DETROIT – The Wall Street Journal reports that GM bondholders are not happy with the company’s plan, saying it does not go far enough to cut costs, even though it gets rid of another 47,000 jobs. They want GM to become immediately competitive, not get there in 2012. And it sure sounds like the bondholders are gearing up for a big fight with the UAW for more concessions.
Meanwhile, over in Europe, governments there are reacting very coolly to GM’s request for $6 billion in bailout money. The Swedish government flat-out refused to put money into Saab, and GM warned it could go into reorganization as early as this month. And I think they mean bankruptcy by that. The Journal reports that labor leaders at Opel want the German government to nationalize Opel to save its jobs.
On Friday, the Wall Street Journal reported Saab received credit protection from a court and the Korean car maker GM controls said it asked a government bank for emergency aid. Meanwhile, GM’s profitable German unit Opel said that market conditions have deteriorated and that it needs at least ?3.3 billion ($4.18 billion) in fresh capital to survive.
There Detroit News reports Senator Bob Corker of Tennessee is telling GM it should seriously consider merging with Chrysler. Even in its viability plan, Chrysler said its best scenario involves merging with GM but that GM took that proposal off the table. My guess is we�??ll here a lot more about this in the coming weeks.
To view or read the rest of the story, click on AutolineDetroitTV
a>>
