Tagged: GM

General Motors was a deeply troubled company in 2008.

Eh.  Make that deeply, deeply, deeply troubled.

So was its finance arm, GMAC, which had plunged head-first into subprime mortgage lending, in addition to automotive lending.  That left the company awash in billions of dollars worth of bad mortgages.

The federal government had to figure out a way to bail out both companies - because GM wouldn't survive if it didn't have a place to send customers for car loans, and if its dealers didn't have a place to get financing to buy the inventory.

Democrats want to revamp voting procedures and make Secretary of State an appointed position

"There's a move in the Michigan Senate to change the Secretary of State's office to a non-political position and to revamp the state's voting procedures. Gretchen Whitmer is the Senate minority leader. She says many Michigan voters waited for hours to cast their ballots while Secretary of State Ruth Johnson was campaigning for Mitt Romney. A spokeswoman for Ruth Johnson says the Secretary of State was not campaigning for Romney on Election Day, but was working with local election officials. Whitmer says Senate Democrats are working on legislation that would allow early voting and no-reason absentee voting to help reduce long lines at the polls. She says they're also drafting a bill that would make the Secretary of State an appointed position, rather than an elected post," Rina Miller reports.
 

Bill would help horse racing industry

"A bill to help Michigan’s struggling horse racing industry is on its way to the state Senate. The legislation would allow people to bet on races dating back years. Players would place bets on a machine, and a randomly selected race would be shown on a video screen. The state House passed the bill last week with bi-partisan support," Jake Neher reports.

Competition for GM in China

"Two domestic Chinese car companies are teaming up.  The move could help them compete against General Motors in China - and perhaps even hasten the day when Americans can buy Chinese-made cars. Gwanjoe and Chery plan to collaborate to cut costs. That should help them compete against GM and Volkswagen - the two biggest car companies operating in China. Michael Dunne is the author of "American Wheels, Chinese Roads." He says the collaboration could help the two inside China, and boost exports to developing countries. But he figures a Chinese car company won't try to enter the tough U.S. market for at least five years," Tracy Samilton reports.

Both Ford and General Motors announced steps this week to reduce their losses in Europe.

The region is experiencing a disabling recession that's expected to last at least through 2015.

Car sales are abysmal in Europe, down more than 30-percent from normal demand.

Ford says it may lose a total of one billion dollars in the region for the entire year.

General Motors' losses might be more than that.

DETROIT (AP) - General Motors is offering big discounts to boost sales of the Chevrolet Volt, an electric car that struggled to attract buyers until its price began dropping early this year.

Discounts run as high as $10,000 per Volt, according to figures from TrueCar DOT com, an auto pricing website. They include low-interest financing and subsidized leases.

The Canadian Auto Workers and GM announced a tentative contract Thursday night reports The Globe and Mail:

The deal extends by one year the life of a car-assembly plant in Oshawa, Ont., that was scheduled to close next year and adds a new shift of workers at a neighbouring plant. That means GM’s employment level in Canada should be roughly the same as it is today – or about 7,000 people – in 2016.

We’ve got a lot going on in Michigan, to put it mildly, and I would guess that you haven’t been paying much attention to the union negotiations that have been going on in Canada.

That’s understandable -- but they could have a significant impact on the economy in this part of the world. The Canadian Auto Workers union used to be part of the UAW, before breaking off and becoming independent in the 1980s.

Just five days remain before an existing contract between the Canadian Auto Workers and Ford, GM, and Chrysler  expires. 

Members of the union previously authorized their leaders to call a strike - but it's a double edged sword for the union.

Ken Lewenza is National President of the Canadian Auto Workers.

He says the union is willing to come up with a deal that preserves the Detroit Three's Canadian labor costs as they are now.

General Motors says sales rose 10-percent in August, compared to the same month a year ago.

The Detroit car company also broke several sales records.

GM says it got a noticeable bump from advertising aired during the Olympics.

Sales of the Chevy Cruze, Volt, Spark and Sonic hit an all-time high.

Those are all small cars.  

The Chevy Cruze, a compact car, even beat Honda's perennial top-performer, the Civic, in August.

Dutch car company Spyker is suing General Motors for three billion dollars over the bankruptcy of GM's former brand, Saab.

Spyker says GM illegally interfered with a sale of part of Saab, and claims it was that interference which caused Saab's bankruptcy. 

GM sold Saab to Spyker in 2010, with a stipulation that Spyker would have to obtain GM's permission to sell Saab to anyone else.

Spyker almost immediately ran into financial problems trying to keep Saab afloat.