Search results for GM
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Posted
Dec 11 2008, 03:56 AM
by
Kim Peterson
Rating:
Money Blog: Top Stocks Blog - MSN Money
The New York Times debunks the claim that the Big Three auto workers earn $73 an hour. That number came from the car companies themselves during union negotiations, writes David Leonhardt.
But it isn't completely accurate. Yes, the companies do spend about $73 for every hour of unionized work, Leonhardt writes. Not all of that goes to the worker's pocket.
Here's how it breaks down:
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Posted
Jun 30 2008, 03:59 PM
by
Charley Blaine
Rating:
Money Blog: Top Stocks Blog - MSN Money
Chrysler exists because Lee Iacocca bet the company on the minivan. Now, thanks to the oil crisis, the minivan looks like it could be on its last legs.
One of the company's two minivan assembly plants will be shut indefinitely on Oct. 31, Chrysler said today. The problem is that families -- the target market for minivans -- have been particularly affected by rising gas and food prices, falling home values and more difficulty in borrowing money.
It's a humiliating development for Chrysler, which spent $1.4 billion on the redesign of its two industry-leading minivans, the Chrysler Town & Country and Dodge Grand Caravan. And then saw sales go, well, nowhere.
"Everything that a family needs is more expensive right now, and so the last thing they're looking at is, 'Do they need to replace their Honda Odyssey?'" said Rebecca Lindland, an auto analyst for Global Insight, the economic consulting firm
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Posted
Nov 17 2008, 01:51 PM
by
Anthony Mirhaydari
Rating:
Money Blog: Top Stocks Blog - MSN Money
General Motors, Ford, and Chrysler are at the epicenter of intense maneuvering in Washington D.C. as those taking a tough stand for free-market principles lock horns with pragmatists worried about massive layoffs in the rustbelt.
Political reality will lead to some form of assistance given the popularity of Keynesian fiscal stimuli these days and the amount of pressure being applied by industry. Unfortunately, people like to assume that once Detroit retools its factories and stocks its showrooms with the fuel efficient cars and car-based SUVs of the future, happy days will return. They won't.
As I wrote last summer, we simply have too many vehicles to sustain the Big 3's current production capacity. The United States now has 981 cars for every 1,000 people of driving age compared to 613 in the United Kingdom and just 24 in China. As a result, no amount of government aid will stop
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Posted
Apr 07 2009, 09:48 AM
by
Anthony Mirhaydari
Rating:
Money Blog: Top Stocks Blog - MSN Money
General Motors (GM) is making "intense" and "earnest" preparations for bankruptcy, which is now seen as the best option, according to a source familiar with the company's plans. The company is operating under a June deadline from the U.S. Treasury to reduce debt and slash costs as part of its $13.4 billion loan and request for an additional $16.6 billion.
It appears the plan to split the company in two is gaining momentum. Known as a "363 sale" because of the relevant section of the Chapter 11 bankruptcy code, this would see GM divided into one company containing healthy brands like Chevrolet and Cadillac and another holding troubled units like Saturn.
Officially, GM continues to work toward an out-of-court restructuring, which is something Ford (F) has been making great progress on. The catalyst for the apparent change of heart is the ongoing difficultly new chief executive Fritz Henderson and his counterparts at Chrysler are having negotiating with bondholders and the labor union. Creditors are holding out for better terms, secure in the belief that a sympathetic Obama administration won't allow a bankruptcy judge to
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Posted
Nov 21 2008, 11:41 AM
by
Kim Peterson
Rating:
Money Blog: Top Stocks Blog - MSN Money
The Wall Street Journal and U.S. News try some mythbusting about the Detroit automakers pressuring Congress for a bailout.
The automakers have returned home in failure, by the way, after pleading for help from lawmakers. Democrats said they wanted to see more evidence the companies had a turnaround plan in place, and asked to see a proposal next month. The inability to secure aid will increase the pressure on the companies' boards, the Journal says.
Now, about those myths:
1. Bankruptcy is, actually, an option. In fact, General Motors is already bankrupt, writes the Journal's Paul Ingrassia. It's out of cash and needs emergency help. All that's left is the official bankruptcy filing. Same for Chrysler.
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Posted
Oct 09 2008, 12:55 PM
by
Kim Peterson
Rating:
Money Blog: Top Stocks Blog - MSN Money
The economic crisis is taking a staggering and tragic toll on American carmakers. General Motors saw its shares drop to a 58-year-low today, tumbling 31% to $4.76. Ford's stock price fell 22% to a miserable $2.08.
The drop came after forecaster J.D. Power cut its predictions for U.S. car sales for this year and next. People are holding on to their old cars for longer now and putting off buying replacement vehicles, the forecaster said. Adding to the gloom: Standard & Poor's is considering cutting GM's ratings.
The long-term impact on the industry will be huge. Some car dealers have already filed for bankruptcy, seeing as the tumbleweeds blowing through their locations aren't buying anything. And other dealerships are likely to follow.
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Posted
Oct 02 2009, 07:31 AM
by
Douglas McIntyre
Rating:
Money Blog: Top Stocks Blog - MSN Money
Rumors, credible rumors, are beginning to circulate in the car industry and the automotive press, that Chrysler may not make it another year primarily due to its falling sales and growing financial losses at partner Fiat.
Chrysler sold a 62,197 cars in September, down 42% from the same month last year. The figure was down from 93,222 in August when traffic to dealers was pushed up by the ”cash for clunkers” program.
Chrysler’s problems may only be beginning and, if so, Fiat, the ”managing partner” among Chrysler’s owners may not be able to keep the American company intact.
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Posted
May 29 2009, 06:59 AM
by
Des Toups
Rating:
Money Blog: Top Stocks Blog - MSN Money
Bankruptcy is cruel. The man credited with saving Chrysler the first time around now must buy his once-free cars or give them back by Sunday.
Lee Iacocca, now 84, led a Chrysler turnaround in the 1980s that hinged on the federal guarantee of $1.5 billion in loans, guarantees won largely on the charismatic executive’s persuasive appearances before Congress and masterful public-relations moves such as cutting his salary to $1 a year. He later became the public face of his company, pitching cars personally with the line, “If you can find a better car, buy it.
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Posted
Nov 11 2008, 11:29 AM
by
Kim Peterson
Rating:
Money Blog: Top Stocks Blog - MSN Money
A Deutsche Bank analyst gave General Motors' stock a price target of zero. Even if the company averts bankruptcy, Rod Lache noted, its future is likely to be "bankruptcy-like."
Meanwhile, hedge fund manager Bill Ackman says GM would be better off filing for bankruptcy instead of taking government bailout money.
"It has been hamstrung for years because it has too much debt and it has contracts that are uneconomic," he said on The Charlie Rose Show, according to Bloomberg. "The way to solve that problem is not to lend more money. They should do prepackaged bankruptcy."
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Posted
Jul 08 2009, 12:04 PM
by
Catherine Holahan
Rating:
Money Blog: Top Stocks Blog - MSN Money
 The models lean seductively over the hood of the 2010 Chevrolet Camaro, wearing only tiny yellow underwear emblazoned with the car's logo. Grasping a wash cloth, they rub down the car until it sparkles as an unseen cameraman asks about the car.
The videos, broadcast on YouTube, use sex appeal to sell Camaros to guys. Only the models aren't women, they're men.
The racy commercials are part of a new advertising campaign targeting gay, bisexual and transgender Americans.
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