Update: Video added of Thad McCotter R-MI who I think is great, on Cavuto tonight
4:55 pm EST: Well. If you’re an investor and that conference didnt scare you nothing will. Whitacre had what looked like a legal pad and papers, he spoke for 90 seconds, said he will take the role while they seek a new CEO, he took no questions and left.
LeBeau is noting that CNBC had an interview scheduled with Fritz tomorrow from the LA Auto Show. Also that Whitacre has mentioned several times, ‘I am not a car guy’, since being brought on as Chair. Yep. And now he is President CEO and Chair, oh goody! Talk about bizarre timing, we knew Fritz wanted to sell Opel and the Board did not, but WTH happened to make them fire Fritz tonight?
Ain’t being run by the union and the government grand?
4:15 pm EST: Breaking on CNBC now, Presser on “Significant Decisions” by the Board in 10 mins..
Update: Phil LeBeau at CNBC has scoopage:
…It is unclear whether he is stepping down on his own, or whether he was asked to resign. It’s also unclear who will take his role as CEO, but GM Chairman Ed Whitacre will serve as interim CEO, according to the Associated Press.GM said it will hold a news conference at 4:30 pm on “significant decisions” by the board. CNBC.com will carry it live. General Motors had no comment.
Ed Whitacre the man who used to run ATT that they dragged out of retirement to be Chairman. Oy!
Henderson took over for former CEO Rick Wagoner when the White House removed him from the position in March….
Think about how scary that is, “when the WH removed him form the position”. Under what possible authority did they do that? And the sooper genius economists and academics were fine with it, so now no capital will invest in American jobs. Maria Baritromo just interviewed Larry Fink and he said he expects 2% GDP in 2010, a million jobs lost in state govt and populism and unemployment anger at the mid term elections. Man oh man.
UPDATE: Saturn goes under- Penske drops bid, GM says it will not seek alternate buyer; The New GM – CNBC.com
Wow! 1992 (the album!) !? Damn am I old!
Update: 9/30 -Commenter Thomas Stewart notes GM called the end of Saturn today as Penske withdrew its bid.
General Motors will close Saturn and wind down its dealership network after a deal to sell the faltering brand to Penske Automotive Group collapsed, the automaker said Wednesday.The breakdown of a deal that had been widely expected to close this week will force some 350 Saturn dealerships to close and could cut thousands of auto retail jobs that would have been preserved under a plan by auto magnate Roger Penske.
Shares of Penske Automotive ..were down almost 10 percent Wednesday in aftermarket trade. The breakdown of the deal was announced after the New York Stock Exchange closed.
GM’s failure to complete the deal also adds uncertainty to the automaker’s production plans as it struggles to regain its footing following a $50-billion taxpayer funded restructuring.
“This is very disappointing news and comes after months of hard work by hundreds of dedicated employees and Saturn retailers who tried to make the new Saturn a reality,” GM Chief Executive Fritz Henderson said in a statement…
Market Mover Monday: GM Bankrupt… CISCO replaces GM in DOW..DOW futures up sharply on Personal Income Up .5% – CNBC.com
Great discussion here by Rickster on the weak dollar, the upcoming turn in inflation which IMO will be sharp brutish and nasty when it comes…
Personal Spending down 0.1%, but the loons trading this summer have the DOW futures up over 100 in the face of continued massive government intervention in the markets this time with GM…D-E-N-I-A-L- now a river running down Wall St….consumers are not spending futures should not be rallying….when we break that 200 day moving average tears will flow..and if they believe the construction data coming out of China I have a nice shiny bridge to sell them….
and the very first info out of the new Government Motors, is that they have agreed to build a new small car at a previously closed plant, this as they announce 11 permanent plant closures and 3 others being idled, wow we are gonna get a tiny little car for our 50 billion, great, gee who’d a thunk it? BWAAAHAAAAAA, sigh. sucks dont it?
Hell yeah commodities are rallying, as a safety play not a global recovery play, we are afraid of the dollar now with TOTUS spending, where can we go? Commodities baby…
Cisco replaces GM in the DOW 30
Travelers replaces CITI…
Warning NYTimes, Highlights include:
Update – GM on the Brink – Bondholders turndown equity/debt exchange- Hourly Buyout Offer 140k- Bloomberg
Bondholders Steer GM’s Fate – GM is Offering Bondholders 10% Stake for $27 Billion in Debt (Bloomberg News)
At the end the analyst notes the promise not to strike til 2015 by GM, since they will be running the company I can see how a strike would be somewhat awkward….
Bondholders turned down the IMO insulting offer on the debt/equity exchange
…”The participation (in the bond exchange) is very small,” one of the sources said. “Everyone realizes this is going to bankruptcy court.”
Most of the bondholders expect GM to file for bankruptcy some time between the expiration of the tender offer and before June 1, the sources said….
…The UAW agreed to take 17.5 percent of common stock in a restructured GM, a person familiar with the terms told Reuters. The union would also be paid $6.5 billion in preferred stock and would be granted a $2.5 billion note….
…As part of the plan, GM will offer buyouts to all UAW employees. Workers with 20 years or more will be offered $115,000 and a $25,000 voucher toward purchase of a new GM vehicle…
Hanging by a Moment – Lifehouse
Government Motors: Chrysler- Does TOTUS stand on the side of the car dealerships or the mean executives closing them…
I mean just asking..since he made clear whose side he was on last time ’round..
A very unhappy Chrysler Dealership owner on L.I. was on CNBC this morning. Despite being in the top 2% of dealers in volume he was notified he is being shutdown, the guy up the block gets to stay open and they didn’t give this guy the chance to offer to merge/buy/sell with the dealer up the block. He called it unAmerican.
This is that dealer from CNBC:
ISLAND JEEP INCORPORATED DBA ISLAND JEEP-EAGLE 26272 J
1 EAST MONTAUK HIGHWAY
LINDENHURST, NY 11757-5833
JAMES T ANDERER
See TOTUS broke Constitutionally protected contract law to side with the workers not the speculators, except these workers..this is why the government needs to stay out of it. There are a lot of franchise laws in states and minority franchises may be perceived in some cases to get preferential treatment as Congress Critters meet with the over 100 Car Dealer lobbyists who are not going away.
The dealers have promised to sue in court to fight this. Where is TOTUS to call them unpatriotic?
Here is the PDF list of the Chrysler Dealerships being closed, we are waiting for a list from GM..
They are in alphabetical order by dealer name not location so it will take a bit before we find out if there were geographical preferences given…the whole Southern state, Right to Work v Union state thing..we shall see….at first glance an awful lot of Florida dealers being closed…lot in NJ too…
..Chrysler LLC is seeking to drop 789 dealers from its retail network, according to documents filed Thursday with the U.S. Bankruptcy Court in Manhattan. The company has requested a June 3 court hearing to approve the planned streamlining, though some dealers said they would oppose being shut down. The dealer restructuring is being driven by Italian auto maker Fiat SpA, which plans to take an initial 20% stake in Chrysler when it emerges from bankruptcy protection.
Chrysler needs to pare its dealer network so that the company “can begin implementing efficiencies, marketing strategies, production plans and model changes” that will make it more profitable, the auto maker’s director of dealer operations, Peter M. Grady, said in a statement filed with the court.
..Chrysler studied the sales, locations, market shares, finances and facilities of each of its dealers to identify the strongest of its roughly 3,200 outlets, he said.
Some Chrysler dealers questioned the methodology used by the company and Fiat in their deliberations, and have vowed to battle the planned cuts. Leo Jerome, owner of Story Chrysler Jeep in Lansing, Mich., which is targeted for closure, said he has about $2 million in inventory and Chrysler informed him that the company won’t repurchase any of the cars or parts.
The auto maker said all of its dealer contracts allow the company to terminate its relationship for any reason with 30 days’ written notice.
Here is AZ:
BROTHER’S MOTORS INC DBA DIAMOND DODGE-CHRY-PLYM 68771 CDT
350 N SWITZER CANYON DR
FLAGSTAFF, AZ 86001
DARRYL R SACKS
DARNER MOTOR SALES INC DBA DARNER CHRYSLER JEEP 35058 CJ
837 WEST MAIN STREET
MESA, AZ 85201-7194
JOEL O DARNER II
JONES FORD-MERCURY, LLLP DBA JONES DODGE CHRYSLER JEEP 42779 DTCJ
781 W WICKENBURG WAY
WICKENBURG, AZ 85390
THOMAS G JONES
PERFORMANCE DODGE LLC DBA PERFORMANCE CHRY-JEEP-DODGE 44364 DTCJ
4240 W GLENDALE AVE
PHOENIX, AZ 85051-8190
WILLIAM R COULTER
Glenn Beck explains what you’re getting from Chrysler rescue plan