**GM preparing for bankruptcy**

[vztrt]

Holden could be sold off...

http://business.theage.com.au/busine...o.html?page=-1

Holden 'could be sold' as GM teeters
Chris Zappone
May 29, 2009 - 10:12AM

Holden may be sold by General Motors even if the parent company avoids bankruptcy expected this week, some car industry experts believe.

"Bankrupt or not, GM will continue to downsize very quickly," said US-based Plunkett Research chief executive Jack Plunkett. "My forecast is that they are very likely to sell or close most non North-American businesses," with the exception of China.

Holden employs about 6500 people in Australia, with about 3100 in Victoria.
GM bondholder group agree to deal

The debt-riddled US parent has already put Hummer and Saab on the chopping block, along with European brands Opel and Vauxhall. It has been racing to get its books in order ahead of a June 1 deadline imposed by President Barack Obama to prove its viability or go into bankruptcy while it restructures. The US government has pumped $US17.4 billion into the company so far this year.

"This is not to belittle the importance of Australia as a market, or to belittle the importance of a strong and positive relationship between business interests in the US and Australia," Mr Plunkett said. "The fact is that GM must shrink to survive, while becoming much less complex and much less global in the process."

ANZ senior economist Julie Toth agrees.

"I expect if and when General Motors in the US goes bust, its overseas subsidiaries will be sold, including in Australia," she said.

"The Australian Government's reaction will depend on the suite of potential bidders."

The narrow choices of possible suitors for the Australian icon may present more problems for Holden.

"It seems a gross shortage of potential buyers will be a huge problem for GM worldwide, regardless of the viability of each individual business unit," Ms Toth said.

A Holden spokesman denied it would be sold. He said GM regarded its Australian operation as a "a viable, valuable and important part of its global picture."

"Is Holden about to be sold or spun-off? The answer is no," he said.

"Are there discussions to sell or even offer a stake in Holden? No."

"We remain confident about our future."

The German example

Opel, GM's German carmaker, has been threatened with insolvency by the German government after it was forced to put up tax-payer funds to keep the company running while it looks for a buyer.

Talks between the German and US governments broke down last night after the GM subsidiaries revealed a 300 million euro ($533 million) short term funding gap. Germany alluded to a "controlled insolvency" for the European carmaker.

"Watching the circus erupting over GM in Europe doesn't augur well for Holden Australia," said Ms Toth.

The credit crisis and the recession has cut the appetite for mergers and acquisitions around the world.

Global car sales have also plunged, making the industry less attractive to would-be investors.

Chrysler is already in Chapter 11, a form of bankruptcy which buys it time from creditors and allows it to trade. That company is rapidly restructuring to combine some operations with Fiat. It has made no secret of its need to slim down to survive.

Markets outside the US and China, "even markets the size of major European nations, are of lesser importance to the long-term outlook for GM," Mr Plunkett says.

"The US government will be focused on using its money to support North American jobs and commerce," he said.

Last week, Holden acknowledged it had "contingency planning underway" for GM's possible slide into Chapter 11, without specifying what those plans were.

Bankrupting all units

"If there is a bankruptcy, GM's management and advisors will determine whether to bankrupt all business units as well as the parent company," Mr Plunkett said.

It is common, but not always necessary to bankrupt all units, he said.

"Some units may become bankrupt even if GM as a parent company stays afloat," he said, noting that Saab is already working under the Swedish version of bankruptcy.

The company's legacy in the minds of the Australian consumer leaves one industry analyst confident of Holden's future.

"We don't think Holden will go broke because Holden is an Australian icon," said IBIS World industry analyst Sarah-Jane Derby. "We don't think the Australian public will let it go broke."

The Federal Government pledged $6.2 billion in November to help the local industry move to greener car production, and to help it become more competitive.

In the Federal budget handed down this month, the Government also raised the bonus tax deduction to 50 per cent for small businesses buying cars in an effort to rekindle falling sales.

Earlier this year, Holden reduced the shifts at its Elizabeth plant to meet slumping demand locally, and GM's decision to scrap the global Pontiac brand, which the Australian factory helped supply.

Holden generated a net loss of 6.1 per cent on revenues of $6.1 billion in 2007 by IBIS World estimates, the last year for which they are available. The slumping sales generated a net loss margin of less than 1 per cent, IBIS World said.

Spin-off possible

However, the losses have surely continued, with more recent data from the Federal Chamber of Automotive Industries showing a 19.2 per cent slump in Australian car sales in the year to March.

Holden's retail sales slumped 20.3 per cent in the year to March 2009. Toyota sales fell 26.4 per cent in the same period, according to FCAI, although Ms Derby acknowledges Toyota's sales were higher.

The Australian automaker accounts for less than 3 per cent of GM's total revenue, IBIS World estimates. Australia represents less than 1 per cent of the world's car manufacturing.

Holden, in contrast to many of GM's other global holdings, has the ability of being able to build a car from scratch, taking it from design, testing, prototype development and production to marketing.

Ms Derby said she expects GM will keep Holden in its stable, but the restructure of the carmaking giant would also make Holden an easier asset to sell.

"In the sense that Holden is already a standalone company. It's easier to spin off."

czappone@fairfax.com.au

[vztrt]

news is coming in

http://news.theage.com.au/breaking-n...0529-bpnx.html

GM bankruptcy takes shape with US in driver's seat
Rob Lever
May 29, 2009 - 12:09PM

General Motors put the final pieces of a pre-packaged bankruptcy in place that would give the US government up to 72.5 percent of the new firm and sweetens the offer to bondholders.

GM said in a regulatory filing that the US Treasury agreed to the plan to create a new company that buys the assets of the ailing automaker.

Significantly, a group of bondholders who had rejected an earlier proposal agreed to the new plan, GM said.

The US government could provide "in excess of 50 billion US dollars" to this reorganisation that would be converted mainly to stock, according to GM's filing with the Securities and Exchange Commission.

A senior US administration official said this would include new cash of some 39 billion US dollars from the US and Canadian governments, which would be on top of the 20 billion US dollars already injected into GM by Washington.

The official said a GM bankruptcy might take somewhat longer than for Chrysler, which is seeking to emerge soon after filing for bankruptcy protection April 30.

"A 60- to 90-day timeframe is a better" estimate, the official said.

GM's survival plan had been in doubt earlier this week when holders of some 27 billion US dollars in GM bonds rejected a plan to swap that debt for 10 percent of the new company.

But a new proposal by the US Treasury "provides incentives for GM's unsecured bondholders," giving them a potentially larger stake in the new firm.

The bondholders would get 10 percent of the common equity of "New GM" and warrants that give them the right to purchase another 15 percent of the reorganized firm, according to the filing.

The ad hoc Committee of GM bondholders said in a statement it supports the revised offer: "When contrasted with the alternative -- uncertain and costly bankruptcy court litigation ... it represents the best alternative for bondholders in the current difficult and dire situation."

The bondholders, who a month ago had proposed a deal that would give them 58 percent of the new GM, said that the 10-percent stake plus the opportunity to buy 15 percent "gives the bondholders the opportunity to recover a greater portion of their original investment than was previously offered."

The committee represents around 20 percent of GM bondholders but as the most organized element is likely to carry considerable weight.

"From GM's perspective this obviously helps take one of the more organized groups of dissenters out of the picture," said Stephen Lubben, a law professor and bankruptcy specialist at Seton Hall University.

But another group representing many small bondholders rejected the new proposal and said it would challenge the case in court.

Main Street Bondholders said the plan remained unfair to investors, who would get just 13 cents on the dollar compared with 66 cents for claims from GM's main union, the United Auto Workers.

"The US government appears to overtly favor the UAW members over America's seniors and retirees," a spokesman said.

The US official said the Treasury did not set a threshold as with an earlier proposal that required 90 percent of bondholders to agree. The investors will have until 2100 GMT Saturday to decide on the plan.

Creation of the new firm would wipe out a large part of the auto giant's debt, leaving GM owing some 17 billion US dollars excluding the warrants and special preferred shares that require dividend payments.

The plan provides for a swap of a portion of the Treasury's loans for the 72.5 percent stake, leaving a debt to the government of 8.0 billion US dollars.

The filing said that the US Treasury stake could be reduced by a stake given to the governments of Canada and Ontario province if they provide funding for the reorganisation.

Some 17.5 percent of the new firm would go to the trust fund that pays retiree benefits knows as a Voluntary Employee Beneficiary Association, or VEBA.

The remaining 10 percent in the new firm would be held by "Old GM," which would be controlled by the bondholders.

GM was widely expected to file for bankruptcy protection ahead of a June 1 deadline imposed by the administration of President Barack Obama, which has provided the automaker with billions of US dollars in emergency loans.

© 2009 AFP

[phillyc]

I'm proud that Ford hasn't gone to the US Gov't with cap in hand. I mean GM has already received nearly $20B USD, and are about to get another $30B USD. Yet are almost definitely going bankrupt this Monday.

What does irk me is that they, GM, will come out of this and be virtually debt free (some $20B or more gone), plus the ability to shutter plenty of plants with no requirement for redundancies etc.

Effectively, by sucking on the teet of the US Gov't they will get a free kick over Ford to the tune of probably $40B USD. Which positively affects their cash-flow to the tune of $2B USD annually.

My only hope is that GM need to reduce their scale, as do Chrysler and people buy more Fords. I also hope people will acknowledge in a positive sense that Ford didn't take their taxpayer money and reward them with business. As more people buy them, they will see the added quality and design standards and build a prosperous Ford.

You gotta remember too, that Q1-2008 Ford had started to make money again, before the GFC hit and vehicle sales dove by 40%.

[Mark s]

After chatpter 11 GM will be 70% odd owned by the US govt. Those handout are not freebies.

Ford will still be in control of it's own destiny, GM will have the US govt at the helm.

[imugli]

Originally Posted by phillyc

I'm proud that Ford hasn't gone to the US Gov't with cap in hand. I mean GM has already received nearly $20B USD, and are about to get another $30B USD. Yet are almost definitely going bankrupt this Monday.

What does irk me is that they, GM, will come out of this and be virtually debt free (some $20B or more gone), plus the ability to shutter plenty of plants with no requirement for redundancies etc.

Effectively, by sucking on the teet of the US Gov't they will get a free kick over Ford to the tune of probably $40B USD. Which positively affects their cash-flow to the tune of $2B USD annually.

My only hope is that GM need to reduce their scale, as do Chrysler and people buy more Fords. I also hope people will acknowledge in a positive sense that Ford didn't take their taxpayer money and reward them with business. As more people buy them, they will see the added quality and design standards and build a prosperous Ford.

You gotta remember too, that Q1-2008 Ford had started to make money again, before the GFC hit and vehicle sales dove by 40%.

Sales and market-share figures in the last few months would indicate that this is the case. GM and Chrysler are tanking, Ford is gaining market share and, in fact, introducing incentives for those upgrading from GM or Chrysler cars.

Consumer sentiment re Ford is up, down for GM / Chrysler.

People know what is going on, are wary of it, and it is definitely showing through.

[z80]

Originally Posted by Mark s

After chatpter 11 GM will be 70% odd owned by the US govt. Those handout are not freebies.

Ford will still be in control of it's own destiny, GM will have the US govt at the helm.

Unfortunately it will probably have priority in govt fleet purchasing as well.

[Nikked]

With the us government is controlling GM, could that spell bad trouble for Holden? The us government would not like to see cars being built in Australia and exported to areas that the US could, the US gov would have its own countries workforces as a priority.

I cant see Obama giving the nod to the commodore being exported to the US at all (i.e rumours of the VE being used as cop cars)

Would the government even 'keep' GM? What is they trim it down and sell it off?

[GT69]

If the commodore gets the nod as the new US cop car. It will be built and serviced in the states. Dont kid yourselves on that one.

By the sounds of the Opel thread, GM are pushing their luck and honestly i hope it blows up in their faces.

If Ford get the business then they will employ more. GM failed. I hope it fails completely and Ford picks up the market.

I am truely proud at this moment to own a Ford, infact 4 Fords.

If telstra is anything to go buy, the US government will sink 40 billion into the company, then sell it off for 10 - 20 billion and leave the voting public in disillusion.

[R-Design]

D-day looms for car giant General Motors

http://www.news.com.au/heraldsun/sto...09-664,00.html

"GM-Holden is highly regarded within the GM empire and could be a jewel in its crown."

I can't believe the love Holden is getting from the media, if it were Ford they'd be carving the headstone.

[tapeworm]

^^gotta love the Herals Sun cars guide, not a word about the GM crisis. They were happy to carve Ford up for weeks on end a little while back though.

[Sprint XR8]

"KDB already said it would be willing to provide 1 trillion won in funds if GM agreed to turn over licensing rights to technologies developed by its South Korean affiliate and agreed to relocate an engine manufacturing plant in Australia to South Korea."
http://www.tradingmarkets.com/.site/...0News/2348457/

[Keepleft]

Good find Coupex, let the LS1 forum folk know.... bet they didn't see that danger, let alone VIC..

[R-Design]

Originally Posted by coupex

"KDB already said it would be willing to provide 1 trillion won in funds if GM agreed to turn over licensing rights to technologies developed by its South Korean affiliate and agreed to relocate an engine manufacturing plant in Australia to South Korea."
http://www.tradingmarkets.com/.site/...0News/2348457/

I thought a lot of small Chevy models were Daewoo vehicles. It might be one division they can't sell as they're too closely linked. Especially if they're looking to sell more small to medium sized vehicles in the US.

I wonder what our Government thinks about this plan?

[barbarian]

Obama Motors

[vztrt]

A report done by Foreign Correspondent.

http://www.abc.net.au/foreign/content/2009/s2581572.htm

[HTCURRY]

this isnt directly related to GM and its bankruptcy, but still relevant because of the handouts private companies are asking for from the govt in capitalist countries.

Even in the Howard years, the car sector was the fourth most heavily assisted industry in Australia. It's effective rate of government assistance, according to the Productivity Commission, was 11.9 per cent in 2007-08. The only industries getting a bigger leg-up were dairy cattle (17.3 per cent), fisheries (17.4 per cent) and the textiles, clothing and footwear sector (12.5 per cent.)

The Australian car industry benefited from $641 million a year in tariff assistance and another $603 million in help directly from the taxpayer, according to the commission's annual report on industry assistance published this week.

So what is the actual price of an Australian car, taking into account taxpayers money already given to the manufacturers? Just one point, this isnt unique to Australia, most if not all car manufacturing nations have been giving their industries a leg up for years and years.

Source: http://www.smh.com.au/opinion/our-ca...6j.html?page=4

[MAV50L]

Originally Posted by vztrt

A report done by Foreign Correspondent.

http://www.abc.net.au/foreign/content/2009/s2581572.htm

I just read that report. Its scary to think just how bad the town of Detroit has become.
It seems strange that the movie Robocop was based in a post industrial detroit. When it came out it was so science fiction because who would ever believe that Detroit would fall so far into urban decline and become a wasteland?
Twenty odd years later what has happened..................................

[Fordman1]

Originally Posted by MAV50L

I just read that report. Its scary to think just how bad the town of Detroit has become.
It seems strange that the movie Robocop was based in a post industrial detroit. When it came out it was so science fiction because who would ever believe that Detroit would fall so far into urban decline and become a wasteland?
Twenty odd years later what has happened..................................

The program on the ABC was a little misleading....

Downtown Detroit has been desolate for 25 + years.

I lived there in the 90's and you 'just didn't go downtown'. It was a wasteland then, and it still is.

Strangely enough you often have to drive through downtown Detroit to get to Wealthy suburbs on Lake St Clair like Gross Point !

All the middle-class has moved to the suburbs, and where once (50's and 60's) there was a reason for going Downtown (shopping / entertainment), there isn't now. You can get anything you want in the huge shopping complexes in reasonably well to do suburbs like Livonia and Novi.

Having said that there are many towns in Michigan that are now a shadow of what they once were because of the move towards Japanese motor vehicles (eg: Flint was the hub of GM - now it's pretty much a ghost town).

[vztrt]

A bit of a report from SBS news.

http://player.sbs.com.au/naca/#/naca...y-takes-shape/

Funny thing that the guy says that comapnies that alot of companies that come out of Bankruptcy fail within 3-5 years.

[phillyc]

Originally Posted by coupex

"KDB already said it would be willing to provide 1 trillion won in funds if GM agreed to turn over licensing rights to technologies developed by its South Korean affiliate and agreed to relocate an engine manufacturing plant in Australia to South Korea."
http://www.tradingmarkets.com/.site/...0News/2348457/

Holy smokes. The Koreans, Chinese and Japanese will do anything to dominate other countries economic circumstances.

1 Trillion Korean Won converts to about $1.03B AUSD, or $0.8B USD.

GM's current cash burn is about $5B USD a month average since Dec 2008, so that ought to get them another 4days in denial at least.

PS Daewoo are integral to GM's future, if they have one.

[Sprint XR8]

'GM Daewoo Should Be Key Output Base'

The Korea Development Bank, GM Daewoo Auto & Technology’s main creditor, reaffirmed that it will only provide financial support when General Motors promises to make its Korean unit a main production base of small cars.

``We cannot offer financial assistance to GM Daewoo if its parent U.S. company does not guarantee that it will make GM Daewoo a main manufacturing post of hybrid and small cars,’’ a senior KDB official said.

His remarks came a day after the world’s second largest carmaker, which is likely to file for bankruptcy soon, said that GM Daewoo will be incorporated into a ``good GM’’ even if the company files for bankruptcy. In case of bankruptcy, GM plans to incorporate its viable affiliates into a ``good GM’’ or ``new GM.’’

``I think GM Daewoo should be in a good GM. We strongly recommend that. If GM files for Chapter 11, which is possible, then I would expect GM Daewoo will be in a good GM,’’ Nick Reilly, head of GM Asia Pacific, told reporters in Seoul after talking with the KDB on Thursday.

He stressed that Korea and GM Daewoo is very important for the ill-fated company. ``GM has invested huge amount of money in Korea. We have increased the level of employment after acquiring GM Daewoo in 2002. We are having a discussion with KDB about future financing plan. As I said before, we don’t have any desire to sell shares to anybody.’’

But Reilly ruled out the possibility of co-management of GM Daewoo with KDB, saying, ``KDB already has three members on the board of directors of GM Daewoo. That is working very well.’’

The meeting came as the U.S. carmaker moved a step closer to its own bankruptcy protection filing, as no breakthrough has yet been made between GM and its creditors. Washington is highly likely to buy up to a 70 percent stake in the firm and set up a new GM, which many believe will affect its Korean arm.

During the meeting, KDB also asked GM to turn over technology licensing rights and relocate an engine manufacturing plant in Australia to Korea in exchange for financial assistance.

The state-run KDB holds a 28 percent stake in GM Daewoo, with the remainder being controlled by GM. GM Daewoo has asked since February for KDB to provide 1 trillion won ($795.6 million) in financial assistance, but the lender has been reluctant to give aid, citing uncertainty surrounding the U.S. automaker.

``The management is not the issue. We want GM to promise its long-term commitment to its Korean unit as the fate of GM Daewoo will depend on how the U.S. parent company will be committed to long-term growth for the Korean carmaker,’’ another KDB official said.

If GM does not include GM Daewoo in a good GM, it is highly probable that the Korean automaker will go into court receivership.
http://www.koreatimes.co.kr/www/news...123_45885.html

[vztrt]

Just talk about the sale of opel

http://www.fordforums.com.au/showthr...44#post2687744

Shrinking GM sells up in Europe
James Quinn, London
May 31, 2009

GENERAL Motors has struck a deal with unions to build compact cars in the US, and looks likely to sell its European Opel-Vauxhall division to a Canadian-Russian consortium as it puts the finishing touches to its Chapter 11 bankruptcy protection filing.

The US company revealed plans on Friday to build the compact cars on home soil after negotiating with the United Auto Workers, or UAW, not to import cars from China.

The deal, which will see GM retool an unnamed factory to build 160,000 small and compact cars, is thought to have been brokered by UAW leaders in an attempt to safeguard the livelihood of several thousand of its members.

In Europe, Opel and Vauxhall cars will be "made in Russia" after the Germany-based General Motors unit was sold to Canadian parts maker Magna in a consortium bid with Russian car maker GAZ.

The bankruptcy and selling off of the European division are unlikely to have major ramifications for GM's Australian division, Holden, said AMP chief economist Shane Oliver.

"It looks like the US bankruptcy should be short-lived," Mr Oliver said. "It's more a restructuring, with the company likely to come out stronger at the other end. The local operation will benefit from having been successful in export markets."

The GM that emerges from Chapter 11 will be majority-owned by the US Treasury, with stakes held by the UAW and bondholders.

GM shares fell 22 per cent to 87 US cents yesterday ($A1.09), valuing the group at just $US550 million, compared to a valuation of $US56 billion at the company's peak price nine years ago.

Under the European deal, Russia's second-largest car manufacturer, GAZ, is poised to turn over its sprawling assembly line and distribution network to produce Opel cars for the Russian market.

And while debt-laden GAZ will not put up any cash itself as part of the bid, the deal will be partially financed by Russia's state-controlled Sberbank.

For its part, GAZ contributes its industrial capacity and large assembly line, newly-built in 2008 with Magna's help, in Nizhny Novogorod, on the banks of the Volga River, 400 kilometres north-east of Moscow.

Citing sources close to the deal, Russian business daily Vedomosti reported last week that the consortium would aim to produce 180,000 Opel cars at the plant.

GAZ, controlled by indebted metals tycoon Oleg Deripaska's holding, Basic Element, remains Russia's largest producer of buses, trucks, road-construction equipment and heavy diesel engines.

In March, Prime Minister Vladimir Putin pledged four billion roubles ($A161.2 million) in state support for GAZ as part of rescue measures for the biggest players in the domestic car industry.

Analysts believe the Kremlin was the main driving force behind the bid for Opel.

In Britain, Business Secretary Lord Mandelson said that he would seek a meeting as soon as possible with the Canadian company to secure about 5000 Vauxhall jobs in Britain.

Lord Mandelson has already won face-to-face assurances from Magna about the future of production in Britain, but accepts that some job losses are likely because of GM Europe's excess capacity.

Britain is also prepared to consider offering loan guarantees to support the deal, he said.

TELEGRAPH, with AGENCIES

[vztrt]

The fed gove thinks Holden will be safe.

http://news.theage.com.au/breaking-n...0531-brjo.html

Holden safe despite US problems: govt
May 31, 2009 - 5:39PM

The federal government is optimistic car manufacturer Holden will be "safe", even as its parent General Motors (GM) faces the prospect of bankruptcy.

Holden Australia is a subsidiary of the US-based car giant, which is expected to file for bankruptcy and accept a plan by the Obama administration that would put nearly three-quarters of the company under state ownership.

Industry Minister Kim Carr predicts the Australian-based operations will weather the storm buffeting its owner.

"I remain very optimistic that Holden will weather the global financial storm and emerge stronger," he told AAP through a spokesperson.

Senator Carr said recent restructuring had made the company able to withstand whatever happened overseas.

"Holden has already undergone significant restructuring," he said.

"The cooperative efforts of management, workers and the Australian government have put the company in a good position to deal with whatever General Motors may announce in the coming days.

"I expect that Holden will be safe even if General Motors do go in Chapter XI bankruptcy.

"It is important to remember that Chapter XI bankruptcy in the US is very different to bankruptcy in Australia. It does not mean GM is being liquidated or is going out of business."

Earlier this month, Holden announced it would switch to a single shift at its assembly operations in Adelaide, helping to save workers' jobs and the facility survive the global economic downturn.

Senator Carr says the production of a new four-cylinder vehicle in Australia means Holden is a relatively high priority in GM's global operations.

"GM's February restructure statement noted that Holden Australia was seen as `viable' due to Australian government support for the new four-cylinder fuel-efficient car," he said.

© 2009 AAP

[vztrt]

Bond Holders 'approve debt restructuring'.

http://news.theage.com.au/breaking-n...0531-brhk.html

GM bondholders 'approve debt restructuring deal'
May 31, 2009 - 3:54PM

Ailing General Motors moved closer Sunday to its expected bankruptcy filing as company bondholders approved a government-sponsored debt for equity deal, The New York Times reported.

The bondholders had until 5:00 pm (2100 GMT) Saturday to indicate whether they supported the group's new offer ahead of the once mighty corporation's looming bankruptcy.

The government's rescue plan for GM could put as much as 72.5 percent of the country's biggest automaker under state ownership.

Citing "people briefed on the matter," the newspaper said the bondholders with slightly more than 50 percent of GM?s 27.2 billion US dollars in bond debt agreed to support the plan by the government-set deadline.

Among the backers was a committee of large investors holding about 20 percent of GM?s outstanding bonds, The Times said.

No official announcement of the vote tally has yet been made.

Under the plan, the bondholders would obtain the rights to buy an extra 15 percent of GM's stock at a low price. They would also control 25 percent of the "new GM," after having supported the new company's creation in bankruptcy court.

Recalcitrant bondholders who opt for confrontation rather than cooperation "will get nothing or very little," an Obama administration official told reporters Thursday.

Government-backed restructuring in bankruptcy court for GM, once the world's largest automaker, appeared all but certain ahead of a Monday deadline imposed by the Obama administration on the company to submit a viable restructuring plan or file for bankruptcy.

It could take place as early as Sunday.

© 2009 AFP

[Daymoe]

I like how they "expect" Holden to be safe, they can't know for sure.

[Nikked]

Holden is still set to produce the Cruze localy, yet the plan is for GM Us to build small cars. And then there is Korea wanting small cars to be built there...'tis a messy situation

[shakows]

How are they supposed to make the Cruze now?

There is no way GM is giving them the 450 million they were going to need

[Gobes32]

It is very naive of Senator Carr to assume that Holden will be safe due to the manufacture of the Cruze, If I am not mistaken the Cruze will be manufactured in another three countries as well as Australia? Especially naive considering that GM need to fund $450 million........... Heaven knows where they will pull that from?

[Jason[98.EL]]

Originally Posted by Gobes32

It is very naive of Senator Carr to assume that Holden will be safe due to the manufacture of the Cruze, If I am not mistaken the Cruze will be manufactured in another three countries as well as Australia? Especially naive considering that GM need to fund $450 million........... Heaven knows where they will pull that from?

was thinking along the same lines

i wonder where the $450 mill will come from the au gov or what

Jason

[Paxton]

Originally Posted by Jason[98.EL]

was thinking along the same lines

i wonder where the $450 mill will come from the au gov or what

Jason

From what I have read here at AFF, Holden already have the money. We all know it was a knee jerk reaction to Focus, however, for 6,000 Australian jobs, I hope it succeeds.

With Cruze only being 25% local content, will Focus contain more Australian content?