Latest General Motors Corp. Stories

Eight union locals said they voted to support contract concessions with General Motors Corp. as the giant U.S. automaker heads toward bankruptcy. While the final tally on the United Auto Workers vote is expected at the end of the day, individual locals reported approvals that ranged from 70 percent at Local 602 in Lansing, Mich., to 88 percent at Local 1854 in Spring Hill, Tenn., The Detroit News reported Friday. It was a tough, but necessary vote, Local 599 leader Terry Everman in Flint,...

U.S. consumer advocate Ralph Nader said taxpayer assistance for General Motors Corp. should not benefit its outsourced operations.Do we really want the United States of America to export its auto industry paid for by the taxpayer and unemployed workers to a dictatorship (in) a country like China? Nader said, CNN reported Thursday.As GM's North American and European operations struggle to survive the recession, the company's operation in China has prospered.GM is currently the third largest...

An Ad Hoc Committee of General Motors Corp. bondholders said they would support a new government offer that increases their stake in a restructured GM. The Obama administration's new deal included offering creditors 10 percent of GM and warrants to allow them to increase their stake to 25 percent, the Detroit Free Press reported Thursday. In a statement, the committee, which represents about 20 percent of GM's outstanding debt, said, rejecting this offer in the expectation that the...

Talks in Berlin failed to secure a loan that would allow General Motors Corp.'s European operations to continue if GM files for bankruptcy, officials said. German authorities were intent on securing a guarantee that about $2 billion in government aid would not be pulled out of the country if GM files for bankruptcy in the United States, The New York Times reported Thursday. The negotiations between the U.S. Treasury Department, GM, and German officials lasted through the night. Afterwards,...

U.S. auto giant General Motors Corp. said shareholders had turned down its offer to swap $27 billion in debt for a 10 percent stake in the company.The principal amount of notes tendered was substantially less than the amount required by GM ... to meet debt reduction objectives, the company said, the Detroit Free Press reported Wednesday.The creditor's decision puts GM a step closer to declaring bankruptcy as the U.S. Treasury Department gave GM until June 1 to arrange a financial plan that...

The U.S. and Canadian governments are set to own about 70 percent of General Motors Corp., people close to the recent deal-making said.In the latest bankruptcy plan, the government would loan GM about $30 billion -- on top of $19.5 billion already invested -- while the Canadian government would pitch in about $9 billion, The Washington Post reported Wednesday.The government's investment, however, could far exceed that by the time company is back on its own feet, the newspaper said.A deal with...

The United Auto Workers' deal with General Motors Corp. opens the door for U.S. government control of the company, industry analysts said. The previous option left the union with 39 percent of a restructured GM, but the option rank and file will vote on Wednesday gives the union 17.5 percent, which allows for a vastly different outcomes for both the government and creditors, The New York Times reported Wednesday. The likely outcome is the government would end up with 70 percent of GM, up...

United Auto Workers leaders in Detroit said they tentatively approved a concessions agreement with General Motors Corp. that now goes to a ratification vote. Plant-level leaders who unanimously supported the deal said the union trust fund would take over GM's retirement healthcare responsibilities in exchange for 17.5 percent of the restructured company and representation on the company's board of directors, The Wall Street Journal reported Tuesday. On top of the stock valued at $6.5...

Bankruptcy for U.S. automaker General Motors Corp. will likely generate hundreds of millions of dollars in lawyer fees, legal observers said.The number of lawyers working on the case, which could be filed this week, is hard to ascertain, but former United Auto Workers President Stephen Yokich, now deceased, quipped in 1995 that a GM bankruptcy would make 10 million lawyers $10 million apiece. To estimate the fees by comparison, the law firm Weil, Gotshal & Manges submitted a bill of $55...

U.S. auto giant General Motors Corp. has struck a deal with union workers, but remains a critical hurdle away from avoiding bankruptcy, analysts said. The deal, which goes to a union vote, allows GM to finance half of a $20 billion retiree health benefit obligation with company stock, sources close to the talks said. Meanwhile, bondholders appear unlikely to agree to a current proposal of swapping about $27 billion in debt for shares at a ratio of 225 shares per $1,000 of debt. I think...