GM, Chrysler and Ford news, all in one thread!

oztiks

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Pontiac Is Dead

« Reply #15 on: April 26, 2009, 05:44:03 PM »

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DETROIT — According to a source at General Motors, the company will announce next Monday its new "faster, deeper" reorganization plan, which will likely include a death sentence for the Pontiac brand.

Inside Line called Tom Wilkinson, news relations PR man for General Motors, who said: "There's nothing I can share with you at this time. Keep your eyes on our media site. Officially, nothing has changed with Pontiac's niche-brand status, until you hear differently."

The one-time "Excitement" division and creator of legends such as the GTO and Firebird was relegated to "niche" or "specialty" brand status by General Motors in its first viability plan in December of last year.

The company toyed with competing proposals to either turn the brand into GM's version of Scion or to make Pontiac a very focused purveyor of performance cars based around the critically well-received G8. But ultimately, Pontiac was chosen as the easiest to kill since it was cut from GM's self-defined herd of four "core brands," Chevrolet, Cadillac, GMC and Buick. Most Pontiac franchises have already been combined with Buick and GMC.

If true, Pontiac will join Saab, Saturn and Hummer as brands that will not survive GM's current troubles — at least not as a component of General Motors.

Inside Line says: Just as the G8 reawakened our interest in 83-year-old Pontiac, the brand falls victim to bad times and old mistakes. — Daniel Pund, Senior Editor, Detroit

http://www.edmunds.com/insideline/do/News/articleId=146706


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oztiks

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Chrysler lenders aim to stop sale

« Reply #16 on: May 05, 2009, 08:45:06 PM »

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A group of lenders unhappy with the reconstruction of Chrysler - in Chapter 11 bankruptcy protection - has asked a New York court to halt the process.

The US government is backing a plan to sell most Chrysler assets to a new entity led by Italian carmaker Fiat.

But a group of 20 lenders, including hedge funds, want the deal blocked.

Lawyers representing the group, who have also asked for their identities to be kept secret, said the plan would go against normal bankruptcy principles.

Chrysler has asked for permission for a quick sale of most of its assets to a new company held by Italy's Fiat , a United Auto Workers union healthcare trust and the US and Canadian governments.

'Illegal plan'

The group of lenders says the proposed procedures are not legitimate and do not maximise the sale price of the assets.

They have also previously said Chrysler's proposed plan "inverts" the usual priority scheme, whereby senior secured creditors are paid in full first, followed by junior lenders, administrative claims, unsecured lenders and equity holders.

Creditors object to the way the restructuring benefits the United Auto Workers union, which is an unsecured creditor, for the $10.6bn Chrysler owes to its retiree healthcare fund.

In addition, they say the anonymity request is because they feel they are unfairly becoming the focus for a political backlash.

When President Barack Obama unveiled the proposed Chrysler bankruptcy last week he called the lender group - who hold more than $300m of secured Chrysler debt - "speculators."

Michigan Governor Jennifer Granholm has described the group's members as "greedy hedge funds," and Representative John Dingell, a Michigan Democrat, has labelled them as "vultures."

In a court filing the lender group said some of their members have received death threats.

The group has urged the court to prevent the sale or substantially change it.

Full Article


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Rippling Hurst

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Re: GM, Chrysler and Ford news, all in one thread!

« Reply #17 on: May 05, 2009, 09:59:57 PM »

This is very, very troubling if true...


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