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I think it’s 100 or 99 days to go until General Motors have to prove to the US government that they have a plan to go forward.
The official measure will be that they have to show a positive net present value, which from my uni days means that they’ll have to do their sums and prove that their future cash flows – adjusted for the time value of money – will actually be net cashflows inwards, rather than outwards.
That means, essentally, that they’ll definitely get their extensions after March 31 as accountants can be just as creative as scientists when it comes to working out theories.
There other other problems, however….
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Dealers are being advised to call their lawyers and protect their interests.
GM dealers are called that because they sell GM products. They’re actually all independent businessmen and women and they have state laws that say they can’t be shut down by the mothership without being paid out for inventory, signage, special tools and a bunch of other stuff.
From Automotive News:
But dealers are different, Meyers said. At the beginning of the year there were more than 14,294 Detroit 3 stores owned by fiercely independent entrepreneurs. No single organization speaks for them — or negotiates for them.
Meyers said rather than force dealers out of business, the Detroit 3 can only hope to reduce their numbers by starving them of product and pressuring them to give up their franchises. “You’re talking about a process that will take 10 to 20 years,” he said.
10 to 20 years…..I don’t think that’s going to help the cash flow situation.
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In other GM news, Holden Australia announced that they will be producing a new small car in their South Australian plant in 2011.
The car’s to be made on the same Delta II platform that’s scheduled to be working in Trollhattan around that time.
Interestingly, our Prime Minister, who attended the announcement, put himself at risk of being sued by green groups:
Prime Minister Kevin Rudd says the Holden small car will make motoring more affordable.
“This new Holden small car is about jobs, the environment and the family budget.
He also says there are substantial environmental benefits as the Government embarks on its carbon reduction plan.
“It will drive your dollar further, it will take carbon out of the atmosphere and drive jobs into the future.”
It will take carbon out of the atmosphere?????
Saab got sued for a lot less than that. It’ll be interesting to hear if any counter statement is made by the Greens here in Australia.
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Sadly, there’s no news to report about Saab’s future as yet, but the week is young.
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So what are we all wishing for for Christmas??
I’d like a Kingcrome spanner set, please.
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3 responses so far ↓
1 zippy
// Dec 22, 2008 at 11:06 pm
The only way GM can survive is if some of those employees on ridiculous salaries, ie USD75 per hour, realise that it is their greed that is partially responsible for GM’s current financial difficulties. They need to realise their union demands are bankrupting the company and all sides need to make concessions for the long term viability of the company.
GM second problem, the cars they build in North America are complete rubbish. The light on the horizon for GM NA is the Volt – developed using ’stolen’ Saab technology- but the price is going to be a big problem for most consumers.
2 turbin
// Dec 23, 2008 at 6:13 am
BTW Swade, the new Delta Holden will have a small turbocharged DI engine. And diesel and maybe E85 and possibly LPG/CNG.
And still Saab can’t get any promises!
3 PT
// Dec 23, 2008 at 8:15 am
Note to GM Holden.
Well done on getting the Federal Govt to shell out $150m on the basis of a sketch. If anyone wants to see what your 4cyl, FWD, fuel-efficient, hybrid/ethanol compatible sedan/hatch looks like just show them the one you prepared earlier. Its called a Saab. You’ll find them in your product catalogue under S.
I realise that this is all about keeping a factory running but how does GMW get approval ( did they bother telling America about this? I doubt it) to launch a new car when the parent company has 100 days to stave of bankruptcy? And THEY ALREADY MAKE CARS LIKE THIS. If times are that tough, why not make the RHD 93 in Australia and also co-develop the 95 given GMs reputation & expertise for RWD large cars.
A festival of idiots.