Tag Archives: Chrysler LLC

Wall Street Journal Says Saab Must Be Carved Out Of GM

Posted on 13. Jan, 2009 by .

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The Wall Street Journal says today that Saab must be carved out of GM in order to receive state aid from the Swedish government.

I am liking where this news dialog is going today, especially after Saab Automobile AB’s own Jan-Ã…ke Jonsson has said that in order for Saab Automobile to succeed, they need to be separated from GM.

DETROIT (Dow Jones)–Ford Motor Co. (F) and General Motors Corp. (GM) will have to “carve out” Volvo and Saab to secure any state aid from Sweden, a senior Swedish official said Monday.

“Sweden also plans to synchronize approval for any aid with the March timetable laid out by U.S. authorities monitoring loans granted to GM and Chrysler LLC.”

We know that the “carving out” of Saab from GM will be challenging, but certainly not impossible given the integration between them.

It will be interesting to see how this de-integration process begins with Saab Automobile and General Motors. I hope it yields the same positive results as it did with Daimler after departing from the DaimlerChrysler split I mentioned earlier.

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U.S. Auto Industry Gets Bridge Loan From White House

Posted on 19. Dec, 2008 by .

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Film Credit: Saab History / Washington, D.C. 2006
 
CNN Money Reports that the U.S. Auto Industry will get a bridge loan from the U.S. Treasury due to the White House work.
 
The loan will be for 13.4 million dollars, and this will go towards General Motors and Chrysler as Ford are no longer in need.
 
I wonder what this will mean for Saab Automobile? Will a buyer come in now that this loan has been approved?

NEW YORK (CNNMoney.com) — President Bush announced a rescue plan for General Motors and Chrysler LLC Friday morning that will make $13.4 billion in federal loans available almost immediately.

A senior administration official briefing reporters said he expects that GM (GM, Fortune 500) and Chrysler LLC will be signing the loan papers to access the cash later Friday morning.

The money will come from the $700 billion fund set aside to bailout Wall Street firms and banks in October.

With these loans, Treasury will have committed virtually all of the $350 billion of that fund that it can hand out without additional authorization from Congress. Once Congress releases the other $350 billion, the two automakers will be able to borrow an additional $4 billion.

The loans are three-year loans but the money will have to be repaid immediately if the firms do not show themselves to be viable by March 31. It is expected that the companies will have to negotiate new agreements with unions and creditors in order to do so.
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United States Treasury Says No to Aiding General Motors

Posted on 31. Oct, 2008 by .

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Photo Credit: Saab History / U.S. Treasury Department – March 16th, 2008

Reuters and now CNN Money reports that the United States Treasury says no to General Motors in providing the additional $10 billion dollars in aid to help with a merger with Chrysler.

” WASHINGTON, Oct 30 (Reuters) – The U.S. Treasury Department is not negotiating with General Motors Corp (GM.N: Quote, Profile, Research, Stock Buzz) and the owners of Chrysler LLC on a request to provide direct government aid to their proposed merger, a Bush administration official said on Thursday.

Instead, the administration is working to speed the distribution to automakers of $25 billion in factory retooling funds authorized by Congress last month, the official told Reuters.

Earlier this week, industry sources said GM had asked for roughly $10 billion in an unprecedented government rescue package to support its acquisition of Chrysler from Cerberus Capital Management [CBS.UL].

The request was viewed as over and above the $25 billion in funds to enable the automakers to produce fuel-efficient vehicles.

“Treasury is not negotiating with the automakers, the administration is working to get the $25 billion Congress already authorized to the industry,” the official said.”

If you are interested in the options on the table for GM, I would highly suggest you watch a very well done analysis video by Fortune’s Alex Taylor III.

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