Posted by: tristar3research | May 27, 2009

Test Driving the Chevy Volt, GM’s Extended-range Electric Vehicle

Chevy Volt- The Taxpayer’s Car ! You Pay for It, You Own It!

UAW health care trust will own 17.5 percent of GM: David Shepardson and Louis Aguilar / The Detroit News

Okay, Gotta Deal!

Okay, Gotta Deal!

The United Auto Workers leadership council approved a package of concessions today with General Motors Corp. today that gives the union trust fund that takes over responsibility for retiree health care just 17.5 percent of General Motors Corp. stock, officials said today.The UAW stock deal is part of a concessions package reached between the union and the automaker (and the Obama Administration with a gun at their head!) It’s as bad as Denise Richards singing “Take Me Out to the Ball Game” at Wrigley last week- or maybe almost as bad as Mr. T— Timmy’s next!

UAW leaders meeting in Detroit Tuesday unanimously approved the deal; rank-and-file members are to vote Wednesday and Thursday. “It was a tough but necessary vote,” said Terry Everman, head of Local 599 in Flint.  The pact says GM will take back some facilities from Delphi Corp., its former parts arm now in Chapter 11 bankruptcy protection. GM reportedly will take ownership of Delphi Saginaw Steering in Saginaw; Delphi Thermal Systems in Lockport, N.Y.; Delphi Powertrain in Rochester, N.Y.; Delphi Powertrain Systems facilities in Rochester, N.Y., and Grand Rapids; and Delphi Electronics and Safety in Kokomo, Ind.

This is the FINAL deal I am trying to force on you!! BooHoo!

This is the FINAL deal I am trying to force on you!! BooHoo!

The Treasury Department had blocked the sale of Delphi’s steering operations to GM. Delphi faces a Friday deadline to complete a deal acceptable to both GM and the Treasury to allow the Troy-based auto supplier to emerge from bankruptcy. GM has said Delphi’s creditors are the main stumbling block to Delphi emerging after 3 1/2 years under court protection. Under a proposed deal announced earlier this month, the U.S. Treasury and UAW, together, are to own 89 percent of GM’s stock, with 10 percent allocated to bondholders who hold $27.2 billion in bonds. Existing shareholders would get the remaining 1 percent.The UAW is to get $6.5 billion of preferred shares and a $2.5 billion note, plus warrants equal to 2.5 percent of GM’s stock.

Dead Vampires Refused a Nickel for a Dollar!

Dead Vampires Refused a Nickel for a Dollar! Aaargh!

Bondholders Balk on a Nickel for their $1.00 Paper -SURPRISE! The Obama auto task force has been in talks with bondholders about the offer, which many bondholders have said is inadequate. Some Wall Street analysts say the new equity would only give bondholders a nickel or less on the dollar for the bonds they hold. Corporatism at its finest with negotiations in the public realm- 10$ for $27B valuing GM at a quarter billion??? Good luck- dead by fall, at the latest.

“The president’s task force may be willing to up the amount of GM stock it awards to bondholders in an effort to increase participation in the bond exchange. A spokesman for an ad hoc committee of GM’s largest unsecured bondholders declined comment on the UAW agreement.”

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