Tuesday, December 2, 2008

GM concessions, Detroit 3 needs 34 billion

Well, we are getting info today at breakneck pace, as expected. First, let's have a look at some of the concessions and/or plans that GM is proferring to Congress:

From Automotive News:

"...GM will focus on its "core brands" of Chevrolet, Buick, GMC and Cadillac, the plan says. GM will sell Saab, shrink Pontiac to a niche brand and consider selling or closing Saturn, GM President Fritz Henderson told reporters at a briefing today.

GM also plans to trim its U.S. dealerships from today's 6,450 to about 4,700, Henderson said. It will cut about one-third of the nameplates from its vehicle lineup.

In the starkest acknowledgement GM has made of its financial condition, the company says it needs $4 billion in federal aid by the end of the month.

GM's plan asks Congress for $12 billion in loans by the end of March. It seeks another $6 billion in revolving credit if market conditions don't turn around.

Henderson said GM will seek a buyer for Saab. Pontiac will be shrunk to a "specialty, niche" brand, Henderson said. GM already has put Hummer up for sale.

Under its franchise agreement with Saturn dealers, GM will seek a new course for that brand, Henderson said. Asked whether GM would sell or fold Saturn, he said he would not eliminate any options.

Trimming GM's 6,450 U.S. dealerships to about 4,700.

Reopening talks with the UAW to cut manufacturing costs further."

Poor Saturn. Looks like they are history. The other thing that jumps out at me is GM's pressing need for 4 billion by the end of the month! WOW, where did that come from? Let's keep going and see what the new loan tally is.

From Automotive News:

"The Detroit 3 today increased their appeals for federal loans beyond the $25 billion requested in November.

General Motors, Ford Motor Co. and Chrysler LLC together are asking Congress to approve loans and credit lines that total $34 billion. The Detroit 3 submitted their business plans to lawmakers today.

House Speaker Nancy Pelosi said automakers will get help. "An intervention will happen," she said at a Washington news conference. Echoing industry leaders, the California Democrat said bankruptcy is not an option for any of the companies."

That is a pretty serious inflation rate, dontcha think? From 25 to 34 billion in a matter of weeks. Wow,

AND FINALLY, who does Nancy Pelosi think she is? The Prime Minister? The Shah? The Royal Grand Poobah? She obviously thinks that she controls the entire Congress. What a head job.

I think Ford and GM have submitted good plans. I just wish we had some assurances that they will stick to them!

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