**GM preparing for bankruptcy**

[vztrt]

Originally Posted by Jason[98.EL]

may well have been but the gov agency could also state that they knew nothing about it we are talking gove denial here

The gov own them (well till the IPO goes through). Doubt anything will happen.

[Jason[98.EL]]

Originally Posted by vztrt

The gov own them (well till the IPO goes through). Doubt anything will happen.

If people buy

[mrbaxr6t]

BREAKING NEWS
GM appoints new managing director, CEO and head of marketing



GM claims these three individuals will outshine any that have held the positions before them.

[vztrt]

http://www.autoblog.com/2010/09/03/r...nted-ghosn-to/

Report: Rattner bio reveals Obama Administration wanted Ghosn to run GM

by Zach Bowman (RSS feed) on Sep 3rd 2010 at 1:01PM

Steven Rattner, former automotive adviser to President Barack Obama, has just written a juicy account of last year's automotive bailout, complete with insights on the coming and goings of CEOs, courting foreign saviors and the General Motors plan to abandon its Renaissance Center headquarters. In his book, "Overhaul: An Insider's Account of the Obama Administration's Emergency Rescue of the Auto Industry," Rattner says that GM wanted to walk away from its expensive towers in downtown Detroit and move to Warren, MI. While the move would have likely saved the company plenty of money and lent the impression of a hands-on management approach, the Obama administration apparently refused to allow the move, saying that it would cause a double-digit drop in property values in the area.

There's also the fact that GM pays around $20 million in taxes to Detroit per year.

According to The Detroit News, Rattner also offered the GM CEO position to none other than Nissan/Renault head honcho Carlos Ghosn after Rick Wagoner was shown the door. Ghosn, who had previously sought a partnership between his empire and The General, politely declined the offer. How's that for a head job?

Even through all of the turmoil, The Detroit News quotes Rattner as saying that the automotive bailout is one of this administration's "unambiguous successes."

[Source: The Detroit News | Image: Neison Barnard/Getty for Fortune Magazine]

[vztrt]

http://www.autoblog.com/2010/09/05/u...ors-in-gm-ipo/

U.S. to limit foreign investors in GM IPO?

by Chris Paukert (RSS feed) on Sep 5th 2010 at 4:29PM

According to The Wall Street Journal, members of the U.S. Treasury are worried about General Motors' upcoming IPO. They aren't concerned for the automaker's stock price, or how even how many investors may decide to buy into the company – they're concerned about what country the money is coming from.

The Journal suggests that government officials are considering whether to limit or select which non-U.S. investors would be invited to be so-called "cornerstone" investors in GM's IPO. Cornerstone investors are sought out to purchase and hold sizable stakes in a given company at a set share price. Said price is often lower than what the general investing public can secure, the theory being that the cornerstone investors' presence (and the stability it implies) serves to drive confidence in the company. The fear is that there could be considerable political fallout if, say, some of those cornerstone investors turned out to be from nations like China. Either way, GM will need to firm up its investment plan fairly quickly if it is to allow enough time to court the 'right' cornerstone buyers.

As GM readies its IPO pitch, another key element in the company's talking points will be its long-term stability – including a chief executive officer who plans to stick around a while. New GM CEO Dan Akerson has reportedly told the board that he'll stay at the helm for two to five years - or perhaps even longer. The manner in which his compensation agreement is structured will likely include incentives timed to take effect over a period of years as a way to show investors that he's serious about making a longer-term commitment to the automaker's recovery.

[Source: The Wall Street Journal – sub. req. | Image: AFP/Getty]

[Jason[98.EL]]

Interesting times then for gov motors

[vztrt]

http://www.caradvice.com.au/82650/ge...blic-offering/

General Motors prepares for initial public offering
By Brett Davis | September 7th, 2010

That’s right. You, me and everyone else in between will soon be able to buy General Motors shares. The initial public offering (IPO) will also give large overseas investors the chance to take large stakes in the company, which is concerning the US Treasury.



‘Cornerstone’ shares will offer the chance for large investors, not normally general members of the public, the chance to buy into large chunks of GM. The company and the US Treasury is worried that overseas investors may disrupt what little stability the company has left. This could certainly be true in the evident of a political dispute between America and the other country that buys in.

According to the Wall Street Journal, government officials are suggesting the company ‘filters’ which large cornerstone investors can buy the shares. Reports also say the company might need to limit the number of foreign investors invited to take part in the IPO.

For further reassurance in the company, the new GM CEO, Dan Akerson, has told the board that he’ll be staying with the company for the long term. Unlike the previous CEO who just lasted 18 months, Akerson was said to present a number of incentives at a recent meeting which would take effect over the next few years. This was a way that Akerson could prove to investors that he would be with the company to live out these incentives and provide long-term commitment in the company’s full recovery.

[vztrt]

http://www.autoblog.com/2010/09/10/n...annual-salary/

New GM CEO Akerson to earn salary of $1.7 million

by Steven J. Ewing (RSS feed) on Sep 10th 2010 at 4:01PM

Dan Akerson, the man who just recently replaced Ed Whitacre as General Motors' CEO, will be paid an annual salary of a cool $1.7 million. That's an awfully pretty penny, but Akerson indeed has his work cut out for him – The General is finally on its way to public ownership, with a stock IPO in the works for later this year.

In addition to his $1.7 million, Akerson will also receive $5.3 million worth of GM stock, delivered over the course of three years beginning on September 30, 2011. Furthermore, he will receive an additional $2 million in stock under GM's long-term incentive plan.

This may seem like quite a bit, but things are a lot richer (literally) just down the road in Dearborn. Ford's CEO, Alan Mulally, makes substantially more – he netted $17.9 million in cash and bonuses in 2009 – though this is largely due to the fact that the government bailouts have limited the CEO salary amounts for both GM and Chrysler.

[Source: Edmunds Auto Observer | Image: John F. Martin/AFP/Getty]

[vztrt]

http://www.autoblog.com/2010/09/16/r...ll-take-years/

Report: GM's Akerson says taxpayer payback will take years

by Jonathon Ramsey (RSS feed) on Sep 16th 2010 at 1:31PM

New General Motors CEO Dan Akerson's first bit of big news isn't exactly good news: paying back the taxpayer for loans during GM's dark days is going to take years. How many years remains uncertain, with Akerson saying the company's performance will be the test, since repaying the government in a lump sum would be "unrealistic." It helps that this news isn't exactly unexpected, and if we can take anything from Akerson's 15 days on the job, well, at least he's honest.

[Source: Automotive News – Sub. Req.]

[vztrt]

http://www.autoblog.com/2010/09/23/r...k-hits-133-78/

Report: U.S. breaks even if GM stock hits $133.78

by Zach Bowman (RSS feed) on Sep 23rd 2010 at 2:02PM

According to Neil Barofsky, the treasury department's inspector general, in order for the U.S. government to break even on its investment in General Motors, the company's stock will have to hit at least $133.78 a share. Thanks to the massive auto industry bailout, the government currently holds a total of 304 million shares of common stock and $2.1 billion in preferred stock in the automaker. According to The Detroit News, Barofsky has said that he will keep a close eye on the GM IPO in order to get the best return on the tax payer's investment possible.

But will GM stock hit the magic number? Some analysts seem to think so. There's some buzz that when GM goes public, its stock will be worth well over $100 per share. The company has already begun to make noise indicating that soon after the November 2 elections, it will begin a campaign to build interest in its IPO, so anything's possible.

[Source: The Detroit News | Image: AP/Al Goldis/Getty]

[vztrt]

http://www.autoblog.com/2010/09/23/g...butions-again/

Report: GM resuming political donations

by Jeff Glucker (RSS feed) on Sep 23rd 2010 at 9:29AM

In the spring of 2009, General Motors took a break from swimming in the political pool. Now that it's done toweling off the bankruptcy blues, The General is reportedly ready for another dip. According to The Wall Street Journal, the Detroit automaker has just lifted a self-imposed political spending ban by handing out $90,500 for select candidates running in the November elections.

As the business daily points out, it's nothing new for large companies to provide campaign money for politicians. It is, however, quite interesting ground that General Motors survives today because its majority shareholder, at a 61 percent stake, is the United States government.

Federal Election Commission records show that GM is supporting members from both parties, including Senator Debbie Stabenow from Michigan and House Republican Whip Eric Cantor from Virginia.

Wading into the political arena is a necessary game that any large corporation has to play and General Motors understands the importance of advocating for its interests in this arena. According to GM Spokesperson Greg Martin, "We're not going to sit on the sidelines as our competitors and other industries who have PACs are participating in the political process." Thanks for the tip, Dan!

[Source: The Wall Street Journal]

[vztrt]

http://www.autoblog.com/2010/10/03/g...-gm-financial/

GM completes buy of AmeriCredit, to be called GM Financial

by Jeff Glucker (RSS feed) on Oct 3rd 2010 at 1:08PM

General Motors is just about ready to start offering in-house financing once again. Its acquisition of AmeriCredit is complete, pending approval by AmeriCredit's shareholders. The merger is officially effective as of October 1st, 2010 and is an all-cash transaction valued at $3.5 billion.

The company will be renamed GM Financial. Having a captive finance arm allows GM and its dealers to expand finance and lease options, which is good news for both The General and its customers. GM Financial has targeted first quarter of 2011 to begin its initial leasing program.

You can read the full press release after the jump.

[Source: General Motors]

[vztrt]

http://www.autoblog.com/2010/10/06/r...alth-funds-ah/

Report: GM courting Middle East, Asian sovereign wealth funds ahead of IPO

by Zach Bowman (RSS feed) on Oct 6th 2010 at 10:29AM

General Motors has been busy courting potential investors for the company's upcoming IPO. According to Bloomberg, the manufacturer has met with wealth funds in both the Middle East and Asia in an attempt to feel out global interest in the company's stock. The article says that GM's bankers are planning to meet with three large investment firms, including Saudi Arabia-based Kingdom Holding Company, Abu Dhabi-based Mubadela Development Company and Qatar Holdings LLC as well as Singapore-based Temasek Holdings Pte.

Analysts note that GM's attempt to stir international interest is nothing new. In fact, it's all but necessary if the company wants to raise the projected $10 billion it hopes to generate by going public. Bloomberg says that if the company does manage to hit that magic monetary figure, the feat would be the largest IPO since Visa Inc. raised $19.7 billion in 2008.

The article's unnamed source also indicated that GM is still aiming for a November IPO, though no specific date has been set so far. There's also some indication that the company may delay if it doesn't see enough demand for its stock.

[Source: Bloomberg]

[vztrt]

http://www.autoblog.com/2010/10/06/r...recast-to-17b/

Report: Fed reduces auto bailout loss forecast to $17B

by Chris Shunk (RSS feed) on Oct 6th 2010 at 2:01PM

The federal government spent roughly $86 billion in taxpayer money to bail out the auto industry. That's a lot of Monopoly money, folks, and when the industry we know and love was at its weakest point, early projections suggested that that the U.S. government and American taxpayers would never see $30 billion of that money. But as the economy slowly crawls back to life and cars and trucks are beginning to move with greater regularity, those forecasts are being adjusted downward.

A few months ago the Treasury Department proclaimed that the industry could, if everything fell just so, lose only $8 billion by the time the dust settles. We're now in October, and according to The Detroit News, the DoT is settling on a loss that looks a lot like $17 billion. That figure was revised downward from $24.3 billion due to increased optimism that the bailout of Ally Bank, the Cerberus-owned finance arm for both General Motors and Chrysler, wasn't going to be as big of a cash drain as was originally expected.

The revised auto industry loss comes out of a 200-page report that details the overall plight of the $700 billion ($475 billion has been spent to date) Troubled Asset Relief Program. The report states that the U.S. government stands to lose a grand total of $29 billion of the $475 billion spent. That $29 billion number is definitely tentative, though, because a lot of the numbers are heavily dependent on the price of stocks at the time the federal government decides to sell.

For example, at the current price of AIG shares, the government would actually book a profit of $21.9 billion. The bank bailouts are said to have produced another $16 billion in profits, while the mortgage securities buys are currently underwater to the tune of $46 billion. The $29 billion figure could go further up or down based upon the price of the initial public offerings at General Motors and Chrysler. The government put $43 billion into The General in exchange for 60.8 percent of the company's stock, and another $12 billion for a 10 percent stake in Chrysler. GM's IPO is expected to open next month, though the feds aren't expected to sell off all of its shares in the first offering. Industry watchers suggest that Chrysler's IPO could happen in 2011.

[Source: The Detroit News | Image: Mario Tama/Getty]

[vztrt]

http://www.autoblog.com/2010/10/22/o...ental-cleanup/

'Old GM' to reportedly set aside $773M for environmental cleanup plan

by Zach Bowman (RSS feed) on Oct 22nd 2010 at 10:01AM

The U.S. Government and old General Motors have reached an agreement that may make some of the company's former properties more appetizing to buyers. The estate of the bankrupt GM has agreed to set up a $773 million trust dedicated to cleaning up 89 of the company's former properties. Around two-thirds of those are known to have been contaminated by hazardous waste. The deal was reached with the approval of 14 states and a tribal government, though the federal government and some states will still accept public comment on the deal for up to 30 days. Even so, sale of the properties is expected to move forward.

With GM agreeing to pay for any environmental cleanup that may arise in the future, the company's former properties will be all the more enticing to investors. Even with GM's substantial investment in the project, The Detroit News says that the bulk of environmental cleanup will likely remain a government-funded operation with Michigan alone receiving $159 million from the feds to help clean up 50 sites.

Of the $773 million GM is setting aside for the project, $431 million will head straight to states to be used for immediate clean up. Another $68 million gets set aside for any future cleanup that may arise while $12 million gets kicked back to old GM for current cleanup activities going on right now. Meanwhile, $262 million of the total fund goes straight to administrative costs, including property taxes and any demolition that may be required.

[Source: The Detroit News]

[vztrt]

http://www.autoblog.com/2010/10/22/is-the-new-gm-a-buy/

Is the New GM a Buy?

by David Kiley (RSS feed) on Oct 22nd 2010 at 1:30PM

After next month's elections, General Motors will rev up its engines to go on the road and try and sell its initial public offering of common stock to savvy investors, especially the big institutional investors with millions of dollars, hundreds of millions in some cases, to put into a stock they like.

So, is the new GM a buy? Let's look at some facts. It has had four CEOs since Spring 2009. It has gone into and come out of Bankruptcy. And it's current chairman, Edward Whitacre Jr., tapped by the White House because of his extraordinary history of management and corporate governance, apparently is so checked out already, despite the fact that he has the job until the New Year, that he yammered to a reporter about details of GM's stock plans despite the fact that the company is in a Securities and Exchange Commission-imposed "quiet period." Oops.

"It's a little too early to say, but it is going to be somewhere in the $20 range ...$20 to $25, something like that would be my guess," Whitacre told Reuters. Reuters also quoted Whitacre as saying, "I can't say how much we'll sell, but I can say we'll have a successful IPO sometime in November." GM has had to distance itself from the comments of its own chairman.

While these facts don't necessarily inspire confidence, hold your judgement. Stock market investing can be an emotional game, especially for amateur individual investors. But it pays to look at stocks and the future with a more unemotional view.

Continue reading...

How many amateurs bought shares in, say, auto parts companies like TRW or ArvinMeritor in the Spring of 2009 when the auto and parts companies looked headed over a cliff like crazed sheep. Very few. If they had, though, they would be cashing in gains today of 500% and 1300% respectively. Even Tesla Motors, which is more hype than reality to most informed observers, has seen a 15.5% gain since its IPO last June. Ford, since May 2009, has gained 140%.

Tesla aside, those who jumped into auto parts in early 2009 knew that short of bankruptcy these well-run companies would bounce back when auto sales bounced back.

GM logoAnd here is where it should get unemotional no matter how an investor may feel about government bailouts, whether the Chevy Volt is an innovation or a high-priced golf cart. The U.S.A runs on cars. We are a car culture. Say what you want about how much we need high-speed rail, we are drivers. The U.S. will probably sell about 11.7 million vehicles this year, which is lower than the 12.5 million rate at which we scrap vehicles. As vehicles people are holding on to longer than they want break down, the scrappage and sales rate will likely go up. By 2015, it is not unreasonable that we will see a selling rate that crowds 14 million to 15 million new vehicles a year.

GM, even with the way many people view its tax-payer ownership, is making decent money now at today's selling rate. That's right. As tough as things are now, GM is making good money. GM's debt has gone from $94.7 billion before bankruptcy to $17 billion. That's less than half of Ford's comparable debt. GM has cut its annual operating costs by $10.7 billion a year. It's market share has only dropped from 21% a year ago to 18% through September, despite shedding four of its brands – Hummer, Pontiac, Saturn and Saab.

Never mind how many Americans feel about GM. Consider that GM has a dominant position not only in the U.S., but in China, the fastest growing market in the world. And it will top 2 million in sales this year in a market that will be around 16 million-plus. GM is still the leader overall in pickup trucks in North America by virtue of adding up sales of Chevy and GMC branded trucks. Toyota and Nissan haven't been able to make a dent in that highly profitable category. As the economy comes back, and housing picks up again in the next few years, the light truck market will still be dominated by Ford and GM, with GM having the bigger market share.

The economies of the auto industry can be confounding. Sure GM lost tens of billions. But that was in large part because of the following math. Too many factories + too many lousy brands + too many employees making too much salary + too many rebates + too many mediocre cars = big losses. Here is another piece of the business. When a plant is only operating at only about 70-percent capacity you have losses. It varies by company, but break-even for a given plant might be when it is operating at 75-80% of capacity. Above that level, and the plant becomes like a printing press in a hurry. The profits mount fast.

Bottom line: The Chevy and Cadillac product lines have become top-drawer for the most part and getting far more consideration in a poor economy, combined with the weakness of Chrysler and the recall travails of Toyota. GMC has always been a profitable brand. And Buick is climbing despite the middling response from the automotive media to the new Buick Regal. The debt is incredibly low for a company with such big revenues and cash flow. And GM is getting back into the loan making business, which will make it easier for buyers to get credit. Some estimate GM has lost more than a point of market share because it can't get legitimate buyers qualified for credit at outside financial institutions.

In other words, GM is poised to make big profits in the next few years as we continue our addiction to driving. The cars we purchased in big numbers seven, eight and nine years ago are getting closer to 150,000 miles, and they will have to be replaced in larger numbers than is currently the case. Eighteen-percent of them, and possibly more, will be GM vehicles.

Before jumping in to GM's new stock when it becomes available, look coldly at the numbers and the company's prospects for making money, rather than how you might feel about tax-payer bailouts. You may still decide to pass on GM stock. But at least you won't say that you should've at least investigated.

[vztrt]

http://www.autoblog.com/2010/10/21/o...ndiana-church/

'Old GM' asset sell-off includes... an abandoned Indiana church and a golf course?!

by Jonathon Ramsey (RSS feed) on Oct 21st 2010 at 8:28AM

Attention is focused on the new General Motors, but behind the scenes the dismantling of the old GM, now known as Motors Liquidation Co., continues. Last week another auction was held in a series of highest-bidder events going back to September of 2009. The Livonia engine plant, home of Northstar V8 assembly among other things, had its old machinery and mementos sold to buyers around the world. The property itself, however, wasn't sold.

And as with any garage sale, even one spread among 14 states, there are things you wouldn't expect to find among the booty, like an abandoned Indiana church and a New Jersey golf course. The golf course we can understand. The church has our curiosity turning over all kinds of scenarios. The next auction will be November 4 at the Pontiac Assembly plant, each one doing its small part to address Motors Liquidation Co's $275 billion in debts in addition to funds needed for toxic site cleanups

[Source: Detroit News | Image: Stan Honda/AFP/Getty Images]

[vztrt]

http://www.autoblog.com/2010/10/25/r...shing-profits/

Rattner: GM and Chrysler will be "gushing profits"

by David Kiley (RSS feed) on Oct 25th 2010 at 4:31PM

General Motors and Chrysler LLC will lead automakers to "gushing profits" when annual U.S. sales reach 15 million vehicles, said Steven Rattner, the former head of the federal government's auto task force, on Bloomberg TV last Friday.

"This industry has been restructured to make money," Rattner said to Bloomberg. At 15 million vehicles a year, "they will be gushing profits." That 15 million level is expected to be reached at mid-decade, according to predictions by companies like Toyota and GM.

A pace of 15 million vehicles is needed "simply to accommodate new drivers and the aging of the fleet," Rattner said. "It will happen, it's only a question of when."

Rattner recently published a book about his experience titled: Overhaul: An Insider's Account of the Obama Administration's Emergency Rescue of the Auto Industry.

Rattner also this month had to agreed to a ban from the securities industry as a result of a Federal investigation into charges he directed over $1 million in illegal kickbacks to New York State pension fund officials while he was a partner in Quadrangle Group, the post he had before being recruited by the White House.

Rattner, 58, led President Barack Obama's auto task force from February 2009 until July last year, after GM emerged from a bankruptcy backed by $50 billion in government aid.

General Motors is expected to launch its initial-public offering of stock as early as next month, while Chrysler is expected to to take itself public some time next year.

[Image: aresauburn™ | CC 2.0]

[EgoFG]

Originally Posted by vztrt

http://www.autoblog.com/2010/10/25/r...shing-profits/

Hmmm it will hard for GM and Chrysler to Top the Ford announcement ... but maybe I spose.
I also believe that I read somewhere that the GM relist (aka IPO) was to be scaled back.

[phillyc]

At sales of 15million they GM and Chrysler will gush profits... Well, Ford is making serious money NOW. Not will be in 5 years. NOW.

If GM can't make money now after such a massive bailout and dropping of almost all debt, then they never will. I do believe, that they will post a decent Q3/2010 result though.

[vztrt]

http://www.autoblog.com/2010/10/28/g...rove-financia/

GM to buy back $2.1 billion of Preferred Stock, improve financial position

by Jeremy Korzeniewski (RSS feed) on Oct 28th 2010 at 3:28PM

General Motors has just announced a series of actions intended to improve its financial position and make it more attractive to investors ahead of its Initial Public Offering. Perhaps the most intriguing is word that it plans to purchase $2.1 billion of Preferred Stock from the United Stated Department of the Treasury at a sum that is $700 million more than the recorded value of those stocks.

In addition, GM will:

* Contribute at least $4 billion in cash and $2 billion in GM common stock to its U.S. hourly and salaried pension plans
* Repay the $2.8 billion outstanding loan to the United Auto Workers Retiree Medical Benefits Trust
* Complete a $5 billion revolving line of credit
* Save $500 million per year by restructuring its payment deals on vehicles in transit to dealers

The official press release, which can be found after the jump, breaks each of these actions down using appropriately difficult to decipher language designed specifically to make your head explode... but you're free to check it all out all the same.

[Source: General Motors | Image: Associated Press/Paul Sancya]

PRESS RELEASE

GM Announces Actions to Reduce Leverage by $11 Billion
Actions expected to reduce net interest cost and preferred dividends by $0.5 billion per year

DETROIT, Mich. – General Motors Company today announced a series of actions to further reduce financial leverage.

"These actions will bring down our leverage by $11 billion by reducing debt and improving our pension funding position," said Chris Liddell, GM vice chairman and chief financial officer.

GM has implemented the following capital structure actions:

* Repayment of $2.8 billion outstanding on the 9 percent secured note provided to the UAW Retiree Medical Benefits Trust. The company will record a $0.2 billion non-cash gain in the fourth quarter of 2010 related to this early extinguishment of debt.

* Completion of a $5 billion, five-year revolving credit facility with a syndicate of banks, which provides an additional source of backup liquidity. The facility is expected to remain generally undrawn.

GM expects to implement the following capital actions, conditional upon completion of GM's public offering:

* Purchase of the $2.1 billion of 9 percent Series A Preferred Stock held by the United States Department of the Treasury at a price equal to 102 percent of the $2.1 billion liquidation amount. The company will record a $0.7 billion charge to net income attributable to common stockholders for the difference between the purchase price and the recorded value of the Series A Preferred Stock.

* A contribution of at least $4 billion in cash and $2 billion in GM common stock to GM's U.S. hourly and salaried pension plans. The stock contribution is contingent upon Department of Labor review and the number of shares contributed would be determined based on the public offering price for GM's common stock. The stock contribution will be valued as a plan asset for pension funding purposes at the time of contribution and for balance sheet purposes when the shares become fully transferable.

In addition to the above actions, and subject to completion of the public offering, GM expects to terminate a wholesale advance agreement which provides for accelerated receipt of payments made by a financial institution on behalf of GM's U.S. dealers pursuant to wholesale financing arrangements. Under such arrangements, GM's U.S. dealers borrow from financial institutions to fund their inventory of vehicles purchased from GM. Similar modifications will be made in Canada.

The wholesale advance agreements cover the period for which vehicles are in transit between assembly plants and dealerships. Upon termination, GM will no longer receive payments for vehicles purchased by the dealers in advance of the scheduled delivery date. This action will result in an estimated $2 billion increase to GM's accounts receivable balance, on average depending on sales volumes and certain other factors in the near term, and the related costs under the arrangements will be eliminated.

"Completion of these actions will enable us to reduce net interest cost and preferred dividends by $0.5 billion per year," said Dan Ammann, GM vice president of finance and treasurer. "As importantly, we will have approximately $24 billion of total liquidity as of June 30, 2010 pro forma for these actions, our AmeriCredit acquisition, and excluding any public offering proceeds."

[vztrt]

http://www.caradvice.com.au/89677/ge...ion-gm-shares/

General Motors plans to buy $2.1 billion GM shares
By Brett Davis | October 29th, 2010

In an effort to repay the US Treasury, General Motors has announced it is prepared to buy US$2.1 billion shares, after the company’s initial public offering (IPO), to contribute paying off government debt.

General Motors owed the US federal government $49.5 billion after it was bailed out of bankruptcy on June 1, 2009. GM has so far repaid $6.7 billion, this last repayment, plus $700 million in dividends and interest, would bring the total to $9.5 billion.

The car maker also plans to contribute $6 billion to its US hourly and salaried pension plans. GM has said it will take place after the initial public offering some time next month.

[vztrt]

GM reduces debt

http://www.goauto.com.au/mellor/mell...2577CE0021F47C

Former number one global car-maker buys back stock and slashes debt load

1 November 2010

By BYRON MATHIOUDAKIS

GENERAL MOTORS has announced a US$2.1 billion (A$2.12 billion) debt reduction through the buy-back of stock from the United States government, at about US$700 million above their recorded value.

Announced in late-October – and reported as “a sweetener to investors” as GM prepares for its Initial Public Offering (IPO) as part of the latest round of “capital structure actions” – the American carmaker will also provide US$2.8 billion (A$2.83 billion) to the United Auto Workers union’s Retiree Medical Benefits Trust.

This action will save about US$200 million (A$202 million) in repayments over the term of a loan from the UAW.

GM has also secured a US$5 billion (A$5.05 billion) line of credit from an unnamed consortium of banks that it claims will probably not be drawn on.

On the completion of the IPO, the corporation said it will contribute “at least” US$4 billion (A$4.04 billion) in cash and US$2 billion in common stock to the workers’ pension plan, subject to clearance by the US Department of Labor.

Furthermore, GM revealed that it will cease a line of payments from a financial institution on behalf of its dealerships in the US and Canada that funds the inventory of vehicles purchased from GM while in transit to the yards, saving about US$500 million (A$505 million) in interest costs alone.

“These actions will bring down our leverage by $11 billion (A$11.1 billion) by reducing debt and improving our pension funding position,” said GM vice-chairman and chief financial officer Chris Liddell.

[EgoFG]

http://www.cardealexpert.com/news-in...0-dealerships/

Despite the objections of Congress, General Motors gone through with its plan to close 500 dealerships, reports Automotive News. These dealerships had been marked for possible termination once the GM bankruptcy hearings began. Republican and Democratic House members such as John Boehner and Sherrod Brown of Ohio had asked for a stay of termination until federal hearings surrounding the bankruptcy could be completed, but General Motors acted against the House committee’s judgment.

[vztrt]

http://www.autoblog.com/2010/11/03/gm-ipo-is-go/

GM IPO is go!

by Chris Paukert (RSS feed) on Nov 3rd 2010 at 4:14PM Breaking

As expected, following yesterday's nationwide election proceedings, General Motors has filed the details on its forthcoming Initial Public Offering with the Securities and Exchange Commission.

Targeting a share price range of $26.00 to $29.00, the company will offer 365 million shares of common stock. GM will also offer 60 million shares of Series B mandatory convertible junior preferred stock with a value of $50/share. According to The Detroit News, GM could clear $12 billion in common stock sales and a further $3.45B in preferred stock sales.

For its part, the federal government is expected to sell 263.5 million shares or more, and the Canadian and Ontario governments will look to divest 30.5 million of its shares in the automaker. The United Auto Workers also has a healthy chunk of GM, and it will reportedly seek to sell 71 million shares.

General Motors will trade under the "GM" stock ticker on the New York Stock Exchange. For the official press release, click past the jump.

[Sources: General Motors, The Detroit News]

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hmmmm...gotta love rewarding incompetence

http://www.autoblog.com/2010/11/05/r...-of-up-to-45b/

Report: General Motors eligible for a tax break of up to $45B

by Jeff Glucker (RSS feed) on Nov 5th 2010 at 5:45PM

They say that only certain things in life are death and taxes. General Motors already escaped one of the two, and now it's getting a big break on the other – as part of GM's restructuring plan, it's eligible for up to $45 billion in tax breaks. Under the Troubled Asset Relief Program (TARP), General Motors can utilizes its pre-bankruptcy losses to offset future tax liabilities. This should provide a large dose of financial help for the automaker, as it goes forward with its IPO and works to pay back the US and Canadian tax-paying public.

[Source: Automotive News – sub. req. | Image: Paul Sancya/AP Photo]

[Jason[98.EL]]

They say that only certain things in life are death and taxes. General Motors already escaped one of the two, and now it's getting a big break on the other – as part of GM's restructuring plan, it's eligible for up to $45 billion in tax breaks. Under the Troubled Asset Relief Program (TARP), General Motors can utilizes its pre-bankruptcy losses to offset future tax liabilities

how the hell can they use the losses from before they become bankrupt and have tax credits

aren't they operating under a new company ie GM old versus GM new

just another way to deceive the public in my books

[irish2]

This should provide a large dose of financial help for the automaker, as it goes forward with its IPO and works to pay back the US and Canadian tax-paying public.

Funny how they pay back the public by not paying taxes.

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http://www.autoblog.com/2010/11/06/s...aller-network/

Surviving GM dealers see mixed benefits of smaller network

by Chris Shunk (RSS feed) on Nov 6th 2010 at 9:55AM

Two years ago General Motors had 6,049 dealers spread across the United States. Post-bankruptcy, that number is down to 4,500 retail outlets. The dealer cutback was supposed to help GM's bottom line while simultaneously bolstering sales and profits at the remaining dealerships, but has it worked? Automotive News reports that the early returns are mixed.

Since 2009 was such a bad year for car sales, most GM dealers are faring better so far in 2010, as the company's overall sales are up six percent. Consider that GM is selling six percent more vehicles without Pontiac, Hummer, Saab and Saturn, and the remaining dealers are doing better still. But the biggest winners of GM's dealer reduction aren't large dealerships. Many of the 1,500 dealers that got the axe were smaller stores in rural areas. It makes sense, then, that the remaining small-town dealers are doing better as a result.

GM spokesperson Ryndee Carney tells AN that the surviving dealers have a reported 6.7 million customers up for grabs; people who either own a GM vehicle from one of the defunct brands or purchased from a dealership that no longer exists. That's a lot of potential warranty, service and trade-in cash waiting to be had. To ensure that these customers know where their nearby dealerships are, GM has been mailing out notices with service coupons and other dealer info. Dealers themselves are also doing legwork to pick up orphaned customers, picking up out-of-work salespeople who bring their client lists with them.

It's hard to tell how long it'll be until the remaining GM dealers start to feel the impact of the closing of 1,500 dealers, since many of those stores just stopped selling and servicing vehicles in October. The one thing that the entire dealer body would benefit from is a stronger auto market, but that doesn't appear as though it'll happen anytime soon.

[Source: Automotive News - sub. req.]

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http://www.autoblog.com/2010/11/08/b...auto-bailouts/

Bush defends auto bailouts

by Zach Bowman (RSS feed) on Nov 8th 2010 at 7:24PM

Former U.S. President George W. Bush is set to release his memoirs under the title Decision Points on Tuesday, November 9. The book is slated to delve into the eight years of the Bush Administration, touching on everything from the war in Iraq to the reasoning behind various economic policies. The Detroit News was able to get its hands on a pre-release copy of the text and found Bush had committed to bailing out the auto industry as early as November of 2008, despite having misgivings about government intervention in private industry and the management of both Chrysler and General Motors.

Still, the memoirs say that the move was designed to "safeguard American workers from widespread collapse."

Additionally, The Detroit News reveals that Bush finally decided to pull the trigger on the bailouts to keep Barack Obama from having to make a decision on the situation right off the bat. Bush writes that "I had to keep my successor in mind. I decided to treat him the way I would have liked to have been treated if I were in his position."

Decision Points will be released simultaneously in the U.S. and Canada in hardcopy, e-reader and audio formats.

[Source: The Detroit News | Image: Getty]