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Automotive News & Views GM News, New Models and Market Share
8452 messages, Last post on Nov 25, 2009 at 11:27 PM
You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires
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Replying to: gagrice (Dec 25, 2008 10:02 am) Actually the government has not yet decided how the money will be distributed. Once they figure it out the automakers can then put in proposals and ask for it. But perhaps we are talking something different. The $25 billion for alternative energy research, etc. was not approved until September of this year. I do not know of, and could not find anything from 2007 pertaining to this. http://blog.mlive.com/chronicle/2008/09/auto_industry_to_receive_25_bi.html And as far as shutting down plants we will see more of it. GM up to this year had to keep plants open due to the fact that even if they closed a plant they still had to pay the workers even if they were sitting home. This last contract allowed massive hourly buy outs and the elimination of job banks. |
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Looks like GMAC is now allowed to become a bank and get part of the bailout monies. So now they have the cash to load to dealers and get them going again. Very good news. Secondarily GM needs to divest from 49% to 10%. So some of that bailout money should go directly to GM for that 39%. Should be over $1 billion. GMAC LCC won Federal Reserve approval on Wednesday to become a bank holding company, giving it access to government lending programs, after owners General Motors and Cerberus agreed to cut their stakes. GM agreed to reduce its 49 percent stake in GMAC to no more than 10 percent, while Cerberus, which owns 51 percent, will distribute equity interests to investors to get its control to no more than 14.9 percent of voting shares. "GMAC believes becoming a bank holding company is the best long-term solution to provide automotive and mortgage financing to consumers and businesses, including auto dealers," spokeswoman Gina Proia said. GM's dealers had said that their customers were having difficulty getting credit from GMAC to buy new cars and were pressing for a swift resolution of GMAC's bid to become a bank. Detroit-based GMAC already has a banking unit that offers certificates of deposit and online savings accounts, but becoming a bank holding company will make it eligible for government support, including guarantees of new debt that it issues. The company could also apply for billions of dollars of capital under the government's $700 billion financial rescue program. ... |
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Replying to: 62vetteefp (Dec 26, 2008 6:22 am)
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Replying to: gagrice (Dec 26, 2008 6:40 am) http://www.gmacmortgage.com/index.html http://www.gmacbank.com/index.html And then they have a GMAC financial group that offers "Demand Notes" that when I call the above link they say they have nothing to do with the Demand notes, yet the logos look the same. http://www.gmacfs.com/us/en/business/investing/demandnotes/ Which of these 3 are getting the money and becoming a bank? Well I answered my own question. Per the media GMAC FINANCIAL will be getting the money. I believe that when Cerberus bought GMAC from GM they only purchased the Financial part and not the bank/Mortgage part? So now there will be two GMAC banks?? So confusing. But now I found a link to GMAC bank/Mortgage from the GMAC financial website and this: GMAC Financial Services is a global finance company operating in and servicing North America, South America, Europe and Asia-Pacific. GMAC specializes in automotive finance, real estate finance, insurance, commercial finance and online banking. As of Dec. 31, 2007, the organization had $249 billion in assets and serviced 15 million customers. Founded in 1919 as a wholly owned subsidiary of General Motors Corp., GMAC was established to provide GM dealers with the financing necessary to acquire and maintain vehicle inventories and to provide customers a means by which to finance vehicle purchases. The company's products and services have since been expanded and now include three primary lines of business: automotive financing, real estate financing and insurance. On Nov. 30, 2006, GM sold a 51 percent controlling interest in GMAC to a consortium of investors led by Cerberus Capital Management, L.P., a private investment firm, and included Citigroup Inc., Aozora Bank Ltd. and a subsidiary of The PNC Financial Services Group, Inc. So it looks like all of the above is one company with 51% owned by Cerberus and 49% by GM. So the first link says they are a bank. What changed to make GMAC a bank that can get money? What is different that they can call themselves a bank holding bank?? FYI, GM got $13 billion for the 51% they sold to Cerberus in 2006.
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Replying to: 62vetteefp (Dec 26, 2008 7:42 am) |
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Replying to: 62vetteefp (Dec 26, 2008 6:22 am)
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Replying to: jae5 (Dec 26, 2008 11:52 am) If GM held 51% I would say it would get out since it would help GM. At 10% with non voting shares I believe they will have little recourse? |
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General Motors has spent millions of dollars developing and marketing its 2010 Chevrolet Camaro, which is scheduled to go into production in February. But the bankruptcy of an interior parts supplier is threatening to delay the pony car, which isn’t just bad news for GM, but could have a ripple effect on dealers and even other suppliers. In an effort to prevent a delay of the new Camaro, GM has filed a lawsuit against Cadence Innovation LLC, accusing the company of “holding hostage” the parts it needs to put the car into production. The suit demands Cadence immediately hand over the parts and equipment required for a new supplier to take over. GM says it needs to have a new supplier in place by January 12th, or it will not be able to begin production of the Camaro on schedule. “Even one day’s disruption in supply of certain component parts could cause a shutdown of GM assembly operations, disrupting not only GM’s business, but the operations of countless suppliers, dealers, customers and other stakeholders,” the lawsuit states.
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Replying to: 62vetteefp (Dec 26, 2008 7:38 pm) |
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