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Automobile Bankruptcy Headlines 7/23/2009 9:55:13 AM EST Latest Headlines
The latest news headlines from the Associated Press regarding the bankruptcies by domestic automakers General Motors and Chrysler are featured.
Henderson: GM to begin repaying aid by year-end
WASHINGTON – (AP) Nov. 17 - General Motors Co. will begin paying back $6.7 billion in U.S. government loans by the end of 2009 and could pay off that full amount as early as 2010, five years ahead of schedule, CEO Fritz Henderson said Monday.
The government debt represents about 13 percent of the $52 billion … Full version (available to lexis.com subscribers)
Old GM reports $100M in losses since July
DETROIT – (AP) Nov. 13 - Would you buy stock in a company that has assets of $1.5 billion, liabilities of $35 billion and only $60,000 in revenue in 2 1/2 months?
Those were figures reported Thursday by Motors Liquidation Co., the company formed from the unwanted factories and massive debt left behind by General Motors Co. … Full version (available to lexis.com subscribers)
GM chairman says co. is committed to repaying aid
NEW YORK – (AP) Nov. 11 - General Motors Co. remains committed to repaying its billions of dollars in government loans, though it's too soon to say when that will happen, the automaker's chairman said Tuesday.
"Can GM pay back its loans? You bet," Ed Whitacre said during an address at Texas Lutheran University in Seguin, Texas. Full version (available to lexis.com subscribers)
GM boss: US aid can be used to fix Opel if needed
DETROIT – (AP) Nov. 6 - General Motors Co.'s top executive said Thursday that the automaker could tap some of its $50 billion in U.S. government aid to help restructure GM's European Opel unit. The statement came as thousands of Opel workers walked off their jobs across Germany in protest of GM's decision to abandon the unit's sale to new owners. Full version (available to lexis.com subscribers)
Opel workers in Germany stage protests
RUESSELSHEIM, Germany – (AP) Nov. 5 - Thousands of Opel employees walked off their jobs to attend a rally at the automaker's headquarters Thursday, protesting General Motors Co.'s decision to abandon the unit's sale to new owners the workers hoped would preserve jobs.
Workers at Opel's German headquarters in Ruesselsheim vented their frustration and anger at GM, … Full version (available to lexis.com subscribers)
Chrysler aims to pump life into struggling lineup
AUBURN HILLS, Mich. – (AP) Nov. 5 - Chrysler hopes to make billions of dollars to repay government loans and revamp all of its cars and trucks with an ambitious plan that hinges on doubling sales in five years.
The plan, which includes spending $23 billion to overhaul or replace all its Chrysler, Dodge, Jeep and Ram models by 2014, … Full version (available to lexis.com subscribers)
GM's Opel move raises anger, new uncertainty
BERLIN – (AP) Nov. 5 - General Motors Co.'s decision to scrap the sale of European subsidiary Opel raised new uncertainty Wednesday over the unit's future, astonishing politicians in Germany and Russia, and prompting workers to plan walkouts in protest.
The GM board's unexpected decision to call off the sale to auto parts maker Magna International Inc. … Full version (available to lexis.com subscribers)
German indignation over GM decision to keep Opel
BERLIN – (AP) Nov. 4 - Workers at automaker Opel planned walkouts to protest General Motor Co.'s decision not to sell the European subsidiary, while Germany's government vowed Wednesday to recover euro1.5 billion ($2.2 billion) it loaned GM to finance the sale.
Klaus Franz, Adam Opel GmbH's top employee representative, said workers would start brief work stoppages Thursday. Full version (available to lexis.com subscribers)
GM board to meet, decide fate of Opel
FRANKFURT – (AP) Nov. 3 - With the board of General Motors Co. expected to decide Tuesday the fate of the German unit Opel, the Opel employee council agreed to cost-cutting concessions in an effort to ease a sale to auto parts maker Magna.
A decision at the board meeting in Detroit would be the concluding step in the process … Full version (available to lexis.com subscribers)
GM uses $2.8B in govt funds to buy part of Delphi
WASHINGTON – (AP) Nov. 3 - General Motors Co. said it has received permission to use $2.8 billion of its government aid to help buy part of troubled auto parts supplier Delphi Corp., the automaker's former parts division.
The Detroit automaker said Monday in a regulatory filing with the U.S. Securities and Exchange Commission … Full version (available to lexis.com subscribers)
AP Source: New management plans Chrysler price cut
DETROIT – (AP) Nov. 2 - Coming to your local Chrysler, Dodge or Jeep dealer: Tractor-trailers full of cars and trucks with lower sticker prices.
The big discounts are part of new CEO Sergio Marchionne's attempt to revive the Detroit company the way he did Italian automaker Fiat.
His five-year plan for Chrysler Group LLC, … Full version (available to lexis.com subscribers)
GM's Henderson calls gov't cutting his pay 'fair'
WASHINGTON – (AP) Oct. 29 - General Motors Co. CEO Fritz Henderson said Wednesday that government-imposed cuts to his own salary, and the pay of other executives at seven companies that received taxpayer money, were "fair" and "thoughtful."
Henderson was among executives who will see their base salaries slashed under a plan by Kenneth Feinberg, … Full version (available to lexis.com subscribers)
AP Source: GM to draw gov't funds for Delphi costs
DETROIT – (AP) Oct. 29 - General Motors Co. will announce later this week that it will draw from its government funding to pay the cost of buying a chunk of troubled parts supplier Delphi Corp., a person briefed on the company's finances said Wednesday.
GM has agreed to pay several billion dollars to fund Delphi's emergence from bankruptcy protection … Full version (available to lexis.com subscribers)
Dealers anxious as Chrysler stays mum on car plan
DETROIT – (AP) Oct. 25 - Chrysler has been sending its dealers back to class, reminding them about the importance of courtesy and communication: Always return phone calls. Limit wait times. Open doors for customers.
However, the automaker isn't following its own advice.
New management has said little about plans to revamp Chrysler's ailing lineup … Full version (available to lexis.com subscribers)
Auto task force shocked by state of GM, Chrysler
WASHINGTON – (AP) Oct. 21 - The shockingly poor financial management of General Motors and Chrysler weakened their case for a government bailout, but officials feared letting the automakers collapse would severely harm the U.S. economy, the former head of the Obama administration's auto task force says.
In a first-person account posted on Fortune's Web site Wednesday, … Full version (available to lexis.com subscribers)
Chrysler Bankruptcy Judge Allows $24M Settlement For Family Of Man Killed By Truck
NEW YORK — (Mealey’s) A U.S. bankruptcy court judge yesterday approved a $24 million settlement payment to the family of a California man who was killed when he was run over by a Dodge pickup truck (In re Old Carco LLC, No. 09-50002, S.D. N.Y.).
Richard Mraz suffered fatal head injuries when he was run over by a 1992 Dodge Dakota at the Port of Los Angeles on April 13, 2004. The truck was left running and the parking brake was not set. DaimlerChrysler denied that there was a defect in the truck and contended that Mraz failed to follow proper safety procedures.
Mraz’s family, who sued the auto manufacturer in the Los Angeles County Superior Court, argued that the truck slipped into reverse after Mraz got out of the vehicle. DaimlerChrysler reportedly received more than 1,000 “park-to-reverse” complaints involving Dodge Dakota pickup trucks. The vehicles were involved in a product recall in 2000.
In 2007, a Los Angeles jury awarded Mraz’s family $55.4 million, including $50 million in punitive damages, finding that a “park-to-reverse” defect in the truck’s automatic transmission caused Mraz’s death. The jury verdict was appealed; however, in April 2009, the automaker filed for bankruptcy, staying the appeal.
The stay was lifted in July in the U.S. Bankruptcy Court for the Southern District of New York, allowing direct negotiations to begin with appeal bond issuer Safeco Insurance Co. Safeco posted an $81 million bond to guarantee payment of the judgment and post-judgment interest.
Judge Arthur J. Gonzalez, who is presiding over the Chrysler bankruptcy filing, approved the $24 million settlement.
Chrysler to resume leasing after 1-year break
DETROIT – (AP) Sep. 17 - Chrysler Group LLC is getting back into the leasing business in an effort to boost sales, but don't expect a return to the inexpensive lease deals of the past.
The automaker announced in a statement Wednesday that it will resume leasing for all 2010 Chrysler, Dodge and Jeep models starting Thursday, … Full version (available to lexis.com subscribers)
General Motors releases expense policy
DETROIT – (AP) Sep. 16 - General Motors Co. said it would continue to restrict the amount of money it spends on events, sponsorships and corporate travel Tuesday, as the automaker made its expense policy public, a requirement for companies receiving government aid.
GM is placing more scrutiny on sponsorships, events costing more than $10,000 and corporate travel, … Full version (available to lexis.com subscribers)
Magna exec says EU won't block Opel deal
FRANKFURT – (AP) Sep. 16 - The co-chief executive of Magna International Inc. said Tuesday that he doesn't believe the European Union will block his company's acquisition of a majority stake in Opel.
"The whole idea is based on economics and I cannot imagine that someone has something against economics," Siegfried Wolf said at the 2009 Frankfurt Auto Show, … Full version (available to lexis.com subscribers)
Chrysler to accept more product liability claims
AUBURN HILLS Michigan – (AP) Aug. 28 - Chrysler Group LLC said Thursday it will accept product liability claims in a broader number of cases than originally planned in its reorganization under bankruptcy protection.
The automaker said it will now consider product-related lawsuits from consumers involved in accidents that occurred after Chrysler emerged from bankruptcy protection in June … Full version (available to lexis.com subscribers)
GM tells German officials it still wants Opel deal
BERLIN – (AP) Aug. 26 - General Motors and the German government continued to spar over the sale of the automaker's European car business on Tuesday, days after GM rejected a deal backed by the government to sell Opel to an investor group led by Magna, a Canadian auto parts maker.
GM is trying to unload the Opel and Vauxhall units … Full version (available to lexis.com subscribers)
Chrysler sues Daimler over key 2010 vehicle parts
NEW YORK – (AP) Aug. 26 - Chrysler Group LLC has sued Daimler AG, saying the German automaker failed to uphold contracts for the delivery of crucial vehicle parts for its 2010 vehicles.
The Auburn Hills, Michigan-based company says the parts are critical for the production of several key 2010 model-year vehicles. Chrysler argues that it may have to shut down production … Full version (available to lexis.com subscribers)
GM board wants control of Opel patents in deal
DETROIT – (AP) Aug. 25 - General Motors' new board may still sell its money-losing European Opel unit to a group led by Canadian auto parts maker Magna, but it needs guarantees that Opel's technology won't be used in Russia to compete against GM's Chevrolet, according to a person briefed on the sale talks. Full version (available to lexis.com subscribers)
AP Source: Talks to sell GM's Opel hit rough patch
BERLIN – (AP) Aug. 24 - Talks between General Motors Corp. and the German government over which of two bidders will take control of GM's Opel unit have run into "serious challenges," according to a person with knowledge of the discussions.
GM's board, in a telephone conference call meeting Friday, made no decision between bids … Full version (available to lexis.com subscribers)
Traders keep buying old GM stock, despite warnings
DETROIT – (AP) Aug. 21 - Whether it's a matter of ignorance or greed, people are still buying General Motors stock, even though the company and the government have warned that the shares will someday be worthless.
Investors are picking up millions of shares every day, thinking they'll profit from what is really a hodgepodge of outdated factories … Full version (available to lexis.com subscribers)
Chrysler workers await news on model cuts, changes
DETROIT – (AP) Aug. 21 - At a Jeep factory in Toledo, Ohio, workers fear that Chrysler's new Italian management will scrap one of the two models they make, costing some of them their jobs.
The same anxiety is felt at Chrysler Group LLC plants around the country as Fiat SpA CEO Sergio Marchionne, … Full version (available to lexis.com subscribers)
GM cancels Buick compact crossover
DETROIT – (AP) Aug. 20 - General Motors Co. Vice Chairman Tom Stephens said Wednesday that the company is scrapping plans to produce a Buick crossover sports utility vehicle, just weeks after announcing the product to a flurry of negative reviews.
Stephens, writing on GM's FastLane blog, said that after previewing designs to consumers during … Full version (available to lexis.com subscribers)
Report: Chrysler to build Fiat 500 in Mexico
NEW YORK – (AP) Aug. 17 - Chrysler Group LLC is planning to build the Fiat 500 small car at a plant in Mexico, according to a report published Monday.
The automaker could also build an engine for the 500 at a plant in Trenton, Michigan, and is weighing building another compact car similar to the 500 in the U.S., … Full version (available to lexis.com subscribers)
Dodge exec affirms commitment to NASCAR
BROOKLYN, Mich. – (AP) Aug. 17 - Dodge president and CEO Mike Accavitti reaffirmed the manufacturer's commitment to NASCAR on Sunday. He also made it clear that the brand's involvement in the sport will remain on a smaller scale than some of its competitors.
Dodge backs two multicar teams, Penske Racing and Richard Petty Motorsports. Full version (available to lexis.com subscribers)
Automakers cautiously move to boost production
NEW YORK – (AP) Aug 13 - After a lot of heartbreak, U.S. automakers aren't looking to commit.
They're taking small, tentative steps to raise production to meet the revived demand for new cars and trucks sparked by the federal program called Cash for Clunkers. Carmakers are offering overtime or Saturday shifts at slack plants, … Full version (available to lexis.com subscribers)
GM says mercury pollution not its problem anymore
WASHINGTON – (AP) Aug 11 - As hundreds of thousands of clunkers head to the scrap yard, General Motors has dropped out of a partnership that collects toxic parts from recycled automobiles to prevent mercury pollution.
Participants in the environmental program told The Associated Press the timing of GM's departure could undermine their work. Full version (available to lexis.com subscribers)
New GM worries about regaining consumer confidence
DETROIT – (AP) Aug 10 - The new General Motors Co. said Friday it was worried about regaining consumer confidence following its exit from bankruptcy protection, and that its sales won't improve in 2009 as U.S. economic troubles continue.
In a sweeping review of its business filed late Friday with the U.S. Securities and Exchange Commission, … Full version (available to lexis.com subscribers)
GM has to focus on its cars to boost sales
(AP) Aug 10 - Put the brakes on the apologies. Think about your brands. And give us a reason to buy your cars.
That's what marketing gurus say General Motors Co. must do as it begins a massive overhaul of advertising worth more than $2 billion a year now that it's out of bankruptcy protection. Full version (available to lexis.com subscribers)
GM, Germany, bidders hold new Opel talks
BERLIN – (AP) Aug 5 - Talks between General Motors Co., the German government and two bidders seeking to buy GM's European Opel unit ended Tuesday with progress reported and GM saying it hopes to make a recommendation shortly on a buyer.
"Progress was made clarifying issues from the best and final offers received two weeks ago," … Full version (available to lexis.com subscribers)
GM board orders faster new vehicle rollout
TRAVERSE CITY, Mich. – (AP) Aug. 5 - At its first meeting, the board overseeing the new General Motors Co. ordered management to bring some new vehicles to market faster, a sign that the new 13-member board will play a far larger role than the old one.
Board Chairman Edward Whitacre Jr., in a conference call with reporters Wednesday, … Full version (available to lexis.com subscribers)
GM: No decision yet on Opel
BERLIN – (AP) Aug. 4 - General Motors Co. said Tuesday that its board of directors has been given an update on efforts to sell the European Opel unit but the company has not yet picked a buyer.
GM's new board held its first meeting on Monday. That came as talks continue with two potential suitors for Opel: … Full version (available to lexis.com subscribers)
Some rural car dealerships say PR push saved them
BROKEN BOW, Neb. – (AP) Jul. 31 - Thomas McCaslin might never know for sure why General Motors called two weeks ago to say his 80-year-old dealership in the heart of Nebraska cattle country wouldn't close after all. He has a feeling that a hamburger cookout and an old-fashioned brand of political lobbying had something to do with it. Full version (available to lexis.com subscribers)
Senate rejects plan giving auto stock to taxpayers
WASHINGTON – (AP) Jul. 30 - The Senate rejected a plan Wednesday to give taxpayers stock certificates for their share of the government's ownership stake in General Motors Co. and Chrysler Group LLC.
The Senate defeated the plan, sought by Sen. Lamar Alexander, R-Tenn., by a 38-59 vote. Alexander's proposal also would have blocked the government … Full version (available to lexis.com subscribers)
AP Source: GM to end sponsorship of Buick Open
DETROIT – (AP) General Motors Co. will end its half-century run as sponsor of the Buick Open golf tournament as it tries to focus scarce marketing dollars on its cars and trucks, a person briefed on the decision said Tuesday.
GM and tour officials will make the announcement after this year's open, which begins Thursday and ends Sunday, … Full version (available to lexis.com subscribers)
Report: Toyota to end Calif. joint venture with GM
TOKYO – (AP) Toyota Motor Corp. has decided to liquidate its California joint venture plant with General Motors, Kyodo News agency reported Thursday.
The Japanese carmaker will begin negotiating with GM from next week, Kyodo said, citing unnamed company officials.
Toyota could not be reached for comment late Thursday in Tokyo. Full version (available to lexis.com subscribers)
Judge OKs GM's move to drop Montana mine contract
BILLINGS Montana – (AP) A federal bankruptcy judge granted General Motors Co. permission Wednesday to cut ties with a Montana precious metals supplier so it can instead use cheaper foreign suppliers.
It will keep using precious metals suppliers based in Russia and South Africa drawing criticism that the government bailout of the automaker is now effectively subsidizing overseas mining jobs. Full version (available to lexis.com subscribers)
Marchionne: Chrysler integration under way
MILAN – (AP) Fiat and Chrysler CEO Sergio Marchionne says the Italian automaker has begun transferring small-car and fuel-efficient engine technology to Chrysler, which should show results by the end of next year.
Marchionne says he's confident Chrysler will dig itself out of the crisis that led it to restructure in bankruptcy court. Full version (available to lexis.com subscribers)
GM, Chrysler defend dealer cuts
WASHINGTON – (AP) General Motors and Chrysler defended their plans Wednesday to eliminate about 3,000 dealerships in front of critics in Congress, calling it a vital piece of their strategy to rebound from U.S. government-led bankruptcies.
"This is a painful process that spares no particular group," said Michael Robinson, General Motors Co.'s vice president … Full version (available to lexis.com subscribers)
GM exits bankruptcy, CEO vows better performance
DETROIT – (AP) A leaner General Motors arose on Friday, making an unusually quick exit from bankruptcy with ambitions of making money and building cars people are eager to buy.
Once the world's largest and most powerful automaker, new GM is now cleansed of massive debt and burdensome contracts that would have sunk it without federal loans.
AP Source: GM emerges from bankruptcy
DETROIT – (AP) The new General Motors arose on Friday as lawyers finished an all-night paperwork session transferring the bulk of the automaker's assets to a company controlled by the U.S. government.
Once the world's largest and most powerful automaker, new GM is now cleansed of massive debt and burdensome contracts that would have sunk it without federal loans.
A brief look at the history of General Motors
DETROIT – (AP) Some key events in General Motors' history:
Sept. 16, 1908 General Motors Co. founded by William C. Durant, incorporating Buick Motor Co. Oldsmobile joins GM in November.
1909 GM sells 25,000 cars and trucks. Acquires Cadillac for $5.5 million. Also buys GMC, AC Spark Plug.
1910 Durant brings the Champion ignition and other companies into GM.
GM, Chrysler fight reopening of closed dealerships
WASHINGTON – (AP) General Motors and Chrysler urged lawmakers Thursday to block legislation that would prevent them from consolidating their dealership networks, warning it would complicate their emergence from government-led bankruptcies.
With GM poised to exit bankruptcy protection, company leaders pressed House members to overturn an amendment approved late Tuesday by a House . . . .
Judge denies motion to fast-track GM sale appeal
NEW YORK – (AP) The sale of most of General Motors' assets is moving closer to completion, after a bankruptcy judge denied motions by groups with asbestos and injury-related claims seeking to halt the sale and appeal directly to the 2nd Circuit Court of Appeals.
The sale remains scheduled to close by July 10.
Auto parts maker Lear Corp. files for Chapter 11
NEW YORK – (AP) Automotive parts supplier Lear Corp. filed for bankruptcy protection on Tuesday after receiving support it needed from lenders and bondholders to reorganize its struggling business.
The move had been expected from the maker of vehicle seats and electronics, which missed an interest payment on its bond debt last week and . . . .
Meltdown 101: GM's bankruptcy and liability claims
NEW YORK – (AP) American consumers assume they have the right to sue a company that has sold them a faulty product. In the upside-down world of bankruptcy including the one General Motors is going through those rights are not a given.
What kind of leeway does a bankruptcy judge have over product liability claims?
For additional news for lexis.com subscribers from the past week relating to the Chrysler bankruptcy. Create an account or login to post comments.
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