AUTOMAKERS' CRISIS * USA - General Motors stock dive: Shares fall under $1s
Opel sold, deal agreed with Magna
Detroit,MICH,USA -The Detroit News, by Robert Snell & Christine Tierney -May 30, 2009: -- Shares in General Motors Corp. sank below $1 Friday on what many investors anticipated would be their last trading day before an all-but-certain bankruptcy filing by the biggest U.S. automaker... GM officials scrambled to conclude deals with creditors and with the United Auto Workers and arrange asset sales in an apparent effort to speed up an anticipated bankruptcy... The UAW said Friday that GM members ratified cost-saving concessions. GM also reached an agreement Friday to sell most of its German carmaker Adam Opel to a group led by Canadian auto supplier Magna International Inc.... The German government will provide $2.1 billion in financing to support the sale... Expectations that a bankruptcy was imminent mounted Friday after GM said CEO, Fritz Henderson, would host a news conference Monday in New York City, where the company is expected to file under Chapter 11 of the U.S. bankruptcy code...
* New Chrysler days from emerging - Quick regrouping from bankruptcy sets example for industry
New York,NY,USA -The Detroit News, by Alisa Priddle-May 30, 2009: -- The fate of the newest incarnation of Chrysler, poised to emerge in Metro Detroit, won't be known until Monday or Tuesday... It marks an unexpected delay in a bankruptcy process that has surprised many for its quickness... Closing arguments on the sale of assets of the bankrupt Chrysler LLC to a group headed by Italy's Fiat Spa continued late Friday with the expectation Judge, Arthur Gonzalez, would rule immediately and not hold the case over into the weekend. But three days of testimony ended with his announcement he would render his decision Monday at the earliest... Once the sale is approved -- as is expected -- the Chrysler Group LLC formation will be official...
* Interesting views in a rapidly developing story. European analysts say: GM may still require bankruptcy, despite rescue
Berlin,Germany -Road Transport (UK), by Lindsay Clark -29 May 2009: -- Dr. Rainer Nitsche, Managing Director of ESMT Competition Analysis, the Competition arm of the Berlin-based international business school, says: ... "The handling of negotiations only confirms the need for a pan-European bankruptcy procedure to match that of the US, to take the politics out of the negotiating room. The web of bankruptcy frameworks currently in place on national lines is no longer fit for purpose. While these are intended to enable the workable rehabilitation of a distressed company, overall these do not give the level of support of Chapter 11, nor do they take account of the emergence of global businesses which require more cohesive support... Until this is changed, the stigma of bankruptcy and fear of insolvency will lead to politicised, protectionist action on the part of European governments, making it difficult to judge the effective and rightful deployment of state aid. The extent of the positive assurances we have seen from Europe's nations in fighting for their national champions, has left them little room to manoeuvre even before discussion talks had begun. European governments needed to keep their cards close to their chest. Instead, the Ace of Spades was handed to Washington long before they even reached the bargaining table."
Labels: automakers' crisis