Archive for the ‘Financial’ Category

posted by GM Fan on Apr 29

After many years of trying to get out of its own hole, General Motors finally wraps up its payment to the US Treasury and Export Development in Canada. The company was also able to invest $257 million to prepare its Malibu plants in Kansas (primary), Fairfax and Detroit Hamtramck (secondary). GM paid a total of $5.8 billion, with $4.7 billion owing to loans made from the US and the remaining $1.1 billion to Canada. According to Automotive News reports, the US government still holds equity stakes in GM.

The company’s ability to pay back ahead of time is a sign that GM’s financial plan is working, says GM CEO Ed Whitacre. This is definitely good news for GM investors around the globe. Whitacre also stressed on the importance of letting their investors reduce their equity investments.

GM’s sales shot up to 36%, though, compared to the previous year. The popular crossover models including the 5th generation Camaro, the mid-sized Malibu and Lacross, and the range vehicles Equinox, Traverse, Acadia, and SRX all contributed to the increase in sales growth.

Read the rest of this entry »

posted by GM Fan on Jun 26

There is no such thing as a smooth exit route from bankruptcy, and auto industry giants like General Motors and Chrysler created some buzz on all media when they declared Chapter 11. Everyone doubts that they will be out of it within the plotted 60 days but it seems GM will be setting up a new shop by 15 July.

According to some reports, there will still be some impediments to overcome before GM can see its new beginning. Most of these processes will not have GM calling the shots— the bankruptcy judge still needs to rule on urgent matters by July 1. The court will hear a call for sale based on Section 363 which will involve putting on the market of the GM assets.

The General Motors is eyeing to form a new company by mid July and try to cut its time in the bankruptcy court. Among the major issues needed to be addressed is the reorganization.

The car manufacturer aims to chop of from its rank hundreds of dealerships across the United States before the end of 2010. The dealers who will remain in business can definitely smile but be ready for tougher demands for their businesses.

Read the rest of this entry »

posted by GM Fan on Mar 10

1996 Buick Custom BlackhawkThe time for housekeeping has come for General Motors. Approximately 200 cars were auctioned in Scottsdale, Ariz. The cars were from the manufacturer’s Heritage Fleet. The auction was done at Barrett-Jackson collector car auction.

They have been doing this kind of movement in the past. It has been a normal housekeeping for them as part of the whole process.

Included in the auction was a 1996 Buick Custom Blackhawk (photo right). Up for grabs at that time was the 2000 Buick Custom Blackhawk which was sold at $475,000. A 1904 Oldsmobile Turning Runaboout was even sold. Truly a housekeeping stage for General Motors.

For the racers, two Pennzoil-liveried IRL race cars were included in the auction. A Chevy S-10 stadium race truck was also auctioned along with the 1998 Chevy S-10 drag truck.

Read the rest of this entry »

posted by GM Fan on Feb 28

Maximum BobRobert “Maximum Bob” Lutz, the celebrated product man, says goodbye to General Motors.

Maximum Bob has been with the car company since 2001, who first served as the vice chairman for the global marketing development, and he is greatly known – when he is not aboard on fighter planes – for designing and planning the Chevy Volt concept from scratch to its early stage of conceptualization.

Maximum Bob announced that he will step down from his position and Thomas Stephens will be the one who will take the position. Stepping down from the position on General Motors is not the end of Bob’s function as the product czar, for he will continue to give his opinion to the company with regards to product-related issues from April up to the end of this year. General Motors said that he will retire for good at the end of 2009.

Read the rest of this entry »

posted by GM Fan on Jan 17

General Motors kicked off with the expansion of the Invest in America program where 90 million credit union members can take advantage of the Credit Union Member Discount Program through participating dealers.

GMThe scheme also allows union members to access loans for purchasing new vehicles. GM will be able to reach out to members of around 8000 credit unions across all states and gives them discount for new car purchases. They may also tap into the available $80 billion easy to the pocket credit union auto loans.

The move of the GM follows their trial expansion in four Midwest states early December of 2008.

Chrysler LLC also widens its coverage of credit union programs as it is now available nationwide growing from 12 states.

Read the rest of this entry »

posted by GM Fan on Nov 15

General Motors are delaying the production of the Chevrolet Cruze and other vehicles as company executives are making decisions on a day to day basis. The cut in product development finances will save GM a hefty $1.5 billion.

In the recent weeks, the company has announced to the public that it will be cutting its budget for product line expansion for as much as two years with a greater percentage of belt-tightening happening in 2009.

Experts see the move as an anxious step to stay afloat amid the credit crunch. This means that dealerships will not get the cars that they are supposed to sell on time, cars which will help GM recover.

Read the rest of this entry »

posted by GM Fan on Nov 15

The financial crisis takes its toll on the global economy with the US car industry feeling the grip on its neck. Car manufacturers have reported major losses and seek urgent help from the federal government but the Bush administration rejected the low interest loan sought for by the industry.

President-elect Barack Obama dances to the same tune playing during his campaign recognizing the need for more loans for the car industry. Obama revealed during a television interview that he has delegated his staff to study the potential solutions to the looming crisis making life difficult for car producers.

The auto industry is identified by the US president-elect to be the spine of American manufacturing and promises to prioritize the problem if the Congress will not be able to take action during their November 17 session.

Read the rest of this entry »