There’s LOTS going on in the automotive industry, with almost hourly news developments on various fronts. Some quick highlights:
• General Motors announced a deal with some of its bondholders that would see the creditors get up to 25% of the equity in the “New GM” after the automotive giant goes through bankruptcy reorganization. This could result in the company filing for Chapter 11 next week, with hopes that the reorganization may take 60 to 90 days.
• The sale of Adam Opel and Vauxhall Motors is turning into an international incident, with German government officials blaming GM and officials of the Obama administration for throwing wrenches into the machinery at the last minute. No deal emerged overnight in Berlin; the German foreign minister is talking to Secretary of State Hillary Clinton about what’s going on. Chancellor Merkel and President Obama will have a lot to talk about when they meet in Dresden next week.
• Two big Michigan-based suppliers of auto parts, Visteon and Metaldyne, filed for Chapter 11 protection from creditors, beating GM to the courthouse. Visteon was spun off from Ford Motor nine years ago, and Ford still is the company’s biggest customer.
• Chrysler still is bogged down in a Manhattan courtroom, trying to get permission from the US Bankruptcy Court to sell its assets and to emerge from Chapter 11. A decision may come tomorrow.
• Saab Automobile still is talking to its three suitors. That may be the quietest, calmest corner of the automotive industry this week.
Stand by for news!
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