Attention: TDR Forum Junkies 
amsoilman
Staff Alumni
Just got this info from Autoline Detroit:
This is Autoline Daily for Tuesday, April 28, 2009. And now, the news.
Well, we woke up this morning to find out that the UAW is now the owner of Chrysler. You heard right, the union will end up with 55% of Chrysler’s stock, the AP reports. Fiat will end up with 35%. The remaining 10% goes to the government and secured lenders. The UAW is getting stock to pay for half the cash it’s owed for its retiree health care program. The union made more concessions including work rules, COLA, dental and vision care. Daimler also announced that it is giving up its 19. 9% ownership in Chrysler, and forgiving all loans that Chrysler owes it. Hey, maybe Chrysler will avoid filing for bankruptcy.
But probably not GM. Autoline Daily was contacted yesterday via email by an ad hoc group representing GM’s bondholders. They are not happy. They say the UAW will get 50% cash for what it’s owed and will end up with 39% of GM’s stock, while bondholders will only get 10% stock and no cash. They say this amounts to using taxpayer money to play political favoritism of unions over bondholders. And it sure sounds like this will only get resolved in bankruptcy court.
And Delphi’s outlook looks grimmer. The automotive task force blocked GM from giving another $150 million to Delphi and taking over its steering business. According to the Detroit News, they have until May 9 to resolve Delphi’s bankruptcy. If that doesn’t happen, Delphi could be forced into liquidation.
With Pontiac’s days numbered, GM may need to rebadge at least one car line. Autoblog reports that the Pontiac Vibe, built in the NUMMI joint venture plant that GM has with Toyota, could become a Chevrolet. Along the same line Nissan may be changing its mind. The next-generation Titan was supposed to be built off the Dodge Ram, but with all the trouble Chrysler’s in right now that deal is on hold (subscription required). The company could update the current Titan.
This is Autoline Daily for Tuesday, April 28, 2009. And now, the news.
Well, we woke up this morning to find out that the UAW is now the owner of Chrysler. You heard right, the union will end up with 55% of Chrysler’s stock, the AP reports. Fiat will end up with 35%. The remaining 10% goes to the government and secured lenders. The UAW is getting stock to pay for half the cash it’s owed for its retiree health care program. The union made more concessions including work rules, COLA, dental and vision care. Daimler also announced that it is giving up its 19. 9% ownership in Chrysler, and forgiving all loans that Chrysler owes it. Hey, maybe Chrysler will avoid filing for bankruptcy.
But probably not GM. Autoline Daily was contacted yesterday via email by an ad hoc group representing GM’s bondholders. They are not happy. They say the UAW will get 50% cash for what it’s owed and will end up with 39% of GM’s stock, while bondholders will only get 10% stock and no cash. They say this amounts to using taxpayer money to play political favoritism of unions over bondholders. And it sure sounds like this will only get resolved in bankruptcy court.
And Delphi’s outlook looks grimmer. The automotive task force blocked GM from giving another $150 million to Delphi and taking over its steering business. According to the Detroit News, they have until May 9 to resolve Delphi’s bankruptcy. If that doesn’t happen, Delphi could be forced into liquidation.
With Pontiac’s days numbered, GM may need to rebadge at least one car line. Autoblog reports that the Pontiac Vibe, built in the NUMMI joint venture plant that GM has with Toyota, could become a Chevrolet. Along the same line Nissan may be changing its mind. The next-generation Titan was supposed to be built off the Dodge Ram, but with all the trouble Chrysler’s in right now that deal is on hold (subscription required). The company could update the current Titan.
