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Automotive News & Views GM News, New Models and Market Share
8495 messages, Last post on Nov 28, 2009 at 2:42 PM
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Since GMAC was taken care of (that was part of the monies GM had asked for) they may not need anymore loan money IF sales do not go below 10.5 million. General Motors Corp. said it has enough government loans to cover its worst-case forecast for U.S. auto sales and won’t need more if the economy holds up. Pledges from the U.S. Treasury for as much as $13.4 billion to help GM pay bills and $6 billion to prop up lender GMAC LLC will meet “our liquidity needs under the scenarios outlined in our December plan to Congress,” spokesman Greg Martin said yesterday. In December, GM requested $18 billion in federal loans, saying that was what it needed to make it to 2010. That number factored in GM's 49 percent stake in its struggling financial unit, GMAC Financial. But GMAC gained status as a bank holding company and secured $6 billion of its own federal funding. The U.S. Treasury Department gave GMAC $5 billion in exchange for preferred stock in the financing company and lent GM $1 billion to invest in GMAC. "So in actuality," said the source familiar with GM's finances, the amount the government delivered "was substantially higher than the $18 billion GM asked for." |
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Toyota is suspending production at all 12 of its Japanese plants for 11 days over February and March, a stoppage of unprecedented scale for the nation's top automaker as it grapples with shrinking global demand. The last time Toyota Motor Corp. halted production at all its Japan plants was in August 1993, when demand plunged because of a rising yen, and that was for only one day, according to the company. Toyota last year suspended production at its auto plants in Alabama, Indiana and Texas for three months, and shut down output for two days in December at all its North American vehicle factories including five in the United States, one in Canada and another in Mexico. |
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Replying to: 62vetteefp (Jan 07, 2009 12:25 pm) So I'm not quite sure what this means for 2010. They will or won't need another loan? When does GM start making a profit? How do they get to the point where they can make a profit? How long does it take for GM and GMAC to repay the loans, counting the interest?
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Replying to: 62vetteefp (Jan 07, 2009 12:25 pm) GM will be back asking for more support (unless the debt they owe somehow goes away and people flock to only GM dealerships to by cars in April...and Red Tag sales are not necessary to support sales). Regards, OW |
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Replying to: 62vetteefp (Jan 07, 2009 12:27 pm) You can look at who else is down, but that neither helps nor hurts GM's business, unless the competition fails and GM gets their marketshare. With a $1.2T budget deficit forecast for next year already, before the Obama stimulus plan, the economic future is looking pretty bleak. This continued downturn will mean several of the major auto manufacturers of the world will fail, or all will need to permanently cut their size and costs 30%. The global expansion of auto production has went too far, just at the wrong time, and the financilly weak in the industry will fail.
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Replying to: kernick (Jan 07, 2009 1:13 pm) That's why their statement is wrong again. I'd love to fire the guys who approved releasing that statement. Unbelievable. We are all very aware that GM will need more support...unless they cut more than expected...NOT. Regards, OW |
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Replying to: kernick (Jan 07, 2009 1:13 pm) It's all a part of the market forces for automobiles. Why not post the news? Many people continually post everything they feel is good about Toyota to put down the products that GM makes..., why shouldn't Toyota's problems be listed?
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Replying to: kernick (Jan 07, 2009 12:56 pm) Good point. GM will not need anymore loans if the sales do not get worse than what is now considered worst case. '09 on. As has been posted here GM has cost savings coming over the next year to lower overhead and the cost of vehicles to be profitable. Loan repayment is part of the restructuring plan. http://media.gm.com/servlet/GatewayServlet?target=http://image.emerald.gm.com/ne- wspublisher/support_file/12-02-2008/38/081202%20Congressional%20Submission%20Fin- al.pdf
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Replying to: imidazol97 (Jan 07, 2009 3:57 pm) |
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Looks like GM has some competition. Will be interesting to see the annual fee. Toyota Motor Sales has announced a new in-car convenience telematics program for select Toyota and Lexus models that sounds a lot like GM's popular OnStar program. The proprietary system will be dubbed Safety Connect for Toyota buyers and Lexus Enform for ToMoCo's luxury brand. There's a lengthy press release after the jump, but here are the salient points. Safety Connect is the core service and, as its name implies, is designed to give drivers additional peace of mind. The system features four different safety and security elements: Automatic Collision Notification (ACN), an Emergency Assistance Button (SOS), Stolen Vehicle Location (SVL), and Roadside Assistance. Using embedded cellular and GPS, it can signal help if there's an airbag deployment or a severe rear-end collision. If the system isn't triggered automatically, the Emergency Assistance Button (SOS) can be used to contact the help center manually. If the car is stolen it can be tracked once a police report is filed. The system also includes Roadside Assistance through the SOS button when the driver needs mechanical assistance. Lexus did use GM's OnStar system After years of quiet talks with General Motors Corp., Toyota Motor Corp. this week will unveil its 2001 Lexus luxury sedans equipped with its rival's OnStar in-vehicle communications service. The licensing deal with Toyota puts GM solidly ahead of the automotive pack in developing in-vehicle Web and cellular communications systems. It should also help GM inch closer to its $61 million year-end revenue target for OnStar sales. But the pact is expected to have little near-term impact on Toyota's Lexus sales in the U.S., Lexus dealers said. GM launched OnStar, a satellite-based Global Positioning System (GPS) mapping and cellular calling service three years ago. Aichi, Japan-based Toyota will begin shipping the 2001 Lexus LS 430 to its dealers on Thursday. The restyled vehicle has a suggested price tag of $54,000. GM's OnStar service, which Toyota has rebranded as Lexus Link, is available as a factory-installed option at a cost of $1,215.
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