**GM preparing for bankruptcy**

[imugli]

I thought this was particularly interesting...

Holden's directors, in the notes to the financial statements, say they are confident in the car maker's future, but the confidence is dependent on a series of funding initiatives falling into place, including government money to help GM — primarily from the US and Canada — and a $200 million lifeline from an unnamed third party that relates to the Australian operations and is contingent on the US parent emerging from bankruptcy.

What I read between the lines from that is that Holden are currently operating because the Oz Govt has made a deal with GM to hand them $200mil upon their emergence from Ch.11 to not hive it off.

[vztrt]

Imulgi have a look 4 posts up from yours.

[imugli]

Originally Posted by vztrt

Imulgi have a look 4 posts up from yours.

Edited. Apologies...

[Joe5619]

Found is story.. Seems Holden is far more up creek then they have lead everyone to believe.. You really do have to hand it to them, for getting such "postive" media spin when things are so bad!!

http://business.smh.com.au/business/...0702-d6ky.html

[vztrt]

Joe look 6 posts up mate.

[Paxton]

Originally Posted by Joe5619

Found is story.. Seems Holden is far more up creek then they have lead everyone to believe.. You really do have to hand it to them, for getting such "postive" media spin when things are so bad!!

http://business.smh.com.au/business/...0702-d6ky.html

Yup.

Holden aren't as rosy as the media/Holden+GM lead us to believe. Their exposure to, and dependence on exports to prop up local manufacturing, and act as the cash cow, combined with low profit fleet sales, have put Holden into this position.

When Exports collapsed last year, Holden were left with two shifts, and most of the cars from their shifts were going onto grass, to be flogged off at a firesale rate late last year, early this (60th anniversary Commodore anybody?) Reminds me of the last of the 380 Platinums. It wasn't until the beginning of this year, when Holden had no (and I mean no) cash lying around, did they kill off the second shift, and keep all the employees, on a reduced rate of pay. Ford's losses were high, as they had to pay for redundancies when they made their two lots of job cuts last year.

Holden are relying on Cruze to be their saviour. They have finally realised that Exports aren't the answer (Tom Gorman fluked that same outcome), and that Commodore isn't the be all and end all. I hope they survive. I really do. Not only for the employees, but for competition.

[500SEC]

Regarding the Cruze, it's gets a very average write-up in the latest edition of Wheels. Apparently very heavy on petrol. Came fourth, after Focus. I can't see how Cruze, being another Korean appliance (a la Epica etc), will save Holden.

[The Snout]

Only people that think Cruze is hot is Holden themselves. They're offering nothing 6-7 other manufacturers aren't offering and there's isn't even the best.

[vztrt]

Bad or not it had a good month of sales in June.

[Joe5619]

Originally Posted by The Snout

Only people that think Cruze is hot is Holden themselves. They're offering nothing 6-7 other manufacturers aren't offering and there's isn't even the best.

The car it self may be nothing special compared to 6-7 other manufacturers.. Problem for those other 6-7 manufacturers is that Holden is doing a much better job at marketing their product than others.. All this has resulted in good sales...The new Cruze has alread outsold the Focus!! Need I say more?

[Paxton]

Originally Posted by Joe5619

The car it self may be nothing special compared to 6-7 other manufacturers.. Problem for those other 6-7 manufacturers is that Holden is doing a much better job at marketing their product than others.. All this has resulted in good sales...The new Cruze has alread outsold the Focus!! Need I say more?

Did it really, or are most of the sales nothing more than Dealer registrations? Let's wait till the July results before we jump to a conclusion there.

[Joe5619]

Originally Posted by Paxton

Did it really, or are most of the sales nothing more than Dealer registrations? Let's wait till the July results before we jump to a conclusion there.

What a load of BS!! Both models are new, so both Ford & Holden would be resistrating dealer models for demos..

[vztrt]

Originally Posted by Joe5619

The car it self may be nothing special compared to 6-7 other manufacturers.. Problem for those other 6-7 manufacturers is that Holden is doing a much better job at marketing their product than others.. All this has resulted in good sales...The new Cruze has alread outsold the Focus!! Need I say more?

Actually it beat the focus by 63 units. Mazda 3 did 3741, rolla did 4066 so not like the cruze romped it in.

[The Snout]

Originally Posted by Joe5619

The car it self may be nothing special compared to 6-7 other manufacturers.. Problem for those other 6-7 manufacturers is that Holden is doing a much better job at marketing their product than others.. All this has resulted in good sales...The new Cruze has alread outsold the Focus!! Need I say more?

Toyota Corolla 4,066
Mazda3 3,741
Hyundai i30 2,742
........
........
Holden Cruze 873
Ford Focus 807

Need I say more ?

[Joe5619]

The Cruze was NEVER going to come in & in its first month beat the heavy weighs of Corolla, Mazzda3 &i30. But, if people can't see & understand how bl00dy fantastically Holden has gone to get 873 sold in July then I'm not going to change peoples minds. Especially when compared to an established brand like Focus. It really makes Ford look very silly if you ask me.

[vztrt]

Originally Posted by Joe5619

The Cruze was NEVER going to come in & in its first month beat the heavy weighs of Corolla, Mazzda3 &i30. But, if people can't see & understand how bl00dy fantastically Holden has gone to get 873 sold in July then I'm not going to change peoples minds. Especially when compared to an established brand like Focus. It really makes Ford look very silly if you ask me.

Its one month, and June of all months. Lets see how it settles into the market before saying how well its done.

[Fordman1]

Originally Posted by vztrt

Its one month, and June of all months. Lets see how it settles into the market before saying how well its done.

Agree,

I give it a few months (maybe 6) of 'reasonable' sales before it 'tanks' !

[Paxton]

Originally Posted by Joe5619

What a load of BS!! Both models are new, so both Ford & Holden would be resistrating dealer models for demos..

Sorry mate, but it isn't.

Focus is still restricted by supply. The launch for Focus to the general public hasn't happened yet, and there has been no advertising yet.

Cruze has one very, big problem. There is no hatch. Until Holden gets a hatch to market, it will struggle. The reviews haven't exactly been glowing either.

This is way off topic, and is for another thread.

[Bossxr8]

Originally Posted by Joe5619

The car it self may be nothing special compared to 6-7 other manufacturers.. Problem for those other 6-7 manufacturers is that Holden is doing a much better job at marketing their product than others.. All this has resulted in good sales...The new Cruze has alread outsold the Focus!! Need I say more?

Considering the Cruze is an all new model and the Focus is just a tiny update on an ageing model, and Holden have spent millions advertising it when Ford have spent next to nothing promoting Focus, I think the Cruze is the loser out of that battle.

Focus beat it in Wheels comparison test too, and the platforms getting on a bit in age now and Cruze is all new. One of the testers said if this is the answer to Holdens future then they might be in trouble.

[Joe5619]

All I have heard is excuse after excuse after excuse as to why Cruze has outsold Focus.. At the end of the day, Holden has sold more cars (And Sedans only at that too)... I'd like to see Ford do better (this is a Ford forum website after all), but I think at some point you just have to say "Well done Holden, poor form Ford"...

[vztrt]

Originally Posted by Paxton

This is way off topic, and is for another thread.

Correct.
Like here: http://www.fordforums.com.au/showthr...ghlight=vfacts

[vztrt]

US judge approves GM's restructure plan

http://news.theage.com.au/breaking-n...0706-da4j.html

US bankruptcy judge approves GM's restructuring
July 6, 2009 - 3:09PM

A bankruptcy judge granted General Motors permission to sell its best assets to a new automaker in which the US government will hold a majority stake.

The decision paves the way for a speedy exit for GM, which sought bankruptcy protection on June 1 and has vowed to reinvent itself as a leaner, more profitable company once freed from its burdensome debts.

Once the world's largest corporation, the new GM will emerge as a significantly smaller automaker with few brands and a diminished global footprint.

Judge Robert Gerber said he had examined about 850 objections to the restructuring plan raised by GM stockholders and others, but ruled that he could not find them valid.

"Once again, the court is sensitive to their concerns, but cannot help them," he wrote.

"GM is hopelessly insolvent, and there is nothing for stockholders now. And if GM liquidates, there will not only be nothing for stockholders; there will be nothing for unsecured creditors."

Judge Gerber's decision can still be appealed by GM's creditors and it will take several days or possibly a few weeks for the asset sale to be completed.

That will nonetheless be well ahead of the 60 to 90 day timeframe predicted by President Barack Obama's administration, which spearheaded the process.

Chrysler, which is about a third of the size, spent 40 days in bankruptcy protection and even an appeal to the Supreme Court did not block its sale to a new company run by Italy's Fiat.

Like Chrysler, GM's weaker assets will be liquidated through the New York bankruptcy court, but the new GM will not be burdened by the lengthy process.

The cost of liquidating GM's remaining assets could be as high as 1.2 billion, chief executive officer Fritz Henderson testified Tuesday.

The US government will own 60.8 percent of the new company after having supported GM's operations with some 50 billion US dollars in emergency loans.

Canada, which also provided billions in loans, will have an 11.7 percent stake and a United Auto Workers union retiree health care trust fund will hold 17.5 percent.

Creditors holding GM bonds will swap 27.1 billion US dollars in debt for a 10-percent stake and warrants allowing them to buy an additional 15-percent stake.

Obama has said his administration has no intention of nationalizing General Motors over the long term and will not be participating in its day-to-day operations.

A senior member of Obama's automotive task force testified last week that the government could begin to sell its stake as early as 2010, once the new company is ready to launch a public stock offering.

GM was able to move through the process swiftly because it spent months preparing for the bankruptcy process and reaching agreements with its main union and most of its creditors.

While the new GM will have a significantly stronger balance sheet after having slashed its labor costs and shuttered factories to rid itself of excess capacity, it must still contend with the collapse in auto sales which pushed it into court protection.

US auto sales appear to have stabilized after falling to levels not seen in decades, but analysts warn it will likely be months before they recover from the current depressed rate.

Total US auto sales fell 28 percent in June, the first time sales have fallen by less than 30 percent since the market crashed in October of 2008, according to Autodata.

Sales for the first half of the year were down 35.1 percent at 4.8 million vehicles, according to Autodata.

GM's sales trailed the market, falling 34 percent in June and 41 percent for the first six months of the year.

© 2009 AFP

[vztrt]

Some more news.

http://business.theage.com.au/busine...0706-da5o.html

Clearing the way for 'new GM'
July 6, 2009 - 3:42PM

General Motors won approval to sell most of its assets to a US Treasury-funded buyer, cementing the Obama administration's efforts to remake the auto industry and leaving restructuring professionals with several years of work to liquidate the leftovers.

US Bankruptcy Judge Robert Gerber in New York issued his ruling yesterday saying the proposed sale was the only option available to the struggling Detroit-based automaker. He largely followed the ruling of his counterpart on the Manhattan court Arthur Gonzalez, who approved the sale of most of the assets of GM's smaller rival Chrysler.

''As nobody can seriously dispute, the only alternative to an immediate sale is liquidation - a disastrous result for GM's creditors, its employees, the suppliers who depend on GM for their own existence, and the communities in which GM operates,'' Gerber said in an 87-page opinion. ''In the event of a liquidation, creditors now trying to increase their incremental recoveries would get nothing.''

A group of bondholders, tort claimants and unions having their retiree benefits slashed had objected during three days of hearings on the sale, saying the so-called''new GM'' to be majority-owned by the US government is just ''old GM'' stripped of liabilities. The company will sell the same cars and trucks, have the same workers and the same executives.

Government financing

''This isn't the Chrysler case. There is no independent buyer,'' Barry Bressler, a lawyer for tort claimants, referring to Fiat's role in the purchase of Chrysler.

The company should take more time and file a traditional bankruptcy reorganization plan on which creditors would get a chance to vote, bondholders said.

Treasury auto task force adviser Harry Wilson testified the company wouldn't survive a traditional Chapter 11 plan process and the government would pull its $US33 billion ($41 billion) in financing if Gerber hadn't approved the sale by July 10.

''Bankruptcy courts have the power to authorize sales of assets at a time when there still is value to preserve - to prevent the death of the patient on the operating table,'' Gerber wrote in his opinion.

No alternatives

None of the objectors has offered any alternative transactions or financing, Harvey Miller, GM's lawyer from Weil Gotshal & Manges LLP, said during arguments.

''The purchaser makes the decision on what it is willing to purchase,'' Miller said. ''The only alternative is liquidation.''

Under the terms of the sale, the US government would get 60 per cent of the new GM for making $US50 billion in bailout loans. A worker fund would get a 17.5 per cent stake for giving up health-care benefits, and Canadian government entities would get 11.7 per cent for their loans.

Bondholders and unsecured creditors would share 10 per cent of the reorganized company's equity, plus warrants with a total value of $7.4 billion under the proposed plan. New GM's total equity is anticipated to be worth more than $US38 billion.

Wilson testified July 1 he expects an initial public offering of the new GM shares in 2010.

The company plans to leave behind 16 plants and associated real estate in Delaware, Ohio, New York, Indiana, Pennsylvania, Virginia and Michigan, among other discarded property. The Treasury also is leaving the estate with $US1.175 billion for a wind-down of the remaining assets. The amount was increased from $US950 million when creditors expressed concern they would be stuck with the bill for the liquidation.

Wind-down costs

GM Chief Executive Officer Fritz Henderson and Chief Restructuring Officer Albert Koch, who will supervise the liquidation of the remaining assets, both testified during three days of hearings that the wind-down will likely cost as much as $US1.25 billion, more than the $US950 million set aside.

Without the additional funding from the Treasury, the bankruptcy estate may have needed to sell some of its 10 percent stake in the reorganized company to cover the difference, reducing recoveries for unsecured creditors including bondholders, Koch said.

The ``heavy lifting'' on winding down the business will be finished in two to three years, while other elements may ``drag on'' longer than that, Koch said. It will likely be early 2010 before the company is in a position to file a liquidation plan with the court, he said.

Bloomberg News

[vztrt]

Go Auto Article

http://www.goauto.com.au/mellor/mell...2575EB00286FC1

Bankruptcy judge approves GM sale

New GM is clear for take-off after US judge approves transfer of assets

By DAVID HASSALL 6 July 2009

GENERAL Motors is free from the threat of liquidation after a New York judge approved the company’s bankruptcy sale on Sunday – just five days before a government deadline that threatened billions of dollars of state aid.

GM promptly announced that its profitable assets – including overseas subsidiaries such as GM Holden – would be sold to a new company, NGMCO Inc (‘New GM’), which will later be re-named General Motors Company.

US bankruptcy court judge Robert Gerber’s ruling clears the way for GM to potentially emerge quickly from bankruptcy protection under government ownership.

Judge Gerber said the sale would “prevent the death of the patient on the operating table”.

“If GM liquidates, there will not only be nothing for stockholders; there will be nothing for unsecured creditors,” Judge Gerber said in a 95-page ruling resulting from a three-day hearing last week.

“As nobody can seriously dispute, the only alternative to an immediate sale is liquidation — a disastrous result for GM's creditors, its employees, the suppliers who depend on GM for their own existence, and the communities in which GM operates.”

New GM will be free of many of the old company’s costs and liabilities – including, controversially, consumer claims relating to incidents that occurred before GM went into bankruptcy protection on June 1.

GM will also leave the bankruptcy court with significantly reduced debt and labour costs, as well as fewer brands and dealerships, as outlined in recent government presentations.

New GM will be able to operate what are regarded as the best parts of the old company, including its Chevrolet and Cadillac brands, with a less-expensive workforce and a smaller dealer network.

The ‘old GM’, which includes unpopular brands and unneeded factories and liabilities, will remain behind in bankruptcy court to be liquidated. These assets include Hummer, Saturn and Saab.

GM president and CEO Fritz Henderson welcomed the move, saying a healthy US auto industry remained vital to the global economy.

“We deeply appreciate the support the US, Canadian and Ontario governments and taxpayers have given GM, and the sacrifices that have been made by so many,” he said.

“This has been an especially challenging period, and we've had to make very difficult decisions to address some of the issues that have plagued our business for decades. Now it's our responsibility to fix this business and place the company on a clear path to success without delay."

The US treasury department has vowed to cut off GM’s vital operating funds unless the asset sale to New GM goes through by July 10.

Treasury has agreed to take a 60.8 per cent equity in the new company in return for $60 billion in financing, most of which has already been provided. The remaining stake in new GM will be owned by the United Auto Workers (17.5 per cent), the Canadian government (11.7 per cent) and GM bondholders (10 per cent).

Associated Press reports that several consumer groups objected to provisions in the sale that free the new company from liability for consumer claims related to incidents that occurred before GM went into bankruptcy protection.

That means that people injured by a defective GM product in connection with an incident that occurred before June 1 would have to seek compensation from the old GM, where they would be less likely to receive compensation.

The Obama administration has said it does not plan to interfere with the day-to-day running of New GM, but has been involved in the selection of the 13-member board of directors, including the appointment of former AT&T boss Ed Whitacre as chairman.

[vztrt]

Car Advice Article.

http://www.caradvice.com.au/34422/ju...ors-sale-plan/

Judge approves General Motors sale plan

A US judge has approved General Motors’ bankruptcy sale, in a move that will allow the company’s most profitable assets to exit Chapter 11 bankruptcy protection under government ownership.

Reuters Newsagency says Judge Robert Gerber of the US bankruptcy court in Manhattan said the sale would “prevent the death of the patient on the operating table.”

GM, which filed for bankruptcy protection on June 1, had argued that it would be forced to liquidate if the sale was not approved.

The US government said it could walk away from funding the carmaker if a deal was not approved by July 10.

“If GM liquidates, there will not only be nothing for stockholders; there will be nothing for unsecured creditors,” Judge Gerber said in a 95-page opinion.

Under the deal, New GM will operate the best parts of the old company, including its Chevrolet and Cadillac brands, with a less-expensive workforce, smaller dealer network, and much less debt.

Almost immediately GM announced that most of its assets would be transferred to NGMCO Incorporated, an entity funded by the US Treasury Department.

It said that ultimately NGMCO Inc would change its name to General Motors Company and continue to operate under GM’s historic corporate and sub brands.

The “old GM,” which includes unpopular brands and unneeded factories and liabilities, will remain behind in bankruptcy court to be liquidated.

The US Treasury has agreed to provide US$60 billion in financing to the new company, including a proposed US$50 billion that would give it a 60 per cent stake in the company.

The United Auto Workers will gain a 17.5 per cent stake, the Canadian government about 12 per cent, and GM bondholders would be expected to obtain about 10 per cent of the new company.

At a three-day sale hearing that concluded July 2, some small bondholders had objected to the deal, but no other bidders presented an alternative, and the 100-year-old company warned of “catastrophic” consequences to the auto industry if the sale was blocked.

A successful sale of GM’s main assets is the second big victory for the automotive industry task force of President Obama’s administration after it helped broker the sale of Chrysler LLC to a group led by Italy’s Fiat SpA last month.

A task force official said earlier this month that the government could conduct an initial public offering for the “New GM” as soon as 2010.

[vztrt]

More on the Hummer deal

http://www.goauto.com.au/mellor/mell...2575EC0009ED25

Show me the money: Hummer boss

Hummer says it expects its Chinese saviour to simply supply the cash

By DAVID HASSALL 7 July 2009

HUMMER chief executive Jim Taylor expects the takeover deal by a Sichuan Tengzhong Heavy Industrial Machinery will be completed by the end of August and that Hummer will continue to operate normally under Chinese ownership.

Mr Taylor said the inexperienced Chinese company would merely be an investor and would not need to get involved in the daily management or operation of the US-based car-maker.

“All I need is cash,” Mr Taylor told China Daily, adding that he had all the operational expertise and people he needed.

Tengzhong has no car-building experience and company CEO Yang Yi is reported as saying he is happy to rely on Hummer's existing management team for the brand's ongoing operations and future product development.

[vztrt]

GM soon to be out of bankruptcy

http://news.theage.com.au/breaking-n...0710-df55.html

GM nearly out of bankruptcy protection
July 10, 2009 - 9:04AM

General Motors Corp appeared headed towards a record-short escape from bankruptcy protection on Thursday despite a last-minute appeal that a legal expert said was unlikely to stand in the way.

A bankruptcy judge's order approving the sale of most of GM's assets to a new company was to go into effect at noon. An appeal was filed just before the deadline by plaintiffs in an Arizona product liability lawsuit against the automaker. It was unclear if the appeal delayed the sale approval.

When it exits bankruptcy, GM, once the world's largest and most powerful automaker, will be a leaner and greener company, cleansed of debts and burdensome contracts that nearly dragged it into liquidation.

But it faces brutal international competition and the worst auto sales market in more than 25 years.

John Pottow, a University of Michigan Law School professor who specialises in bankruptcy, said opponents have little legal recourse to block the sale because their issues were shot down by higher courts in Chrysler's bankruptcy case.

"It's done," Pottow said. "I knew they were dead as soon as the Chrysler case was decided."

He expects GM to close the deal and emerge from bankruptcy on Thursday in just 39 days, a record for a company its size, he said.

GM lawyers were preparing documents to close the sale as quickly as possible, but company spokesman Tom Wilkinson said he could not give a time frame.

© 2009 AP

[vztrt]

More news

http://news.theage.com.au/breaking-n...0710-dfj9.html

GM expected to exit bankruptcy Friday
Joe Szczesny
July 10, 2009 - 12:59PM

General Motors is expected to announce its speedy exit from bankruptcy protection Friday through the sale of its best assets to a new automaker in which the US government will hold a majority stake.

CEO Fritz Henderson is scheduled to host an hour-long press conference at 9:00 am (1300 GMT) Friday at the automaker's Detroit headquarters.

It will come less than a day after a court cleared the way for the asset sale despite some 850 objections from creditors and a last-minute appeal by the family of a car accident victim.

Once the world's largest corporation, General Motors sold more vehicles than any other carmaker from 1931 through 2007, after which it lost the crown to Japan's Toyota.

The "new GM" will be a leaner, smaller company after having shed tens of thousands of workers, eliminated or sold storied brands, shuttered scores of factories and rewritten its labor contracts to slash costs.

It will also be unencumbered by the bulk of the massive debt load it racked up during four straight years of bleeding balance sheets.

GM entered bankruptcy protection on June 1 with liabilities of 172.8 billion US dollars and is set to emerge with 48.4 billion in debt.

But while GM's operating costs will be significantly lower, it could be a while before they are able to sell enough vehicles to make a profit, cautioned Rebecca Lindland, an analyst with IHS Global Insight.

"Their biggest problem is perception, and that's the hardest to fix," Lindland said in a telephone interview.

While GM's product offerings are strong, they have had trouble getting consumers to take them out for a test drive due to years of quality problems and bad press.

Meanwhile, overall auto sales remain very weak after collapsing last fall amid a credit crunch and financial market meltdown.

"They need to get new buyers excited about their products," Lindland said.

As with Chrysler, GM's old corporate entity will be liquidated under supervision of the bankruptcy court, but the new GM will not be burdened by the lengthy process.

The US government -- which has provided some 50 billion US dollars in financing -- will receive a 60.8 percent stake in the new company.

Canada, which provided 9.1 billion US dollars in loans, will have an 11.7 percent stake and a United Auto Workers union retiree healthcare trust fund will hold 17.5 percent.

The "old GM" will retain a 10 percent stake in order to allow creditors to recover some of their losses.

President Barack Obama, whose auto taskforce spearheaded the GM restructuring plan, has said his administration has no intention of nationalizing the automaker over the long term and will not be participating in its day-to-day operations.

GM was able to proceed swiftly because it spent months preparing for the bankruptcy process as well as reaching agreements with its main union and most of its creditors.

A senior member of the taskforce testified last week that the government could begin to sell its stake as early as 2010, once the new company is ready to launch a public stock offering.

GM continues to work to sell its "non-core" brands and other assets, including its European arm, Opel.

It recently signed tentative deals to sell its beleaguered Saab unit to Swedish luxury sports car firm Koenigsegg, the hulking Hummer brand to a Chinese consortium and its Saturn unit to a US dealership chain.

The Pontiac brand, like Oldsmobile before it, will be slowly wound down in the coming months.

© 2009 AFP

[vztrt]

Lutz hits reverse to help drive GM into new era

http://www.goauto.com.au/mellor/mell...2575EF000A4BC4

Lutz hits reverse to help drive GM into new era

eneral Motors gets ready to emerge from bankruptcy tonight on 100 not out

By RON HAMMERTON 10 July 2009

THE 100-year-old General Motors Corp is set to emerge from Chapter 11 bankruptcy tonight when CEO Fritz Henderson is expected to announce the sale of the company’s best assets to ‘New GM’.

And in a shock twist, GM vice-chairman and senior advisor Bob Lutz, 77, is reported to be ready to ditch retirement plans and stay on with the new-look company.

Both announcements are expected to come at a press conference called for 9am Detroit time (11pm AEST Friday) at GM’s Detroit headquarters, where Mr Henderson will be joined by new chairman, former AT&T phone company CEO Edward Whitacre.

The Detroit Free Press says one-time fighter pilot Mr Lutz has reversed plans to retire at the end of the year to stay on in some capacity.

Quoting sources close the company, the newspaper reports that Mr Henderson will announce the re-appointment of the so-called ‘car czar’, who previously worked for Chrysler.

Born when GM was just 24 years old, Mr Lutz is best known in Australia for championing Holden products and expertise, leading to export programs for the Monaro as the Pontiac GTO and Commodore as the Pontiac G8.

Mr Lutz announced in February that he would relinquish control of GM’s product development in April before retiring fully at the end of the year, joining his fellow long-time GM warhorse, Richard Wagoner, on the golf course.

The speedy emergence of GM from bankruptcy comes just days after a US bankruptcy court judge approved the sale of GM’s best assets to ‘New GM’, which will be officially called General Motors Co.

The court swept aside objections from a range of complainants, including accident litigants who wanted to appeal Monday’s sale approval by judge Robert Gerber.

The US government, which will be the majority shareholder of New GM with a 60.8 per cent share, had urged a rapid turnaround or it would withdraw billions of dollars in rescue aid, resulting in GM’s summary liquidation.

In his decision, Judge Gerber agreed that the sale had to go ahead as soon as possible to prevent GM “dying on the operating table”.

The US treasury has stated its intention to bail out of GM ownership as soon as practicable, but not before appointing several new directors to the board to oversee the company’s re-emergence.

Other major shareholders in GM Co will be the Canadian government (11.7 per cent), the United Auto Workers union health care trust (17.5 per cent) and GM bondholders (10 per cent).

While the Cadillac, Chevrolet, Buick and GMC brands will be retained, Pontiac will be phased out and Hummer and Saturn sold.

As well, GM is in negotiations to sell its European operations, including Opel, Vauxhall and Saab.

GM Holden is expected to be retained and transferred to the new GM Co.

Tonight’s media conference will be a multimedia event, with Mr Henderson even getting his message out via Twitter and a web chat.

[Sprint XR8]

GM’s Daewoes

By Edward Niedermeyer, July 8, 2009

Businessweek reports that GM’s Korean Daewoo Automotive Technology (GM-DAT) partner is in as much trouble as the Detroit-based mothership. GM-DAT, which develops much of GM’s small-car capability, has seen its sales fall nearly in half in June (particularly in Russia and Korea), prompting some to question whether the firm will emerge from a mounting liquidity crunch. Last year GM-DAT exported 900,000 vehicles and one million knock-down kits last year, accounting for a quarter of GM’s global sales. But as the firm’s Chevy and Buick brands have sagged, so to has GM-DAT’s income. The Korean unit is seeking loans from the Korean Development Bank, which owns 28 percent of the firm. KDB reportedly will only back GM-DAT if it becomes a full-line vehicle developer, rather than a small-car specialist. This would threaten GM’s Holden subsidiary in Australia, which has put the kibosh on such talks. Meanwhile, we’re hearing rumblings that the GM-DAT liquidity crisis is being caused by GM underpaying for its imports.
http://www.thetruthaboutcars.com/gms-daewoes/