Opel Escapes Clutches of GM

GM has had its hands full lately. As the automaker plans to get rid of or minimize a number of its brands, including Saturn, Saab, Hummer, and Pontiac, GM has officially announced that it will be spinning off Opel into its own brand. The German subsidiary of the American conglomerate has already asked the German [...]

Jaguar and Land Rover CEO calls for urgent action on government bailout

Jaguar Land Rover CEO David Smith has urged immediate action by the British government to deliver the aid package promised to the UK’s automotive industry if serious industrial consequences are to be averted. The latest announcement comes just weeks after Smith said that instead of a bailout he would prefer the government to get credit [...]

Jaguar and Land Rover say no to government bailout

The world economy, and especially the automotive industry, is amidst one of the toughest times in several decades. Rebuilding confidence in that economy and boosting sales back to profitable levels will be a difficult task, however the boss of one struggling carmaker has said no to a government funded bailout despite the hard times.
Jaguar [...]

Chrysler’s LaSorda denies sale of brands

One of the biggest criticisms for struggling Detroit carmakers General Motors and Chrysler is the number of brands they have under the one roof and the associated problem of selling models that often compete with one another in the same segments. In its efforts to secure its share of a federal bailout, GM said it [...]

GMAC drums up $21.6 billion in debt-for-equity swaps

GMAC has leveraged the recent promise of U.S. Treasury funds to boost its lending capacity, and now it has generated another $21.2 billion in cash via debt-for-equity swaps with its bondholders. The fund raising is part of the company’s’ effort to raise enough cash to meet the regulatory requirements of a bank holding company, and [...]

U.S. Treasury secures $6 billion in aid for GMAC

The U.S. Treasury on Monday announced it will be making $6 billion in Troubled Assets Relief Program (TARP) money and other funding available to troubled car lender GMAC. The Cerberus and GM-owned entity will get $5 billion in TARP funds plus another $1 billion from a Treasury-backed General Motors purchase of GMAC equity.
Last week the [...]

U.S. Federal Reserve approves GMAC request for bailout eligibility

The U.S. Federal Reserve on Wednesday approved GMAC’s request to be considered a bank holding company, effectively paving the way for the auto financing company to apply for federal aid from the $700 billion bailout fund established earlier this year. The news breathes new life into the troubled finance agency’s future, as bankruptcy had been [...]

Bush signs $17.4 billion auto industry bailout package

The on-again, off-again saga of the auto industry rescue package has finally come to a (temporary) end: President Bush this morning signed an agreement securing $17.4 billion in loans for General Motors and Chrysler LLC. The funds will tap an unused portion of the Troubled Asset Relief Program (TARP) funds used to bailout Wall Street.
Speaking [...]

Senate rejects auto industry bailout plan

The U.S. Senate rejected an emergency bill to provide billions of dollars of aid to the Detroit 3 carmakers late on Thursday, dashing the hopes of General Motors and Chrysler, both of which may run out of cash by the end of the year.
“We have not been able to get this over the finish line,” [...]

Canada approves $3.3 billion auto industry bailout

After conditionally approving an bailout package for the Detroit 3 carmakers that was dependent on the U.S. government approving its own aid fund, Canada’s lawmakers have agreed to offer up to CAD$4 billion (US$3.3 billion) in emergency loans to the local arms of General Motors and Chrysler. The announcement comes after Friday’s signing of a [...]

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