Jalopnik: Bankruptcy

Watch Aptera employees smash prototype electric cars as company goes under

Patrick Frawley — Wed, 07 Dec 2011 13:30:00 EST

Aptera, the California electric vehicle startup that once hoped for ten thousand sales of its futuristic three-wheeled 2e per year, ceased operations on Friday after failing to secure needed funding. As you can sadly see in these videos, in the wake of the collapse, the company's now-unemployed staff went on a rampage, destroying every prototype car they could get their hands on. More »

Xzibit: "Pimp My Ride Made Me Broke"

Matt Hardigree — Wed, 29 Dec 2010 16:30:00 EST

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Alvin Joiner, a.k.a. Xzibit, a.k.a. recursive Internet meme guy, owes nearly $1 million in delinquent federal taxes. His excuse for not paying them? The cancellation of Pimp My Ride. Seriously. More »

Old GM Creditors Take On U.S. Treasury

Ray Wert — Tue, 19 Oct 2010 07:45:00 EDT

Old GM creditors take on U.S. Treasury in bankruptcy court over who is entitled to the fruits of $1. [AutoNews] More »

German Police Investigating Uwe Gemballa For Financial Impropriety

Matt Hardigree — Fri, 05 Mar 2010 11:00:00 EST

Missing German Porsche tuner Uwe Gemballa is now under investigation by authorities in Stuttgart on suspicion of financial impropriety. Also, his family's suspended the reward for information regarding his whereabouts. Both revelations will turbocharge rumors he's not a kidnapping victim. More »

Why Do Republicans Hate American Automakers?

Matt Hardigree — Mon, 16 Nov 2009 16:30:00 EST

A German company is battling with a Japanese one to become the world's biggest automaker. Italians own Chrysler. It's like World War II except we're losing. So why are Republicans suddenly on the side of the automotive Axis powers? More »

Lear Files For Bankruptcy

Ray Wert — Tue, 07 Jul 2009 06:45:00 EDT

Lear becomes latest auto supplier to file for Chapter 11 Carpocalypse bankruptcy protection. [NYT] More »

"New GM" Sale Approval To Come Today

Ray Wert — Tue, 30 Jun 2009 09:00:00 EDT

"New GM" sale may be approved in bankruptcy court today. Follow along on Twitter here. More »

President Obama: We Don't Want To Own The New GM

Matt Hardigree — Mon, 01 Jun 2009 13:00:00 EDT

President Obama stressed today he doesn't want to own the "New GM" or run the company. Also, they'll still support "New GM" warranties so have no fear, buy a Malibu. More »

GM Bankruptcy Official

Matt Hardigree — Mon, 01 Jun 2009 08:15:00 EDT

Chevrolet-Saturn of Harlem, a General Motors Corporation dealership in New York, is the first to file for bankruptcy protection as part of the larger GM Bankruptcy this morning. [Detroit News] More »

GM To Declare Bankruptcy Monday, Chief Restructuring Official Named

Matt Hardigree — Sun, 31 May 2009 21:15:00 EDT

GM will officially declare bankruptcy tomorrow morning before the markets open. Additionally, the Obama Administration has put turnaround expert Al Koch in charge of, well, turning the company around. Fritz Henderson will remain GM CEO. More »

Report: GM To File Chapter 11 Bankruptcy On Monday

Wes Siler — Thu, 28 May 2009 18:30:00 EDT

GM plans to file for Chapter 11 bankruptcy on Monday, then sell most of its assets to a new company. The bankruptcy should last 60-90 days and be financed with $50 billion of Treasury money. [Bloomberg] More »

Parts Supplier Visteon Files For Bankruptcy

Matt Hardigree — Thu, 28 May 2009 09:00:00 EDT

Parts suppliers are suffering as automakers make less autos and now the once Ford-owned Visteon is filing for bankruptcy. It's good timing as we imagine everyone is still waiting for a different bankruptcy. [Detroit News] More »

Chrysler Asks Bankruptcy Court To Void Private Aircraft Leases... Finally

Matt Hardigree — Wed, 13 May 2009 15:00:00 EDT

Chrysler has finally gotten around to asking the bankruptcy court to cancel those pesky private jet leases. To show how truly humbled they are, execs will now travel everywhere in a Sebring. [Detroit News] More »

Six Top GM Executives Liquidate Stock Holdings

Ray Wert — Tue, 12 May 2009 10:00:00 EDT

Six GM executives, including outgoing product czar "Maximum" Bob Lutz, disclosed Monday they sold almost $315,000 in stock and liquidated their remaining direct holdings in the automaker ahead of a probable stock-value-rendered-worthless bankruptcy. More »

Chrysler To Seek Chapter 11 Bankruptcy Tomorrow

Ray Wert — Wed, 29 Apr 2009 23:14:44 EDT

The New York Times is reporting Chrysler's expected to seek Chapter 11 bankruptcy protection Thursday, most likely in New York. And that's when Fiat swoops in for the kill like an Italian bird of prey. More »

Obama To Announce Chrysler Bankruptcy Tomorrow - REPORT

Ray Wert — Wed, 29 Apr 2009 15:33:00 EDT

Bloomberg's reporting President Obama plans to officially announce a Chrysler bankruptcy tomorrow if they cant get things together by then. We don't have more details other than the 17-word wire service report. [Bloomberg via StreetInsider] More »

New GM Chairman Kent Kresa Endorses "Good GM," "Bad GM" Bankruptcy Scenario

Ray Wert — Thu, 02 Apr 2009 14:45:00 EDT

New GM Chairman Kent Kresa endorses "Good GM," "Bad GM" bankruptcy scenario. [Automotive News] More »

Fleetwood Enterprises Files For Chapter 11

Ray Wert — Wed, 11 Mar 2009 08:00:00 EDT

Fleetwood files for Chapter 11. [WSJ] More »

Nikkei Hits 26-year Low On GM Concerns

Ray Wert — Tue, 10 Mar 2009 08:15:00 EDT

Nikkei hits 26-year low on GM concerns. [MSNBC] More »

How Many Drinks Was That: Roy Wert Edition

Matt Hardigree — Thu, 05 Mar 2009 14:30:00 EST

If you watch this segment closely you can see our own Ray Wert blinking out "my name is Ray, not Roy" to CNBC's Larry "KUDLOW!" Kudlow in Morse Code. More »

Official Car Pundit Drinking Game: Death Of The Auto Industry Edition

Matt Hardigree — Wed, 18 Feb 2009 10:30:00 EST

Last night Ray called us while "drinking to the end of the automotive industry" after yesterday's sad, strange and depressing news. Today he'll be on CNBC at 11:20AM EST discussing GM bankruptcy. Raise your glass. More »

Why GM Doesn't Want Bankruptcy

Ray Wert — Wed, 18 Feb 2009 08:30:00 EST

As GM asks for $16 billion more in U.S. federal assistance, their most contentious point is bankruptcy's a bad idea. We disagree. However, here's their argument from their just-revealed viability plan. More »

GM Sues Camaro Supplier, Claims Cadence "Holding Hostage" Interior Equipment Necessary For Launch

Wes Siler — Fri, 26 Dec 2008 17:45:00 EST

Liquidation of now-bankrupt Camaro parts supplier Cadence could delay 2010 Chevy Camaro production, costing GM millions of dollars and delaying a crucial new model. So GM plans to sue them. More »

Everyone's Using The "B-Word" Except The Not-So-Big Three

Matt Hardigree — Fri, 05 Dec 2008 14:00:00 EST

After scrutinizing not-so-Big Three CEO's testimony before the Senate yesterday to see who would and would not utter the dreaded "b-word" we noticed a pattern. Everyone was willing to publicly acknowledge the possibility except the chairmen of Ford, Chrysler and GM. If you don't say it, it can't happen right? hat tip to Shannon Donnelly! More »

Report: GM, Chrysler Consider Bankruptcy For Federal Bailout Loan

Ray Wert — Thu, 04 Dec 2008 08:40:00 EST

The CEOs of the not-so-Big Three made it to DC for committee hearings beginning today at 10:00 AM. According to Bloomberg's sources, GM and Chrysler execs are considering a pre-arranged bankruptcy (which we've already said is a good thing) as a last-resort of getting a multibillion-dollar government loan. More »

Grading The Not-So-Big Three's "Bailout" Plans

Ray Wert — Wed, 03 Dec 2008 10:00:00 EST

We spent the night reading the the not-so-Big Three's business plans presented yesterday to Congress and after we graded them below, we've one huge question. Given the Carpocalypse, what's with the overwhelmingly optimistic sales projections for the next three years? More »

CNBC's Jim Cramer: "What's Good For GM Is Still Good For America"

Ray Wert — Fri, 14 Nov 2008 18:45:00 EST

The red rubber bull-biting bald man by the name of Jim Cramer had a mouthful to say about the Motor City today — making clear his belief that if Motown gets showed D.C.'s checkbook, then we've seen the lows of this financial downturn. I tend to agree. Right now, according to Cramer, the issue isn't anymore whether you think GM deserves or doesn't deserve to be saved, it's whether you're alright with massive unemployment and an economic downturn taking this nation further into the murky unknown depths. Sounds to us like someone thinks people need to buy some "Save GM" t-shirts. That sentiment's shared by Keith Crain's Automotive News, where we saw an opinion piece today the likes we've never seen — essentially refuting an idea I'd held up until the past week, that Chapter 11 could allow for reorganization. The Op-Ed's entitled "The cost of GM's death," and you can hit the jump for the excerpts. More »

GM Will Go Bankrupt: Why That May Actually Be Good For The General

Ray Wert — Fri, 10 Oct 2008 08:30:00 EDT

I'm not the first person to say it. After yesterday's 31% drop in the price per share, news outlets talking to the right people this morning are already saying it, albeit fecklessly, like thus: "Will GM declare bankruptcy?" All I'm doing is removing the question mark. The pundits saying "bankruptcy is not an option" are completely ignorant of the facts, living in an alternate reality or parroting the GM PR public line (a line I don't begrudge GM for pushing given the need to be positive or else face a rush for the hills), because let's be clear here — if the marketplace for credit does not change in the next year, bankruptcy is not only an option, it's the only option. Yes, GM will be forced to declare bankruptcy. Although yesterday's drop in share price had more to do with the release of the short-selling ban on GM stock than anything else, it's indicative of the bigger picture. It's the same one facing every major company in the United States today, and every consumer looking to buy a house or a car — an inability to get a loan. For GM, those loans are what they'll need to go about doing business on a day-to-day basis and it's a problem that looks to not be fixing itself anytime soon. But the "b-word" may not be a curse word for the General. In fact, it could potentially be one of the best things to happen to the automaker in years. Here's why and how. More »

Bill Heard, Nations Top-Selling Chain Of Chevy Dealerships, Goes Out Of Business

Wes Siler — Thu, 25 Sep 2008 13:00:00 EDT

Bill Heard Enterprises is closing its remaining 13 car dealerships. The country’s top selling Chevy dealer group, Heard blames "adverse economic conditions, high gasoline prices and our traditional product mix.” However, Heard has come under significant legal scrutiny in the past few years, leading us to believe that more than market economics were at work in the shutdown. A closer look after the jump. More »

Chrysler Plays Chicken with Parts Supplier, Parts Supplier Loses

Matthew DeBord — Tue, 05 Feb 2008 13:15:00 EST

Ah, the weird, weird world of supply chains, Motown business practices and secretive private equity maneuverings. Yesterday, Plastech Engineered Products Inc., Chrysler's main supplier of parts, filed for bankruptcy. Chrysler, owned by private-equity firm Cerberus Capital Management, sued to obtain the toolings necessary to create the parts, but as of today, that action hasn't been resolved. Meanwhile, Chrysler has given more than 10,000 workers a little time off (with more to come today). The Freep has the best take on this story, which has naturally encouraged speculation on the interwebs that Cerberus is attempting a decisive coup de grace, simultaneously whacking a supplier that had become a cash drain and giving itself an excuse for a brief production slowdown to clear some unsold inventory. The actual story might not be quite so dark, but it certainly doesn't look good for Plastech. More »

Unique Performance Files for Bankruptcy

Matt Hardigree — Thu, 29 Nov 2007 15:15:00 EST

We sort of wish we hadn't called this, but AutoWeek is reporting that Unique Performance filed for Chapter 7 bankruptcy protection on November 12th, less than a week after being raided by the fuzz for title-washing and other crimes. This means the company has no plans to rebuild itself and, worse, owes between $1 and $100 million dollars with no listed assets! More »

The bankruptcy bill for Delphi will top...

Ray Wert — Wed, 11 Jul 2007 07:00:00 EDT

The bankruptcy bill for Delphi will top $200 million and may go as high as $300 million. [Detroit News] More »

TVR in the Terlet?

Davey G. Johnson — Tue, 02 Jan 2007 16:45:00 EST

Ooh 'eck. Things aren't looking so rosy in Blackpool right now. Blackpool Automotive, the arm of TVR which owns the factory where the sports cars are built has gone into receivership and no employees of the company are being allowed on the premises. According to a statement on TVR's site, "Our plans include appointing expert partners and outsourcing to more advanced facilities, which will ultimately mean a better product for everyone, both here in the domestic market and internationally." Does this mean we'll finally see Clarkson's long-dreamed-of TVR Spetsnaz? – Davey G. Johnson More »

Breaking! Delphi Gets $3.4 Billion As A Little Something To Keep It Going Through The Show

Ray Wert — Mon, 18 Dec 2006 09:25:00 EST

Well, it looks as though the saga of whether auto parts supplier Delphi will drag the General underwater into the inky abyss is getting a bit of a reprieve today. That reprieve is coming to the tune of $3.4 billion in stock buybacks of the broke n' busted auto supplier from Appaloosa Management LP, Cerberus Capital Management LP, Harbringer Capital Partners Master Fund I (no LP!), Merrill Lynch and YouAndUs Securities, LLC. The five companies, in a show of throwing good money after bad, appear to be in support of the Delphi plan to re-emerge from bankruptcy during the second quarter of 2007 and you know, start paying back the money it owes to the banks currently providing a hot capital injection. – Ray Wert More »

Breaking! Collins & Aikman Submits Chapter 11 Bankruptcy Reorganization Plan

Ray Wert — Thu, 31 Aug 2006 09:48:23 EDT

The once-beleaguered auto supplier and current stunner of automotive supplier industry critics, Collins & Aikman, released a gameplan for bankruptcy reorganization that should allow them a way out of its current Chapter 11 status. Although confirmation of the plan still is subject to a bunch of conditions — like entering into agreements with customers, modification of some labor-related obligations, resolution of ongoing government investigations, pulling a large rabbit out of a hat and of course...court approval — hey, at least it's a start. More »

Breaking! Delphi Drops $2.6 Billion During The First Half Of 2006

Ray Wert — Tue, 15 Aug 2006 11:59:17 EDT

Embattled auto supplier Delphi's released the first half numbers and — who would have guessed it — they're awash in red ink. Yup, they're drowning in it — losing $2.6 billion during the first half of the year. But just like Delphi's baby-daddy, General Motors, the majority of those losses are associated with its attrition program. That'd be the more than 12,000 hourly UAW and IUEW workers who've taken the early-retirement plan. But that only accounts for $1.9 billion of the loss. Delphi's well-heeled, well-salaried and well-bonused execs still need to explain why the bankrupt company lost $700 million with revenue only up $100 million or so from the $13.9 billion it made in the first half of 2005. More »

Broke? GM Fires Multibillion-Dollar Claim Against Delphi

Ray Wert — Tue, 08 Aug 2006 09:00:03 EDT

It's been a while and we hadn't heard from Delphi recently...we were wondering what those guys have been up to. We found out when late yesterday, broke-as-a-joke auto supplier Delphi said the General made a "multibillion-dollar" demand for payments. That's not so good for Delphi considering it's kinda been relying on GM's help to carry out its bankruptcy reorganization. It's also interesting... More »

Breaking! Bankruptcy Judge Rewards Delphi Execs For Being Bankrupt

Ray Wert — Wed, 19 Jul 2006 17:05:12 EDT

Somehow we don't think this is going to make things any easier during union negotiations. A federal bankruptcy court approved today a multi-million dollar bonus plan for Delphi senior executives. That's right — the court decided 467 executives of a bankrupt auto supplier needed bonuses — as long as they acheive earnings targets in the second half of the year. This is after they approved similar bonueses for the same executives for hitting performance goals in the first half of this year. Those bonuses were estimated at around $38 million. So — two questions. Is keeping your job when you've sent your company down the crapper no longer the incentive folks need, and where' the similar bonus plan for the blue-collar workers? Oh wait, Delphi's cut most of those jobs. By the way — anyone want to send us a copy of that list of 467 execs — just send it over to tips@jalopnik.com. More »

Breaking...And Obvious! Unions Dislike Delphi Management Over Bonuses

Ray Wert — Wed, 12 Jul 2006 19:30:00 EDT

The International Union of Electronic Workers-Communications Workers of America (~~NAMBLA~~ IUEW-CWA) is bitching and moaning (for rather reasonable reasons, we might add) in a filing today in the Delphi bankruptcy hearing over a $60 million-a-year bonus program for Delphi executives at a time when the bankrupt auto parts supplier has just offered attrition programs to its union workforce. This also comes as the company reported a $2.4 billion loss for 2005 yesterday afternoon in a very much delayed annual report. We already know how Delphi management's going to justify this — it'll be the same old "you need to pay competitive salaries to get good people" argument we've heard in the past. And every time, we find it more and more funny for management folks to say this when they're talking about their bonuses — but later in the day they'll be the first folks to go after the unions for pay cuts. Wethinks maybe there's a flaw in logic somewhere around here. More »

Annual Report Rollback! Delphi Releases Numbers, Cuts Losses In Half

Ray Wert — Wed, 12 Jul 2006 09:53:04 EDT

Although until yesterday, they were months behind in releasing an annual or quarterly report — they're finally able to tell the world they're doing...a bit better. Despite reporting a $2.4 billion loss, and reporting a warning they may be forced to sell or liquidate assets if the supplier can't work through problems in the bankruptcy courts — it's still only half as bad as last year. We guess that means investors and employees who own stock should only be half as worried they'll never see a single dime. More »