GM to save? Chevrolet Cruze, 1.4 eco engine Flint plant

by SOLARLIFE | September 26, 2008 at 12:47 pm | 84 views | add comment | 0 recommendations

CRISIS ROOM GM

"It seemed like a lot when we first started pushing $25bn," says Democratic Sen. Debbie Stabenow of Michigan, one of the bill's sponsors. "Suddenly, it seems so small."

REVOLVING LOANS AND "GOVERNMENT BAILOUT LOANS"

Chapter 11 forecast GM
BANKRUPTCY CHAPTER 11 DEADLINE GM 2009 / Q3
GM could start to run out of cash by the second half of 2009, a precursor to declaring bankruptcy

With Congress preoccupied with the massive, $700 billion bailout plan for the financial industry, General Motors (GM), Ford (F), and Chrysler have finally secured Part One of their own federal rescue plan. A bill set to be passed by Congress and signed by President Bush as early as this weekend — separate from the controversial Wall Street bailout plan — includes $25 billion in loans for the beleaguered Detroit automakers and several of their suppliers. "It seemed like a lot when we first started pushing this," says Democratic Sen. Debbie Stabenow of Michigan, one of the bill's sponsors. "Suddenly, it seems so small."

But please don't call it a "bailout" — Detroit is too proud for that
There's more aid coming. This year's $25 billion is just a down payment. The automakers now plan to ask the government for another $25 billion in loans next year. It's just spare change, after all.

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Crash is averted as car firms win revolving loans
The Agreements made before credit crisis

Factory as collateral for loan
Facing a deep financial crisis, Detroit's two top auto makers GM and Ford have had to pledge some of their most essential assets, such as factories and equipment, as collateral to win badly needed new loans.

GM $11bn loss 2007
GM, which posted a $11 bn loss last year, in July extended a credit line from a syndicate of banks under new terms that give the company a $4.6 bnrevolving loan backed by North American assets including inventory, plants and property.

J.P. Morgan Credit suisse must find the money
On Monday, GM used equipment in some of its U.S. plants to secure a $1.5 billion loan to be arranged by J.P. Morgan Securities Inc. and Credit Suisse Securities. Since secured loans are less expensive than unsecured financing, they are now a more attractive option for GM

Buy a car $2500 cash back, GMAC at an end
GMAC Financial Services, the country's largest auto-finance operator, late to see the problem is now raising its lending standards. It will be too little too late.

GM junk rated
Like a junkie, GM and GMAC both need more cash. Again and again, the story is the same. Eventually there will be no more assets to pledge.

Corporate loss hiding
Borrowing money at 10%+ and paying dividends of 7.3% is simply fiscal incompetence. Citigroup (C) does the same thing, and so do many other financial institutions.

Wrong dividend to keep share holders
Why do they do it? The only possible reason is they think shareholders will dump the stock if they cut the dividend.

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1,4 engine and Chevrolet Volt, taxpayer financed

New 1,4 Liter 4-cylinder engine plant: 40 mls/gln plant

Friday, September 26, 2008
GM's new Flint engine plant called area catalyst

The Detroit News
FLINT -- General Motors Corp.'s $370 million plant that will produce two new fuel-efficient engines -- including one for the Chevrolet Volt -- could be a catalyst to draw others to the area to research and develop advanced automotive technology.

The new plant, which was announced Thursday, also will build a separate engine for the Chevy Cruze small car and could spur millions in additional investment as automotive scientists, researchers and competitors hurry to open nearby.

"It's a natural fit that these jobs come to the region," said Scott Watkins, a technology expert with Anderson Economic Group LLC. "This is exactly the type of investment Michigan should be attracting."

Chevrolet Volt plant, electric hybrid cars

An industry-wide race to develop electric and other vehicles relying on alternative propulsion technologies could reinvigorate the region. The Volt, which relies on a lithium-ion battery pack that will let commuters travel up to 40 miles on electric power alone, is only one potential magnet.

Chrysler LLC this week promised to introduce its own electric car by 2010 and Tesla Motors also is building an electric sports car that is being researched and developed in Rochester Hills