2009-2014 Cadillac CTS-V Performance Mods Discussion, Cts-v discontinued? in Cadillac CTS-V Series Forum - 2009-2014; CORRECTED - UPDATE 1-GM bankruptcy plan eyes quick sale to gov't
Tue May 19, 2009 2:02pm EDT
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CORRECTED - UPDATE 1-GM bankruptcy plan eyes quick sale to gov't
Tue May 19, 2009 2:02pm EDT
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By Chelsea Emery and Tom Hals
NEW YORK, May 19 (Reuters) - General Motors Corp's (GM.N) plan for a bankruptcy filing involves a quick sale of the company's healthy assets to a new company initially owned by the U.S. government, a source familiar with the situation said on Tuesday.
The source, who would not be named because he was not cleared to speak with the media, did not specify a purchase price. The new company is expected to honor the claims of secured lenders, possibly in full, according to the source.
The remaining assets of GM would stay in bankruptcy protection to satisfy other outstanding claims.
GM has about $6 billion in secured debt, including a secured revolving credit and bank debt.
The government's plans include giving stakes in the new company to GM's union and bondholders, although the ownership structure of the company is still being negotiated, said the source who is familiar with the company's plans.
In addition, the government would extend a credit line to the new company and forgive the bulk of the $15.4 billion in emergency loans that the U.S. has already provided to GM, the source said.
The government has given GM until June 1 to restructure its operations to lower its debt burden and employee costs.
If those talks failed, the company has said it would follow rival Chrysler LLC into bankruptcy.
Setting up a new company to buy the healthy assets is aimed at reassuring consumers who might not be willing to make a major purchase from a bankrupt company, fearing it would not honor warranties or provide service.
The board of the new company would be established with the tacit approval of the government. Fritz Henderson, who took the helm of GM earlier this year after the government pushed out Rick Wagoner, would likely head the new company, the source said.
GM could not be immediately reached for comment.
GM shares were up about 9 percent at $1.29. (Editing by Gerald E. McCormick)
In the meantime, I can enjoy my V as much as I want to. I would not object, though, if Cadillac were to make something like the Converj concept but with a bit better performance than the Volt. It would make a great city car and daily driver, and then I could use the V for fun, and use much less gas overall. That would work for me, too.
Right on! if the Converj makes production, GM's attempt to align with the entire green world, I would buy one in a minute. My wife's Infinity M35X is gone. The Converj is a beautiful concept car. I got to see it in person at the NY Auto Show. Nice! Go Caddilac.... but keep the V!
Automobile(s): 2005 Stealth Gray CTS-V, 2009 Black CTS-V
Re: Cts-v discontinued?
Originally Posted by marktanner
The whole CAFE law is one of the most stupid laws ever, IMO. Numerous articles have been written about this in the automotive press. One can't legislate what people will buy, because they will buy what they want and can afford. Gas mileage guides what people will buy when gas hits $3.50-$4.00/gallon, at least in this country. That was proven last fall, before the economy completely tanked. People were demanding high mileage cars then. Expensive cars that got terrible mileage sold less well, but still sold, because anyone who can afford an expensive car can afford to buy expensive gas to run it, if they choose.
This scenario is well played out in Europe, where there are no gas mileage laws. The fleet there already gets 35 MPG. The reason is that they have REALLY expensive gas. The governments made this happen by taxing the hell out of gas, which then goes to fund whatever they want to with the proceeds. They still sell gas guzzlers in Europe, and they cost a fortune to run, but that is personal choice. Most people buy fuel efficient vehicles because that is all they can afford to run. Those that can afford Ferrari's buy them and buy the gas and don't complain. And the fleet gets 35 MPG.
As far as CAFE goes, the few thousand V2's and ZR1's that are sold will have virtually zero effect on the average for the corporation. That is how statistics work. All of the press on these two models has been great, with virtually no mention of their gas mileage. The new law doesn't even start phasing in until 2012. These cars are actually selling, and helping GM's bottom line right now, when they need it the most. So, in my opinion, cancelling the V would be a stupid move, and hopefully just a rumor.
Now, if the government had any guts, they would raise taxes on gas to "encourage" the purchase of fuel efficient cars, and cancel the really stupid CAFE laws. Of course, this will never happen, because taxes are not popular, but one can dream. In the meantime, I can enjoy my V as much as I want to. I would not object, though, if Cadillac were to make something like the Converj concept but with a bit better performance than the Volt. It would make a great city car and daily driver, and then I could use the V for fun, and use much less gas overall. That would work for me, too.
Cadillac CTS-V Potentially Discontinued if General Motor Turns into Obama Motors
Posted May 4 2009 02:35 PM by luciscup
Filed under: Industry News, General Motors, Sedans
For those of you following the shrinking of General Motors (GM) as it tries to devise a survival plan that could allow a takeover by the federal government, Cadillac has been designated one of its core brands. Its previous association with Saab and Hummer has been dissolved, and the historic old Cadillac brand — which, at 106, is older than GM itself — is looking toward the future.
A question for GM’s prospective government owners: How will you feel about the 556 horsepower CTS-V?
You don’t hear much about maxi-cars from Washington these days. The Obama Administration is one that talks about restraint and sacrifice when it is not inveighing against global warming and climate change...Continued
The Above is old news, 20 days ago many read this, since the news from some has been more uplifting and hopeful. I am looking to be positive and the V will be produced in 2010 as many have told us all .
I'm confused. Not sure what to do...I was thinking of getting the Nissan GT-R but Nissan has some ridiculous stipulations on their warranty..."you can't do this or you void your warranty...." so no more GT-R.
As a former 07 CTS-V owner I definitely want the 09 but I'm not sure what a GM bankruptcy will mean for Cadillac....our warranties, etc.