CSpec

http://www.webridestv.com/xml/wbuserembedplayer.swf?movieid=197173'>

Interesting. I also heard that they might move to their legal HQ of Wilmington, Delaware, but a move to Warren seems to make sense. Detroit is a deathtrap.

Excellent. I don't think I would buy something like this, but this should sock it to the Prius crowd.

Source Pushed towards bankruptcy A MONTH ago General Motors announced the terms of a restructuring plan designed to help it to avoid bankruptcy. At the time an unnamed member of Barack Obama’s administration was quoted as saying that “you don’t need banks and bondholders to make cars”. He said aloud what the offer to the bondholders had merely implied. For unsecured loans worth $27 billion, creditors would be awarded a paltry 10% of the “new” GM. And unless 90% of creditors agreed by a deadline of midnight on Tuesday May 26th then GM would undoubtedly have to reinvent itself in the embrace of Chapter 11 bankruptcy protection. Most observers reckoned that the deal for creditors was rough to the point of insult and that Mr Obama’s car-industry task-force was intent on the bankruptcy court to restructure a firm that had once commanded half of America’s car market. In contrast the deal offered GM’s union, the United Auto Workers, which was hardly blameless in GM’s demise, 39% of the company in lieu of a promise to pay $10 billion into a healthcare fund. Bondholders were unimpressed. Reports suggest that only a small proportion of creditors tendered their bonds despite signs that other parties were prepared to give ground. On Tuesday the union apparently conceded that it would moderate its claim and accept just a 20% stake in GM. The extra shares might have been offered as a sweetener for the bondholders. Instead the government, which could be on the hook for another $50 billion to finance GM’s restructuring in Chapter 11, looked set to grab this additional shareholding itself. Added to what it had already earmarked in return for propping up the car firm since the end of last year, the government could end up with a 70% stake. GM’s board was set to convene on Wednesday to consider its next move. It has little recourse but to seek bankruptcy some time before June 1st—the original deadline for hammering out a deal. Mr Obama’s officials clearly hope to see a quick, prepackaged bankruptcy which would stick closely to the terms that GM has already offered. The attitude of the bankruptcy courts to deals overseen by the car task-force was tested on Wednesday. Chrysler, which filed for Chapter 11 on April 30th, is undergoing the same sort of fast-track bankruptcy procedure over the heads of aggrieved creditors. The government, banking on the judge agreeing that Italy’s Fiat can take a 20% stake in Chrysler in return for small-car technology that may help the firm survive, looked set to get its way. This could indicate that the bankruptcy court will also look favourably on the pre-arranged terms of the GM deal rather than siding with angry bondholders. The alternative, to sell off the car company piece by piece, may be less palatable for all concerned. It is far from certain that buyers could be found in the economic slump. GM's unsecured creditors, whose loans are not backed by assets such as factories or stock, have a slim chance of getting much money back. Another factor complicating the decision for GM’s bondholders is that many covered their positions with credit-default swaps that would pay out in the event of a “credit event” such as bankruptcy. GM’s fate in America is becoming clearer, but the outlook for Opel, the firm's cash-strapped European operator, is still uncertain. Despite rumours that it might do so on Wednesday, the German government has not decided whether Magna International, a maker of car parts based in Canada, or Fiat will be the preferred bidder for Opel. Magna is said to have edged ahead with a promise of fewer job cuts, although industrial logic is still on Fiat's side. But Germany, which will pump billion of euros into Opel, wants the issue resolved before GM's bankruptcy filing in order to avoid the European firm becoming entangled in already complicated proceedings. The hunt for winners in the remaking of North America’s car industry is a short one. Chrysler will probably emerge soon from bankruptcy shorn of encumbering debts and slimmed down to a shape more in keeping with the reality of car markets now. GM, though a far more complicated case, may do so too. Both will be shadows of their former selves under the uncertain sway of government and unions. By one estimation Ford, which had restructured just enough to avoid having to turn to the government for cash bail-outs, will become North America’s biggest carmaker this year. Ford may pick up sales from its rivals in bankruptcy. That is just as well. It retains obligations to banks and bondholders that are, in fact, still necessary to make cars in the traditional way.

This is what PMs are for. Topic closed.

Thanks for the tips, fellas. I think I'll just get a 4-wheel alignment and troubleshoot from there. Maybe they'll be able to see something when it's jacked up.

GM Bondholders Shun Offer, Setting Stage for Bankruptcy CNBC is reporting that GM's bondholders will force the automaker to restructure in court. Follow the link for more information. Link to Story

Source GM Bondholders Shun Offer, Setting Stage for Bankruptcy General Motors unveiled a tentative labor agreement with the United Auto Workers, though bondholders shunned a proposed debt-to-equity offering, setting the stage for a bankruptcy filing by the troubled auto maker. For GM to stay out of bankruptcy protection, holders of 90 percent of its bonds must agree to exchange $27 billion in debt for a 10 percent stake in the company. But as a midnight deadline for the deal approached, it appeared that the swap was likely to fail. Analysts have said bondholders will not want to exchange their massive debt for such a small stake. GM has said in a regulatory filing that it may extend the bond exchange offer, but it is up against a government-imposed June 1 deadline. A spokesman for GM's ad hoc bondholder committee declined to comment on prospects for approval of the deal. The largest US automaker had no comment on the bond exchange, saying it would disclose the results Wednesday morning. "The bondholders are not interested at all," one source told Reuters. "They'd rather fight it out in bankruptcy court than do anything at this point." The White House, meanwhile, said GM's efforts to cut debt and restructure its business are expected to continue until the June 1 deadline. White House spokesman Robert Gibbs told reporters that "a lot of stakeholders are making sacrifices" and believes the process will run its course before any determination is made on a Chapter 11 filing by the automaker. GM advanced toward meeting another requirement to stay out of bankruptcy and continue to receive government aid, a new deal with its labor force. Details of a tentative agreement between GM, the UAW union and the government were released Tuesday. The agreement would give the UAW 17.5 percent of GM's common stock, $6.5 billion of preferred shares and $2.5 billion to fund a trust to cover retiree health benefits. There will be more buyout offers for many of GM's remaining manufacturing workers. Union members will vote on the proposal Wednesday and Thursday. On Monday, the Canadian Auto Workers approved GM wage cuts and other concessions. GM's proposal has far bigger cost cuts than the labor agreement automaker Ford Motor reached in February. GM's shares have been volatile in recent months as auto sales crumbled and the Detroit automaker was forced to terminate contracts with dealerships, close down plants and lay off tens of thousands of workers. The stock hit $1 on May 13, its lowest point since 1933. On Tuesday, GM shares dropped as low as $1.12 but later reached as high as $1.84, up 41 cents or 29 percent from Friday's close. The shares were down 5 cents, or 3.5 percent, to $1.38 in late afternoon trading. GM, which has lost $82 billion in the past four years and has received $19.4 billion in government funding since the beginning of this year, has been struggling to cut costs and reduce debt to continue to receive more government aid. The company said on Friday that it expected to need another $7.6 billion from the U.S Treasury after June 1. GM has said it is unlikely to make a $1 billion debt payment due June 1, a day after its government-imposed deadline to cut enough costs or face bankruptcy. Current shareholders would be left with just 1 percent of a restructured company. Representatives of GM bondholders, like the secured debt holders in the Chrysler bankruptcy, have argued that the Obama administration's autos task force is rewriting the rules of corporate reorganization on the fly, in a way that favors the union over other creditors. Bondholders have complained that the union, which was offered 39 percent of a new GM, was getting an unfairly rich payout compared with other unsecured creditors. "It's a slap in the face," said James Yarbrough, a retired accountant from Plano, Texas, referring to the 10 percent equity stake offer. Yarbrough has invested $158,000 in GM bonds, which he first bought in 1994. He regrets buying more bonds in 2008, when he thought GM was about to make a turnaround. "This will probably force me to sell my house," Yarbrough said. "I'm going to fight until the end."

Nice picture.

I'm excited to see Saab get a chance to show its full potential in its new models. If the new 9-5 and 9-4X turn out to be duds, then I would have no qualms with killing them. But somehow I think they'll blow people away.

It's not a brake rotor because I just had my brakes done and it didn't change anything. It pulls very slightly - if you let go of the wheel on the highway you drift slowly to the left. The noise and pull definitely get more noticeable with speed.

Hi All, I have a 2001 Saab 9-5 with which I change rims in the winter and summer. I've been noticing a more and more intrusive vibration coming from the front wheels, I believe the left one. It makes a noise when going above a certain speed, and on certain road surfaces I can feel a wobble in the steering wheel. Also, the car wants to pull slightly to the left on the highway, and when I go around a left hand turn on the highway both the noise and the steering wheel vibration go away. It's not a problem with the rim or the tire as I have changed these. What could be causing this?

Have a good one!

This is interesting news. I wonder how long it will take to get a car in North America that uses this new lightened Zeta.

Excellent!

Excellent photography, Chris.

GM Announces 1,100 Dealer Closures Bloomberg is reporting that GM will close 1,100 dealers by the end of 2010, in addition to the Hummer and Saturn closures already announced. Follow the link for more information. Link to Story

Source: http://www.bloomberg.com/apps/news?pid=206...&refer=home GM Is Said to Plan Shutdowns for 1,100 U.S. Dealers General Motors Corp. is sending termination notices today to 1,100 U.S. dealers with about $2.5 billion in unsold vehicles as the automaker starts shrinking its retail network, a person familiar with the matter said. The dealers hold about 120,000 autos of various brands, said the person, who asked not to be identified because GM hasn’t announced details yet. Mark LaNeve, GM’s North American sales chief, is set to brief reporters at noon New York time. The closings are GM’s first step toward paring U.S. dealers to 3,600 from 6,200 by the end of next year as it faces a probable bankruptcy by a June 1 deadline. With fewer outlets, the survivors each may be able to sell more cars at higher prices, boosting profit, the person said. “A concern of all dealers would be if the market value of vehicles were to decline because terminated dealers would be desperate to sell,” said Jim Eagan, a partner at consulting firm Plante & Moran in Southfield, Michigan. Eagan said he hoped that GM would force the remaining franchisees to purchase inventory from stores being closed. Bankrupt Chrysler LLC took similar steps when it announced the shutdown of 789 dealerships yesterday. Peter Ternes, a GM spokesman, declined to comment about the company’s plans. CNBC reported that GM’s letter to terminated dealers says the automaker’s cuts aren’t final yet, without saying where it got its information. ‘Emotional Day’ “It’s quite an emotional day,” said Wyman Williams, 61, who was waiting to learn whether his Williams Motors in Commerce, Texas, is on the closings list. “We’ve been here 40 years and what happens today is really important.” He said he filed for Chapter 11 protection on April 1 for his Chevrolet-Pontiac-Buick store. “It was a necessity, but it worked out as a defensive move,” Williams said. “There’s a judge between GM and me.” GM fell 1 cent to $1.14 at 11:08 a.m. in New York Stock Exchange composite trading. The shares have tumbled 95 percent in the past year. GM is hoping for an orderly wind-down of the affected dealers over the next year or so, the person said, meaning they would close when their inventory is gone. Dropping Brands Today’s shutdowns are in addition to the approximately 500 dealers being shed as GM disposes of its Hummer, Saturn and Saab brands and drops Pontiac. GM has said it expects some dealers to leave voluntarily. In contrast to Chrysler, which waited until it filed bankruptcy to cancel dealerships, GM is taking steps to reduce its retail network now, saying it still hopes to avoid having to restructure in court. Still, Chief Executive Officer Fritz Henderson said yesterday that bankruptcy is “probable.” GM is trying to shave operating costs and shrink debt and union-retiree obligations by $44 billion. The company is surviving on $15.4 billion in U.S. government loans. GM’s 8.375 percent bonds due in July 2033 fell 0.3 cent yesterday to 4.5 cents on the dollar, a record low, according to Trace, the bond-pricing service of the Financial Industry Regulatory Authority. The yield was 175 percent. The bonds traded at 74.4 cents on the dollar a year ago.

CEO Henderson: Bankruptcy Becoming More Likely GM's CEO indicating that GM is heading closer and closer to chapter 11. Follow the Jump for details. Link to Story

This is good news. I'm excited by the prospect of cheaper cars coming from the People's Republic. Same car for thousands off the sticker--what's not to like?

Detroit is becoming a pretty terrible place. Sprawling suburbs with an empty, dangerous, decaying urban core.

They should have gone into bankruptcy a few months ago.

This is amazing.

Have a good one!