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by Paul A. Eisenstein on Sep.02, 2010
Motors Liquidation CEO Al Koch wants court approval for a plan to wrap up operations at "Old" GM.
General Motors is ready to close up shop and disappear for good. The “old” General Motors Corp., that is, the one that went into Chapter 11 last year.
Formally known as Motors Liquidation Co., it’s all that’s left of the bankrupt side of the business, abandoned plants and other assets that were to be used to help cover the billions of dollars in liabilities that the new GM shed as part of its court-ordered reorganization.
Al Koch, the reorganization specialist who has been serving as CEO of Motors Liquidation, hopes to get court approval for a final plan that would divide those remaining assets into four individual trusts. Approval could come by early 2011, though probably not in time for the “new” GM’s upcoming IPO, according to company sources.
Numerous creditors initially tried to block or revise the GM bankruptcy filing, last year, but their demands ultimately were sidelined by the Obama Administration, which came up with roughly $50 billion in federal assistance to keep the automaker alive. In all, Motors Liquidation has received over 70,000 claims worth more than $275 billion. Old GM managers say they have since resolved or rejected about $150 billion of those.
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Among those who now have a stake in new GM are bondholders, who themselves lost $27 billion as part of the bankruptcy. But they were given a 10% stake in the new company and warrants to purchase another 15%.
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Tags: GM Chapter 11, GM IPO, al koch gm, auto news, car news, gm assets, gm bailout, gm bankruptcy, gm news, motors liquidation, old gm, paul a. eisenstein, paul eisenstein, thedetroitbureau
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But GM’s new plug-in will have to wait until 2012.
by Paul A. Eisenstein on Sep.02, 2010
Chevy Volt owners will eventually get this valuable sticker -- but not immediately after the law changes.
Initially denied the coveted pass to California’s time-saving carpool lanes, the Chevrolet Volt will get a break – but not until 2012.
California has decided to pull the value decals that give access to the HOV lanes from conventional hybrids, such as the Toyota Prius, providing that perk, instead, to the new battery-electric vehicles that will soon hit market in increasing numbers. But as TheDetroitBureau.com first reported, the revised rules notably excluded the Chevy Volt extended-range electric vehicle, or E-REV, because while driven in gasoline mode it didn’t quite make the tough P-ZEV emission standard.
(Click Here for the original July 28, 2010 report.)
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But rules being made to be broken, especially in California, all these changes are changing again.
Under the revised bill Gov. Arnold Schwarzenegger has signed, the 85,000 traditional hybrids that were given HOV stickers will continue to have access for an extra six months – through the end of June 2011.
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Tags: Chevrolet Volt, Chevy Volt, HOV lanes, Toyota Prius, auto news, car news, hov access, hov decal, nissan leaf, paul a. eisenstein, paul eisenstein, schwarzenegger, thedetroitbureau, volt hov lanes, volt news
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Known for cheap-and-cheerful offerings, Kia comes up with a styling benchmark with plenty of upscale features.
by Paul A. Eisenstein on Sep.01, 2010
Striking good looks and plenty of features could help the new Optima win a new generation of buyers for Kia.
It’s not often that a single car can redefine a brand. The original BMW 3-Series, for one, the new Hyundai Sonata at the other end of the spectrum. Can Kia pull off the same sort of brand remake when it launches the 2011 Optima, later this year?
The Kia brand has been around for decades, though in its original incarnation its products were used to flesh out the low end of the Ford line-up, cheap-and-cheerful offerings like the Ford Aspire. After it launched its own U.S. dealer network, in 1994, Kia continued to pursue the low end of the spectrum where only three things matter to buyers: price, price and price.
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But the automaker’s new crossover, the Kia Sorento, suggests that things just might be in for a big change, and the 2011 Kia Optima, which made its world debut at this year’s New York International Auto Show, is a sign of just how far the Korean carmaker is ready to reach.
Optima is the work of Peter Schreyer, the inordinately talented former Audi chief of design, who joined Kia several years ago with the promise of revamping the maker’s entire line-up. If Sorento and, now, Optima are any indication, Kia could push past its big brother, Hyundai, which took control of the smaller Korean manufacturer in 1997.
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Tags: 2011 kia optima review, auto news, auto reviews, car news, car reviews, hyundai sonata, kia news, kia optima, kia reviews, midsize reviews, midsize sedans, optima review, paul a. eisenstein, paul eisenstein, thedetroitbureau
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Fourth GM CEO in two years brings very different style to job.
by Paul A. Eisenstein on Sep.01, 2010
After joining the GM Board following its 2009 bankruptcy, Dan Akerson takes over, today, as its new CEO.
Those who work on the 38th floor of Detroit’s Renaissance Center can be forgiven for feeling like the revolving door has been stuck in overdrive. The senior management offices for General Motors have seen a steady stream of new faces since the beginning of 2009, virtually every top position having changed – at least once – since the giant automaker began sliding towards bankruptcy.
But nowhere has that change been more apparent – or frequent – than in the top spot, where long-time chief executive Rick Wagoner was fired by the Obama Administration, in March 2009, as part of its $50 billion bailout of the troubled carmaker. Today, the fourth CEO in barely two years takes the reigns from Ed Whitacre, the lanky Texan and former AT&T Chairman, who announced his sudden departure last month after laying out the plans for GM’s upcoming IPO.
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The new CEO is, to some, an unlikely figure to be running the car company. A graduate of the U.S. Naval Academy, Dan Akerson is not your classic car guy. In fact, he’s had no experience at all with the auto industry other than overseeing several companies linked to the car business when Akerson served as managing director of the powerful private equity firm, The Carlyle Group.
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Tags: auto bailout, auto news, auto task force, car news, dan akerson, ed whitacre, gm bailout, gm bankruptcy, gm ceo dan akerson, gm news, paul a. eisenstein, paul eisenstein, thedetroitbureau
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Half-dozen or more models under consideration for U.S.
by Paul A. Eisenstein on Aug.31, 2010
The Alfa-Romeo Giulia, shown in concept form at the 2010 Geneva Motor Show, will help re-launch the brand in the U.S.
While the spotlight is focusing on the re-launch of the Fiat brand, late this year, another long-absent Italian marque is getting ready to make its own American comeback.
Hundreds of potential dealers were in suburban Detroit, this week, meeting at Chrysler headquarters to discuss plans to roll out the U.S. version of the Fiat 500 microcar, the first of several models Chrysler’s Italian affiliate intends to bring to market. But at the meeting, sources report, Fiat also provided a road map for the re-introduction of its more upscale Alfa-Romeo brand.
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As many as a half-dozen different sedans, coupes and crossovers are under consideration and could make it to market in the years immediately after Alfa’s return, in 2012. That’s on top of the various Alfa products that could be used as platforms for Chrysler-branded models. A revival of the Dodge Viper sports car, for example, is expected to be based on an Alfa offering.
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Tags: Chrysler-fiat, Fiat 500, Italian cars, Sergio Marchionne, alfa giulia, alfa news, alfa spider, alfa-romeo, auto news, car news, fiat dealers, fiat dustin hoffman, fiat news, lancia, paul a. eisenstein, paul eisenstein, the graduate, thedetroitbureau
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Maker claims “local” jobs will jump to 10,000 including suppliers.
by Paul A. Eisenstein on Aug.31, 2010
Kia will add a second shift at its West Point, Ga., plant to build the Hyundai Santa Fe, opening up more capacity for Hyundai to build the Sonata at is plant in Montgomery, Ala.
Kia Motors Manufacturing has confirmed rumors it will add production of a second model at its recently opened assembly plant, in West Point, Ga.
Limited production of the Santa Fe, sold by sibling Korean carmaker Hyundai, will begin on Sept. 27. The following month, Kia will launch a second shift at the Georgia assembly line.
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Current employment at the plant is about 1,900, and will grow to about 2,500 with the addition of the second shift. Including local suppliers and other support operations, Kia claims total Georgia employment for the plant will reach about 10,000.
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Tags: auto news, car news, hyundai news, hyundai sonata, key west point, kia factory, kia georgia plant, kia news, kia sonata, kia sorento, kia to build sonata, paul a. eisenstein, paul eisenstein, thedetroitbureau
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Declining rate suggests motorists gaining control of finances.
by Paul A. Eisenstein on Aug.30, 2010
Auto loan delinquency rates are falling, even as loan availability rises.
U.S. motorists seem to be getting a grip on their household budgets and are doing a better job of getting auto loan payments in on time.
The auto delinquency rate took a sharp rise in recent years, a reflection of the worsening economy – and a mirror of the increased mortgage default rate. In turn, that led lenders such as the former GMAC, to tighten down on auto loan availability. At one point, in the latter half of 2008, it took a nearly perfect credit score to secure a loan from a General Motors dealer.
But industry officials report that lenders are again loosening up, at least a bit, and a declining delinquency rate is one major factor. According to TransUnion, one of the three big credit reporting agencies in the U.S., the late loan payment rate dropped to 0.53% during the second quarter of this year, down from 0.73% during the April – June period in 2009.
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As is normal, rates varied widely across the country, from a minimal 0.28% in North Dakota to 1.05% in Mississippi. But, significantly, the delinquency rate rose in only three states, Rhode Island, Utah and Montana.
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Tags: auto lending, auto loan delinquency, auto loans, auto news, car loans, car news, credit availability, credit defaults, credit scores, gmac, paul a. eisenstein, paul eisenstein, thedetroitbureau
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Marketing exec and rising star dead at 47.
by Paul A. Eisenstein on Aug.27, 2010
Jack Pitney, shown here with the new BMW 5-Series, was killed in a freak accident on his farm.
BMW executive Jack Pitney, considered one of the company’s rising stars, has been killed in a freak accident on his farm outside New York City.
A tractor the BMW executive was driving flipped while Pitney was trying to remove a tree stump, according to a police report.
Just 47, Pitney was given much of the credit for helping the German maker craft the successful U.S. launch of the Mini brand. He was about to be reassigned from his post as BMW’s chief marketing officer to a regional post, raising questions about the direction his career was taking, but inside sources contend the move was meant to broaden Pitney’s skill set, and not as a demotion, as some initial reports had suggested.
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Indeed, the upcoming appointment as Eastern Regional Manager, set to go into effect on Sept. 1st, was precisely the sort of non-traditional move Pitney had been known to make during his brief but impactful career.
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Tags: auto news, bmw marketing, bmw news, bmw pitney, car news, jack pitney, jack pitney killed, paul a. eisenstein, paul eisenstein, pitney accident, pitney obit, thedetroitbureau
Posted in Automobiles | 2 Comments »
Quirky, for sure, but plenty fun to drive.
by Paul A. Eisenstein on Aug.26, 2010
The 2011 Nissan Juke isn't just another urban cruiser.
Pulling up to the ferry terminal at Vancouver’s Horseshoe Bay, it doesn’t take long for a crowd to form. We’re just waiting for the boat to take us over to the Sunshine Coast, but seemingly everyone has to come and check out our new set of wheels, ask questions and offer their opinion
Nissan has a history of coming up with quirky, provocative crossover-utility vehicles – think Murano or Infiniti FX – and the Japanese maker’s latest offering certainly lives up to that reputation. Based on the same B-car platform as the Versa minicar, the 2011 Nissan Juke is certainly not just another plebian SUV wannabe.
There are the muscular wheel arches and the sloping roof line that is vaguely reminiscent of the little Z-car, at least a Z on steroids. The bubble back could be borrowed from Murano though the Nike swoop-like lights might easily be lifted from one of the Volvo XC models. Then there’s that nose. Everyone has a thought to offer.
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Juke’s headlamps aren’t where you’d expect them. A pair of large, clear blisters erupt from the hood and would suggest that the car is using the latest in project lamp technology. But they’re actually just turn signals. The headlamps are mounted in the circles that rise from the bumper, where you might expect foglamps. Those, if your car is so –equipped, are tucked almost out of sight in the lower fascia.
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Tags: 2011 nissan juke, 2011 nissan juke review, auto news, auto reviews, car news, car reviews, crossover reviews, juke review, minicar reviews, nissan news, nissan review, paul a. eisenstein, paul eisenstein, small car reviews, thedetroitbureau, urban car reviews, urban cars
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Maker says slight possibility of importing new pickup to U.S.
by Paul A. Eisenstein on Aug.26, 2010
A new investment in the Thai Ranger replacement even as plans proceed to end U.S. production.
Ford Motor Co. says it will invest $350 million in a partnership with long-time Asian affiliate Mazda Motors to produce a new compact pickup truck – even as the maker rejects bids by Minnesota Governor Tim Pawlenty and other local officials to save an assembly plant producing the current Ford Ranger pickup.
Together, Ford and Mazda have invested $1.85 billion into their AutoAlliance Thailand factory, in the Bangkok suburb of Rayong, since 1995. The additional $350 million investment will support the launch of an all-new compact truck that is set to go into production in mid-2011.
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AAT will become “a global center of excellence for the production of both brand’s compact pickup trucks,” said Mazda Executive Vice President Masaharu Yamaki.
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Tags: auto news, car news, ford mazda, ford news, ford pickup, ford ranger, ford rayong, ford thai pickup, ford thailand, paul a. eisenstein, paul eisenstein, pawlenty ford, thedetroitbureau, tim pawlenty
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