DETROIT – More on the GM bailout, and GM bondholders are not happy. The AP reports bondholders say GM’s turn around plan is too optimistic. They worry about getting paid in GM stock, because if GM eventually ends up going into bankruptcy that stock will be worthless. The irony, of course, is that if GM can’t get a deal with its bondholders, it will go into bankruptcy. We can expect this drama to intensify as we get closer to the March 31 deadline for GM to present its viability plan to Congress.
The auto industry may be melting down around the world, but China is planning for 10 million in production and sales of automobiles this year. According to Gasgoo.com, China also expects 10 percent growth in production and sales for the next three years. The numbers are based on the country?s restructuring and consolidating efforts of its auto industry.
Hans Demant, the head of Opel, suggests they could close plants in Germany in an effort to save the company. According to the AFP, the company is looking at cutting departments and jobs and reducing pay as a way to cut costs but hinted that closing plants is a possibility too. Opel wants to save over a billion dollars in staff costs.
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