In a “state of the science” review released Tuesday, PAN International presents a large body of research documenting the adverse human health and environmental impacts of glyphosate and glyphosate-based herbicides and underscores the need for a global phase-out.
The full Monograph review can be accessed here: pan-international.org
Environmental and health advocates say the monograph on the world’s most widely used herbicide, commonly known by its original trade name Roundup, should serve as a wake up call for regulators, governments and users around the world. Continue reading »
You can’t say we weren’t warned. As reported over a month ago, before the surprising rebound in April retail sales, the biggest drag on consumer spending was auto sales. One month later, this is finally starting to materialize when earlier today, both GM and Ford’s US vehicle sales fell more than analysts had estimated in May. According to Bloomberg this “raises questions about stalling consumer demand.” Not really: as we also warned a month ago when looking at stalling use car price changes, it was only a matter of time before the lack of demand for every low priced autos spilled over to new car sales, which it now has.
* * *
When bailout-darling GM ‘fessed up to an intentional ignition-switch defect, tied to at least 174 deaths, The Justice Department fined them $900 million (and no employees faced criminal charges). So, in this consequence-less world in which we live, when Volkswagen admits to literally cheating emissions-standards tests, it faces up to $18 billion in fines from The EPA, one has to wonder whether “we” have our priorities right?
– GM Authorizes $5 Billion Stock Buyback, Will Return All Cash Over $20 Billion To Shareholders (ZeroHedge, March 9, 2015):
Doubting if the growth ahead of GM is now over, and the great post-bankruptcy “success story” is rapidly fading as the company has been pushed to resort to the kind of financial engineering which has pushed the S&P higher for all of 2014, and follows a record month of stock buyback announcements? Then doubt no more: moments ago GM announced it is authorizing an immediate $5 billion stock buyback, and plans to return all cash above a $20 billion floor to shareholders.
From the Press Release: Continue reading »
– Here Are The 28.5 Million Cars Recalled By GM In The First Half Of 2014 (ZeroHedge, June 30, 2014):
One could say things about what is now without doubt the biggest company joke in the history of the US – maybe global – automotive sector, putting even East Germany’s infamous Trabant to shame.
Things like following the just announced latest recall of another 7.6 million cars across models from 1997 to 2014, and another 800K+ cars thrown in just because, GM has recalled more cars in the first 6 months of 2014 than it has sold in all of 2011, 2012 and 2013. Which incidentally would be true as the chart below shows.
Things like it took GM over a decade to that these latest recalls affecting cars made in the 20th century resulted in “seven crashes, eight injuries and three fatalities.”
– Meet The “Lone Engineer” GM Is Blaming All Its Troubles On (ZeroHedge, June 20, 2014):
Back in 2011 Goldman, when the FDIC-insured bank holding company with no deposits, was slapped with the biggest at the time SEC penalty for shorting CDOs it had sold to clients, it started a trend of scapegoating all its evils on a lone, then 20-something individual, Fabrice Tourre, who seemingly had “worked alone” and whose actions were not supervised by anyone: the chain of responsibility started and ended with him. Naturally, nobody went to jail. A few years later, stuck in the biggest scandal of its post-bankruppcy existence involving over 20 million recalls in just the first 6 months of 2014 alone, GM has decided that what worked for Goldman should work for it too, and as the WSJ reports, is “pinning of a decadelong failure to recall defective cars on a lone engineer.”
Unfortunately for GM, an organization that is far more politically charged than Goldman, it is “running into skepticism from lawmakers who say GM documents show dozens of people were alerted to ignition-switch defects during the past decade.”
But before we get into the details of what is set to be even more political theater, just who is this lone engineer? Continue reading »
– Frontrunning: June 16 (ZeroHedge, June 16, 2014):
- Iraq Army Tries to Roll Back Sunni Militants’ Advance (BBG)
- Starbucks to Subsidize Workers’ Online Degrees (WSJ)
- ‘Bitcoin Jesus’ Calls Rich to Tax-Free Tropical Paradise (BBG)
- Medtronic Is Biggest Firm Yet to Renounce U.S. Tax Status (BBG), Medtronic to buy Covidien for $42.9 billion, rebase in Ireland (Reuters)
- Oil Topping $116 Seen Possible as Iraq Conflict Widens (BBG)
- Putin Seeks Paris Landmark as Hollande’s Russia Ties Defy Obama (BBG)
- GM Says It Has a Shield From Some Liability (WSJ)
- BOJ’s Bond Paralysis Seen Spreading Across Markets (BBG)
– Don’t You Dare Call Your GM Car A “Decapitating”, “Kevorkianesque”, “Rolling Sarcophagus”, Or “You’re Toast” (ZeroHedge, May 21, 2014):
Instead of “defective”, GM suggests its employees use the phrase “does not perform to design” according to just released documents in the GM recall probe. However, the internal presentation provides a glimpse into the internal thinking at GM as it suggests the following 69 words should not be used in a company memo… including “Hindenburg”, “spontaneous combustion”, and “Kevorkianesque.”
The full 69 banned ‘judgment’ words…
always, annihilate, apocalyptic, asphyxiating, bad, Band-Aid, big time, brakes like an “X” car, cataclysmic, catastrophic, Challenger, chaotic, Cobain, condemns, Corvair-like, crippling, critical, dangerous, deathtrap, debilitating, decapitating, defect, defective, detonate, disemboweling, enfeebling, evil, eviscerated, explode, failed, flawed, genocide, ghastly, grenadelike, grisly, gruesome, Hindenburg, Hobbling, Horrific, impaling, inferno, Kevorkianesque, lacerating, life-threatening, maiming, malicious, mangling, maniacal, mutilating, never, potentially-disfiguring, powder keg, problem, rolling sarcophagus (tomb or coffin), safety, safety related, serious, spontaneous combustion, startling, suffocating, suicidal, terrifying, Titanic, unstable, widow-maker, words or phrases with a biblical connotation, you’re toast
and in case you needed a little more help… here are some more translations… Continue reading »
– Following Latest Recall Shocker, GM Has Recalled 56% More Cars In 2014 Than It Sold In 2013 (ZeroHedge, May 20, 2014):
They don’t call them Government Motors for nothing.
Over the weekend we titled our summary of GM’s unprecedented avalanche of recalls so far in 2014 – the year in which the company’s criminal practice of covering up its faulty products became a congressional scandal – as follows: “GM Set To Surpass Total Recall Record This Year.” Three days later we are happy to report that while Detroit, we not only have a big recall problem, we also have a new record, after moments ago GM just announced another 4 recalls affecting 2.4 million cars.
This brings the total number of vehicle investigations since the start of the year to 35, and with today’s four latest fiascos, has initiated a whopping 29 recalls. More importantly, this also means that the number of domestic recalls rises to 13.6 million, smashing the previous record of 11.8 million recalls in 2004, and brings the number of global recalls to 15.2 million: or a stunning 56% greater than the 9.7 million cars GM sold in all of 2013!
H/t reader M.G.:
“GM now wants bankruptcy protection from any of their vehicles from before 2009…….pay nothing, dump it all on the people. The courts will probably go along with it, they are corporate owned and corrupt.”
Car giant wants court to shield ‘new GM’ from legal claims for problems with its cars that occurred before its 2009 bankruptcy
– GM asks bankruptcy judge for special protection to head off lawsuits (Guardian, April 16, 2014):
General Motors revealed in court filings late Tuesday that it will soon ask a federal bankruptcy judge to shield the company from legal claims for conduct that occurred before its 2009 bankruptcy.
The automaker’s strategy is in a motion filed in a Corpus Christi, Texas, federal court case, and in other cases across the nation that involve the defective ignition switches that have led GM to recall 2.6 million small cars.
– GM Recalls Another 1.5 Million Cars; Halts Sales Until “Solution” Completed (ZeroHedge, March 17, 2014):
General Motors is in trouble. On the heels of a 1.3 million car recall over fault ignition switches (that allegedly caused 12 deaths and could have been fixed with a $1 part), the bailed-out car maker has announced it will take a $300 million charge in Q1 to cover costs associated with this and 3 new recalls covering an additional 1.5 million cars. As Reuters reports, unsold vehicles will be placed on a stop-delivery until development of a solution has been completed. Why is this such a problem? Because GM’s channel-stuffed dealer inventory is already at all-time record highs as the entire industry projected the sales to continue ad infinitum and inventory-to-sales surged to near-record highs. Continue reading »
You can’t make this stuff up!
– Treasury “Out” Of GM For $10.5 Billion Loss (Claims 768% ROI) (ZeroHedge, Dec 9, 2013):
The spin does not get any better than this… As they reported they would,
- *LEW SAYS U.S. SOLD ALL REMAINING SHARES OF GENERAL MOTORS RECOUPING $39 BLN OF ORIGINAL GM INVESTMENT
That is a $10.5 Billion loss! But, The Center for Automotive Research, a Michigan nonprofit organization that analyzes auto industry issues, those funds “saved or avoided the loss of $105.3 billion in transfer payments and the loss of personal and social insurance tax collections — or 768% of the net investment.”
And The White House…
Efforts Saved Jobs, Helped Stabilize Economy During Financial Crisis
WASHINGTON – As the Troubled Asset Relief Program (TARP) continues to wind down, the U.S. Department of the Treasury today announced that it has sold all of the remaining shares of General Motors (GM) common stock.
“The President’s leadership in responding to the financial crisis helped stabilize the auto industry, and prevent another Great Depression. With the final sale of GM stock, this important chapter in our nation’s history is now closed,” said Treasury Secretary Jacob J. Lew. “The President understood that inaction could have cost the broader economy more than one million jobs, billions in lost personal savings, and significantly reduced economic production. As a result of his efforts, which built on those of the previous Administration, more than 370,000 new auto jobs have been created, and all three U.S. automakers are profitable, competitive, and growing.”
– Secrets and Lies of the Bailout (Rolling Stone, Jan 4, 2013):
It has been four long winters since the federal government, in the hulking, shaven-skulled, Alien Nation-esque form of then-Treasury Secretary Hank Paulson, committed $700 billion in taxpayer money to rescue Wall Street from its own chicanery and greed. To listen to the bankers and their allies in Washington tell it, you’d think the bailout was the best thing to hit the American economy since the invention of the assembly line. Not only did it prevent another Great Depression, we’ve been told, but the money has all been paid back, and the government even made a profit. No harm, no foul – right?
It was all a lie – one of the biggest and most elaborate falsehoods ever sold to the American people. We were told that the taxpayer was stepping in – only temporarily, mind you – to prop up the economy and save the world from financial catastrophe. What we actually ended up doing was the exact opposite: committing American taxpayers to permanent, blind support of an ungovernable, unregulatable, hyperconcentrated new financial system that exacerbates the greed and inequality that caused the crash, and forces Wall Street banks like Goldman Sachs and Citigroup to increase risk rather than reduce it. The result is one of those deals where one wrong decision early on blossoms into a lush nightmare of unintended consequences. We thought we were just letting a friend crash at the house for a few days; we ended up with a family of hillbillies who moved in forever, sleeping nine to a bed and building a meth lab on the front lawn.
Tags: AIG, Bailout, Bank of America, Banking, Barack Obama, Ben Bernanke, Bush administration, Citigroup, Economy, FDIC, Fed, Federal Reserve, Financial Crisis, General Motors, George Bush, Global News, GM, Goldman Sachs, Government, Great Depression, Henry Paulson, Jamie Dimon, Larry Summers, Lehman Brothers, Merrill Lynch, Neil Barofsky, Nomi Prins, Obama administration, Politics, Ponzi schemes, Sheila Bair, Society, TARP, Taxpayers, Timothy Geithner, U.S., Wachovia, Wall Street, Wells Fargo
– Treasury announces GM exit strategy; automaker buying 200 million shares from U.S. (The Detroit News, Dec 19, 2012):
Washington — The Obama administration said Wednesday it will sell 200 million shares — or 40 percent of its remaining stake in General Motors Co. — back to the automaker and announced plans to completely exit the Detroit automaker by March 2014.
– Chart Of The Day: The Unprecedented Implosion Of European Car Sales (ZeroHedge, Dec 4, 2012):
The graphic below, which presents an unvarnished picture of Europe’s true economic state, needs no explanation:
In the context of the above, no explanation is also needed that quietly, and without much fanfare, French car-maker, Peugeot, and Europe’s second largest after VW, was recently GMed, and received a government bailout.
Carmaker Peugeot gets $9.1B government bailout
The French government has agreed to underwrite up to €7 billion ($9.1 billion) of bonds issued by Banque PSA Finance SA, the financing unit of carmaker PSA Peugeot Citroen SA, allowing the French automaker to offer low-cost credit to its dealerships and clients amid a slump in sales.
– GM Loses Over $49,000 On Every Chevy Volt (ZeroHedge, Sep 10, 2012):
Watching Phil LeBlow providing Ford with a reacharound this morning reminded us of total farce that is both the forest and the trees of the US auto industry. We have discussed the FUBAR channel-stuffing and the subprime-lending SNAFU but now, as Reuters reports, we see the ugly truth about GM’s little baby “the Volt is over-engineered and over-priced”. Nearly two years after the introduction of the path-breaking plug-in hybrid, GM is still losing as much as $49,000 on each Volt it builds….
Furthermore, there are some Americans paying just $5,050 to drive around for two years in a vehicle that cost as much as $89,000 to produce. And while the loss per vehicle will shrink as more are built and sold, GM is still years away from making money on the Volt, which will soon face new competitors from Ford, Honda and others. Continue reading »
– GM to cut about one-fourth of U.S. pension liability (Reuters, June 1, 2012):
DETROIT (Reuters) – General Motors Co will cut nearly a quarter of its U.S. pension obligation by transferring the management of its pension plans for 118,000 white-collar retirees to a third party and offering lump-sum buyouts.
The two moves unveiled on Friday will cut $26 billion from the automaker’s massive U.S. pension liability of nearly $109 billion. GM’s pension overhang is a top concern for investors. It was one of a handful of issues left untouched during GM’s U.S.-financed bankruptcy restructuring three years ago.
– U.S. boosts estimate of auto bailout losses to $23.6B (Detroit News, Nov. 14, 2011):
The Treasury Department dramatically boosted its estimate of losses from its $85 billion auto industry bailout by more than $9 billion in the face of General Motors Co.’s steep stock decline.
In its monthly report to Congress, the Treasury Department now says it expects to lose $23.6 billion, up from its previous estimate of $14.33 billion.
General Motors plans to halt production Monday of the Chevrolet Colorado and GMC Canyon compact pickups made at Shreveport, La., because some parts come from Japan and aren’t available now.
The GM move is the first production halt directly linked to the March 11 earthquake and tsunami that wiped out portions of the northeast coast of Japan.
“We have suspended production at Shreveport for next week due to parts shortages due to the crisis in Japan. We will resume operations as soon as we can,” GM manufacturing spokesman Chris Lee tells Drive On. He wouldn’t identify the parts involved. Japanese companies often are the sole suppliers of electronics part for many vehicles.
Congratulations Centrally Planned Garbage Motors: GM slides to below its IPO price, hitting $32.75. And now we get to see if GETCO has been swimming with no bathing suit on the entire time.
As a reminder, 112 hedge funds hold GM stock. Oops.
And time to remind the retarded market making robots of what we posted a week ago:
And some bad news for the world’s worst car maker (recently bankrupt), which has bet its entire “growth” platform as per the recent IPO on the one market that is so far unfamiliar with said carmaker’s “quality” reputation. In January, the Shanghai-based China Passenger Car Association reported that sales of passenger cars fell 10.3 percent in January from the month before to 965,238. Per Manufacturing.net: “Chinese bought 13.7 million passenger vehicles last year, up by a third from 2009. But that robust growth is forecast to cool this year due to the expiration of tax incentives for some vehicle purchases and a renewed effort by cities to bring traffic under control.”Is the recent collectivist action to cool off purchasing actually going to have an adverse impact not only on GM’s margins but its sales as well? Why yes. But the market will be stunned when this is publicly announced shortly.
Furthermore, the deterioration in car sales is accelerating:
Aug. 31 (Bloomberg) — U.S. auto sales in August probably were the slowest for the month in 28 years as model-year closeout deals failed to entice consumers concerned the economy is worsening and they may lose their jobs.
Industrywide deliveries, to be released tomorrow, may have reached an annualized rate of 11.6 million vehicles this month, the average of eight analysts’ estimates compiled by Bloomberg. That would be the slowest August since 1982, according to researcher Ward’s AutoInfoBank. The rate would be 18 percent below last year’s 14.2 million pace, when the U.S. government’s “cash for clunkers” incentive program boosted sales.
“Home sales are way down, the stock market is way down, the unemployment report is very disappointing and consumer confidence is sputtering,” Jesse Toprak, vice president of industry trends at TrueCar.com, said in an interview. “People just don’t want to make big-ticket purchases because they’re uncertain about their jobs and the value of their homes.”
While automakers increased discounts by 1 percent from July to an average of $2,864 per vehicle, sales to individuals probably fell 7 percent from last month, according to Santa Monica, California-based TrueCar.
– Lindsey Williams on Alex Jones: ‘The Elite have changed there Timeline’ – ‘Within two years you will not recognize America’ – ‘War is planned after two years, starting in the middle east area and spreading to the entire world’
Alex continues his discussion with pastor Lindsey Williams about the plans of the elite to crash the economy.
Added: 23rd Oct 09
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Continue reading »
Tags: Alex Jones, Bailout, Banking, Bonds, China, Chrysler, Debt, Dollar, Economy, Euro, Fed, Federal Reserve, General Motors, Global News, GM, Gold, Great Depression, Hyperinflation, Hyperinflationary Depression, Inflation, Lindsey Williams, New World Order, Oil, Oil Prices, Police State, Politics, Quantitative Easing, Silver, Society, Stock Market, Treasury, U.S., Wall Street
“Nobody in the senate today understands basic economics.”
Hyperinflation Nation starring Peter Schiff, Ron Paul, Jim Rogers, Marc Faber, Tom Woods, Gerald Celente, and others.
Prepare now before the US dollar is worthless.
Part 1 :
Tags: Agriculture, Alan Greenspan, Banking, Barack Obama, Bonds, Bubble, budget deficit, Bush administration, Cars, Central Bank, China, Chrysler, Congress, Debt, Depression, Documentary, Dollar, Dow Jones, Economy, Fed, Federal Reserve, Food, Food shortages, GDP, George Bush, Gerald Celente, GM, Gold, Great Depression, Healthcare, Henry Paulson, Hyperinflation, Hyperinflationary Depression, Inflation, Jim Rogers, Keynesianism, Marc Faber, Martial Law, Medicaid, Medicare, Monetary System, money supply, Obama administration, Peter Schiff, Politics, Real Estate, Ron Paul, Silver, Social Security, Stock Market, Taxpayers, Timothy Geithner, Treasury, U.S., Wall Street, White House, Zimbabwe
A sign hangs in the window of a General Motors dealership in Chicago
The US government will pull its support from General Motors if the automaker does not get court permission for a speedy exit from bankruptcy protection by July 10, an official testified on Wednesday.
“We cannot make an open-ended commitment,” Henry Wilson, a member of President Barack Obama’s automotive task force, told the New York court.
GM is seeking court permission to sell its best assets to a new company in which the US government will get a majority stake.
Should the plan be approved in time, Wilson said the government could begin to sell its stake as early as 2010, once the new company is ready to launch a public stock offering.
Officials have said the Obama administration has no intention of nationalizing General Motors over the long term and will not be participating in its day-to-day operations.
General Motors, once the largest company in the world, is expected to file for bankruptcy in a New York court tomorrow. Executives and politicians on both sides of the Atlantic are spending the weekend finalising details ahead of the historic capitulation that comes after months of talks and billions of dollars of government investment.
The filing will come on the heels of an eleventh-hour deal this weekend under which Magna International, the Canadian motor-parts group, agreed to rescue its European operations, which include two British plants employing 5,500 workers.
With control of GM and Chrysler the government is getting its wish. It is reaching its goal of over the last 30 years, to be able to force Americans to drive what it says they may drive.
In 1976 it began in force. An auto industry already with quality struggles and difficulty meeting the emissions and safety regulations got hit with Corporate Average Fuel Economy standards. In other nations the tax code was used to encourage people to buy smaller vehicles that used less gasoline, but that was not good enough for the rulers of the United States of America, they wanted vehicles that did not meet their fuel economy standards to simply go away.
– GM bankruptcy plan eyes quick sale to government (Reuters):
NEW YORK, May 19 (Reuters) – If General Motors Corp (GM.N) files for bankruptcy, as widely expected, its healthy assets will be quickly sold to a new company owned by the U.S. government, a source familiar with the situation said on Tuesday.
The source, who was not cleared to speak with the media and would not be identified, said the U.S. government would pay for the assets by assuming the automaker’s $6 billion of secured debt and forgiving the bulk of the $15.4 billion of emergency loans that the U.S. Treasury has provided to GM.
While in Europe, large vehicles can still exist; the buyers simply have a huge tax bill. This is not a good arrangement, but it at least allows automakers to decide what they will build and control the mix of their vehicle lineup. CAFE is different. Should an automaker’s lineup not produce the result that the government has mandated, they are penalized across their entire lineup. That is they are taxed for every vehicle they sell. Even if the automaker meets these targets, a vehicle that has a fuel economy that is too low requires the buyer to pay a gas-guzzler tax. This tax was impressive in 1976 dollars, $1000 to $7000. Thanks to inflation, it’s now usually less than the sales tax on the vehicles it applies to. (And since it’s considered part of the sales price of the vehicle, there is a tax on the tax.)
General Motors is planning to build cars in China and import them into the United States, a strategy that could trigger further job losses and union anger in the US.
Reports in China claim GM will start shipping cars from Shanghai in 2011. Photo: AFP/Getty
A plan to shift a greater proportion of the struggling car-maker’s production overseas is still being negotiated with US politicians, who have already lent GM $15.4bn (£10.18bn) in order to keep it afloat and safeguard its 90,000 US workers.
However, a spokesman for GM in Shanghai said it was “only a matter of time” before vehicles made in China are imported into the company’s home market, in another blow to the US car industry.
Related article: GM Starts Notifying 1100 US Dealers to Be Closed (Bloomberg)
After losing $6bn in the first quarter, GM has slashed its global production by 40pc, or 900,000 vehicles. Around 13 assembly plants will be affected by shutdowns in the US. The company has a June 1 deadline to complete a restructuring or follow Chrysler into Chapter 11 bankruptcy.
* Shares down 22 pct; 76-year low
* Vice chairman, 5 others sell almost $315,000 in stock
* Lose-lose situation for current shareholders-analyst
* Market capitalization drops to $690 mln (Adds analyst comments, background, bylines)
DETROIT, May 12 (Reuters) – General Motors Corp stock plunged more than 22 percent to a 76-year low on Tuesday, a day after a group of GM executives disclosed they had sold shares in the struggling automaker.
Six GM executives, led by former GM Vice Chairman and product chief Bob Lutz, disclosed on Monday that they sold almost $315,000 in stock and liquidated their remaining direct holdings in the automaker. [IDnN11125497]
The stock sale underscores the extreme pressure on GM with less than three weeks remaining for the embattled automaker to win deals to slash debt and operating costs with its major union and bondholders to avoid bankruptcy.
FILE–An undated file photo released by General Motors shows a 1968 Pontiac GTO. General Motors is expected to announce it’s restructuring plan Monday April 27, 2009, and it will include the discontinuation of the Pontiac brand, maker of the GTO _ one of America’s first muscle cars and so popular it inspired the Beach Boys to immortalize it in song. (AP Photo/General Motors, file) (Anonymous – AP)
The U.S. Treasury would own at least a 50 percent stake in General Motors under a plan the company released today to avoid bankruptcy.
The strategy would essentially formalize the government’s control over one of the icons of corporate America.
“I’m a believer in dealing in reality,” GM chief executive Fritz Henderson said in announcing the new plan. “We’ve gotten great support from the Treasury. It has viewed this matter from day one as a kind of private equity investment. It has pushed us in a lot of ways.”
Related articles: GM to shut plants for up to nine weeks this summer (AFP)
The announcement came as the company said it would further shrink the number of workers, dealers and types of cars in an attempt to prepare it for a United States shrunken by the recession.
Henderson said GM will eliminate 21,000 jobs by next year and phase out its Pontiac line as part of a last-ditch restructuring effort to keep the company afloat and win additional government aid.
General Motors today warned it would go bust within 30 days unless the US treasury gives it a further multi-billion dollar loan.
The dramatic warning from America’s biggest car group came after its auditor, Deloitte, raised substantial doubts about its ability to continue operations as a going concern.
These alarm signals were contained in GM’s 480-page annual report for 2008 to the US Securities and Exchange Commission, America’s financial regulator. They further underline the parlous state of the global car industry.
Related article: GM Europe seeks cash with 300,000 jobs at risk (Times)
GM has so far received $13.4bn (£9.5bn) in treasury loans and a further $1.6bn in other government loans. Today , effectively holding a gun to the government’s head, it said it could default on this $15bn if it did not receive a further cash injection.
It is seeking a total of $30bn from the Obama administration after racking up $82bn of losses in the last three years, including $31bn last year.
The group, once the world’s biggest carmaker, said it needed $3.5bn cash in 2009 and a further $2.3bn to 2014 to stay alive. The plan it has submitted to Tim Geithner, the US treasury secretary, envisages 47,000 job losses – 26,000 outside the US.
The carmaker wants £3billion from European governments to keep factories open, with Belgian and German plants most at risk
The European operations of General Motors will run out of cash within weeks unless they get government support, the American carmaker said yesterday, adding that a collapse would put up to 300,000 jobs at risk.
Fritz Henderson, the chief operating officer of GM, said that the division, which includes Opel in Germany and Vauxhall in Britain, would hit liquidity problems early in the second quarter.
Rick Wagoner, chairman and chief executive officer of General Motors Corp., pauses during a news conference at the company’s headquarters in Detroit, on Feb. 17, 2009. Photographer: Jeff Kowalsky/Bloomberg News
Feb. 26 (Bloomberg) — General Motors Corp. reported a $30.9 billion annual loss, the second-biggest in its 100-year history, as Chief Executive Officer Rick Wagoner asked the Treasury for more cash to survive through 2009.
GM’s cumulative deficit ballooned to $82 billion since the end of 2004, when the biggest U.S. automaker last had an annual profit. Full-year sales fell 17 percent to $149 billion, damped by a recession that ravaged new-car demand, GM said today.
“The size of the loss matters not only because it impacts what it will cost to restructure the company, but also the kind of bill for which the taxpayer is on the hook,” said John Casesa, a managing partner at consultant Casesa Shapiro Group LLC in New York.
The future of Detroit-based GM may pivot on whether Wagoner, 56, is able to persuade President Barack Obama’s auto task force to approve as much as $16.6 billion in additional money on top of $13.4 billion in loans so far. Wagoner is meeting with the panel today in Washington.
Should the panel decide against extending more aid, GM’s only option may be a government-backed bankruptcy, because the company said Feb. 17 it would run out of cash without at least $2 billion more in loans next month.
Zombie banks, zombie carmakers, zombie debt and soon a zombie dollar……
Feb. 17 (Bloomberg) — General Motors Corp. and Chrysler LLC, already relying on government aid to survive, take their case to the U.S. Treasury today that they can undo past mistakes and justify more U.S. aid to return to profit.
GM, with a pledge for $13.4 billion in loans, may seek support beyond an $18 billion request made Dec. 2 because of worsening economic conditions, people familiar with the automaker’s plan said. Chrysler has said it needs at least $3 billion in addition to $4 billion it received last month.
Feb. 10 (Bloomberg) — General Motors Corp., the largest U.S. automaker, will cut 10,000 salaried jobs globally and reduce pay by as much as 10 percent to slash costs and prove its viability to keep $13.4 billion in government loans.
About 3,400 of GM’s 29,500 U.S. salaried workers will be dismissed by May 1, the Detroit-based automaker said in a statement. U.S. salaries will be cut temporarily by 10 percent for executives and by 3 percent to 7 percent for most others. GM Chief Executive Rick Wagoner, who already sliced his annual salary to $1, is reviewing salaries and benefits abroad.
Paul King, mine manager, inspects a Caterpillar Inc. haul truck at the Australian Bulk Minerals iron ore mine at Savage River in Tasmania, Australia, on Nov. 6, 2008. Photographer: Carla Gottgens/Bloomberg News
Jan. 26 (Bloomberg) — Caterpillar Inc., Sprint Nextel Corp. and Home Depot Inc. led companies today announcing at least 72,500 job cuts as sales withered and construction slowed amid a global economic recession that may persist through 2009.
The biggest layoffs were at Peoria, Illinois-based Caterpillar. The world’s largest maker of construction equipment said it’s cutting 20,000 jobs after fourth-quarter profit fell by almost a third.
Pfizer Inc., the New York-based drugmaker that’s acquiring competitor Wyeth for $68 billion, said it will close five factories and eliminate 19,000 jobs, or 15 percent, of the combined company’s workforce.
The firings came as American jobless claims hit a 26-year high, reaching 589,000 in the week ended Jan. 17, as shrinking demand for products and services forced companies to lower costs.