Continue reading Can General Motors Turn to Profitability in 2010?

Can General Motors Turn to Profitability in 2010? originally appeared on BloggingStocks on Wed, 07 Apr 2010 16:00:00 EST. Please see our terms for use of feeds.

General Motors will not be divesting itself of Hummer after all. The larger-than-life SUV brand has been on the auction block since GM's meltdown in 2009, and China's Sichuan Tengzhong Heavy Industrial Machines Company indicated Wednesday evening that it would be pulling out of the deal to purchase the automobile brand that came to symbolize America's obsession with excess.

So, after having the Saab deal collapse late last year (but then becoming successful in early 2010) and now the Hummer deal having evaporated, GM will have to wind down the Hummer business and obliterate the brand, while at the same time honoring Hummer warranties until the last factory warranty expires. It's very unlikely that any other entity will step up to the plate and show financial interest in Hummer. Come the end of this summer, if not before, the brand will be relegated to the history books.

Continue reading GM's Sale of Hummer Division to Chinese Company Collapses

GM's Sale of Hummer Division to Chinese Company Collapses originally appeared on BloggingStocks on Thu, 25 Feb 2010 11:20:00 EST. Please see our terms for use of feeds.

China has taken its first major step into the U.S. car market as General Motors announced it had finalized a deal to sell off its Hummer truck brand to Chinese auto manufacturer Sichuan Tengzhong Heavy Industrial Machinery.

Under the deal, GM will continue to make the trucks no later than 2010. While a deal has been reached, it is still going to be up to Chinese regulators to approve the deal and decide if the brand can be profitable and fit into the country's overall national strategy to improve energy efficiency.

Continue reading General Motors finalizes Hummer deal

General Motors finalizes Hummer deal originally appeared on BloggingStocks on Sat, 10 Oct 2009 09:40:00 EST. Please see our terms for use of feeds.

Forging a cross-border buyout deal is always difficult. But, it is even more complicated if the seller needs to get the deal done fairly quickly.

No doubt, this is the case with GM, which is in the process of unloading its Hummer unit. The interested buyer is Sichuan Tengzhong, which is based in China. The price tag on the deal: $500 million.

However, this week we got a bombshell; that is, the BBC reported that the Chinese government wanted to kill the deal.

Continue reading Hummer: Deal or no deal?

Hummer: Deal or no deal? originally appeared on BloggingStocks on Fri, 26 Jun 2009 17:00:00 EST. Please see our terms for use of feeds.

DailyFinance today: Viewer beware of financial shows, IRS gives banks special treatment, lumber car company anyone, and Summers see end to economic free-fall soon originally appeared on BloggingStocks on Thu, 09 Apr 2009 18:15:00 EST. Please see our terms for use of feeds.

The ink is barely dry on the $13.4 billion in "loans" provided by the Bush administration at the end of 2008, but General Motors (NYSE: GM) is already talking about needing more. CEO Richard Wagoner says the company may look to secure additional government cheese in March -- earlier reports had suggested that GM believed the $13.4 billion would be enough to survive through 2009.

How does GM plan to demonstrate viability? It will need to secure broader concessions from the United Auto Workers union and, hilariously, try to convince bond holders to swap their debt for equity in one of the greater cash-burning machines in history. Good luck with that one!

Wagoner also said that GM is still looking to find a buyer for Saab. The company has denied problems in generating interest in the brand among potential buyers -- I'll believe someone is interested in buying Saab when there's a done deal. Similarly, GM has failed to generate any serious interest in Hummer, despite trying really, really hard to find a buyer.

GM's management has been extremely optimistic in terms of its "forward-looking statements," but so far it's all been bluster. Government officials should keep that in mind when GM brass shows up in March to demonstrate a plan for viability.

That didn't take long: GM CEO says he might need more money originally appeared on BloggingStocks on Sun, 11 Jan 2009 17:40:00 EST. Please see our terms for use of feeds.

Continue reading Automobile brands set to disappear forever?

Automobile brands set to disappear forever? originally appeared on BloggingStocks on Fri, 05 Dec 2008 11:30:00 EST. Please see our terms for use of feeds.

General Motors (NYSE: GM) has been trying to find a buyer for its struggling Hummer brand for months, without success. But with its stock price continuing to get hammered as market conditions deteriorate, General Motors has a new solution: trying really, really hard to find a buyer.

The Wall Street Journal reports reports (subscription required) that "A Hummer spokeswoman said the auto maker has begun sending out a sale prospectus for Hummer."

Analysts are predicting that, without some sort of bailout, sale, merger, or cash infusion, GM could run out of money within the next year. If General Motors is anywhere near as bad at selling car brands as it is at selling cars, shareholders are in trouble.

If GM is able to complete a sale, it probably won't be on great terms. Everyone knows GM is desperate for cash, and there aren't exactly parties lining up to bid on Hummer.

Meanwhile GM is reportedly still exploring the possibility of a deal with Chrysler. Good luck with that.

General Motors tries really, really hard to find a buyer for Hummer originally appeared on BloggingStocks on Sat, 18 Oct 2008 11:10:00 EST. Please see our terms for use of feeds.

GM doesn't have a Hummer buyer in Mahindra & Mahindra originally appeared on BloggingStocks on Mon, 18 Aug 2008 07:20:00 EST. Please see our terms for use of feeds.

Continue reading GM up 10% as oil prices decline, cost savings speed up

GM up 10% as oil prices decline, cost savings speed up originally appeared on BloggingStocks on Thu, 14 Aug 2008 17:45:00 EST. Please see our terms for use of feeds.

GM's Hummer could go to Indian automaker originally appeared on BloggingStocks on Wed, 13 Aug 2008 17:05:00 EST. Please see our terms for use of feeds.

• GM paid huge dividends even as its pension and health care obligations spiraled out of control leaving the company in a precarious capital position.

• When SUVs started to get hot, GM essentially bet its future on the continuation of that trend and the reasonably low gas prices that made it possible. That's right: GM was essentially an commodities speculation hedge fund masquerading as a car company. Now Bloomberg is reporting that GM lost $2 billion on leased SUVs.

• Now that gas is at $4 per gallon and M&A activity has dried up, GM has decided that this is a good time to try to sell its Hummer brand. Does it come with Pogs, Pokemon cards, and HD DVD?

• The stock was trading in the $60 per share range when Wagoner took the helm and now it's fallen to $11.07 and Merrill Lynch is saying that a GM bankruptcy is "not impossible." And remember: Merrill Lynch has been overly optimistic about its own ability to survive without raising capital. So "not impossible" may very well mean "quite possible."

How does General Motors CEO Richard Wagoner still have a job? originally appeared on BloggingStocks on Fri, 01 Aug 2008 17:42:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The banking unit of National City Corporation (NYSE: NCC) recently entered into a "memorandum of understanding" with federal regulators, the Wall Street Journal reported. The banking unit has bad loans, and the agreement basically means that the bank is on probation, as the government pressures financial institutions.
• The Wall Street Journal also reported that Justice Department criminal prosecutors and its U.S. attorney's office in Brooklyn, NY are investigating American International Group Inc (NYSE: AIG) to see if they overstated the value of contracts tied to subprime mortgages.

• Lehman Brothers Holdings Inc (NYSE: LEH) is thinking of releasing its Q2 results a week earlier than planned, and announcing a capital raising plan at the same time, according to the New York Post, in order to reduce negative speculation about its future.
• The Economic Times reported that Indian auto companies Tata Motors Limited (NYSE: TTM) and Mahindra and Mahindra may be interested in acquiring Hummer from General Motors Corporation (NYSE: GM).

Newspaper wrap-up: Federal regulators have National City under scrutiny originally appeared on BloggingStocks on Fri, 06 Jun 2008 08:00:00 EST. Please see our terms for use of feeds.

Continue reading As GM faces $4 gas, it's bye bye Hummer

As GM faces $4 gas, it's bye bye Hummer originally appeared on BloggingStocks on Tue, 03 Jun 2008 10:20:00 EST. Please see our terms for use of feeds.