Friday, April 24

So How's the Auto Makers doing with all that Bailout Money they Received?

General Motors
General Motors Corp. said Thursday that it will shut down 13 plants for "multiple weeks" in the second and third quarters to bring down the number of unsold cars in the face of dropping demand.

Ford Motor
Ford Motor Co. says it lost $1.4 billion in the first quarter, but it burned through less money as it continued to restructure without government aid during a severe auto sales downturn.

The nation's second-largest automaker said Friday that it spent $3.7 billion more than it took in during the quarter, but that's far less than the $7.2 billion the company burned through in the fourth quarter.

Ford lost 60 cents per share, compared with a gain of 3 cents per share a year ago. Excluding special items such as gains from the company's debt restructuring, the company lost 75 cents per share.

Chrysler lenders have received a new offer from the government amid a report that federal officials could be preparing a bankruptcy filing for the struggling auto maker.

The U.S. Department of Treasury has upped its offer to Chrysler lenders to $1.5 billion of first-lien debt and a 5% equity stake in the restructured company, according to a Reuters report that cited an anonymous source. This would be in exchange for the $7 billion in debt the lenders hold.

On Monday, the Chrysler lending group was seeking $4.5 billion in first-lien debt and a stake totaling 40%, the report said. These amounts were clearly well above the initial offer made by the Obama Administration, and because of that were turned down.

Meanwhile, the Treasury has begun preparing a Chapter 11 bankruptcy filing for Chrysler, according to a report in the New York Times. The filing could come as early as next week, according to the Times which cited people familiar with the situation.


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