bankruptcy Archives

Report: Organizers vow city bankruptcy won’t affect Detroit Auto Show

Filed under: Detroit Auto Show, Government/Legal, Earnings/Financials

2013 North American International Auto Show - Cobo Hall sign

Detroit’s bankruptcy is going to mess up a lot of stuff in the coming months – if not years. One thing that shouldn’t be affected, though, is the North American International Auto Show, held at downtown Detroit’s Cobo Center.

Currently in the midst of a much-needed $299-million renovation, Cobo’s operation was taken over by the Detroit Regional Convention Facility Authority in 2009, essentially protecting the convention center, and by extension, the auto show, from the city’s ills.

Speaking to Automotive News, executive director of the Detroit Auto Dealers Association, Rod Alberts, said he isn’t worried about the effect of Detroit’s bankruptcy on the show’s most visible municipal presence – security. City officials are committed to providing the same degree of activity as in previous years. In addition to the regular police presence, the auto show will hire its own security forces for this year’s show rather than contracting out. Not all the pressure is on the show and the DPD, though, as Alberts pointed out to AN, “‘I know we can lean on other agencies to help us out if we need to.'”

Held annually at Cobo since 1965, the North American International Auto Show is one of the premiere events on the global auto show calendar. Held every January, it has been a regular source of ~~frostbite~~ news and new vehicle introductions for media from around the world.

Organizers vow city bankruptcy won’t affect Detroit Auto Show originally appeared on Autoblog on Mon, 22 Jul 2013 15:29:00 EST. Please see our terms for use of feeds.

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Report: Detroit pins hopes to bankruptcy as Motor City sags

Filed under: Government/Legal, Earnings/Financials

Detroit from the air

Detroit. The Motor City. Motown. Hitsville, USA. Hockeytown. The largest municipality ever to file for bankruptcy in US history. You can add that last one to Detroit’s many titles, as Republican Governor Rick Snyder authorized emergency manager Kevyn Orr to file a petition for bankruptcy yesterday.

Detroit’s Chapter 9 bankruptcy bid is likely to be very bad news for city employees, retirees and their families, but what does it mean for the auto industry? Automotive News spoke with Wall Street financial guru Steven Rattner, the same man that acted as President Barack Obama’s so-called auto czar, ushering General Motors and Chrysler through bankruptcies of their own, to see what parallels there will be between the two situations.

According to Rattner, bankruptcy for the city was inevitable, just like it was for GM and Chrysler. “It’s analogous to the auto companies, in that you have too many stakeholders whose claims are too underwater to realistically ever worked this out with some kind of bankruptcy,” Rattner told AN. But, Rattner cautions, “This will be much messier.” The auto bankruptcies took a brief six weeks, while the city’s case will likely last at least a few months, if not a year or more.

While the automaker presence in the city isn’t what it once was, GM still employs roughly 3,000 people at its Renaissance Center headquarters, right in the heart of downtown. Chrysler’s Detroit workforce is mainly blue collar, at the Jefferson North factory, which builds the Jeep Grand Cherokee and Dodge Durango. Ford, the only automaker not to go through bankruptcy, has limited its presence within Detroit city limits.

In a statement, GM said its “is proud to call Detroit home and today’s bankruptcy declaration is a day that we and others hoped would not come. We believe, however, that today also can mark a clean start for the city.” Ford shared a similar sentiment, with a release stating “The city has a difficult job ahead, and we are optimistic that governmental leaders will be successful in strengthening the community.” Chrysler, meanwhile, reiterated its commitment to the city, “We not only continue to invest in the city and its residents by adding to our presence in Detroit, we also are committed to playing a positive role in its revitalization.”

Detroit pins hopes to bankruptcy as Motor City sags originally appeared on Autoblog on Fri, 19 Jul 2013 10:58:00 EST. Please see our terms for use of feeds.

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Report: Saab US bankruptcy plan gets legal green-light

Filed under: Government/Legal, Saab, Earnings/Financials

Saab

It feels utterly bizarre that we’re still talking about Saab, but Reuters is reporting that the bankrupt Swedish manufacturer’s American arm has gotten approval from the US Bankruptcy Court to liquidate its assets and pay back creditors. As part of the plan, secured creditors like Ally Financial will receive full repayment. Unsecured creditors, consisting of those affected by abandoned leases and contracts will get anywhere from 25 to 82 percent of their money back.

There are currently $77 million in unsecured claims, according to Reuters, but that number doesn’t include claims from former Saab dealers. Naturally, the entire affair is full of lawyers and legalese. A trust formed on the Saab side will be negotiating with creditors and their affiliates in an attempt to reduce claims against Saab. This sounds like the start of a long and sordid affair…

Saab US bankruptcy plan gets legal green-light originally appeared on Autoblog on Thu, 18 Jul 2013 17:45:00 EST. Please see our terms for use of feeds.

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Report: Carbon Motors officially files for bankruptcy, lawsuits follow

Filed under: Sedan, Government/Legal, Technology, Police/Emergency, Diesel

Carbon Motors E7 diesel police car - front three-quarter view

So much for Carbon Motors. The would-be police pursuit vehicle manufacturer has officially filed for Chapter 7 bankruptcy (read: liquidation) according to the Indianapolis Business Journal. The company officially lists its liabilities at $21.7 million and its assets at a mere $18,976, including one prototype, a few bits of furniture, books and the company’s intellectual property. Some of the largest debtors are investors and suppliers, including BMW. The German automaker claims Carbon Motors owes them some $3 million.

Carbon Motors built a business model around for its diesel-powered E7 police car by securing a Department of Energy loan through its Advanced Technology Vehicles Manufacturing program for $310 million, but the US Government denied the company’s application in March of 2012. From that point, it was evidently only a matter of time before the company caved in on itself. The warning signs were already thick on the ground when it was revealed that the company had quietly pulled out of its Connerville, Indiana plant back in April.

Bankruptcy protection shields Carbon Motors from lawsuits against the manufacturer. That’s good news, considering three former executives have already filed a lawsuit against the company earlier this year for $600,000 in deferred wages.

Carbon Motors officially files for bankruptcy, lawsuits follow originally appeared on Autoblog on Wed, 19 Jun 2013 11:00:00 EST. Please see our terms for use of feeds.

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Report: Chrysler to have short 2011 model year thanks to bankruptcy

Filed under: Plants/Manufacturing, Chrysler, Dodge, Jeep

chrysler 300

2011 Chrysler 300 – Click above for high-res image gallery

When Chrysler entered bankruptcy protection, its product lineup was decidedly barren. Team Pentastar has addressed that issue in the months since it sought government protection, and the fruits of all that labor have begun to pay off with the launch of 16 new and dramatically refreshed vehicles for 2011.

New products like the 2011 Chrysler 300 and the Jeep Grand Cherokee have no doubt helped improve Chrysler’s portfolio, but AutoWeek reports that the sheer scope of the overhaul may have truncated the 2011 model year. Many of the 2011 models in dealerships now didn’t arrive until the first quarter of 2011, while others, like the 300 and Dodge Durango are just now trickling into showroom floors across America.

The late roll-out of 2011 models won’t be repeated for 2012, as Chrysler spokesperson Ralph Kisiel reportedly told AW “most of our 2012s go into production during the month of July.” Dealers will begin ordering 2012 models as early as May.

Chrysler’s shortened run of 2011 models isn’t exactly normal, but we’re guessing that it won’t matter much to dealers. After all, if 2012 models are arriving this summer, then the 2011s will just be getting in the way.

Gallery: 2011 Chrysler 300: First Drive

2011 Chrysler 300

[Source: AutoWeek]

Report: Chrysler to have short 2011 model year thanks to bankruptcy originally appeared on Autoblog on Mon, 04 Apr 2011 18:41:00 EST. Please see our terms for use of feeds.

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Pixar licenses Cars 2 AMC villains for a song thanks to Chrysler bankruptcy

Filed under: Classics, Etc., Chrysler, Celebrities, MISC

Pixar's Cars 2 characters Grem and Acer

Joe Mantegna and Peter Jacobson from Pixar’s CARS 2 – Click above for high-res gallery

Earlier this week, we spent the day at Pixar to get a sneak peak at Cars 2. And before you ask, here’s what you want to know: The sequel is an order of magnitude more awesome than the original and chief creative honcho John Lasseter drives a Mercedes-Benz SL65. So with that out of the way…

While interviewing one of the feature’s principles, we asked about vehicle licensing. When the flick hits theaters June 24, you’ll see “Carified” (their term, not ours) versions of everything from Audi to Opel models, but the villains in the film are made up of what the Pixar team contends are the world’s worst cars. So there’s an assortment of unloved Eastern European metal mixed in with two main antagonists: an AMC Pacer (“Acer” – voiced by Peter Jacobson) and a Gremlin (“Grem” – voiced by Joe Mantegna).

Obviously, it would be a tough sell to go to an automaker and say “We need villains, and your cars are perfect representations for the most loathsome creations on wheels,” but the Pixar people came to AMC’s owners – Chrysler – at precisely the right time.

When Pixar approached the automaker about licensing the names and likenesses of two vehicles for the film, Chrysler was in the throes of bankruptcy, it was divorcing itself of Cerberus, and it wasn’t sure who its next parent would be… if indeed it was to have one at all. Pixar – knowingly or otherwise – took advantage of the situation and managed to snag usage rights to the vehicles for the film just when the automaker was in turmoil and strapped for cash. The results are spectacular, but you’ll have to wait for our full story and the animated feature to come to your local cineplex to find out why.

Gallery: CARS 2

Gallery: CARS 2 Characters

Grem Acer Shu Todoroki Raoul ÇaRoule Carla Veloso

[Images: Pixar]

Pixar licenses Cars 2 AMC villains for a song thanks to Chrysler bankruptcy originally appeared on Autoblog on Fri, 01 Apr 2011 17:30:00 EST. Please see our terms for use of feeds.

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Report: BBS files for bankruptcy… again *UPDATE

Filed under: Aftermarket, Europe, Earnings/Financials

BBS German wheel manufacturer BBS has declared bankruptcy, and it’s not the first time. Back in 2007, BBS was plagued with financial difficulties but Punch International stepped in to provide much-needed capital. The news of a second bankruptcy, which was filed on December 30, apparently came as a shock to the hundreds of employees and even corporate partner IG Metall. The latter was getting ready to put a few million bucks into BBS and rival company Ronal was ready to buy BBS’ Herbolzheim factory. We can only hope that BBS makes a strong recovery and we’re not forced to look at BBS Bear wheels.

*UPDATE: An official from BBS reached out to Autoblog and gave us greater insight into this move. Here is what they wanted to share:

“In Germany, BBS has filed for restructuring (Similar to the US Chapter 11) and at the same time they have a LOI with Ronal to buy the BBS plant in Herbolzheim. (Herbolzheim is the production facility for standard OEM high volume production.)

The intent of BBS is to re-focus on our core business in Schiltach; Motorsports, OES business (Ferrari, Porsche, etc… and including our US based programs with Ford, Toyota, etc.), High-end aftermarket and Technology development. (Schiltach is the BBS headquarters responsible for all engineering, development, high-end and specialty production, etc.)

BBS began life as a “Racing wheel” company (in Schiltach) over 40 years ago, several years later they began producing aftermarket wheels and a few years later they were producing “Specialty” OE wheels (OES).

BBS is just returning to its core business.”

[Source: Faz via Fourtitude, BBS]

Report: BBS files for bankruptcy… again *UPDATE originally appeared on Autoblog on Wed, 05 Jan 2011 14:45:00 EST. Please see our terms for use of feeds.

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Report: Post-bankruptcy GM has added nearly 7,000 jobs

Filed under: Hirings/Firings/Layoffs, GM, Canada

The Detroit Free Press is reporting that General Motors has added a total of 6,900 jobs since the automaker emerged from bankruptcy in 2009. The news came out of a radio interview with Steve Girsky, GM vice president. Girsky said that a portion of that figure is made up of workers who were originally laid off as part of the restructuring process and then later recalled as manufacturing picked back up. Of the nearly 7,000 jobs, 1,100 are situated in Michigan. GM has recently increased its workforce at its Delta Township and Brownstown Township facilities, amongst others.

The company has also hired around 2,800 workers at its Canadian operations as well. GM is set to release its financial statement for the most recent business quarter later this month, and Girsky says that the numbers continue to demonstrate a company on the mend. Last quarter, the company posted a $865 million profit.

While the addition of nearly 7,000 jobs is a good milestone for GM, it’s important to bear in mind that the figure marks a little more than a sixth of the workers laid off during restructuring.

[Source: The Detroit Free Press | Image: Bill Pugliano/Getty]

Report: Post-bankruptcy GM has added nearly 7,000 jobs originally appeared on Autoblog on Thu, 05 Aug 2010 16:32:00 EST. Please see our terms for use of feeds.

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