GM CEO steps down

#53
#53
BigPapaVol said:
I don't know the ins and outs of the investment, but this might have been a part of helping the remaining shareholders retain at least some hope of value.
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obama is asking the debt holders to take a 2/3rds write down, but somehow the equity holders are going to see something? i don't get it.
 
#54
#54
BigPapaVol said:
I don't know the ins and outs of the investment, but this might have been a part of helping the remaining shareholders retain at least some hope of value.
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I don't disagree that getting rid of him may be the absolute right move - my concerns are with how it happened. I'm guessing that shareholders found out the same way we did. I'd like to know if the owners (or enough of them) agreed in anyway or if they've been left out of the negotiations.
 
#56
#56
volinbham said:
I don't disagree that getting rid of him may be the absolute right move - my concerns are with how it happened. I'm guessing that shareholders found out the same way we did. I'd like to know if the owners (or enough of them) agreed in anyway or if they've been left out of the negotiations.
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I don't think we know enough, but my concerns are about the goings on that led to the government investment in the first place. This might have been simply a part of that deal.
 
#57
#57
droski said:
obama is asking the debt holders to take a 2/3rds write down, but somehow the equity holders are going to see something? i don't get it.
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So weren't we close to something like this months ago (the Corker plan)?

I wonder if Obama is going to ask Gettlefinger to step down? :crazy:
 
#58
#58
droski said:
obama is asking the debt holders to take a 2/3rds write down, but somehow the equity holders are going to see something? i don't get it.
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I don't think they'll see much, but I would imagine that is why they agreed to take on the new "partner." Their options were 0 or a hope note.
 
#59
#59
volinbham said:
I assumed this was for the next round of investment.
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it might very well be and the potential next round had to be discussed in the first round, unless GM has stupid attorneys and investment bankers, which I don't believe is the case.
 
#60
#60
BigPapaVol said:
I don't think they'll see much, but I would imagine that is why they agreed to take on the new "partner." Their options were 0 or a hope note.
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if i'm the debt holder and i get written down 2/3rds and the equity holders get anything i sue immediately.
 
#61
#61
droski said:
if i'm the debt holder and i get written down 2/3rds and the equity holders get anything i sue immediately.
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who you suing?

the writedown is going to have to be voluntary. If they're crammed down, then you're right, but they have options to a cram down.
 
#62
#62
BigPapaVol said:
who you suing?

the writedown is going to have to be voluntary. If they're crammed down, then you're right, but they have options to a cram down.
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my point is i very much doubt that the bondholders are going to accept an agreement where they don't own the company after the reorganization.
 
#64
#64
amazing, barack jugo chavez hussein obama is now taking over GM. amazing. is this what you dems voted for? how pathetic. the government will even stand behind a warranty. this is just a joke.
 
#65
#65
TEXT - President Obama's remarks on U.S. car industry* - Yahoo! News UK

this man is insane.

t is my hope that the steps I am announcing today will go a long way towards answering many of the questions people may have about the future of GM and Chrysler. But just in case there are still nagging doubts, let me say it as plainly as I can -- if you buy a car from Chrysler or General Motors, you will be able to get your car serviced and repaired, just like always. Your warrantee will be safe.

In fact, it will be safer than it's ever been. Because starting today, the United States government will stand behind your warrantee.
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good enough reason for me to buy a Ford, Kia, or Hyundai the next time around.
 
#69
#69
Haven't both Bush and Obama bailed these guys out and asked for a plan that would lead the company....sounds like the CEO didn't have any type of plan to lead the compnay moving forward. It would be a terrible to leave the leadership in place with MORE public money going into it. I think he has been there 10 years...too many bad decisions lead to this extraordinary situation.
 
#70
#70
They just want too much money for gm cars and trucks. Labor unions have drove up the cost and gm's own greed has done them in. In my opinion thats why most of our automakers are failing, overinflated prices on cars not worth the money. Add in the fact that 400 or 500 dollar car note, plus full coverage insurance is a big burden for a average income family. If they can't find a way to make cars and trucks more affordable for the average american, they'll continue to drive the wheels off of what they already have.
 
#71
#71
Just a couple of thoughts on this that I don't think have been brought up. This is no where near a level playing field.

The reality is most of the european countries and japan, prove govt money to support their auto industries. We are one of the few who don't. They also make it difficult to sell auto's in their country. Japan being nearly impossible why would want free trade in this area with Japan is beyond me.

“I think many of the countries we compete with in automotive have a more significant investment in worker training, in broader forms of technical training.
“Certainly Germany and Japan do,” Shaiken tells Ward's. “Beyond that, I think there is a broader understanding of the importance of a manufacturing base to the health of an economy.”
Australia has pumped billions into its auto industry. Local and state governments have come up with millions more in the name of saving jobs.
For example, former Victorian state Labor Premier Steve Bracks recommended Australia spend A$2.5 billion ($2 billion) in assistance to promote vehicle manufacturing.
The proposal calls for new aid starting in 2010 to replace the existing taxpayer-funded Automotive Competitiveness and Investment Scheme (ACIS), with the money provided over 10 years. Bracks also suggests the government's A$500 million ($416 million) green-car fund be doubled to promote development of fuel-efficient vehicles.
In France, automotive enjoys the maximum level of state support allowed under European rules. The European Union limits government investment to regions with high unemployment, which makes entire countries in Eastern and Central Europe eligible.
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http://wardsautoworld.com/ar/auto_us_lags_auto/
 
#72
#72
Should the US Auto Industry "take a lesson" from their Asian counterparts? - AutoPro Workshop Blog post - Where Professionals Gather for Better Business

Hyundai is the 7th largest automaker in the world. They are based in a country that exercises protectionist trade policies, and promotes the only means of true growth and survival to them, export. The Korean Government is building infrastructure to support development of their automotive parts industry. Literally hundreds of millions of dollars of government money is spent every year supporting research and development, infrastructure, training, etc. For development of technology to support “futuristic automobiles” (read – hybrid and alternative fuels), the Korean government is providing $614 million through 2014 in one grant. There are many more that I simply don’t have the time or inclination to cite. That’s a lot of money in Korea where some people earn as much in a month as we do in a day. In order to become a presence in the global market, their governments support was necessary. They could not gain sufficient capital resources to develop competitive products on the scale that they have without the support of their government. They did not have the ability to do it as all American automobile manufacturers have, through true innovation and a free market economy where consumers made the choices.

China (Most favored trading nation status, yet still a Communist country) has been doing a fantastic job of attracting foreign capital for investment in their manufacturing sector. The only down side, a vast majority of the capital gains remain in that country as the government owns the most significant portion of their manufacturing sector. Without the US, our technology, our human capital, and our money, China would not be where it is today. Sub standard living conditions, sub standard working environments, and nearly no government regulation allowed such low wages that it was impossible for anybody else in the world to compete with their manufacturing sector.

Today, as you read this, the Japanese government is considering a $22 billion proposal that will greatly benefit the Japanese auto industry. According to a recent story on Bloomberg.com by Keiko Ujikane, “A panel from the ruling Liberal Democratic Party and New Komeito last week said the government should subsidize companies that hire temporary employees and make more people eligible for unemployment benefits. Companies should receive 1 million yen for each contract employee they hire.”
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#73
#73
MG1968 said:
Hopefully Chrysler's new partnership with Fiat will work out.

GM needs to learn how to build it's own cars, especially a small economy car. I can tell you right now that the Volt, at nearly 40 grand, is going to be a colossal failure.
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You're kidding, right? $40,000? :crazy:

wow
 
#75
#75
Washington keeps getting worse and worse. Yes President Obama is making wild shifts to the left with Palosi and Reid but dang if W and his buddies in congress weren't already heading that way as well. There is no alternative right now, and that depresses me.

Yes, the POTUS firing the CEO of a major private corporation scares me. However, I will admit that I keep thinking: "All bets were off when you signed on the dotted line for that bailout money."
 
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