2009/...n5344652.shtml

Just a bit of an overview, well more a good news story on Ford but they are in a much better position then GM/Chrysler.

[Sprint XR8]

KDB threatens to withdraw GM loans
October 08, 2009

The future of GM Daewoo dimmed earlier this week after Korea Development Bank, the automaker’s main creditor, issued the company something more than a simple warning.

KDB President Min Euoo-sung said that if General Motors, the parent company of GM Daewoo, does not comply with KDB’s demands, the bank will withdraw financing on loans scheduled to mature at the end of the month.

Min said the contract made with General Motors when it bought Daewoo Motor in 2001 was “unfair.”

The creditor is demanding that GM carry out a capital increase, raise the number of creditors in GM Daewoo’s management through the co-chief financial officer position and share the licenses on automobiles that were developed here in Korea with GM Daewoo to prevent the Korean unit from becoming a subcontractor.

“Although GM Daewoo suffered a loss of 2.7 trillion won ($2.3 billion), which was also from foreign-exchange forward contracts, and requested about 1 trillion won in financial aid, it hasn’t moved to accept our proposal,” Min said.

If the conditions proposed by the bank are not accepted, KDB plans to collect the 125.8 billion won in loans that are due at the end of the month.

GM Daewoo has thus far borrowed a total of 1.5 trillion won from KDB.

Despite the ongoing negotiations, the automaker has been hoping that the release of its new vehicles, including the Matiz Creative and Lacetti Premiere ID, will give it a boost.

GM Daewoo said its new president, Mike Arcamone, who arrived in Seoul on the first day of this month, has not yet made official contact with Min. GM’s chairman, Ed Whitacre, is scheduled to visit Korea next Wednesday.
http://joongangdaily.joins.com/artic...sp?aid=2911008

[phillyc]

Originally Posted by cs123

This link indicates that the Ford pension plan has 21B in assets with liabilities of 20B.So, I really don't know how this works.

What that all means is that te Ford pension plan really needs to have 41B to be fully funded. It doesn't. It has half that figure, 21B in assets, but needs another 20B, which are therefore liabilities.

The Ford side of their pension agreement with the unions, is in a far, far, far better shape than those with GM & Chrysler.

IIRC Ford are in fact ahead of schedule with their monies to be paid up.

[phillyc]

Originally Posted by vztrt

http://www.cbsnews.com/stories/2009/...n5344652.shtml

Just a bit of an overview, well more a good news story on Ford but they are in a much better position then GM/Chrysler.

Another good story for Ford! At least they get them in the US!

[Joe5619]

Originally Posted by phillyc

What that all means is that te Ford pension plan really needs to have 41B to be fully funded. It doesn't. It has half that figure, 21B in assets, but needs another 20B, which are therefore liabilities.

That is 100% wrong.. What this means is that the fund in fully paid..21B in assest is there to pay the 20B in liabilities

[phillyc]

Originally Posted by CoupeXB

KDB threatens to withdraw GM loans
October 08, 2009

The future of GM Daewoo dimmed earlier this week after Korea Development Bank, the automaker’s main creditor, issued the company something more than a simple warning.

KDB President Min Euoo-sung said that if General Motors, the parent company of GM Daewoo, does not comply with KDB’s demands, the bank will withdraw financing on loans scheduled to mature at the end of the month.

Min said the contract made with General Motors when it bought Daewoo Motor in 2001 was “unfair.”

The creditor is demanding that GM carry out a capital increase, raise the number of creditors in GM Daewoo’s management through the co-chief financial officer position and share the licenses on automobiles that were developed here in Korea with GM Daewoo to prevent the Korean unit from becoming a subcontractor.

“Although GM Daewoo suffered a loss of 2.7 trillion won ($2.3 billion), which was also from foreign-exchange forward contracts, and requested about 1 trillion won in financial aid, it hasn’t moved to accept our proposal,” Min said.

If the conditions proposed by the bank are not accepted, KDB plans to collect the 125.8 billion won in loans that are due at the end of the month.

GM Daewoo has thus far borrowed a total of 1.5 trillion won from KDB.

http://joongangdaily.joins.com/artic...sp?aid=2911008

What a heap of crud. Typical nationalistic type of stunt pulled by Korea.

Guess what? The deal was made when Daewoo went bankrupt because they made crappy cars that not enough people thought were cheap enough to buy.

GM goes in and buys them for a cheap price. They GM & GM Daewoo design some newer, less crappy cars for which demand is increasing and now the KDB reckons that the original deal was "unfair". They approved the deal, thinking they will get their money back.

The other part of the KDB new deal / bribe / whatever is to make the Cruze only in Korea.

What i take from this is with the new US cop car deal GMH has, the Cruze will no longer be made here in Australia like they have (a) convinced uninformed masses of people that it already is, (b) that it will be next year.

That will be the next major annnouncement.

[XRtowcar]

Gee if Daewoo goes bust what will Holden sell then?

[R-Design]

Originally Posted by CoupeXB

[B]KDB President Min Euoo-sung said that if General Motors, the parent company of GM Daewoo, does not comply with KDB’s demands, the bank will withdraw financing on loans scheduled to mature at the end of the month.http://joongangdaily.joins.com/artic...sp?aid=2911008

These were some of KDB's 'demands' earlier in the year:

Originally Posted by CarPoint

According to a report in the Korea Times (more here), the bank (KDB) doesn't see GM-DAT providing an adequate return on investment unless it can produce its own engines -- and the KDB specifically has its eyes on the V6 engine output currently within the purview of Holden's plant in Port Melbourne.

http://www.carpoint.com.au/news/2009...n-gambit-15347

Originally Posted by XRtowcar

Gee if Daewoo goes bust what will Holden sell then?

Think GM will put GMH out to pasture before GM Daewoo. The plot thickens!

[Chilliman]

I've got a feeling that one of the companies in this tangled political-financial relationship isn't going to survive - any one want to guess who?

[Bossxr8]

If need be GM will just ask the US or Aus Government for more money, because why run a successful company when the government will just bail you out no matter how much you fail.

[burnz]

i dont know where this will go, deawoo still owe holden $40 million in family II engine's supplied.

[vztrt]

Originally Posted by burnz

i dont know where this will go, deawoo still owe holden $40 million in family II engine's supplied.

GM owed a lot of money before the bankruptcy, a lot of them are getting a small amount after the bankruptcy. Just cause someones owed it doesn't mean they'll get it.

[Joe5619]

What currency are they talking about to be talking trillions?? It can't be USD, surely!!

[burnz]

Originally Posted by vztrt

GM owed a lot of money before the bankruptcy, a lot of them are getting a small amount after the bankruptcy. Just cause someones owed it doesn't mean they'll get it.

but holden still has contact's to supplie till mid november.
that may be another 10 mill ontop.

[burnz]

Originally Posted by Joe5619

What currency are they talking about to be talking trillions?? It can't be USD, surely!!

korea $won

[vztrt]

Originally Posted by burnz

but holden still has contact's to supplie till mid november.
that may be another 10 mill ontop.

Yeah and? Like I said in the previous post, them owing money means nothing.

Originally Posted by Joe5619

What currency are they talking about to be talking trillions?? It can't be USD, surely!!

Prob Korean Won. Currently 1 Aussie = 1041 Won

[Watto_Cobra]

Originally Posted by XRtowcar

Gee if Daewoo goes bust what will Holden sell then?

OK, that made me laugh out loud.