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GM Regains Full Control Of Opel

Posted on 02 December 2009 by Scott Hayes

General Motors Company has regained full control of its Opel brand after paying back 1.5 billion Euro in emergency loan, including interest. The move dissolves a trust that held a 65 percent stake in the European carmaker.

“The shares in Adam Opel GmbH were returned to GM,” the German economics ministry said in a statement on Monday.

GM lost majority control of Opel in June, when the German government agreed to provide the Detroit automaker with a 6-month emergency loan to Opel, hours before GM filed for a pre-packaged bankruptcy.

The main idea behind the trust was to monitor Opel’s liquidity and oversee the sale of a majority stake to a new investor. Earlier this month GM’s board of directors decided to keep Opel and restructure it, terminating plans to sell the brand to Magna International.

Via egmCarTech

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Tags: bankruptcy, buick, cadillac, chevrolet, flexfuel, fritz henderson, general motors, general motors co, gm, gm sells hummer, gmc, hummer, hummer h3t, james taylor, mergers and acuisitions, motor industry, tengzhong, tengzhong heavy industrial machinery co.

GM Agrees To Sell Hummer Brand

Posted on 13 October 2009 by Scott Hayes

General Motors Co. has inked a deal to sell its premium off-road brand, Hummer, to a Chinese industrial company.

GM said last Friday that it has a definitive agreement with Sichuan Tengzhong Heavy Industrial Machinery Co. for 80 percent of Hummer. A private investor would buy the remaining stake.

Under the terms of the deal, GM would continue to build the H3 and the H3T until June 2011 on a contract basis. GM would assemble the H2 for the Chinese owners for that time period as well. The deals have an option to be extended until June 2012.

Financial terms were not disclosed, but GM would reportedly get US$150 million. It’s still subject to closing conditions and regulatory approvals.

James Taylor, the CEO of Hummer, will stay on and lead the company under its new ownership. He previously was the Cadillac general manager and oversaw that brand’s revival.

“Hummer is a strong global niche brand, and this agreement signifies another important milestone in writing the next chapter for both GM and Hummer,” GM CEO Fritz Henderson said in a statement. “For Hummer, the combination of its knowledgeable leadership team, vehicle-design expertise and the capital financing of Tengzhong portend a successful future.”

“Hummer is a strong global niche brand, and this agreement signifies another important milestone in writing the next chapter for both GM and Hummer,” GM CEO Fritz Henderson said in a statement. “For Hummer, the combination of its knowledgeable leadership team, vehicle-design expertise and the capital financing of Tengzhong portend a successful future.”

The deal could secure about 3 000 jobs in the United States, and Tengzhong would get access to the Hummer dealer network.

Hummer said it plans to add FlexFuel capability to the 2010 H3 and H3T and will sell a diesel H3 outside of North America. The brand also is looking at more options for fuel efficiency, including alternative powertrains and six-speed transmissions.

The agreement is another milestone for GM as it restructures in the wake of its historic bankruptcy. The automaker is shuttering Pontiac and Saturn and trying to sell Opel and Saab. That leaves GM with four core U.S. brands: Chevrolet, Cadillac, Buick and GMC.

Via AutoWeek

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Tags: 2010 camaro, 2010 camaro ss, 2010 chevy camaro, bankruptcy, chevrolet, chevrolet camaro ss, chevrolet comaro, chevy camaro, general motors, gm

GM Can’t Keep Up With Demand For The 2010 Camaro

Posted on 29 June 2009 by Scott Hayes

General Motors, which is hoping to come out of bankruptcy by August, is struggling to keep up with the demand for the 2010 Chevrolet Camaro. According to GM spokesman Terry Rhadigam, the automaker has filled about half of the 25 000 2010 Camaro orders taken.

GM began producing the 2010 Camaro in March and sold a total of 5 463 units in May.

According to a report form Kelley Blue Book, the 2010 Camaro is being sold with no incentives, with prices starting at US$22 995 for the V6 model and US$30 995 for the V8 Camaro SS.

“It is actually commanding a premium right now, as it is selling slightly above MSRP,” said Kelley Blue Book spokeswoman Joanna McNally. Camaros are currently selling for nearly US$500 above the manufacturer’s suggested retail price (MSRP).

Adapted from eGMCarTech

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