Today's Other Bailout: $25bn for Auto makers. Revolving loans, GM to save?

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Today's Other Bailout: $25bn GM to save? CHEVROLET VOLT

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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

But please don't call it a "bailout" — Detroit is too proud for that. House approves $25 billion loan to automakers

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 bn revolving 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

JPMorgan, Citigroup, BoA drained by revolving credits 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

Chevrolet Volt plant, electric hybrid cars

Hope:  Eco engine 4cylinder and Volt ?
The new Flint plant will produce a 1.4-liter turbo engine for the Cruze that will debut next year and get about 40 miles per gallon, and a 1.4-liter naturally aspirated engine for the Volt. A third of all GM engines made in North America in 2011 will be four-cylinder. The Volt, which still must withstand engineering and product testing, is expected to be available in November 2010 and cost as much as $40,000