STUDY: Each New GM Vehicle Costs Taxpayers $12,200

A study by the obviously pro-government National Taxpayers Union claims each new GM vehicle costs the average taxpayer $12,200. Their bizarre assumptions and our analysis below. More »

GM Offering Dealers $250 For Every Customer They Don't Send To GMAC

Automotive News reports that GM is offering dealers up to $250 in bonus money for every loan they sell to a lender other than GMAC. This latest move follows Monday's report on GMAC tightening lending restrictions, and "is an encouragement for dealerships to seek out other sources of funding," says Mike Mullaney of Hudson Pontiac-Buick-GMC in Poughkeepsie, N.Y. The program pays salespersons $100, sales managers $100 and an "employee of choice" (most likely the finance manager) another $50 for non-GMAC transactions. More »

Car Insurance Companies Have Always Been At War With High Prices

A few of the big insurance companies (Progressive, we're looking at you) have been experimenting with high-tech on-board devices to monitor their customer's driving habits for a few years now. But telematics have finally entered the picture, allowing on-the-fly uploading of driver information, vs the previous systems which required drivers to manually upload their data. A majority of drivers who opt-in will save money; about $270 annually per car, according to one think tank. The downside for us hoons is that any braking or speeding deemed "excessive" will increase your payments. Oh, and don't put too many miles on your car, because that'll increase your rates too. So, how do the new systems differ from the old? More »

WSJ Reports GM To Put Up Rest Of GMAC As Collateral For $4.1 Billion Loan

Well, they already sold off 51% of GMAC to Cerberus, why not mortgage the rest of it on the turnaround effort...err...sorry, "general corporate purposes including working capital needs." Those "general corporate purposes" are why the General's claiming it needs "a supplemental revolving credit facility in an aggregate amount of" around and close to exactly $4.1 billion. They'll get the "supplemental revolving credit facility" by putting up the remaining 49% of GMAC they've still got in the safe deposit box. Although the Journal makes it seem akin to what Ford did earlier this year in mortgaging off the entire company including the big blue oval, we're not so sure we'd agree — at least not until we can buy the golden key to the exec washroom at the RenCen at auction. In addition to pawning GMAC, they'll be replacing $1.1 billion in convertible securities it put up in March of this year to "bolster liquidity at a time when the capital markets present an attractive opportunity to do so." We're assuming the "attractive opportunity" has something to do with...err...umm...OK, my brain hurts, so I'm just going to curl up into a ball now and scream about how I want a cookie and ice cream! [Hat tip to SwatLax!] – Ray Wert More »

The Delphi Rhythm Method: Cerberus Pulls Out Early

Jeez, can't the auto industry give us a break today? Don't they know we've got the new concepts from BMW and Audi at the Shanghai show to cover? People these days — so inconsiderate. Well, let's put our industry hats on for a moment and let you know what's going on at everyone's favorite auto supplier, Delphi. Apparently private equity fund Cerberus Capital Management won't be getting a second scare photo-op like the one they got from the GMAC sale we've got pictured above. That's right, the private money-making fund is withdrawing from a deal to buy Delphi Corp. and help pull the little bugger out of Chapter 11 reorganization. Delphi claims Cerberus is pulling out over differences over Delphi's future value. Cerberus claims — well, they ain't claiming anything other than that they might still play with Delphi when it finally does leave Chapter 11 — but one wonders whether the deal's being killed because of an inability for Cerberus to get concessions out of the UAW, inflexibility and ineffectiveness of management or because they're saving their bank for the big prize — the Chrysler Group. Who knows? – Ray Wert More »

Breaking Bigger, Longer And Uncut! WSJ Reports Kirk Kerkorian Sells Entire Stake Of General Motors Stock

The dream is — according to the Wall Street Journal anyway — dead. The Journal's reporting that the man with the plan's sold not just half of his stock in the General as we reported earlier — but all of his stock in the biggest n' baddest automaker in the world. KirkKerk has left the building, and with him — all hope? No wait, what's that we hear — they've also finalized the GMAC sale? Hope may spring...you know...a little bit, or something. – Ray Wert More »

Breaking! GMAC Pays Off A Credit Card, Buys Back $500 Million In Debt

Earlier this week Bloomberg News reported GMAC, the finance subsidiary of the world's biggest automaker, was looking to seek some capital the old-fashioned way. No, not by inheriting it...the other old fashioned way...borrowing it. The New York mayor's trust-held News company reported it might be selling its first bonds in two years once a group of buyout firms purchases a stake in GM's big financial services unit. That's because GMAC's debt certificates have rallied from the junk-yard status over the past 12 months, hitting the narrowest difference between the yield on its $4 billion of 8% bonds due in 2031 and Treasuries with similar maturities in five years. But today, GMAC Financial Services announced a tender offer for a buy back of $500 million in deferred interest debt certificates due in 2012 and 2015. So what's that mean, as one of our dads used to say, to the price of tea in China — or in this case whether GMAC's going to issue new long-range commercial paper? We've no clue — we only got past "Laws of Commercial Transactions 101" — cognitive thinking skills on the subject were to be learned in 201. But the full press release is after the break so feel free to take your own shot. More »

Breaking! GM Announces $14 Billion Agreement To Sell GMAC; Agrees It's A Chance To Lean Back, Prop Up Feet

Not quite yet anyway, but with an agreement by Cerebus Capital to purchase a 51% stake in GMAC for $14 billion announced just a few short minutes ago, the General is one step closer to the solution envisioned by CEO Rick Wagoner. No, not the solution whereby he slips on the toilet seat and has a vision of something he's calling a "flux capacitor." Instead, this is the solution where he has enough cash on hand to pay the UAW to leave GM alone for a year or two while GM figures out how to make better products. More »

Breaking! Sources Report Cerebus Capital Close To GMAC Majority Stake

Oh, praise the Lord! Reports from numerous sources indicate Cerebus Capital is close to inking a deal with GM over purchase of a 51% stake in GMAC, GM's finance arm. This is the same GMAC GM has had on the block for months...the same GMAC we've been reporting about for months. So...we'll see if this latest rumor ends up working out. Remember, the deal aint signed until GM's board says it is. More »

Now Back To The Bad News...

Man, just when we thought we were gonna have a day filled with Camino-age, bright-happy-and-shiny stories and other such nonsense, we're jolted back into icy cold reality (or a Michigan March) with news from the General. And guess what? The news aint so good. GM shares dropped 4% this morning after news of two new federal accounting probes into the automaker doing some "risky business" with their numbers. And since it doesn't appear "Old Time Rock n' Roll" can be heard over at the RenCen, we're assuming although the business may be risky, Wagoner aint out in a button-down and knickers. The Freep story tells all of the sordid details including subpoenas, share price dropping and oh yeah, GM may not be able to sell GMAC...oy. More »

KKR BUYS 78% of GMAC

From Reuters:

U.S. automaker General Motors Corp. (GM.N: Quote, Profile, Research) on Thursday said it sold a larger-than-expected stake in its real estate financing unit, as GM seeks to raise cash and pay for massive employee buyouts announced a day earlier.

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Oopsie! Bean Counter Mishap At The General (Again...)

One would think with the eyes of the SEC already firmly afixed upon you, now would not be the best time for accounting misstatements to come to light. Or maybe it is, how would we know? Our version of accounting is figuring out how many drinks we had the night before by the number of fingers we can see in front of us when we wake up. What we do know is that restating your numbers is serious bizness, which is why it is a potential concern for the General to be restatin' figures on GMAC, their cash cow. Since its still up on the auction block, here's a morning eye opener to the hope the accountin' errors aren't too terrible. Count, Bean Counters, Count!! More »

GM, It's Time To Decide: Deal Or No Deal?

GM's been lucky so far. They opened up the $100 suitcase first, and the banker from up on high phoned in Cerberus Capital Managements bid for GMAC. It was good, but GM opted to hold off on that choice and try and get lucky again. More »