**GM preparing for bankruptcy**

[vztrt]

http://www.autoblog.com/2010/11/08/r...res-of-gm-ipo/

Report: China's SAIC Motors will buy shares of GM IPO

by Zach Bowman (RSS feed) on Nov 8th 2010 at 3:58PM

While General Motors may be jetting around the globe in an attempt to woo investors, one company has made it clear it wants to snap up plenty of GM stock once The General goes public. Chinese manufacturer SAIC Motor President Chen Hong is currently in the States to negotiate with the American automaker about procuring GM shares. His company currently packs around $5.7 billion in cash or cash equivalents, so SAIC Motor shouldn't have any problem laying its hands on more than few GM shares.

SAIC has a history of working closely with GM in the past. The two companies have joined forces on everything from powertrain development to full name plates. If anyone knows the ins and outs of working with the biggest of the big three, it's these guys.

GM has announced that the company will go public once again on November 18 and plans to raise $10.6 billion in the process. Look for shares to go for anywhere between $26 and $29. GM will also offer $3 billion in preferred stock at the same time. Exactly how much of that goes to SAIC Motor remains to be seen.

[Source: Trading Markets via TTAC | Image: Phillippe Lopez/AFP/Getty Images ]

[vztrt]

http://www.autoblog.com/2010/11/08/g...-ipo-roadshow/

GM using private planes again for IPO roadshow

by Zach Bowman (RSS feed) on Nov 8th 2010 at 1:58PM
General MotorsIt wasn't too long ago that General Motors was fending off a heap of public ire over the company's use of private planes. Now it looks like The General is back to eschewing commercial flight in favor of taking to the wild-blue yonder in chartered craft. According to The Detroit News, GM has been sending executives to Europe, Canada and various locations within the U.S. in order to promote the company's stock for an upcoming IPO. In most cases, the workers have travelled by private aircraft.

GM says that under the expense policy approved by the federal government, the company is allowed to charter planes when there's a business case for doing so. Additionally, the automaker says that the tour to drum up investors warrants such flights because of the tight time table involved. With GM doing its best to make sure that it will be able to buy back enough of its stock to take a controlling interest in the company away from the federal government, chances are we won't hear too many Congressmen complain about the private flights this time around.

[Source: The Detroit News]

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http://www.autoblog.com/2010/11/10/g...-ahead-of-ipo/

General Motors announces Q3 profit of $1.96 billion ahead of IPO

by Zach Bowman (RSS feed) on Nov 10th 2010 at 9:29AM

General Motors posted its last financial report before the company's initial public offering of stock next week. In it, the company reported that in the third quarter of 2010, it earned a net income of $1.96 billion on a total of $34.06 billion in revenue. That puts the automaker's 2010 figures at $4.16 billion of net income on $98.17 billion in revenue, though GM does say that it expects earnings to fall in the fourth quarter thanks to costs associated with developing new vehicles and launching products like the Chevrolet Volt and Cruze.

The GM numbers put the company ahead of both Ford, which posted a third-quarter profit of $1.7 billion and Chrysler, which recently announced a net loss of $84 million for the same time period.

GM has seen sales climb by six percent so far this year, even while losing around 11 percent of its market share thanks to the sale or demise of brands like Hummer, Saab, Pontiac and Saturn. Hit the jump for the full press release.

[Sources: Automotive News, GM]

[EgoFG]

Only ahead of Ford due to the ability to carry forward a loss from Old GM.
... that and the fact that they do not use the appropriate accounting standards that would be required for a listed company.

Smoke and Mirrors (If needed I can get links to demonstrate the above)

[Cabbage]

Originally Posted by EgoFG

Only ahead of Ford due to the ability to carry forward a loss from Old GM.
... that and the fact that they do not use the appropriate accounting standards that would be required for a listed company.

Smoke and Mirrors (If needed I can get links to demonstrate the above)

I'd be interested to read them if you get the time to post the links. I find it strange that a company that was on knees only months ago is now powering to quite decent profits.

Clinton

[bobthebilda]

Originally Posted by Cabbage

I'd be interested to read them if you get the time to post the links. I find it strange that a company that was on knees only months ago is now powering to quite decent profits.

Clinton

You can get them at www.gm.com. Whilst one should probably be wary of what GM releases in a statement, it would be feasible for them to achieve profit compared to a while ago, as in one foul swoop, they were able to get rid of over $80 billion in debt. If your not paying the interest on $80 billion in debt ( $4 billion at 5% interest), that money is going to flow straight to profit.

Its interesting to note that when you take out the intangibles and goodwill (i mean in all seriousness, how can a company like GM have goodwill) etc from the asset statement, they still have more liabilities over assets. A company with net liabilities is only a few bad months from bankruptcy.

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http://www.autoblog.com/2010/11/12/r...stpone-gm-ipo/

Report: Ralph Nader urges government to postpone GM IPO

by Jeff Glucker (RSS feed) on Nov 12th 2010 at 11:29AM
Ralph Nader

Ralph Nader has written a letter to President Barack Obama, urging him to delay General Motors' IPO. According to The Detroit News, his fear is that the automaker is still the "same old arrogant GM" and that the government stands to lose a bundle on the sale of its stock.

Nader is not alone in his criticism. His letter is signed by Public Citizen President Robert Weissman, Center for Auto Safety Executive Director Clarence Ditlow and former Public Citizen president Joan Claybrook. The group suggest that GM is taking steps that undermine the Obama administration's efforts after it was directly supported by the government and U.S. taxpayers. It feels that General Motors should not be lobbying congress while owners by the government. Per Nader, "They are lobbying against Obama's own policies on fuel efficiency, auto safety."

In his letter, Nader also states,

"The primary rationale of investing in GM had to be to preserve jobs and prop an economy in a severe downward spiral. As majority shareholder in GM, the United States has the ability to direct or influence the company's investment decisions. As the U.S. reduces its share, so its capacity to influence such decisions diminishes."

Ralph Nader knows that this letter is a Hail Mary attempt to delay General Motor's IPO, but he is hoping for some congressional support to build momentum.

[Source: The Detroit News | Image: Brendan Smialowski/Getty]

[EgoFG]

Originally Posted by Cabbage

I'd be interested to read them if you get the time to post the links. I find it strange that a company that was on knees only months ago is now powering to quite decent profits.

Clinton

Sorry for the delay - I have been OOtC (Out Of the Country)

Loss Carry Forward:
http://news.yahoo.com/s/nm/us_gm_taxbreaks

Dodgey Acounting:
http://www.autoblog.com/2010/08/22/g...ng-controls-i/

and just for fun (more justifiable, still sounds Dodgey) .... "One of GM's most valuable assets is it Goodwill"
http://www.bloomberg.com/news/2010-0...than-weil.html

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http://www.autoblog.com/2010/11/16/g...-ahead-of-ipo/

GM raises stock prices and increases size ahead of IPO

by Zach Bowman (RSS feed) on Nov 16th 2010 at 10:28AM

If you've been squirreling away your pennies in anticipation of General Motors' IPO, we've got news for you. The company released a statement this morning announcing that it has increased its stock price from $26 to $29 per share to $32 to $33 per share. Additionally, General Motors is now planning to offer 80 million shares worth of junior preferred stock at a combined value of $4 billion – up from the initial $3 billion. The news comes after Steven Rattner, the former auto advisor for the Obama Administration, said that he expected the stock to price above the range that the GM initially filed for.

With the new outlook, GM will likely raise a good deal more than the $10.95 billion the company stood to drum up at $30 per share. The automaker's stock is expected to price sometime today before public trading begins tomorrow. Hit the jump for the official press release.

[Sources: General Motors, Reuters]

[vztrt]

GM raises $20 billion in IPO

http://www.goauto.com.au/mellor/mell...2577E0000EFA73

GM’s share float raises $20 billion-plus as Obama prepares to halve taxpayers’ stake

19 November 2010

By TERRY MARTIN

JUST 16 months after exiting chapter 11 bankruptcy with a $US50 billion federal government bailout, a restructured and rejuvenated General Motors made a strong return to the public share market on November 18 with an initial public offering (IPO) that generated more than $US20 billion.

Some 450 million shares were traded on the New York Stock Exchange on its first day, with the share price closing at $US34.19 – up 3.6 per cent on the $33 IPO after trading started at $35 and reached a peak of almost $36 within 30 minutes.

The successful share float, which had a positive effect on the Dow Jones industrial average (up 173 points on Thursday), now values the auto giant at about $US63 billion and will enable the US government to reduce its shareholding in the company dubbed ‘Government Motors’ from 61 per cent to as low as 33 per cent.

It follows a massive overhaul of General Motors over the past year and a half, during which time it has slashed costs, completely reconfigured its senior management team and either sold or discontinued four of its eight brands – Pontiac, Saturn, Saab and Hummer.

“All of us at GM are excited about this historic milestone,” said GM vice-chairman and CFO Chris Liddell.

“We are especially appreciative of those who stood by us through the toughest times, and we are dedicated to creating value for all of our stakeholders.”

US president Barack Obama said: “General Motors’ initial public offering marks a major milestone in the turnaround of not just an iconic company but the entire American auto industry.

“Through the IPO, the government will cut its stake in GM by nearly half, continuing our disciplined commitment to exit this investment while protecting the American taxpayer.

“Supporting the American auto industry required tough decisions and shared sacrifices, but it helped save jobs, rescue an industry at the heart of America’s manufacturing sector, and make it more competitive for the future.”

The issue included 478 million shares of common stock, for a total of $15.77 billion, and 87 million shares of mandatory convertible junior preferred stock, for a total of $4.35 billion.

The company said underwriters have a 30-day option to purchase up to 71.7 million additional shares of common stock from the selling stockholders, for a total of $2.37 billion.

An additional 13 million shares of mandatory convertible junior preferred stock can also be bought from the company on the same terms and conditions, for a total of $650 million, to cover any over-allotments.

Former Holden chairman and now GM North America president Mark Reuss told the Reuters news agency: “It’s a big day to become a public company again, but we have got to just hit the ball out of the park here every day on product.”

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http://www.caradvice.com.au/91923/ge...tock-offering/

General Motors IPO first day prices end higher than stock offering
By Brett Davis | November 19th, 2010

General Motors shares went on sale on the New York Stock Exchange once again yesterday. The stock offering price was $33 but once it hit the market prices opened at $35.20.



Typical for an initial public offering, the shares inclined fairly quickly and reached a high of $35.85 at around 10:45am yesterday. They then dropped down to $34.19 by the day’s close. Although the close price is lower than the opening, it’s still regarded as a positive result as the current share price is still higher than the stock offer price of $33.

Over $452 million worth of shares traded hands in the IPO yesterday. This huge interest and demand has put President Obama in a state of reassurance towards GM, with administration officials saying the strong sales represented that it was a good move to pull the company out of bankruptcy in the first place.

[EgoFG]

GM Share Price needs to reach about $53 for the US government to get its money back
that is 60% more than the IPO value !!

http://www.nytimes.com/2010/11/18/bu...k&st=cse&scp=2

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http://news.theage.com.au/breaking-n...124-1863m.html

Treasury gets $11.7 billion from GM stock
November 24, 2010 - 9:09AM

AP

The US Treasury Department says it has received $US11.7 billion ($A12.03 billion) from the sale of 358.5 million shares of General Motors stock.

The Treasury said net proceeds from the GM stock sold last week were delivered on Tuesday.

Treasury officials said that the government could receive an additional $US1.8 billion assuming the bankers exercise options to purchase an additional 53.8 million shares of GM common stock within 30 days of the initial public offering (IPO).
Advertisement: Story continues below

The government put $US49.5 billion ($A50.88 billion) into GM as part of its bailout of the giant automaker.

In addition, Treasury said it will receive another $US2.1 billion from GM when the automaker repurchases preferred stock that was issued under the government's $US700 billion Troubled Asset Relief Program (TARP).

That sale is scheduled to take place in December.

The $US11.7 billion in net proceeds represented the amount the government received after subtracting fees paid to the banks which handled the initial public offering.

In the IPO, GM's owners - mainly the US government - sold 478 million shares at $US33 each.

The stock traded as high $US35.99 on the first day of trading last Thursday before settling with a gain of 3.6 per cent at $US34.19 for the day.

On Tuesday, GM shares followed the broader stock market down to close at $US33.25, off 83 US cents, or 2.4 per cent, from Monday's close.

Such volatility is normal for stock in the days following an initial public offering, especially one the size of GM's, said Scott Sweet, managing partner of IPO research firm IPO Boutique.

The conflict between North and South Korea, he said, is causing jitters in all segments of the stock market in a light trading week due to the Thanksgiving holiday, he said.

"There are few safe havens," Sweet said.

"A geopolitical event such as the Korean situation is a highly combustible lightning rod to a market with little holiday liquidity."

GM's stock slipped perilously close to the IPO price of $US33, which could trigger computerised "stop loss" orders from bigger investors.

Analysts say the investment banks that ran the deal likely would persuade larger investors to step in before it got to that point.

The banks are prohibited from buying the stock themselves by Securities and Exchange Commission rules until it hits the IPO price.

TARP was used to stabilise the financial system and support numerous banks, auto companies GM and Chrysler and insurance giant American International Group.

"General Motors' successful initial public offering is another important milestone in our efforts to recover TARP funds on behalf of the American taxpayer," Tim Massad, Treasury's acting assistant secretary for the bailout program, said in a statement.

With the receipt of the $US11.7 billion from last week's sale of GM stock, Treasury said that a total of $US252.1 billion has been returned to taxpayers from the TARP program.

Reflecting a stabilisation of financial markets, Congress earlier this year voted to reduce the original $US700 billion authorisation for TARP down to $US475 billion.

Last month, Treasury projected government losses from TARP would total $US50 billion based on current market prices and its projection of the revenue it will receive from a restructuring of AIG.

Republicans have criticized the TARP program as an example of a bloated federal government that needs to be brought under control.

However, the Obama administration contends that the TARP program, which was developed during the Bush administration, was critical to stabilising the financial system and keeping the recession from being even more severe.

© 2010 AP

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http://www.autoblog.com/2010/11/23/r...o-own-1-of-gm/

Report: Saudi prince claims to own 1% of GM

by Zach Bowman (RSS feed) on Nov 23rd 2010 at 1:57PM

The dust is beginning to settle around the General Motors IPO, and we're finally getting a sense of exactly who is holding onto big slices of the company. The New York Times is reporting that Saudi Prince Walid bin Talal has managed to snag a full one percent of the automaker with a massive $500 million investment. The prince has a long history of backing various American companies through Kingdom Holdings, including Citigroup. Talal says that in the case of The General, he has faith that the company's new management can pull off respectable growth and profits.

The prince calls King Abduallah uncle, and while he isn't likely to ever ascend to the country's throne, odds are he wouldn't want to even if he had the chance. Last we heard, the guy was worth somewhere in the neighborhood of $20 billion thanks to his successful investments.

[Source: The New York Times | Image: Rabih Moghrabi/AFP/Getty]

[EgoFG]

So from Links above
US Govt sold 358.5 million shares and received 11.7 billion dollars.
US Govt still holds 500 million shares. based on the payout rate above ($32.64 after expenses) it will get another 16.32 dollars giving it a grand total of 28 billion dollars for its 60.8% share of GM.

This makes GM worth a total of about 46 Billion

The trouble is that the Government invested over 50 billion for its 60% share in this 46 billion dollar company.

[vztrt]

GM says thanks for the helping hand

http://www.goauto.com.au/mellor/mell...2577E600206452

As US Treasury pockets $11.7 billion from share sale, GM thanks taxpayers for aid

25 November 2010

By RON HAMMERTON

GENERAL Motors this week thanked the American people for helping it back on to its feet, just days after the reinvigorated company wired a cool $11.7 billion to the United States Treasury – the government’s share of GM’s $20 billion initial public offering of shares last week.

In a national television commercial showing images of some epic failures and then triumphant reversals, bracketed by a boxer being knocked down and then getting back on his feet, GM delivered the message to US taxpayers: "We all fall down. Thank you for helping us get back up."

Timed to coincide with America’s Thanksgiving celebration, the TV ad comes just a week after GM’s successful IPO that netted $33 a share, helping to at least partly repay the US government for stepping in last year when America’s biggest motor company slid into insolvency and chapter 11 bankruptcy protection.

The government tipped $49.5 billion into GM in loans and equity to save the company, taking a 60.8 per cent stake in the ‘New GM’ in the process.

Last week, the government recouped $11.7 billion when it offloaded almost 360 million shares in GM’s initial public offering (IPO), slicing its ownership of GM from almost 61 per cent to 36.9 per cent.

That could fall to 33.3 per cent if underwriters exercise their option to sell another 53.8 million shares worth $1.8 billion by December 18.

Ultimately, the US treasury wants to sell all of its remaining shares, which at $33 a share represents a further $18.2 billion in value.

As well, GM – often ridiculed as ‘Government Motors’ in the 16 months since it emerged from chapter 11 – has repaid billions of dollars in loans and guarantees to the treasury, which has now recouped $250 billion from all companies propped up by its emergency Troubled Asset Relief Program (TARP) set up by the Obama government in the darkest days of the global financial crisis.

Announcing the receipt of the $11.7 billion from the GM IPO, US acting assistant secretary for financial stability Tim Massad said: "Our temporary assistance for the US auto industry saved more than one million jobs across the industrial heartland of America and – like the overall TARP program – is on track to cost far less than anyone had first anticipated.”

"General Motors' successful initial public offering is another important milestone in our efforts to recover TARP funds on behalf of the American taxpayer."

Immediately after the New York Stock exchange closed following the successful GM IPO last week, GM executives called staff together at GM’s head office to celebrate “GM’s first day as a public company”.

This week, GM revealed its thank-you ad that draws on images both comic and tragic to tug the heart strings of the US public.

In the ad set to sombre music with no voice-over, characters diverse as stunt man Evel Knievel (falling heavily from his motorcycle), John Belushi (in a scene from the film Animal House shouting “I am not going to take this”) and cartoon character Popeye (first sinking to the bottom of the ocean and then rising after eating spinach), appear in short grabs, along with images of a space rocket failing on the launch pad, stock traders in despair and a boxer being knocked down.

In a more practical demonstration of its rise from the dead, GM this week announced a $163 million investment in engine and casting plants in Michigan and Ohio to rev up production of its 1.4-litre Ecotec turbo-charged four-cylinder engine for Cruze, Volt and ‘a new Chevrolet small car to be built in the United States”.

GM says the move will protect 184 jobs.

GM says it has spent more than $3.3 billion in the US since it emerged from bankruptcy, generating about 8000 jobs.

Next Tuesday, GM – headed by new CEO Dan Akerson – will trumpet production of its Volt range-extender plug-in hybrid at the Detroit Hamtramck assembly plant.

Mr Akerson was one of several GM executives to put his money where his mouth is in the GM IPO, buying more than $500,000 worth of shares, some in the staff offer and others after the float.

Chairman Ed Whitacre also took a $526,000 slice of shares, mostly bought on the open market after the float.

[vztrt]

http://www.autoblog.com/2010/11/29/v...out/#continued

Video: GM commercial thanks taxpayers for the bailout

by Jeff Glucker (RSS feed) on Nov 29th 2010 at 2:59PM

General Motors is trying hard to move forward after everything that has happened in the last few years. The auto giant would not be here without the help of the government and the hard-working taxpayer. In a brand-new 60-second holiday ad spot, The General shows us that people and things can fall down or fail, but they get back back up... even if they need help doing so.

A boxer gets knocked down, a rocket falls back to its launch platform, Popeye almost drowns and Evel Knievel lands on his back instead of his bike. Each situation looks rocky but turns out okay in the end. GM shows these clips and then acknowledges its own fall while also thanking us (i.e. taxpayers) for picking it back up.

The clip is heavy on the schmaltzy side, but it's nice to think General Motors realizes who kept it in business. While we'd prefer some stock, a simple "thank you" message will have to do for now. You can see the ad for yourself by clicking past the jump and giving it a look.

[Sources: USA Today, General Motors]

Video

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http://www.autoblog.com/2010/12/01/g...n-of-its-debt/

GM repays another billion of its debt

by Jeff Glucker (RSS feed) on Dec 1st 2010 at 6:15PM

General Motors continues to clean up its ledger book, and the latest transaction has GM wiping $1 billion off the table. In Korea, the GM Daewoo Auto & Technology subsidiary, otherwise known as GM Daewoo, plans to pay back the 10-figure debt it owes to its Korean revolving credit facility. The debt will be paid in full by the end of this month. Perhaps a commercial thanking the Korean credit market is in order?
[Source: General Motors]

http://www.autoblog.com/2010/12/02/g...-fund-deposit/

GM announces $4B pension fund deposit

by Jeff Glucker (RSS feed) on Dec 2nd 2010 at 1:29PM

General Motors continues to use its newfound cash in a manner that aims to please its accounting department. After receiving a sizable monetary infusion thanks to the largest IPO in U.S. history, GM is now focused on putting that money to good use. Its Korean subsidiary, GM-Daewoo, recently paid off a $1 billion credit that was owed, and today, The General is pouring $4 billion much needed greenbacks into its pension fund deposit.

As of December, 2009, General Motors measured its pension fund as being underfunded by an eye-watering $17.1 billion. This fund provides benefits to 688,000 participants and, while $4 billion is a far cry from 17.1, it is certainly a step in the right direction. According to The Detroit News, that figure will grow to include another $2 billion down the road in the form of GM stock.
[Sources: General Motors, The Detroit News – sub. req.]

[vztrt]

http://www.autoblog.com/2010/12/01/t...f-nummi-plant/

Toyota suing Old GM over shutdown of NUMMI plant?

by Jeff Glucker (RSS feed) on Dec 1st 2010 at 3:30PM

Toyota is still upset about how its joint NUMMI venture with General Motors was handled, and according to Automotive News, the Japanese automaker has now filed a lawsuit to the tune of $73 million. The suit is against Motors Liquidation Co., the company created to pick through the discarded ashes of "Old GM."

Toyota states that when General Motors pulled away from the NUMMI facility in 2009, it breached the contract between the two automakers. The $73 million covers research and development costs that were poured into the Fremont, California facility before it was shuttered last year.

The plant now belongs to Tesla, who purchased it from Toyota in May of 2010, for $42 million.

[Source: Automotive News – sub. req.]

[vztrt]

http://www.autoblog.com/2010/12/16/r...ce-bankruptcy/

Report: GM offering first employee buyouts since bankruptcy

by Chris Shunk (RSS feed) on Dec 16th 2010 at 9:58AM

General Motors would like to cut 2,000 skilled trade workers by March 2011, and the company is reportedly willing to part with $60,000 per employee to reach its goal. Bloomberg reports that The General is offering the hefty incentive to entice its highly paid skilled trades workers at 14 plants across America. Eight of those plants are scheduled for closure and two more facilities could shut down if demand drops off, no doubt making the money look even more attractive.

The buyout offers are the first GM has offered on a large scale since the company exited bankruptcy in 2009. Unlike past offers, though, GM is only targeting its skilled trades, while the lower-paid rank and file don't appear to have been offered similar deals.

[Source: Bloomberg]

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http://www.autoblog.com/2010/12/27/g...low-run-plant/

General Motors closes historic Willow Run plant

by Dan Roth (RSS feed) on Dec 27th 2010 at 10:00AM

General Motors' enormous Willow Run plant built B24 Liberators that helped win World War II, but after 68 years, the historic facility has hit the end of its run. Willow Run built its last automatic transmission on December 15th. The site was originally set up by Henry Ford on a piece of his farmland, but has been owned by General Motors since the company purchased it from Kaiser-Frazer.

Importantly, Willow Run's owner is currently Motors Liquidation Corporation; "Old GM." While other historic auto industry sites have been razed, Willow Run was named a Michigan historic site in 1980, and ownership will default to a trust if a new owner is not found by the end of 2010. Such large facilities are never easy to sell, but with southeast Michigan's economic troubles even deeper than the challenges facing the national economy, finding a new owner looks to be a particularly challenging task.

[Source: AutoWeek | Image: Bill Pugliano/Getty]

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http://www.autoblog.com/2011/01/20/s...ke-hold-at-gm/

Slew of big personnel changes take hold at GM

by Zach Bowman (RSS feed) on Jan 20th 2011 at 2:32PM

It's musical chairs season at General Motors. The automaker has announced a rash of personnel changes in positions ranging from U.S. vice president to chief technology officer. Perhaps most interestingly, The General has appointed Mary Barra as the company's new vice president of global product development. That's quite a change from her previous post, where Berra served as the vice president of global human resources – a position she's held since 2009. Berra officially takes the reins on February 1.

That's the same day that Linda Marshall will take up her new post as president of OnStar. Marshall is taking the place of Chris Preuss, who has left GM to work as a communications consultant. Marshall joined OnStar in 2010 as the company's executive director of business strategy and development. Before that, she held senior executive positions with both Verizon Wireless and Sprint Nextel.

GM has also cooked up a new position to handle the wave of new technology flooding into vehicles. Vice Chairman Thomas G. Stephens has been chosen to be the company's new global chief technology officer. Stephens will be responsible for investigating new "game-changing" technologies for the company's products. He most recently served as the company's vice chairman of global product operations.

On the marketing side of things, Chris Perry has replaced Joel Ewanick as the GM vice president of global marketing. The move allows Rick Scheidt to take over Perry's old duties as the U.S. vice president of Chevrolet marketing. Ewanick, meanwhile, has moved to become the company's global chief marketing officer.

Additionally, John Schwegman has moved from being the U.S. vice president of Buick-GMC marketing to just handling VP duties for GMC. Tony DiSalle will take over as VP of Buick marketing. DiSalle formerly held a position as the product and marketing director for the Chevrolet Volt. Hit the jump for a slew of press releases.

[Source: General Motors]

[Jason[98.EL]]

Is it Barra or Berra

they have it both ways in that artical

Additionally, John Schwegman has moved from being the U.S. vice president of Buick-GMC marketing to just handling VP duties for GMC. Tony DiSalle will take over as VP of Buick marketing.

would be ****ed to be him i would imagine

[vztrt]

http://www.autoblog.com/2011/01/27/g...uest-from-doe/

General Motors withdraws $14.4B federal loan request

by Autoblog Staff (RSS feed) on Jan 27th 2011 at 10:58AM

Earlier today, General Motors announced that it is withdrawing its request for $14.4 billion in direct loans from the Department of Energy's (DOE) $25-billion program aimed at retooling factories for the production of fuel-efficient vehicles. GM's chief financial officer Chris Liddel, outlined the automaker's choice to cancel its loan request, stating:

This decision is based on our confidence in GM's overall progress and strong, global business performance. Withdrawing our DOE loan application is consistent with our goal to carry minimal debt on our balance sheet.

Speaking at the DC Auto Show, GM's Ed Welburn said, "This decision will not affect the strong investment we are making in new technologies and design."

For the past several months, The General had debated canceling its request for DOE loans, which the automaker first submitted in late 2008. The DOE has been having a tough time distributing the loans in a timely manner anyway, so last week GM's board of directors approved the decision to withdraw the application. However, GM's ongoing commitment to develop and produce fuel-efficient automobiles can be seen in vehicles like the plug-in hybrid Chevrolet Volt and the 40-plus miles per gallon Cruze Eco.

[Source: General Motors]

Press Release

GM Withdraws Federal Loan Application

WASHINGTON, D.C. – Acknowledging significant improvement in its business performance, General Motors today announced it is withdrawing its $14.4 billion application for direct loans from the U.S. Department of Energy (DOE).

The Advanced Technology Vehicles Manufacturing Loan Program (Section 136 of the Energy Independence and Security Act passed in December 2007) authorized $25 billion in direct DOE loans to companies toward retooling U.S. factories to make vehicles and components that improve fuel economy.

"This decision is based on our confidence in GM's overall progress and strong, global business performance," said Chris Liddell, GM vice chairman and chief financial officer.

"Withdrawing our DOE loan application is consistent with our goal to carry minimal debt on our balance sheet."

Since July 2009, the newly formed General Motors Company successfully launched a $23.1 billion Initial Public Offering of stock and, for the first nine months of 2010, generated $4.2 billion in net income attributable to common stockholders. Additionally, GM has invested approximately $3.4 billion in U.S. facilities that have created or retained nearly 11,000 jobs – most of which have gone towards new, fuel efficient cars like the extended-range electric Chevrolet Volt, the fuel-sipping Chevrolet Cruze, and advanced battery manufacturing.

"Our forgoing government loans will not slow our aggressive plans to bring more new vehicles and technologies to the market as quickly as we can," said Liddell. "We will continue to make the necessary investments to assert our industry leadership in technology and fuel economy."

The U.S. Congress appropriated funding for the DOE loan program in the fall of 2008 at a time when the auto industry was seeking to maintain its product and technology programs while contending with the developing global economic crisis.
GM submitted its current application to the DOE in October 2009.

[vztrt]

http://www.autoblog.com/2011/02/01/g...from-december/

GM posts 23% January sales gain, still down from December

by Jeremy Korzeniewski (RSS feed) on Feb 1st 2011 at 11:45AM

General Motors today posted 178,896 total sales in January, a strong 23-percent gain from a year ago. According to the automaker, sales were up in all segments of the market, led by strong crossover and pickup sales. Fleet sales were down seven percent, though commercial sales gains wiped out that deficiency. Sales to retail customers were up 36 percent.

It's not exactly all good news, however. Sales were actually down 20 percent from December. Check out all the details in GM's press release after the break.

Press Release

General Motors January Sales Rise 23 Percent

2011-02-01

* Strong retail sales propel overall performance – up 36 percent
* Car, Truck and Crossover segment retail sales each rise more than 34 percent
* GM's newest vehicles continue to gain customers – retail sales up 61 percent

DETROIT – General Motors dealers in the United States reported 178,896 total sales in January, a 23-percent increase from a year ago for the company's four brands. The gain was driven by solid retail sales which were 36 percent higher than a strong January a year ago.

For the month, overall GM fleet sales were down 7 percent with sales to rental fleets declining 11 percent, while sales to commercial customers rose 7 percent.

Retail sales of GM's cars, trucks and crossovers all rose 34 percent or more during the month, up 39 percent, 34 percent and 35 percent, respectively.

"January was a good month and signaled a solid start to the new year for each of our divisions," said Don Johnson, vice president, U.S. Sales Operations. "Our results were driven by gains across the board in all segments, with our newest models leading the way."

Combined sales for GM's newest vehicles – Chevrolet Equinox, Silverado HD, Cruze and Volt; Buick LaCrosse and Regal; GMC Sierra HD and Terrain; and Cadillac SRX, CTS Wagon and CTS Coupe – increased 31 percent, while retail sales surged 61 percent for the month.

Passenger Cars

Total sales of GM passenger cars rose 15 percent during January on rising demand for the all-new Chevrolet Cruze, Buick Regal and CTS Coupe. Retail sales of GM passenger cars rose 39 percent for the month, led by the Cruze, with retail sales 129 percent higher than the compact car it replaced. The momentum continues as Cruze Eco, which will get an estimated 42 miles per gallon on the highway, began arriving at U.S. dealers in January.

Crossovers

In January total sales for GM's industry-leading lineup of fuel-efficient crossovers improved 31 percent versus January 2010, led by the Chevrolet Equinox (up 35 percent), GMC Terrain (up 48 percent) and Cadillac SRX (up 31 percent). Retail sales for the Buick Enclave, Chevrolet Traverse and GMC Acadia continued to improve in January, up 37 percent, 15 percent and 24 percent respectively.

"Our mid-sized crossovers, Buick Enclave, Chevrolet Traverse and GMC Acadia, continue to have legs," Johnson said. "They appeal to customers because of their great styling, fuel efficiency and utility."

Pickups and Utilities

Total sales of GM's full-size pickup trucks – Chevrolet Silverado and Avalanche, and GMC Sierra – improved 28 percent in January versus a year ago, with retail sales rising 37 percent. Total sales of GM full-size utilities – Chevrolet Suburban and Tahoe, GMC Yukon and Yukon XL, and Cadillac Escalade – rose 18 percent during the month, with combined retail sales improving 31 percent. Total sales of Chevrolet Express cargo and passenger vans and the Chevrolet HHR rose as more businesses turned to the brand in January, with sales up 91 percent and 35 percent respectively.

Month-end dealer inventory in the United States stood at about 510,000 units, which is about 1,000 lower compared to December and about 124,000 higher than January 2010.

Brand Key Facts:

* Chevrolet: Chevrolet delivered 125,389 total vehicles in January, a 19-percent increase versus last year. Retail sales for Chevrolet rose 33 percent for the month. Retail sales were propelled by improving Cruze sales, which were 129 percent higher than the compact car it replaces. Silverado and Equinox retail sales, which were up 35 and 46 percent respectively (read more).
* Buick: Buick reported 13,269 total sales, a 32-percent increase compared to a year ago. This includes a 44-percent rise in year-over-year retail sales, led by Regal (2,290 units) and Enclave, which had retail sales 37 percent higher than last year. This marks the 16th consecutive month of year-over-year sales gains for the brand. (read more).
* GMC: GMC reported total sales of 27,658, a 30-percent increase compared to the same month last year. This marks the 16th consecutive month of year-over-year sales increases. Retail sales were 36 percent higher than last year, spurred by Yukon, Sierra, Acadia and Terrain – up 32 percent, 49 percent, 24 percent and 34 percent, respectively (read more).
* Cadillac: Cadillac reported total sales of 12,580 for January – 49 percent higher than last January, with retail sales increasing 55 percent. January was the 12th consecutive month of year-over-year total and retail sales gains. SRX retail sales were up 43 percent compared to a year ago. CTS retail sales rose 114 percent, driven by strong demand for the all-new CTS Coupe and Sedan. The Escalade family saw retail sale rise 18 percent versus a year ago (read more).
* Fleet sales for GM's four brands were 39,767 for the month, a 7-percent decline from the prior year, with sales to rental fleets down 11 percent during the same period. Sales to commercial customers rose 7 percent for the month, the tenth consecutive month of commercial fleet sales gains. Fleet accounted for 22 percent of GM total sales during the month.

About General Motors: General Motors, (NYSE:GM, TSX: GMM), one of the world's largest automakers, traces its roots back to 1908. With its global headquarters in Detroit, GM employs 209,000 people in every major region of the world and does business in more than 120 countries. GM and its strategic partners produce cars and trucks in 31 countries, and sell and service these vehicles through the following brands: Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Jiefang, Opel, Vauxhall and Wuling. GM's largest national market is China, followed by the United States, Brazil, Germany, the United Kingdom, Canada, and Italy. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. General Motors acquired operations from General Motors Corporation on July 10, 2009, and references to prior periods in this and other press materials refer to operations of the old General Motors Corporation. More information on the new General Motors can be found at www.gm.com.

[vztrt]

http://www.autoblog.com/2011/02/05/r...analysts-fear/

Report: GM sales boosted by incentives, analysts fear return of 'push' model

by Zach Bowman (RSS feed) on Feb 5th 2011 at 12:02PM

According to Automotive News, some analysts are accusing General Motors of sliding back into bad habits by boosting sales with heavy incentives. The report says that GM's 22-percent sales jump in January was largely fueled by laying piles of cash on the hood. On average, GM handed out $3,762 per vehicle last month – the highest incentive figure of any of the six largest automakers. That number represents a 29-percent increase over the same month last year, and Edmunds.com analysts are concerned that the automaker has begun pushing too many models on dealers with plans to move them with incentives.

GM, meanwhile, says that while the company did institute a "modest" increase in incentives last month, it doesn't plan on falling back into the rut of driving production with the cash. The company saw Chevrolet sales jump 19 percent, while Buick and GMC enjoyed a 32-percent increase, all of which were driven largely by more free-flowing consumer credit.

[Source: Automotive News – sub. req.]

[EgoFG]

Originally Posted by vztrt

http://www.autoblog.com/2011/02/05/r...analysts-fear/

a 29% increase in incentives bought a 23% increase in sales (and 1% increase in market share)

And this will be the last article that is able to report on GM buying sales.
They have decided not to share incentives information any more:
http://www.autonews.com/article/2011...#ixzz1CpzB13BG

[vztrt]

http://www.autoblog.com/2011/02/15/r...hire-bob-lutz/

Report: GM trying to re-hire Bob Lutz

by Steven J. Ewing (RSS feed) on Feb 15th 2011 at 4:45PM

General Motors is reportedly looking to re-hire none other than Bob Lutz as a consultant to vehicle development. Lutz, 79, left GM in May of 2010 after leading the company's product development efforts for many years.

The push to rehire Lutz reportedly comes from GM CEO Dan Akerson's initiative to rush development and reduce cost of its new crop of vehicles. The United States government, which currently owns one-third of GM, has apparently opposed Lutz's re-appointment, with The Daily Beast saying that the U.S. Treasury is reluctant to re-hire Lutz on the grounds that paying him so close to his retirement could look like a "sweetheart payout."

GM recently promoted Mary Barra, 49, to senior vice president in charge of global product development, even though she has very little experience in the field. By bringing Lutz back, GM hopes to regain an intelligent eye into strategies for quick product development, as well as marketing and design. Thanks for the tip, Phrime!

[Source: The Daily Beast]

[vztrt]

http://www.autoblog.com/2011/02/23/r...tic-tax-break/

Report: GM to get $14 billion domestic tax break

by Zach Bowman (RSS feed) on Feb 23rd 2011 at 6:30PM

It looks like General Motors will be able to skip out on around $14 billion worth of taxes domestically and another $19 billion in taxes overseas thanks to a deal with the U.S. government. According to Edmunds, 2010 will mark the first year since 2004 that the company has operated in the black, and while most companies are made to pay taxes on their revenue, GM will be able to skip its tax tab due to years of massive losses. Companies are typically forgiven a portion of future taxes due to their past losses, but that benefit is typically stripped after an organization goes through bankruptcy.

That's not the case with GM, however. For reasons that aren't entirely clear, The General has managed to hang on to its tax breaks despite shedding around $30 billion in debt during bankruptcy proceedings. According to CNN Money, both GM and the Treasury Department deny that the automaker has received any special deal, though Edmunds reports that GM may have gotten the break to help reduce the perceived cost of the auto industry bailout.

[Sources: Edmunds, CNN Money]

[vztrt]

http://www.autoblog.com/2011/02/24/g...irst-yearly-p/

General Motors reports earnings of $4.7B in 2010, first yearly profit since 2004

by Zach Bowman (RSS feed) on Feb 24th 2011 at 9:45AM

General Motors has officially announced earnings for its first full year of business after its emergence from bankruptcy. The automaker brought in $135.6 billion in revenue with a net income of $4.7 billion, which marks GM's first profit since 2004. Additionally, that profit was the largest for The General since 1999. Previously, GM had racked up $100 billion in losses.

Being in the black is good news for the automaker's 50,000 hourly workers who are expected to receive bonuses averaging $4,300 as part of a profit sharing program.

According to CNN Money, the change of pace is thanks largely to three things: strong U.S. sales, a growing auto market in China and a significantly lower cost structure thanks to the automaker's trip through bankruptcy.

GM Shares have inched up on the news, despite the fact that the stock market as a whole has dropped by five percent on blooming oil prices. CNN Money reports that GM shares are up five percent as a whole since the company's IPO last November, but that those shares will need to jump by 50 percent in order for tax payers to recoup the government's investment in the company. Follow the jump for the press release.

[Sources: General Motors, CNN Money]

Press Release
GM Announces First Full-Year Results as New Company

2011-02-24

GM achieves four consecutive quarters of profitability

Calendar year net income of $4.7 billion, earnings per share of $2.89 on a diluted basis

Calendar year earnings before interest and tax (EBIT) adjusted of $7.0 billion

Material Weakness in Financial Reporting Eliminated

DETROIT – General Motors Company (NYSE: GM) today announced its calendar year 2010 results marked by $4.7 billion of net income attributable to common stockholders for its first full year of operations.

Revenue for the calendar year was $135.6 billion. Automotive cash flow from operating activities was $6.6 billion and automotive free cash flow was $2.4 billion, both reflecting the impact of a $4.0 billion voluntary cash contribution to the company's U.S. pension plans.

"Last year was one of foundation building," said Dan Akerson, chairman and chief executive officer. "Particularly pleasing was that we demonstrated GM's ability to achieve sustainable profitability near the bottom of the U.S. industry cycle, with four consecutive profitable quarters."

GM generated the following results:


Fourth Quarter '10
Calendar Year '10

Revenue (bils.)
$36.9
$135.6

Net income attributable to common stockholders (bils.)
$0.5
$4.7

- Adjustments and loss on preferred, included above (bils.)
$(0.4)
$(0.2)

Earnings per share on a fully diluted basis ($/share)
$0.31
$2.89

- Adjustments and loss on preferred, included above ($/share)
$(0.21)
$(0.14)

Earnings before interest and tax (EBIT) adj. (bils.)
$1.0
$7.0

Automotive net cash flow from operating activities (bils.)
$(1.7)
$6.6

Automotive free cash flow (bils.)
$(2.8)
$2.4

- Contribution to U.S. pension plans, included above (bils.)
$(4.0)
$(4.0)


Fourth quarter net income attributable to common stockholders of $0.5 billion includes net charges of $0.4 billion, or a $0.21 reduction to fully diluted earnings per share, as a result of the previously disclosed $0.7 billion loss on the purchase of U.S. Treasury (UST) preferred shares, partially offset by the impact of EBIT adjustments. The company had approximately $0.3 billion in favorable EBIT adjustments including the previously disclosed $0.2 billion gain associated with the repayment of the VEBA Note, and $0.1 billion of cumulative gains on the sale of Nexteer and the purchase of the Strasbourg, France facility.

GM North America (GMNA) had EBIT in the fourth quarter 2010 of $0.8 billion, up from a loss of $3.4 billion in the fourth quarter 2009. GM Europe (GME) had a loss before interest and taxes of $0.6 billion, an improvement from a loss of $0.8 billion in the same quarter a year ago. GM International Operations (GMIO) had EBIT of $0.3 billion, down from $0.4 billion in fourth quarter 2009. GM South America (GMSA) had EBIT of $0.2 billion for the fourth quarter, compared with $0.3 billion in the same quarter a year ago. GM began reporting GMSA results as an operating segment in the fourth quarter, and has revised the segment reporting for prior periods.

Automotive net cash flow from operating activities for the fourth quarter was $(1.7) billion, which reflects a $4.0 billion voluntary cash contribution to the U.S. pension plans. After deducting $1.1 billion of capital expenditures, automotive free cash flow was $(2.8) billion.
As a result of GM's 2010 financial performance, the company will pay profit sharing to approximately 45,000 eligible GM U.S. hourly employees, and approximately 3,000 eligible GM Components Holdings (GMCH) employees. The average payout per employee will be approximately $4,300 for GM employees and $3,200 for GMCH employees.

In addition, GM announced today that after assessing remediation actions that it put in place to address the company's material weakness regarding the financial reporting process, the management team and Audit Committee of the Board of Directors concluded that the material weakness no longer exists as of December 31, 2010.

"Our focus for 2011 is to build on our progress and continue to generate momentum in the marketplace. We expect our first quarter will be a strong start," said Chris Liddell, vice chairman and chief financial officer.