General Motors (GM) 01 (Jun 08 - Jul 10 )

[helios]

Yeah. Quite risky.

Just read the Wall Street Journal that Mr. Young said that GM is in the initial stages of finding an outside investor for its German Opel unit. He said the Co. isn't ruling out doing a deal involving Opel with italian auto maker Fiat SpA, which is also pursuing an alliance with Chrysler ...

we might see some more headlines soon ... ...

[helios]

stop loss will be placed at ~1.4 if short term risk outweighs ...

[helios]

April 23 (Bloomberg) -- Fiat SpA and Magna International Inc. are in talks to buy stakes in General Motors Corp.’s Adam Opel GmbH division, a labor spokeswoman said.

Fiat is seeking a majority holding and Opel’s works council leader, Klaus Franz, opposes any role for the Italian suitor, Ilona Schmitz, an assistant to Franz, said in a phone interview today. She verified an article published today by Der Spiegel magazine in Germany.

GM, surviving on U.S. loans, may file for bankruptcy protection unless it can restructure out of court by June 1. GM said in March that Opel, which is seeking 3.3 billion euros ($4.3 billion) in state aid, is running out of cash. Opel said on April 9 that it has enough money to continue without a bailout at least through the end of June.

[helios]

GM, carrying $13.4 billion in U.S. loans, is trying to finish a plan this week that may close plants and scrap models as much as four years sooner. The aim is to lower the level of sales required to make a profit as it submits a new debt-cutting proposal to unsecured bondholders as early as April 27, people familiar with the effort said.

The cuts may mean GM can be profitable in a U.S. market with as few as 10 million annual auto sales, the people said. The annual rate was 9.9 million in March, after GM said Feb. 17 its break-even target was at 11.5 million to 12 million.

GM Meetings

GM executives are meeting this week with advisers to the auto task force to complete the plan, the people said.

GM and the Treasury want bondholders to accept an offer to exchange $27.5 billion in unsecured bonds for equity and accrued cash interest, the people said this week. Chief Executive Officer Fritz Henderson said last week he expects Detroit-based GM to make a new offer this month.

Separately, GM said yesterday said it will idle one Mexican and 13 U.S. assembly plants for multiple weeks to trim inventory after sales in its home market fell 49 percent this year through March.

The plan is to reduce production by 190,000 vehicles from May through July, GM said today in a statement.

Source: Bloomberg.com

[helios]

GM is preparing to 'kill off' its Pontiac brand as the carmaker searches for viability.

waiting for more news later ... ...

[millionairemind]

I have driven Pontiac cars before, I think they are pretty cool (for the sticker price) and pretty well made.

Another brand bites the dust.

[helios]

wah ...

what other cars u drove before?

[millionairemind]

wah ...

what other cars u drove before?

haha, no lah, I am like MusicWhiz driving a BMW -C series... Bus, MRT and Walk and Cycle in Singapore

I was on a rental car program for several months on company tab when I first lived in the US and hence can just drive the car back to the rental agency every couple of weeks and change new one.. .. I know the counter lady

Most American made mid-size cars are pretty decent. Give them a try if you get a chance, you might be pleasantly surprised.

[helios]

anyway, the stackups for GM is a relatively short-term trade, i will try to dispose it once it reaches >2.5?

[helios]

April 27 (Bloomberg) -- General Motors Corp. bondholders find the automaker’s offer to exchange their $27 billion in debt for equity unlikely to succeed, according to a person familiar with the committee representing creditors.

That’s because the offer by GM, the biggest U.S. automaker, treats bondholders worse than other claimants, such as unions, said the person, who declined to be identified because the discussions are private. At least 90 percent in principal amount of the notes must be exchanged to satisfy the U.S. Treasury and avert a bankruptcy, Detroit-based GM said today in a statement.