White House tells GM boss to step down

[Grey Fox]

In the end we all are share holders of the new GM. Well except the filthy euros.

[Mr.Penguin]

In the end we all are share holders of the new GM. Well except the filthy euros.

No problem we dont want your shitty cars anyway...

[Tonitrus]

In the end we all are share holders of the new GM. Well except the filthy euros.

Excluding those Euros who buy US treasuries...one might say they're kinda in on it.

And the Chinese...and Japan...and....

[Caliga]

No problem we dont want your shitty cars anyway...

Neither do we, which is why GM finds itself in this situation. 

[Zanza]

In the end we all are share holders of the new GM. Well except the filthy euros.

Some of us will have to pay for GM Europe aka Opel/Vauxhall though...

[PDH]

I have thought about this, long and hard, and I have reached the following conclusion:  The USA was too soft on the Axis powers in World War 2, and that is why the large automakers are in trouble.  Had the USA paved over the malcontented countries who made war, this would have never happened, and the glorious days of the American Prosperity could have continued unchallenged for 1000 years.

[Zanza]

I have thought about this, long and hard, and I have reached the following conclusion:  The USA was too soft on the Axis powers in World War 2, and that is why the large automakers are in trouble.  Had the USA paved over the malcontented countries who made war, this would have never happened, and the glorious days of the American Prosperity could have continued unchallenged for 1000 years.

[Neil]

I have thought about this, long and hard, and I have reached the following conclusion:  The USA was too soft on the Axis powers in World War 2, and that is why the large automakers are in trouble.  Had the USA paved over the malcontented countries who made war, this would have never happened, and the glorious days of the American Prosperity could have continued unchallenged for 1000 years.

Had that gone down, the English would have probably stepped up once American cars were revealed as terrible.  Besides, not all the Axis powers make great cars that sell in North America.  Look at Italy and France.

[Savonarola]

New GM to dissolve 2,100 dealers
By Justin Hyde • Free Press Washington Staff • June 1, 2009

General Motors Corp. will pare 2,100 dealers from its business, and has until July 10 to complete the remix of its assets in bankruptcy court paid for by the Obama administration, according to filings today.



In an affidavit, GM Chief Executive Fritz Henderson also reveals that the company looked for investments from foreign governments and considered selling OnStar, but was unable to do either as the economy collapsed last year, leaving the Obama administration plan as the only choice.


"There simply is no viable alternative," Henderson said in the filing. "There is no other sale, or even other potential purchasers, present or on the horizon."


Under the plan GM will sell "substantially all" of its assets to a new company that's owned by the U.S. and Canadian governments, the UAW health-care trust fund and bondholders. The U.S. government will lend $30.1 billion, with the Canadian and Ontario governments pitching in an additional $9.5 billion.


For the first time, Henderson said the new GM will accept 4,100 dealer contracts out of 6,000, leaving 2,100 in the old company. GM had sent letters earlier this month to 1,100 dealers, saying their contracts would be ended by late next year.


Henderson said the new GM would sign "deferred termination agreements" with most of the dealers targeted for closure, giving them up to 17 months' notice, to ease their hardship.


The plan will allow "thousands of dealerships to survive, while providing for an orderly wind-down of those dealerships not being retained," Henderson said. "The alternative to the exercise of sound business judgment is that the Company would liquidate – and all dealerships would cease to be GM dealerships."


Henderson said GM's sorry finances and the weakening economy had left it with no other choices to survive. It had talks with "foreign entities" and sovereign wealth funds about investing in the company, but no accords were reached.


Henderson said GM first broached the idea with Daimler of buying Chrysler in 2007 as a cost-saving move. But after some talks, GM decided a deal "would only exacerbate GM's exposure to a dwindling U.S. automotive market with mounting costs and supplier concerns," and it quit negotiations.


While GM restarted talks in August 2008, the economic collapse the following month locked down corporate credit, and GM pulled out in November.


Henderson said GM also considered selling OnStar, believing it could get $2 billion to $4 billion.

I had no idea so many GM dealerships had donated to John McCain's campaign.




I believe that's about a third of GM's network.

[Barrister]

So Frank Stronach and Magna have a deal where they'll own 20% of Opel, while the Russians will own 35%, GM 35%, and the union 10%.

Good God, what are they thinking?  Your co owners are the Russian government, unions, and GM?  I'm hard pressed to think which of the three is the most competent.

[saskganesh]

chain of command. Stronach says the deal will work because Magana will be making the vital decisions:

Although Magna will hold a minority position in Opel, Stronach stressed his company will provide "the industrial leadership."

"Absolutely, otherwise it doesn't work," he said after flying home to Aurora from Austria earlier in the day. http://www.thestar.com/business/article/643386

[MadImmortalMan]

In the end we all are share holders of the new GM. Well except the filthy euros.

I want to sell my share plz.

[Crazy_Ivan80]

So Frank Stronach and Magna have a deal where they'll own 20% of Opel, while the Russians will own 35%, GM 35%, and the union 10%.

Good God, what are they thinking?  Your co owners are the Russian government, unions, and GM?  I'm hard pressed to think which of the three is the most competent.

it's an excellent trap: the Russkies will inevitably use this to screw over the Europeans. When they do so they'll come over as the bad guys (yet again) and even more europeans will be convinced that Russia needs to be nukes now rather than tomorrow.

[lustindarkness]

In the end we all are share holders of the new GM. Well except the filthy euros.

I want to sell my share plz.

Me too, but no buyers.

[alfred russel]

In the end we all are share holders of the new GM. Well except the filthy euros.

I want to sell my share plz.

I saw Romney on TV pushing the idea that rather than the government and union keep the shares, they should be distributed to taxpayers and union members.

Apart from other reasons this won't happen, after putting in $50 billion the past few months, each income taxpayer should get about $1k in stock--the actual value would be so much less it would be a flashing neon light of how poor government policy has been thus far.