Chillin' out till it needs to be funded
GM’s US bailout and low scores for Dodge Chrysler in the Superbowl inevitably continue the US automakers agenda silently, even as Toyota returned with Prius after the repair work on the damaged brand hasd just started. Even if it starts production by the first week of March, it would have lost 6 weeks of sales ( 20000 cars a week)
In Europe, GM has managed to find a creditworthy buyer in Spykar for the venerable Saab in the Nordics giving it new hope. It has today announced its retructuring plans for Opel, which will continue to be a flagship brand and the key GM investment in Europe, with restructuring having realised hope for its US units. As the brand portfolio is already restructured in the US and Opel is a large player in Europe, this is likely to be a tough and closely watched program. It involves 8300 job cuts and one plant shutdown in Antwerp.
The proposal to restructure Opel and British sister brand Vauxhall has now been officially submitted to German authorities, he said, and included a planned investment of 11 billion euros (15 billion dollars) by 2014. Yahoo!
An economy ministry source told Dow Jones Newswires meanwhile that GM had asked the federal government and German states that host Opel sites for 1.5 billion euros.
GMAC Financial Services is still under TARP protection and is seeking an additional $3.5 billion in TARP funds, this year. This one would likely pay off its diminished Auto Loan portfolio. Another story on Manhattan real estate tonight. Don’t miss it..Coming back to the recall, State Farm had something interesting to say to AP/Yahoo!:
State Farm insurance said it noticed an uptick in reports of unwanted acceleration in Toyotas from its large customer database and warned the National Highway Traffic Safety Administration in late 2007. NHTSA officials said the report was reviewed and the agency issued a recall later that month.
NHTSA received complaints about acceleration problems in Toyota vehicles as early as 2003, and congressional investigators are looking into whether the government missed warning signs of the problems.