GM to Announce 14 Plant Closures Monday

[Ford Jellymoulds]

CNBC Reports.....

A person briefed on General Motors' plans says the company on Monday will identify the 14 factories it will close as it heads toward an a likely Chapter 11 bankruptcy protection filing.

 

The person says United Auto Workers officials in Detroit have told plant-level union leaders that the company will make the announcement, not the union.

 

The person did not want to be identified because the plan has not been made public.

 

GM has said it soon will identify factories to be closed under its restructuring plan. About 21,000 jobs will be lost

 

MORE LINK

Edited May 28, 2009 by Ford Jellymoulds

[jpd80]

Wow, imagine if GM had done all this three years ago (like Ford).

They'd most likely not be staring at bankruptcy now.....

[Ford Jellymoulds]

Wow, imagine if GM had done all this three years ago (like Ford).

They'd most likely not be staring at bankruptcy now.....

 

Some of the stuff you read in the press here that GM are doing just amazes me JPD, they have hired a small German boutique with two partners and a total of 15 employees to decide and advise GM on the future and fate of its whole European operations & its Staff.

 

Gotta say you could not make this stuff up JPD nobody would believe you, l don't know whether to cry or laugh at it.

 

 

GERMAN DAVID ADVISES US GOLIATH ON OPELS & VAUXHALL

A German boutique with two partners and a total of 15 employees has been brought in to advise General Motors on the sale of carmakers Opel and Vauxhall – one of the highest-profile and most complex deals of the year – highlighting the growth of independent advisory companies in global mergers & acquisitions.

LINK

Edited May 28, 2009 by Ford Jellymoulds

[jpd80]

Some of the stuff you read in the press here that GM are doing just amazes me JPD, they have hired a small German boutique with two partners and a totol 15 employees to decide and advise GM on the future of its whole European operations & its Staff.

 

Gotta say you could not make this stuff up JPD nobody would believe you, l don't know whether to cry or laugh at it.

It's like watching a nightmare unfold and the government is preaching a quick bankruptcy.

God, I hope so for all the employees and suppliers sakes.

Everyone else pays when the irresponsibles are not kept in check FJM.

 

Bankruptcy is not punishment of the wicket, it's a way for them to slip off their debts

and leave everyone else owed money tied up for years in bankruptcy.

[Ford Jellymoulds]

It's like watching a nightmare unfold and the government is preaching a quick bankruptcy.

God, I hope so for all the employees and suppliers sakes.

Everyone else pays when the irresponsibles are not kept in check FJM.

 

Bankruptcy is not punishment of the wicket, it's a way for them to slip off their debts

and leave everyone else owed money tied up for years in bankruptcy.

 

Gotta say it is real nightmare you can feel the pain of every one of those 21,000 thousand & their families that might pay the price of the incompetence of a few and lose their job, only thing that l think is a bit unfair is GM might get another $50 billion pumped into them whilst in bankruptcy they are getting rewarded for failure, whilst Ford have been prudent are no burden on the US taxpayer Alan Mullay and the Unions at Ford have worked hard at riding the storm get absolutely nothing.

 

Gotta say it would be a nice gesture if the US Government rewarded Ford in someway like order all Fords as government vehicles only, as a big thank you for not being a big burden on the US Taxpayer.

Edited May 28, 2009 by Ford Jellymoulds

[jpd80]

Gotta say it would be a nice gesture if the US Government rewarded Ford in someway like order all Fords as government vehicles only, as a big thank you for not being a big burden on the US Taxpayer.

But there in lies the terrible irony, if the government favors Ford on a contract, it hurts the

public's $50 billion investment. If they help GM, it punishes Ford and sends the wrong message.

 

The government needs to get through this and start selling down its stock in the new GM ASAP.

Governments should not be in the private sector, nationalization is a slippery slope.

[Ford Jellymoulds]

But there in lies the terrible irony, if the government favors Ford on a contract, it hurts the

public's $50 billion investment. If they help GM, it punishes Ford and sends the wrong message.

 

The government needs to get through this and start selling down its stock in the new GM ASAP.

Governments should not be in the private sector, nationalization is a slippery slope.

 

Whats happening to Holden down under JPD?

[snooter]

i swear i heard the sounds of taps being played which were softly waffling over eastern michigan..21K jobs..wow..but this should have been done 5 years ago..i blame everybody at GM from the top down to the guy sweeping floors...bottom line was crappy design and product...GM really just handed auto sales to yoda....

[jpd80]

Whats happening to Holden down under JPD?

Business as usual. well, 86% of their export market went bust USA - Gone, Middle East - very slow.

Abject lesson why Ford couldn't see Falcon exports as viable, Holden got stitched up big time with currency shift.

Ford instead chose to go for Southern hemisphere RHD Focus contract and won it, looks like they may pick upa few S/E Asia LHDs as well.

 

 

Holden will add a locally built Cruze to the production line in early 2010 - that's their viability plan, a Korean Opel.:rolleyes:

Last true Zeta will be 2010 ZF Commodore debuting this time next year, after that the

Holden goes to the lighter merged Sigma / Zeta platform sometime in 2012.

Edited May 28, 2009 by jpd80

[TStag]

GM is about to lose 15% of it's total sales once it loses Opel/ Vauxhall. It will be a long hard struggle to get back into Western Europe.

 

Question is how much debt will GM be left with at the end of all this. How much will the US tax payer write off? If GM end's up with less debt than Ford would that be fair?

[TomServo92]

GM is about to lose 15% of it's total sales once it loses Opel/ Vauxhall. It will be a long hard struggle to get back into Western Europe.

 

Question is how much debt will GM be left with at the end of all this. How much will the US tax payer write off? If GM end's up with less debt than Ford would that be fair?

 

It's OK. They'll be lugging around that "bankrupt car company that took government money" tag for awhile. Anyone that thinks that won't hurt sales is naive.

[jpd80]

GM is about to lose 15% of it's total sales once it loses Opel/ Vauxhall. It will be a long hard struggle to get back into Western Europe.

 

Question is how much debt will GM be left with at the end of all this. How much will the US tax payer write off? If GM end's up with less debt than Ford would that be fair?

1) Opel is in the hole for $4 billion, predicted sales won't cover that.

 

2) Gm gets divided in to good assets which are sold off debt free to a new company in which the government

becomes 75% stake holder in the new company. The new GM emerges debt free, sanitzed and ready to take on competitors.

 

All the unwanted assets and debts stay with the "bad GM" in Chapter 11 until it's resolved or liquidated.

[Ford Jellymoulds]

May 29 (Bloomberg) -- General Motors Corp. and Magna International Inc. have reached a framework agreement on a rescue for the Opel unit in Germany, according to two people familiar with the discussions.

 

The preliminary pact would provide the basis for Germany’s government to release 1.5 billion euros ($2.1 billion) in short- term financing for Opel, said the people, who asked not to be identified because the talks are confidential. The parties are working on a memorandum of understanding, they said.

 

Chancellor Angela Merkel is seeking to avoid a bankruptcy for Opel, which employs 25,000 workers in Germany, in an election year.

 

GM wants an upfront payment of 450 million euros from Germany to keep Opel in operations, about 350 million euros more than the German government had thought, GM CEO Fritz Henderson said in an interview yesterday. The Detroit-based parent is preparing for a June 1 bankruptcy filing.

 

The federal government agreed to provide half of the 1.5 billion-euro German backing that GM has sought for Opel, with the remainder split among the four states where the division has plants.

 

German state leaders and labor representatives have said repeatedly since bids were submitted on May 20 that they favor Magna’s offer.

 

 

 

The Italian company’s bid, which also involves GM operations in Latin America, is part of Marchionne’s plan to create a global automaker in combination with Auburn Hills, Michigan-based Chrysler LLC. Fiat said today that it won’t attend the Berlin meeting because the “sole topic” is emergency funding for Opel.

 

“Fiat has done all it could and should do,” Chairman Luca Cordero di Montezemolo told reporters in Rome.

Bloomberg link

[LSFan00]

Is Saturn going to go to Magna also?