bankruptcy

  • Karmann Ghia coupe

    Last year a spate of bankruptcy threats and possible acquisitions or closures hit the coachbuilding industry, but today Karmann, perhaps most famous for the Karmann Ghia conversion, is closing its doors. Bankruptcy is the next step, and it's not clear if the firm will come out the other side. The final car built by Karmann, which also does contract work for other carmakers, was a Mercedes-Benz CLK - now replaced by the E-Class Coupe. The convertible rolled off the line on Monday. A company statement said simply, "Today, the last car built entirely by Karmann rolled off the assembly line,"...

  • GM Detroit headquarters
    GM sees possibility for early exit from Chapter 11

    Much talk over the messiness of so-called 'surgical' bankruptcies has spun about the web, and before Chrysler and General Motors went into the process, there was a lot of doubt that they'd be out within the planned 60 days. But Chrysler is already working with Fiat and now GM sees itself possibly...

  • Bill Ford, Jr.
    Ford: Government loans to Chrysler, GM saved the industry

    It's easy to look at the bailouts and bankruptcies of General Motors and Chrysler as a big-government bonanza. Some even see tints of socialism in the loans and subsequent government ownership stakes. But as Ford points out today, there was more at stake than just two companies. The entire...

  • Sergio Marchionne, CEO of Fiat
    Marchionne says Fiat will stick with Chrysler deal despite delay

    Although Fiat's purchase of Chrysler seemed almost a done deal last week, today the U.S. Supreme Court has issued an indefinite stay on the sale until it can decide whether to hear an appeal from some of Chrysler's creditors. But the delay won't stop Fiat CEO Sergio Marchionne from sticking to the...

  • Meet the new GM...not quite the same as the old GM
    Ed Whitacre to be named chairman of New GM

    A bit over a week into GM's bankruptcy and we're starting to see announcements that mirror those made by Chrysler about a month ago. Today's is the naming of the post-reorganization chairman of GM, Edward E. Whitacre Jr. The appointment of a new chairman, to take the place of GM's interim chairman...

  • U.S. Capitol Hill
    Republicans and Democrats blame each other for GM collapse

    The collapse of General Motors has seen some of the most divergent views on both politics and the automotive industry appear in recent times, and even though the collapse of GM had been predicted for months, if not years, there is still arguing over who was responsible and what American consumers...

  • Rick Wagoner Alan Mulally George Bush

    Earlier this week General Motors formerly announced that it had filed for chapter 11 bankruptcy but the truth of the matter is that the struggling automaker’s downfall was predicted years ago and it has only managed to survive up until now on the back of government handouts. According to latest comments from former vice president Dick Cheney, the Bush administration was well aware of GM’s troubles and knew the automaker should have entered bankruptcy back when it was in power but decided to let the issue slide until after a new president was sworn in. During an interview on Fox...

  • Meet the new GM...not quite the same as the old GM
    GM appoints Detroit turnaround expert Al Koch to oversee bad assets

    In times of trouble, companies need a solid leader to help turn their fortunes around. You only need to look at what Fiat has achieved in the past few years with Sergio Marchionne at the helm to understand the benefit of appointing a turnaround expert. To help facilitate GM's turnaround, the...

  • GM American flag
    Official: GM files for Chapter 11 bankruptcy

    General Motors today announced that it has filed for Chapter 11 bankruptcy following an agreement reached with the U.S. Treasury and the governments of Canada and Ontario to accelerate its reinvention and create a leaner and stronger "New GM". The filing is the third-largest in U.S. history and the...

  • GM Detroit headquarters
    U.S. government pledges $30 billion in GM bankruptcy financing

    It's been expected for a long time but it finally appears as though General Motors’ bankruptcy is upon us, and with it the federal government is set to bring the struggling automaker out of its eventual Chapter 11 filing with over $30 billion in financing. The news comes from White House...

  • Meet the new GM...not quite the same as the old GM
    GM bondholders agree to take 25% of new company, U.S. Treasury gets 72.5% ownership

    As General Motors prepares for a bankruptcy announcement on June 1, the U.S. Treasury is helping to pave the way by releasing a new deal that leaves GM's bondholders with 25% of the restructured company, and the government as a 72.5% 'inactive' stakeholder. Winning the support of the bondholders...

  • GM Warren Tech Center
    Warren encouraging GM to move corporate HQ with tax breaks

    Detroit has long been the heart of America's automotive industry, but 2009 has been a major period of upheaval for the city, with further shocks expected to come - including the possibility that General Motors will move its corporate headquarters out of Detroit downtown area and into a neighbouring...

  • A UAW worker assembling a Hummer H3T

    The U.S. Treasury, General Motors and the United Auto Workers have reached a tentative bargain on how they'll deal with changes to the current agreement in the face of the industry's problems and GM's increasingly probably bankruptcy. The details of the deal are being kept quiet until the local unions ratify, but it's expected to be a done deal by late next week. Without the UAW deal, GM would be hamstrung in any attempts to stay out of a government-managed bankruptcy. GM may still be unable to avoid it, but with the new UAW deal meeting U.S. Treasury approval, there at least remains a...

  • GM Cadillac dealer
    GM to close 42% of Canadian dealer network

    The symptoms of America's ailing carmakers don't recognize borders, and no nation is more keenly aware of that fact than Canada. That's doubly true after today's announcement of General Motors' planned closure of 42% of the company's Canadian dealerships. In all about 300 dealers will be shuttered...

  • Dodge Challenger
    Report: Chrysler to offer $1,000 certificates to all existing customers

    As bankruptcy thrashes Chrysler vehicles' resale value the company is pulling out all the stops to keep sales up until it can emerge and join forces with Fiat. To help get feet on the floors of its remaining dealerships, the company is now reportedly getting ready to send out $1,000 certificates...

  • Jeep Wrangler Rubicon
    Chrysler resale values down 6% in a week as uncertainty rules the day

    It's simple math: carmaker plus bankruptcy equals uncertainty and lower resale values. But Chrysler owners are feeling the bite of that equation as the value of their vehicles dropped 6% on average in a single week. In the week after Chrysler filed for Chapter 11 bankruptcy protection, owners of...

  • Chrysler Sebring
    Dodge Avenger, Chrysler Sebring safe from the axe through 2010

    As Chrysler pushes forward during its bankruptcy period and prepares for its new face and alliance with Fiat, many are wondering what will come along for the ride and what will be left behind. News today from within Chrysler reveals that the Chrysler Sebring and Dodge Avenger, as oft-maligned as...

  • 2010 ford taurus 001
    Ford's image improves by staying above the fray, says study

    It wasn't so long ago that people were deriding Ford for mortgaging the Blue Oval itself, key investors were dumping shares into the open market and the company was forced to sell off its stake in Mazda. But now a study is saying things have turned around, with Ford's image improving in relation to...

  • GM American flag

    The U.S. government may soon become a substantial shareholder in General Motors if a new plan to convert all of GM's debt to equity goes forward. On Friday, President Obama's task force on the industry ordered GM to prepare a plan to convert all of its debt - about $48 billion in total - to equity. That would give the federal government about $13.4 billion in equity thanks to the taxpayer-funded loans disbursed over the last several months. GM will likely make the debt-for-equity swap announcement sometime in the next two weeks, according to inside sources speaking with Reuters. The process...

  • GM American flag
    Bondholders consider increased debt-for-equity-swap as GM bankruptcy looms

    GM's decline over the course of this year wasn't enough to convince bondholders and the UAW to grant any concessions, but recent reports that the carmaker was in precautionary preparations for filing a Chapter 11 may have galvanized action on the part of the bondholders. Allowing GM to go to...

  • GM Detroit headquarters
    GM preparing for bankruptcy

    General Motors is reportedly preparing for the worst, with work under way to get the company ready for a possible bankruptcy. Earlier on this month, it was mentioned that a bankruptcy plan to split GM and retain only the most profitable aspects of its operations while ditching the dead weight was...

  • GM's Fritz Henderson isn't afraid to talk about bankruptcy
    GM bankrupcty could split healthier brands off into separate company

    Hidden away in General Motors' plans for the next 60 days is a bankruptcy strategy that could see its most successful brands peel off to form a second company, leaving the other brands to languish in bankruptcy for a more extended period. The news comes from an anonymous source within GM via...

  • GM and Chrysler headquarters
    Auto industry task force rejects GM and Chrysler viability plan

    The Obama administration auto industry task force has rejected viability plans for General Motors and Chrysler and threatened that both may be forced into bankruptcy unless further sacrifices are made. The task force has consistently stated that its goal is to solve the industry's problems rather...

  • 2010 saab 9 3x 007
    GM and Saab agree to five-year parts sharing deal

    When the news of Saab being splintered from General Motors' holdings, many lamented the demise of the Swedish carmaker, assuming it would be unable to stand alone. But a new parts sharing agreement between Saab and General Motors offers some hope that the brand born from jets might yet live to fly...

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