Word: gm
(lookup in dictionary)
(lookup stats)
Dates: during 2000-2009
Sort By: most recent first
(reverse)
...confidence of prospective car buyers and sent a strong message to the United Auto Workers union and bondholders that the government is dead serious about implementing a major restructuring of both companies - and won't wince at bankruptcy if that's what is required to get the job done. GM's new CEO, Frederick A. Henderson, basically repeated that message at his Tuesday-morning press conference, even going so far as to say that bankruptcy was now "more probable," though not desirable. (See pictures of the remains of Detroit...
...many current and future GM or Chrysler car owners - and more than a few car dealers - the government promise is a bit of a head spinner. For example, if you're the happy owner of a GM or Chrysler car now, does the new government backing pertain to you? (No.) If you purchase a GM or Chrysler car today, are you covered? (Yes.) Last week? (No.) And if you buy while either company is in bankruptcy...
Under the plan, called the Warranty Commitment Plan, both Chrysler and GM will contribute money to a special purpose company that will ultimately hold enough money to cover 125% of potential warranty claims. GM and Chrysler would contribute 15% of the required funds, and the Treasury would put in the rest. This special company would be separate from the automakers and would continue to pay for warranty service in the event of bankruptcy or liquidation. It does more: if Chrysler were liquidated in bankruptcy, for example, the warranty company would find a new service provider to oversee warranty-related body...
...credit the odd couple for playing tough with all sides, Rattner and Bloom's initial efforts are meeting with only moderate success. The stock market reacted negatively to the government's plan on Monday, with the S&P 500 dropping nearly 3.5% on fears that bankruptcy was inevitable for GM and Chrysler - a fear that the Administration did little to calm. President Obama, in his speech announcing the deal on Monday, tried to put a good face on things, laying out measures to save the companies, soften the blow to autoworkers and encourage auto sales with guaranteed warranties...
...real test of Rattner and Bloom's collaboration is upcoming. Obama, in putting new conditions on any more billions being handed to Detroit, gave Chrysler 30 days to strike a partnership with Fiat and GM 60 days to avoid bankruptcy court. Rattner will have to browbeat intransigent bondholders. Bloom will have to force major benefit cuts on the unions. And both will have to sell management on a radical reordering of their companies, one in which both capital and labor take a serious hit in order to keep the machine running...