Behind The Wheel
- Toyota Makes Recall Fix And So Long Saab
- The L.A. Extravaganza: A Test for Auto Shows
- Volt Drive: Great Ride, Interesting Interior and a Friendly Chirp
- Volvo Talks Show New Day Dawning for China
- Starting Car2Go - Smart Move for Daimler
- GM Cuts Losses—Plans Early Loan Repayment
- Ghosn's Bet: 10% of World Will Drive EV's in 10 Years
- Ford, Hyundai, Audi Gaining Interest
- Cadillac Converj Smart Extension of Volt
- Chrysler Makes Smart Call Staying Unplugged—For Now
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- Salvation Army's Kettles Now Credit Card-Ready
- Activision Prepares to Double Dip on ‘Modern Warfare 2’
- Chinese Overcapacity is Worsening, EU Chamber Warns
- US Mint to Suspend American Eagle Gold 1-Ounce Coins
- Foreign Demand Boosts US 7-Year Treasury Sale
- The 'Real' Jobless Rate: 17.5% Of Workers Are Unemployed
- 4 Thanksgiving Week Buys For Your Portfolio: Market Pros
- There's a 'Great Chance' For a Double-Dip Recession: Strategist
- Revenge of the Gangsta Nerds
- Will TCU See The "Flutie Effect?"
- Retail Earnings and Sales to Improve in Q4: Analyst
- Consumers Catching the Holiday Spirit
- It's Beginning To Look A Lot More Riskless
- Crescenzi: Claims Level Suggests End to Job Losses
- Hedge Funds Take Early Lead in Warren Buffett's 'Big Bet'
- Black Friday to Avoid Red Ink; Greenback Gets the Blues
- Bankruptcies Jump, Hitting Highest Level in Four Years
- AIG, Ex-CEO Greenberg Reach Pact to Settle Disputes
- Bank of America CEO Search May Extend Into 2010
- Steepest Black Friday Discounts, Revealed
- Fed to Counsel Moviegoers on How to Use Credit Cards
- 'Cancer of Fraud' Permeates Health Care System: Critics
- Where Do Pardoned Turkeys Go?
- US Mint to Suspend American Eagle Gold 1-Ounce Coins
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This week GM and Chrysler will transform the auto industry by skidding into and through bankruptcy.
If they can avoid a major car wreck, perhaps Uncle Sam's "controlled bankruptcy" plan will work.
Either way, neither company will be them same, and in the case of GM, it is about to become a dramatically different company.
GM:
Today: Expect the bond holders to reject the debt exchange offer. These guys are ticked off (to put it politely) they are only getting 10 percent of GM [GM
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] in exchange for $24 Billion in debt while the UAW will get up to 39 percent for $10 billion it is owed. They'll take their chances on getting more in bankruptcy court.
Wednesday: We could see the German government and the auto maker sign off on the preferred bid for GM Europe. While most Americans could care less who gets Opel and Vauxhall, the winning bid will have a huge impact on GM and Chrysler. If Fiat does not get GM Europe, it will be tougher for CEO Sergio Marchionne to achieve the scale he wants to turn a profit. If Fiat struggles to stay in the black, Chrysler will suffer.
Next Monday: Expect GM to file for bankruptcy. June 1st is the deadline the President set for GM to restructure itself or wind up going into bankruptcy. When the bond holders reject the debt exchange offer, the government will say, "Ok, let's do this in court." But let's be honest, GM has been headed this way for weeks, and everyone has known it.
Chrysler:
Thursday: While Fiat CEO Sergio Marchionne is pressing to win the sweepstakes for GM Europe, Thursday is the day a bankruptcy judge will hear arguments for the final sale of Chrysler. Dealers, pension plan administrators and creditors are likely to fight the sale of "good" assets to the new Chrysler run by Fiat. That said, many believe the new Chrysler will be approved. This would be the final major hurdle for Fiat to take control of Chrysler.
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Click on Ticker to Track Corporate News:
- Ford Motor [F
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- General Motors [GM
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- Toyota Motor [TM
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- Nissan [NSANY
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- Honda Motor [HMC
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