Obbligazioni societarie GM, Ford, Chrysler: il 3D dell'automotive USA

[Imark]

Union rejects Chrysler Canada demand ahead of talks

Mon Apr 20, 2009 7:17pm BST
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TORONTO, April 20 (Reuters) - Just hours before restarting concession talks with Chrysler on Monday, the Canadian Auto Workers union said it would not agree to cut its members' wages and benefits by the C$19 ($15.32) an hour that the company and the Canadian government have demanded.

The concession talks were set to resume on Monday, 10 days ahead of a deadline set by the Canadian and U.S. governments for Chrysler to present an acceptable restructuring plan to qualify for billions of dollars in government aid. Formal CAW-Chrysler negotiations have not been held since the beginning of April.

CAW President Ken Lewenza told reporter that the governments of Canada and the province of Ontario had contacted the union over the weekend to say a deal needed to be done "sooner than later".

However, Lewenza lashed out at Canadian Industry Minister Tony Clement, who last week joined Chrysler in saying that the company would not be viable with out a reduction of C$19 an hour, or over 20 percent, in labor costs.

"That's just not feasible," Lewenza told reporters. "We are not dealing with a unilateral number."

Lewenza refused to speculate about the outcome of the talks.

The union said its talks with Chrysler had been suspended in early April so that Chrysler, which like other automakers has seen it sales sideswiped by the global economic crisis, could focus on the details of a proposed alliance with Fiat SpA (FIA.MI: Quote, Profile, Research).

A spokeswoman for Chrysler, which employs around 9,400 people in Canada, about 8,000 of whom are CAW members, said the company looked forward to the talks resuming, but that it had no other comment.
($1=$1.24 Canadian) (Reporting by John McCrank; editing by Peter Galloway)

 

[paologorgo]

Treasury Pressures Chrysler, Fiat in Meetings

The Treasury Department kicked off meetings Monday with the heads of Chrysler LLC, Fiat SpA and the United Auto Workers union in Washington as signs increased that Chrysler could be headed for liquidation.
Some officials in the Obama administration have come to conclude that Chrysler isn't worth trying to save because of its weak product line and lack of international reach, said people familiar with the matter.
The meetings Monday with Treasury officials took place in a building near the Capitol, a person familiar with the matter said. Chrysler Chief Executive Robert Nardelli, Fiat CEO Sergio Marchionne and UAW President Ron Gettelfinger were shuttled between conference rooms, this person said.
Chrysler faces an April 30 Treasury deadline to reach cost-cutting accords with the union and bank lenders as well as an alliance with Fiat. The government could force Chrysler to file for either a Chapter 11 bankruptcy reorganization or Chapter 7 liquidation next week if deals aren't reached.
However, some people working on behalf of Fiat say the two auto companies believe they are on track to reach a deal out of court that would address the government's concerns.
A Fiat spokesman and a UAW spokeswoman declined to comment on the meetings, while Treasury officials couldn't be reached. A Chrysler spokeswoman said company executives expect frequent meetings with the involved parties to reach concessions.
Mr. Nardelli is expected to step aside in coming months regardless of what happens to Chrysler.
The Treasury has kept Chrysler afloat with $4 billion in loans. A government report to be released Tuesday says Chrysler will receive up to $500 million more in working capital this month, while General Motors Corp. will get up to $5 billion. The government also is prepared to allocate up to $1.25 billion to cover GM and Chrysler warranties while the companies restructure, the report says. GM already has received $13.4 billion in U.S. loans and has until June 1 to reach its own cost-cutting agreements.
If Chrysler is pushed into bankruptcy, the government and other stakeholders could begin the process of selling pieces of the Auburn Hills, Mich., company to others, possibly including Fiat or GM.
Monday's meetings didn't include at least two key groups: representatives of the company's pool of secured lenders, and Cerberus Capital Management LP, the private-equity group that acquired control of Chrysler in 2007, said people briefed on the meetings.
The lenders, which include large banks such as J.P. Morgan Chase and Citigroup, are owed $6.8 billion by Chrysler, but have been asked by the Treasury to cut 85% of that obligation to save the company. The lenders are preparing a counteroffer to be made early this week.
These lenders have argued that Chrysler would be worth far more in liquidation than what the government is offering.
Cerberus has already agreed to give up its equity in Chrysler and convert $2 billion in Chrysler debt to new equity.
Cerberus still controls Chrysler Financial, which is the vehicle lending arm of Chrysler. Chrysler Financial refused to take $750 million in TARP government bailout aid because executives didn't want to abide by executive-pay limits, and because the firm doesn't necessarily need the money, people familiar with the move confirmed.
Chrysler Financial's concern over pay limits was reported by the Washington Post.
—Kate Linebaugh and Neil King Jr. contributed to this article.Write to John D. Stoll at [email protected]

http://online.wsj.com/article/SB124027034282936893.html?ru=yahoo&mod=yahoo_hs

 

[paologorgo]

DETROIT, April 21 (Reuters) - Chrysler LLC's first-lien lenders have submitted a counter-offer to the U.S. Treasury that would swap some $7 billion in debt for equity in a restructured automaker allied with Fiat SpA (FIA.MI), according to a person with knowledge of the closed-door talks.
The development comes just nine days before a deadline for the No. 3 U.S. automaker to complete concessionary deals with the United Auto Workers union and creditors and to clinch a tie-up with Fiat in order to win further U.S. government aid.
The Obama administration's autos task force had proposed earlier this month that creditors write off $6 billion of the amount they are owed, a proposal that would have left the group of about 45 institutional creditors holding about $1 billion in Chrysler debt.
In the counter-offer submitted on Monday, Chrysler's lenders proposed instead that they take an unspecified equity stake in a restructured automaker in order to benefit as stockholders from its turnaround, according the person with direct knowledge of the talks, who spoke about the confidential discussions on condition of anonymity.



http://www.reuters.com/article/marketsNews/idINN2148948020090421?rpc=44

 

[Imark]

DETROIT, April 21 (Reuters) - Chrysler LLC's first-lien lenders have submitted a counter-offer to the U.S. Treasury that would swap some $7 billion in debt for equity in a restructured automaker allied with Fiat SpA (FIA.MI), according to a person with knowledge of the closed-door talks.
The development comes just nine days before a deadline for the No. 3 U.S. automaker to complete concessionary deals with the United Auto Workers union and creditors and to clinch a tie-up with Fiat in order to win further U.S. government aid.
The Obama administration's autos task force had proposed earlier this month that creditors write off $6 billion of the amount they are owed, a proposal that would have left the group of about 45 institutional creditors holding about $1 billion in Chrysler debt.
In the counter-offer submitted on Monday, Chrysler's lenders proposed instead that they take an unspecified equity stake in a restructured automaker in order to benefit as stockholders from its turnaround, according the person with direct knowledge of the talks, who spoke about the confidential discussions on condition of anonymity.



http://www.reuters.com/article/marketsNews/idINN2148948020090421?rpc=44

E già se andasse così, per Fiat sarebbe andata bene ... sperare in altro non era ipotizzabile neanche in partenza ... per non parlare di quelli che avevano azzardato che a Fiat sarebbe stato consentito di attivare pratiche sessuali contronatura con le natiche del taxpayer USA, per addolcire la celebre frase ricucciana...

 

[paologorgo]

WASHINGTON, April 21 (Reuters) - The latest debt reduction offer by Chrysler LLC's lenders is unacceptable because it would yield the lenders an unjustified return, an Obama administration official said on Tuesday.
"It is neither in the interest of Chrysler's senior lenders nor the country for them to advance a proposal that would yield them an unjustified return as Chrysler, its employees and other stakeholders are working tirelessly to help this company restructure," the official said.
"Our hope and expectation is that these lenders take a more constructive position in the coming days that reflects the actual situation that they and the company face," the official added. The official spoke on condition of anonymity due to a lack of authority to speak publicly on the issue.
Chrysler's first-lien lenders have offered to take equity in a restructured automaker allied with Fiat SpA (FIA.MI) in exchange for writing off about 35 percent of the $7 billion they are owed, according to people with knowledge of the closed-door talks. (Reporting by David Lawder; editing by Carol Bishopric)

http://www.reuters.com/article/marketsNews/idCAN2136737020090422?rpc=44

 

[Imark]

WASHINGTON, April 21 (Reuters) - The latest debt reduction offer by Chrysler LLC's lenders is unacceptable because it would yield the lenders an unjustified return, an Obama administration official said on Tuesday.
"It is neither in the interest of Chrysler's senior lenders nor the country for them to advance a proposal that would yield them an unjustified return as Chrysler, its employees and other stakeholders are working tirelessly to help this company restructure," the official said.
"Our hope and expectation is that these lenders take a more constructive position in the coming days that reflects the actual situation that they and the company face," the official added. The official spoke on condition of anonymity due to a lack of authority to speak publicly on the issue.
Chrysler's first-lien lenders have offered to take equity in a restructured automaker allied with Fiat SpA (FIA.MI) in exchange for writing off about 35 percent of the $7 billion they are owed, according to people with knowledge of the closed-door talks. (Reporting by David Lawder; editing by Carol Bishopric)

http://www.reuters.com/article/marketsNews/idCAN2136737020090422?rpc=44

Ah, vabbé: equity contro un haircut del 35% ... ridicoli....

 

[paologorgo]

Goldman adds Ford (F) to its Conviction Buy list, saying the company doesn’t need government assistance, and will benefit from likely bankruptcy filings at GM (GM) and Chrysler. F +10% premarket to $4.18.

S.A.

 

[paologorgo]

GM Said to Speed Plant, Model Cuts to Lower Break-Even Point

April 22 (Bloomberg) -- General Motors Corp., trying to avoid a U.S.-backed bankruptcy on June 1, may close plants and scrap models as much as four years sooner than planned to lower its break-even point, people familiar with the plan said.
The cuts may mean Detroit-based GM can turn a profit in a U.S. market with sales of as few as 10 million vehicles, said the people, who asked not to be named because the planning is private. GM said Feb. 17 it was targeting break-even at 11.5 million to 12 million annual vehicle sales. They fell in 2008 by 18 percent to 13.2 million. In March, the annual rate was 9.9 million.
The largest U.S. automaker is pushing to revise its business plan in time for a debt-cutting offer to bondholders as early as April 27, people familiar with the plans said.
“The most interesting news there to me is the closing of brands and dealerships earlier than they planned,” said Stephanie Brinley, senior manager of product analysis at AutoPacific Inc. “If they can strategically decide the dealerships to let go, they could be a stronger company.”
GM executives will meet with advisers to the U.S. auto task force, probably through the weekend, to cut costs faster and deeper than a proposal rejected last month by the Obama administration, the people said.
A new business plan that speeds a GM return to profit may make it easier for the automaker to persuade bondholders to accept an offer to exchange $27.5 billion in unsecured bonds for equity and accrued cash interest, the people said this week. GM Chief Executive Officer Fritz Henderson said last week he expects GM to make a new offer this month.
A Treasury spokeswoman, Jenni Engebretsen, and Steve Harris, a GM spokesman, declined to comment.
4 Years Earlier
The new plan may require GM to complete many of the reductions in models and dealers planned by 2014 as early as next year, allowing earlier plant and job reductions, people briefed on the talks said. GM said March 31 that by 2014 it would trim 6,122 dealers to 4,100 and 43 nameplates to 36, cutting U.S. assembly capacity from 2.8 million cars and trucks to 2 million.
The bond offer may include some framework of GM’s plan to cut $20.4 billion in obligations to a United Auto Workers union- run retiree-medical fund by more than half, two of the people said. The bond offer may disclose what portion, if any, of U.S. loans would be converted to equity, one person said.
Brand Moves
GM’s brand shuffling, which envisions the survival of at least Chevrolet, Buick and Cadillac, is part of talks with Obama’s task force on how best to use the divisions and dealerships, people familiar with the matter have said. GM has already said it will shed Hummer, Saab and Saturn.
Pontiac and GMC have been discussed for possible cuts, people have said, with GMC more likely to survive. No decisions have been made, they said. GM said on Feb. 17 that it planned to focus on Chevrolet, Cadillac, Buick and GMC, with Pontiac as a niche entry. Henderson said last week both GMC and Buick are profitable.
“We developed a plan with four core brands,” he said April 17. “What we’re making sure is every entry within those brands and every brand within those channels has a purpose for being and generates a suitable rent on those channels and generates a suitable return.”
The task force has contacted representatives of GM bondholders to set up their first meeting in more than six weeks to discuss the automaker’s restructuring, said a person with knowledge of the dialogue.
Bondholders Meeting
The original loan terms called for GM to slash two-thirds of its bonds through an equity exchange.
The Obama administration said last month that GM’s plan to return to profitability wasn’t aggressive enough. The task force removed CEO Rick Wagoner and ordered Henderson to cut the automaker’s debt by more than the amount initially demanded.
GM is trying to prove it’s viable, a U.S. requirement to keep $13.4 billion in federal loans. A government auditor said this week the Treasury will supply $5 billion in additional aid.
GM rose 4 cents to $1.70 yesterday in New York Stock Exchange composite trading. The shares have fallen 47 percent so far this year.
The automaker’s $3 billion of 8.375 percent bonds due in 2033 fell about 0.44 cent to 9.06 cents on the dollar yesterday in New York, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The debt yields 90 percent.
Workers Worry
Henderson said the automaker has been meeting with bondholders and the UAW to try and reach an agreement outside of bankruptcy court. The UAW leaders already preliminarily agreed to changes in work rules, bonuses and unemployment compensation that GM says may save more than $1.1 billion if ratified by members. The UAW has not yet agreed to cut health-care funding.
The new CEO also said last week he expects to need to cut additional workers and those decisions will come before June 1.
UAW members at GM’s Bowling Green, Kentucky, assembly plant, where GM manufactures the Chevrolet Corvette and Cadillac XLR, haven’t heard anything and are worried about whether the plant could be marked for closure, said Ed Pietrowski, a worker at the plant.
“People are on pins and needles,” said Pietrowski. “It’s like a morgue in here. People just want to know what’s going to happen, so we can move on with our lives.”
To contact the reporters on this story: Jeff Green in Southfield, Michigan at [email protected]; Caroline Salas in New York at [email protected].

http://www.bloomberg.com/apps/news?pid=20601087&sid=aOloQhPHrqX0

 

[paologorgo]

Ford expected to lower cash burn in first quarter

Ford expected to lower cash burn rate in first quarter following labor and production cuts

DETROIT (AP) -- Ford Motor Co. is scheduled to report earnings for the first quarter on Friday. The following is a summary of key developments and analyst opinion related to the period.
OVERVIEW: Ford, the second-largest U.S. automaker, is the only one of the Detroit Three that hasn't accepted government aid to survive the auto industry's sales slump. It drew down the last $10.1 billion of its $24 billion secured credit line in February.
While General Motors Corp. and Chrysler LLC faced government restructuring deadlines, Ford was the first U.S. automaker to modify its contract with the United Auto Workers union, cutting benefits such as the jobs bank that gave laid-off workers most of their pay and benefits. The Dearborn, Mich.-based company also struck a deal with the UAW to make up to 50 percent of payments to a union-run trust for retiree health care benefits in stock, instead of cash.
The company said the moves would result in annual savings of $500 million and bring hourly wages close to those of foreign automaker's plants in the U.S.
Ford completed tender offers to reduce its debt by 38 percent, retiring $9.9 billion in securities. The company is expected to save more than $500 million in interest expenses this year, based on the tender offers.
Ford's U.S. sales in the first quarter fell 43 percent from a year earlier. The company introduced its "Ford Advantage Plan" program in late March, in which it will take over a customer's car payments of up to $700 for a year in the event of job loss. Ford and GM, which introduced a similar program last month, said the moves are an effort to give car buyers confidence during a recession and heavy unemployment.
Ford reported a fourth-quarter net loss of $5.9 billion, or $2.46 per share, as plunging home values, tighter credit and poor consumer confidence kept people out of showrooms, and U.S. auto sales industrywide fell toward the lowest level in more than a quarter century. Revenue fell 36 percent to $29.2 billion.
Ford's $14.6 billion net loss in 2008 was the worst annual loss in the company's 105-year history. The automaker's cash reserves dropped to $13.4 billion at the end of the year.
BY THE NUMBERS: Analysts polled by Thomson Reuters, on average, expect a first-quarter loss of $1.24 per share on revenue of $22.1 billion.
ANALYST TAKE: Cash burn is the new bottom line for Wall Street, as opinions vary on whether Ford has enough of a cushion to survive unassisted until the economy recovers and sales significantly improve. Investors and analysts are watching this metric closely, to see if Ford's production and labor cuts have paid off. Citi Investment Research analyst Itay Michaeli estimates Ford burned through $4 billion in the first quarter.
Credit Suisse analyst Christopher Ceraso wrote last week that "Ford has a had a knack of posting better-than-expected results in the first quarter" over the last three years, and he expects the company's cash burn to improve from the $5.5 billion the company spent in the fourth quarter.
WHAT'S AHEAD: Ford and other industry executives maintain that vehicle sales will pick up in the second half of 2009, as effects of the government stimulus program take hold in the construction sector, driving a demand for pickup trucks. Analysts expect updates on whether Ford can survive a continued sales slump into the second half and possibly next year without outside funding.
Ford is nearly one month into its payment protection program, and while the offer may have helped boost showroom traffic, it's too soon to tell if customers are utilizing it, as they have to be unemployed for at least 30 days before Ford will begin making payments.
Although Ford was ahead of its competitors with a modified union agreement, subsequent deals at GM and Chrysler may leave Ford with higher labor costs. The company could seek additional labor concessions as a result.
Analysts will look for updates on Ford's cash burn, future debt restructuring plans and whether the company is still on track to break even or post a pretax profit in 2011.
Investors and analysts will want to know how Ford will prepare for and weather a disruption in the supply chain should GM or Chrysler -- or a supplier -- file for bankruptcy.
STOCK PERFORMANCE: Ford shares rose 6.9 percent during the first quarter to end the period at $2.63. The shares have traded between $1.59 and $2.94 during the quarter. Ford's stock has continued to rise since the end of the quarter, climbing 55.5 percent so far this year based on Tuesday's $3.80 closing price.


http://finance.yahoo.com/news/Ford-expected-to-lower-cash-apf-14998490.html?.v=2

 

[samantaao]

NEW YORK, 22 aprile (Reuters) - General Motors (GM.N) non pagherà un miliardo di dollari di debito in scadenza il primo giugno.

Lo ha detto il direttore finanziario Ray Young, secondo quanto riporta il Wall Street Journal.

Alle 18,55 circa il titolo sale dell'1,2% a 1,72 dollari