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Yesterday night, German Chancellor Angela Merkel picked up the phone, called her colleague Barack Obama and voiced her displeasure. “Obama said he had not been involved in the surprise decision by the GM board,” Reuters reports. Isn’t Teflon wonderful? Angela told Barack that his state-owned company better pay back the balance of the bridge loan by the end of the month. She even dispatched her very own collection agent to DC.
....
Now I know why he didn't go to the Wall anniversary.
today's news:
Magna and Sberbank want their money back. Everything they had so far invested into Opel needs to come back from GM, says Das Autohaus in Germany.” We are in negotiations with GM and we hope that we don’t have to go to court “, said Sberbank boss German Gref. “If all else fails, we’ll defend our position in a court of law.“ Gref did not name any sums. Magna also wants their money back. Magna’s Siegfried Wolf said “it is a considerable sum.”
The German government also wants to have their loan back before it will entertain any further discussions. The loan is due by end of November.
literally, the government cannot run anything well. every decision they have made have cost the taxpayers money. (is this on purpose?)
i find it jackass stupid that obama would tell merkel he had nothing to do with it. this is government motors, after all!
quote:
German politicians were still furious over the switch. Chancellor Angela Merkel’s office said she had discussed it with President Obama, who told her he had no involvement in Tuesday’s decision by the board of the majority government-owned company.
this should get interesting. GM is betting on an economic recovery that isn't happening and financing that they don't have:
Now that the car market is recovering, GM will need Opel, which is a center of design and new-product development, he said. "Now the question is ... where we get the necessary financing," he said.
GM’s John Smith, and a freshly minted GME CEO Nick Reilly went to Berlin to see German Economy Minister Rainer Bruederle, hat in hand, hoping for some Opel funds. They left empty handed.
“I expressed my expectation that General Motors should basically carry out the financing itself,” Bruederle said after the meeting.
Bruederle said that Smith & Reilly disclosed that GM would need €3.3B to fix Opel which has half of its 50,000 employees in Germany.
As part of its eleventh-hour decision to hold onto its Opel subsidiary, GM has made a 200m euro ($300 million) payment on its German “bridge loan.” GM Europe Chief Financial Officer Enrico Digirolamo announced that the nationalized automaker will repay the remaining 400m euros ($600 million) by the end of the month. The German government greeted the news with something roughly akin to a Gallic shrug.
“If General Motors and its subsidiary are in the position to restructure through its own strength and financing, that’s good news,” German Economy Ministry spokesman Felix Probst opined. Translation: we’ll take it. Which is just as well, given that GM’s Chairman of the Board returned the money with some seriously sarcasm attached. “I think we won’t be needing money from your government for Opel,” Edward Whitacre said, according to Merkur newspaper. “If Mrs. Merkel declines help, we will pay for it ourselves. Maybe this make will your chancellor happy.
GM loses 1.2 billion dollars in 3rd quarter and calls it good news! GM says things are looking up, never mind that they have to change their accounting practices for a while....
in the meantime, GM will draw on about $13 billion that remains deposited in escrow by the government to help make its "repayments" that it is scheduled to make to canada, US, and presumably, now, germany.
GM is BURNING through money:
The US government has granted General Motors permission to use US$2.8 billion in borrowed money to help its former parts division, the Delphi Corp, GM said in a regulatory filing on Monday.
GM said that it received $1.7 billion last month from an escrow account financed by the Treasury Department to buy an interest in the reorganised Delphi, which spent four years mired in Chapter 11 protection before successfully exiting last month.
It received $1.1 billion to spend on its acquisition of Delphi's global steering business, which GM has said that it planned to sell.
GM said that the withdrawal left $13.6 billion in the escrow account, which was CREATED IN JULY from what remained of the $30.1 billion it received from the Treasury in June after it filed for bankruptcy.
In the last year, GM has borrowed $50 billion from the Treasury.
and now the cry babies with the UAW at Delphi are complaining because they "Had to take on GM's rules,contracts,etc..." and they want more money an hour because of that....
Remind the rest of us again what kind of modifications they had to take again, since we (the taxpayers) are esentially paying for these potential wage increases now.... I mean,when their wages were reduced back in 2005, they all received a $90K compensation package for their loss of income.
Again, last time I checked, most people weren't even getting severance packages these days....
October 30, 2009
Q: I have 2 questions, I'm hopeing you might be able to shed some light on for me, and others wondering the same thing. 1* I have heard rumours about our wage both ways, A* Our union has lawyers fighting GM to give us a 4 more dollar wage increasement, since we have to take on their rules, and contract modifications. B* The lawyers are fighting to keep our actual pay where its at, because GM is trying to lower us to 12 $ a hour. Which way is this going or is all this just one big rumour. 2* Are we going to be able to transfer to another GM plant, i know not direct GM but at least another LLC I.E. A michigan GM LLC? Thank you for any and all information, this is very helpful.
A: 1) As part of national negotiations our wages are being discussed. As always the corporation would like to lower our wages and as always the union is fighting for wage increases.
General Motors Co. by the end of the week will outline plans to draw down more U.S. government money it will use to aid Delphi Automotive LLP and also give an update on a closely watched escrow account of its bailout funds, according to several people familiar with the matter.
GM's additional borrowing will mostly be limited to Delphi's funding needs and this is expected to be NORTH OF 2.5 BILLION, based on prior announcements. so actually while GM is announcing "paybacks", they are really "borrowing" more money.
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