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Posts Tagged ‘GM restructuring’

GM Poised to Enjoy Long-Term Success, Says Ammann

Changes in structure should help GM weather storms.

by on Jan.13, 2016

GM President Dan Ammann told a crowd at the Automotive News World Congress that the maker was poised to be profitable during a downturn.

For two of the world’s largest global automakers, Toyota and General Motors, it’s pretty much steady as it goes as the industry heads in an era of transition and change.

Dan Ammann, GM president, told the Automotive News World Congress that the car business is perhaps the single most challenging and complex business in the world.

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“It’s a really interesting time in the industry,” said Ammann, who joined General Motors in 2010 after a career as a Wall Street banker. “We’re obviously we see more change in this business.” (more…)

Whitacre Says CEO Search is Over. It’s He!

Chairman and acting CEO is CEO after “sort of learning this business” at Government-packed Board's request.

by on Jan.25, 2010

"My motivation for doing this has not changed."

"My motivation for doing this has not changed."

At a news conference in Detroit late this morning, GM chairman and acting CEO Ed Whitacre, Jr., said that he has agreed to take the CEO job for an indefinite period following a request by last week by the U.S. government-packed board of directors.

The announcement confirms new reports, including ours, of earlier today, and possibly calls into question the effectiveness of regulation FD, or fair disclosure, from the Security and Exchange Commission, which is designed to prevent the selective release of news material to some of a company’s investors before it’s publicly revealed to all.

U.S. taxpayers have invested $120 billion in the U.S. auto industry, with GM representing $50 billion of that amount. Management changes are without question material.

This place needs some stability,” Whitacre said. “And I guess that’s me.”

The announcement comes just before  President Obama’s first State of the Union address this Wednesday. Obama, whose ratings among independent voters are plummeting, is expected continue his recent themes of attacking Wall Street banking plutocrats, some of whom were responsible for the wildly unpopular bailouts of the financial industry, as well as the taxpayer-subsidized reorganizations of GM, Chrysler and GMAC, among other loss-making concerns in the automobile business.

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Tax Dollar Watch!

Last week GM announced that a consummate Wall Street banking insider, Stephen Girsky, is being paid almost $1 million a year.

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Whitacre to Become Permanent GM CEO?

Announcement could come late this morning.

by on Jan.25, 2010

Why is this man smiling? Perhaps because "Big Ed" Whitacre will be named GM's permanent CEO, while retaining his Chairman's post.

It looks like “Big Ed” Whitacre could be around a little longer than he originally anticipated – and in a role neither he nor General Motors had originally planned on.

Well-placed sources echo wire reports that Edward Whitacre, Jr. will be formally named the permanent CEO of GM, this morning.  A briefing is scheduled for this morning, 11:30 AM EST, though for the moment, GM officials will only say that the rushed news conference is to discuss “business activities.”

The former CEO of the telecomm giant SBC, which became AT&T, Whitacre joined GM as its non-executive Chairman, last July, following its emergence from bankruptcy.  The 68-year-old Texan initially declined the offer, made by the White House, which is overseeing the government’s 60% stake in GM.  But Whitacre eventually agreed to what observers thought would be a brief and relatively outside role steering the automaker’s restructuring.

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Your Breaking News Source!

That changed dramatically, on November 30th, when the Whitacre-led GM Board of Directors ousted former CEO Fritz Henderson.  The Texas-born executive stepped into the role as “Acting” CEO, while a nationwide search was begun.

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UAW on Offensive over its part in GM Restructuring

Reuther tells Congress news coverage and editorials are wrong.

by on May.29, 2009

Photo Leticia Quesada, courtesy of UAW Local 2244

The union, with uncharacteristic aggressiveness, took on the media.

The United Auto Workers Union yesterday told United States Representatives and Senators that recent news stories, editorials and op-eds about the restructuring plan at General Motors have a number of “inaccurate assertions” about the shares of equity in a New GM that will be distributed after it emerges from bankruptcy.

TheDetroitBureau.com has reported that the U.S. Treasury Department had revised an offer to angry, holdout bondholders, who claim that they are not being fairly treated in General Motors Corporation’s revised viability plan that gave them 10% of the new company to settle more than $27 billion in debt. Bondholders say the UAW is getting a better deal.

Treasury now challenges bondholders to accept the 10% stake in a reorganized GM as originally proposed by GM, and eventually another 15% of the new company will be offered by way of stock warrants.

The U.S. government will receive an initial allocation of 72.5% of the equity in the new company.

The UAW in its latest lobbying and p.r. push wanted to be sure that everyone understood that the bondholders not only will receive an initial allocation of 10% of the equity, but thee are now warrants that can result in their receiving “substantially more.”    (more…)

Latest Proposed GM Restructuring Has the U.S. Treasury and the UAW in Control

A nationalized and union-run carmaker is Henderson's plan.

by on Apr.27, 2009

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"The bond exchange needs to be successful to avert bankruptcy," said Henderson

General Motors Corporation earlier today launched a bond exchange that TheDetroitBureau.com said would be unlikely to succeed. It is part of a larger restructuring proposal that, if it goes forward, would effectively turn control of the company over to the U.S. Treasury Department, with 50% of the shares in the new company, and the United Auto Workers union, which would hold 39% of it.

“Treasury and UAW would own 89% of the shares,” said GM CEO Fritz Henderson, who also announced that GM was planning to eliminate its tradition-laden, but marketplace moribund Pontiac brand by 2010, and accelerate the sale or closure of its Hummer, Saab and Saturn brands by the end of 2009.

“They (Treasury) want to make sure the company is run properly. But they have no interest in running the company,” said Henderson, adding the bond exchange will require further negotiations with the  U.S. Treasury Department, the United Auto Workers, as well as well as with reluctant, some say hostile, bondholders.

Subscribe to TheDetroitBureau.com“I’m just dealing with reality,” said Henderson, when asked about how he felt about becoming a government employee. Henderson also cautioned GM still faces the risk of bankruptcy. “It’s greater (now,)” he suggested. “It’s more probable we would go through bankruptcy,” he said. “The bond exchange needs to be successful to avert bankruptcy,” said Henderson, who said each bondholder is being offered 225 GM shares for every $1,000 of debt.

GM shares at mid-day were trading at $2 a share, down from a 52 week high of $24. (more…)