Bruce Nunnally Posted April 13, 2009 Report Share Posted April 13, 2009 [article] Members of President Obama’s automotive task force spent last week in meetings and on conference calls with G.M. officials and its advisers in Detroit and Washington. Those talks are expected to continue this week. The goal is to prepare for a fast “surgical” bankruptcy, the people who had been briefed on the plans said. G.M., which has been granted $13.4 billion in federal aid, insists that a quick restructuring is necessary so its image and sales are not damaged permanently. The preparations are aimed at assuring a G.M. bankruptcy filing is ready should the company be unable to reach agreement with bondholders to exchange roughly $28 billion in debt into equity in G.M. and with the United Automobile Workers union, which has balked at granting concessions without sacrifices from bondholders. The 'new' company formed by separating the healthy parts of GM from the druck would be called "GM", although in my mind it could just be called Cadillac, and then we could rename Chevrolet Lasalle. Bruce 2023 Cadillac CT4-V Blackwing Follow me on: Twitter Instagram Youtube Link to comment Share on other sites More sharing options...
Cadillac Jim Posted April 13, 2009 Report Share Posted April 13, 2009 I think the "healthy" part of GM would be Chevrolet, Cadillac, Buick, GMC, and the Pontiac name and trademarks. I'm surprised that they aren't keeping Saturn but that brand isn't globalized. GM may sell cars to Saturn, which is set to survive as a dealer and service organization. Hummer, the UAW, stock, bond, and other toxic assets and parasites would be in the liquidation-borne portion, which would provide reasonable health care benefit support to the UAW as a last contribution, the rest going to bond and stock holders. At least that's the plan I have seen discussed in the news lately. In point of fact, when you are in bankruptcy, a panel of judges makes the business decisions. This is what Wagoner was uncomfortable with, because these guys may decide to pitch Buick because of its lower volume in favor of Pontiac, although as a long-term business asset Buick is worth far more, etc. -- Click Here for CaddyInfo page on "How To" Read Your OBD Codes-- Click Here for my personal page to download my OBD code list as an Excel file, plus other Cadillac data -- See my CaddyInfo car blogs: 2011 CTS-V, 1997 ETC Yes, I was Jims_97_ETC before I changed cars. Link to comment Share on other sites More sharing options...
freako Posted April 13, 2009 Report Share Posted April 13, 2009 Good point Jim! However I believe that for the time being, radical decisions must be made. In this case, leaving buick aside and keeping Pontiac may not seem to be the best (car-category-wise) choice, however pontiac may sell more vehicles and cost far less to build than buick will with all them add-ons for luxury. If they plan it right, they could keep pontiac to survive, then in the pass of time, revive buick when all this money-sucking economical tornado gets to an end. Buicks are great, but not the prettiest of cars.. who knows, perhaps if they let it loose then revive it in a few years, something prettier may arise? Link to comment Share on other sites More sharing options...
Cadillac Jim Posted April 14, 2009 Report Share Posted April 14, 2009 In point of fact Buicks are very popular overseas, most notably in China, whereas Pontiac has some popularity at home but isn't a brand with a lot of panache -- read business value -- and could easily be continued as special models of Chevrolet platforms; I think that pretty much describes Pontiac now anyway. If they discontinue the Buick marque, this will kill it's value internationally, and there will be no reason to pick it up again. Most large car companies use one to three marques for their entire line, and Chrysler is likely to do this soon. For example, Mercedes, Porsche, and BMW have only one marque, and their different models are designated as series, not makes, and they share the same dealer network. Honda, Toyota and Nissan have Accura, Lexus and Infiniti. In addition Toyota has Scion. GM could use Cadillac, Buick, and Chevrolet, and that's the plan. Pontiacs would be rebadged and specially appointed Chevrolets. GMC would be the truck line, and Pontiac would give those dealers a car line, and they could pick up Buick as many Pontiac-GMC dealers do now. Chevrolet could keep the light trucks and vans. GM has noted that their total sales hasn't been enhanced by all their models since WW II; their proliferation of models before WW II was based on the idea that people would buy more expensive GM makes as they moved up in the market; this was shared by Ford and Chrysler at the time too. But now we have Ford, Mercury, and Lincoln on the one hand, and Chrysler and Dodge on the other, while GM stood with Chevrolet, Pontiac, Oldsmobile, Buick, LaSalle, and Cadillac until WW II. The LaSalle brand was dropped as Packard began to decline as competition, and Chrysler dropped DeSoto in the 1960-'s. The Edsel was a special case; it was originally going to replace Mercury because that marque was associated with chopped-and-channeled hot-rods with primer instead of paint and Frenched headlights and grilles, removed chrome, and lowered chassis, and sales to mid-income people was decreasing, but Mercury had come back by 1958 and for some reason the styling of the Edsel became "hip" to ridicule, although 1958 Edsels were really just Mercurys and were very good cars for their time. -- Click Here for CaddyInfo page on "How To" Read Your OBD Codes-- Click Here for my personal page to download my OBD code list as an Excel file, plus other Cadillac data -- See my CaddyInfo car blogs: 2011 CTS-V, 1997 ETC Yes, I was Jims_97_ETC before I changed cars. Link to comment Share on other sites More sharing options...
JimD Posted April 14, 2009 Report Share Posted April 14, 2009 The "new" (domestic USA) GM will be Cadillac and Chevrolet. Period. Bankruptcy Court ordered, or market driven - same result. Check back in eight months. Jim Drive your car. Use your cell phone. CHOOSE ONE ! Link to comment Share on other sites More sharing options...
freako Posted April 16, 2009 Report Share Posted April 16, 2009 In point of fact Buicks are very popular overseas, most notably in China, whereas Pontiac has some popularity at home but isn't a brand with a lot of panache -- read business value -- and could easily be continued as special models of Chevrolet platforms; I think that pretty much describes Pontiac now anyway. If they discontinue the Buick marque, this will kill it's value internationally, and there will be no reason to pick it up again. Most large car companies use one to three marques for their entire line, and Chrysler is likely to do this soon. For example, Mercedes, Porsche, and BMW have only one marque, and their different models are designated as series, not makes, and they share the same dealer network. Honda, Toyota and Nissan have Accura, Lexus and Infiniti. In addition Toyota has Scion. GM could use Cadillac, Buick, and Chevrolet, and that's the plan. Pontiacs would be rebadged and specially appointed Chevrolets. GMC would be the truck line, and Pontiac would give those dealers a car line, and they could pick up Buick as many Pontiac-GMC dealers do now. Chevrolet could keep the light trucks and vans. GM has noted that their total sales hasn't been enhanced by all their models since WW II; their proliferation of models before WW II was based on the idea that people would buy more expensive GM makes as they moved up in the market; this was shared by Ford and Chrysler at the time too. But now we have Ford, Mercury, and Lincoln on the one hand, and Chrysler and Dodge on the other, while GM stood with Chevrolet, Pontiac, Oldsmobile, Buick, LaSalle, and Cadillac until WW II. The LaSalle brand was dropped as Packard began to decline as competition, and Chrysler dropped DeSoto in the 1960-'s. The Edsel was a special case; it was originally going to replace Mercury because that marque was associated with chopped-and-channeled hot-rods with primer instead of paint and Frenched headlights and grilles, removed chrome, and lowered chassis, and sales to mid-income people was decreasing, but Mercury had come back by 1958 and for some reason the styling of the Edsel became "hip" to ridicule, although 1958 Edsels were really just Mercurys and were very good cars for their time. Awesome reply with good explanation behind it Jim! Thanks. I also believe that as we americans are enhancing our citizens to buy american to bring out brands back alive, wouldn't the same happen on europe just enough so that Buick gets the history book anyway? Also, Opel was not sold by GM (just yet) so it could still remain as GM's card to play overseas. Peugeot, Seat, Fiat, Renault, and others were also hit by this economic blaster, so unless their own countries of origin (people) helps them survive like we are doing by buying their home brands, I don't think GM would like to spend the few money they have left to battle on the overseas market (unless it gets only produced to be sold over there) Sorry, not sure if I'm explaining myself properly here. Link to comment Share on other sites More sharing options...
rek Posted April 17, 2009 Report Share Posted April 17, 2009 A "Stroke of the Pen" could "Level" the playing field in a minute... A One for One basis. Export as many as you Import. Import as many as you Export.... TRADE BALANCE rek Link to comment Share on other sites More sharing options...
Cadillac Jim Posted April 17, 2009 Report Share Posted April 17, 2009 Actually GM and Ford have been internationalized for many years. The main reason that they want to keep Buick is that they have a cult following in China and many other parts of the world like no other make, GM or otherwise, American or foreign. Over time, and with wisdom and care, such a following can be a lifeline in these troubled times. -- Click Here for CaddyInfo page on "How To" Read Your OBD Codes-- Click Here for my personal page to download my OBD code list as an Excel file, plus other Cadillac data -- See my CaddyInfo car blogs: 2011 CTS-V, 1997 ETC Yes, I was Jims_97_ETC before I changed cars. Link to comment Share on other sites More sharing options...
JimD Posted July 2, 2009 Report Share Posted July 2, 2009 The "new" (domestic USA) GM will be Cadillac and Chevrolet. Period. Bankruptcy Court ordered, or market driven - same result. Check back in eight months. Whoops - it might not take as long as eight months to define the "new" GM. Foxbusiness.com is reporting this: * * * * * * * * * * * * * * Wednesday, July 01, 2009 'New' GM Could Make IPO in 2010, Wilson Says FOXBusiness A newly-formed General Motors entity could make an initial public offering in 2010 according to testimony from auto task force member Harry Wilson in U.S. bankruptcy court on Wednesday. GM is currently seeking approval to sell its assets to a “new GM” that is currently backed by the government. If the deal wins approval, GM will be allowed to sell its strongest assets including its Cadillac and Chevy brands. During Wilson’s testimony, he confirmed that the only way to save GM is through an asset sale to the “New GM.” But there is one catch to the sale: it must close by July 10, when the government--imposed deadline runs out and Uncle Sam $30 billion in financing to help the beleaguered auto maker. "We cannot make an open-ended commitment," Wilson said in court of the looming deadline. "At one point, it's better to cut one's losses… We have no intention to further fund this company if the sale order is not entered by July 10.” GM filed for Chapter 11 bankruptcy four weeks ago and is in its third day of hearings under Judge Robert Gerber to approve the asset sale. On Tuesday, the court ruled that CEO Fritz Henderson will remain head of the new GM. During his testimony, Wilson said that GM has received around $10 billion in funding since it filed for bankruptcy. The U.S. Treasury would offer an additional $60 billion in financing to the “New GM,” which would give the government a 60% stake in the new company. Additionally, the United Auto Workers Union hold 17.5%, Canada would own 12%, and GM bondholders would own 10%. Jim Drive your car. Use your cell phone. CHOOSE ONE ! Link to comment Share on other sites More sharing options...
JimD Posted July 6, 2009 Report Share Posted July 6, 2009 Judge Approves Sale of GM Assets - FOXBusiness.com NEW YORK/BANGALORE--A U.S. judge on Sunday approved General Motors Corp's bankruptcy sale in a move that will allow the company's most profitable assets to exit bankruptcy protection under government ownership. Judge Robert Gerber of the U.S. bankruptcy court in Manhattan said the sale would "prevent the death of the patient on the operating table." Gerber issued a four-day stay of the order approving the sale, which should allow it to close as early as Thursday. Such stays are typical and allow for possible appeals. Under the deal, 'New GM' will operate the best parts of the old company, including its Chevrolet and Cadillac brands, with a less expensive workforce, smaller dealer network, and much less debt. The rest of the company will be liquidated. The sale marks the second big victory for the Obama administration's auto task force. It helped broker the disposal of Chrysler LLC to a group led by Italy's Fiat SpA last month. GM, which filed for bankruptcy protection on June 1, had argued that it would be forced to liquidate if the sale was not approved, and the U.S. government said it could walk away from funding the automaker if a deal was not approved by July 10. Jim Drive your car. Use your cell phone. CHOOSE ONE ! Link to comment Share on other sites More sharing options...
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