On several counts, GMC is in violation of the agreement signed with the USA and Canada.
1. Under its plan, GM will sell substantially all of its global assets to the New GM.
2. The New GM will:
- Focus on four core brands in the U.S. - Chevrolet, Cadillac, Buick and GMC - with fewer nameplates and a more competitive level of marketing support per brand
- More efficiently utilize U.S. capacity while increasing over time the percentage of U.S.sales manufactured domestically
Other than the $8 billion of debt owed to the U.S. Treasury and the Canadian and Ontario governments by the New GM, all amounts owed by GM or the New GM to the U.S. Treasury and Canadian and Ontario governments would be equitized in exchange for the New GM securities described above, and no other debt will be owed by GM to the U.S. Treasury and the Canadian and Ontario governments.
3. GM Europe Restructuring
GM announced separately today, GM Europe has an agreement for €1.5 billion of bridge financing from the German government and a Memorandum of Understanding to partner with Magna International Inc. Under the agreement, the Opel/Vauxhall assets have been pooled under Adam Opel GmbH, with the majority of the shares of Adam Opel GmbH being put into an independent trust (the balance to remain with General Motors), while final negotiations with Magna proceed. Negotiations to close the agreement should take several weeks.
The European Restructuring 'verbiage' is included as part of the agreement for the New GMC in the Agreement with the USA and Canada governments. There is a clear understanding such a sale would go forward with liquid assets returned to GMC for operations and payment of debts.
GMC is gambling on 'sparking' a new market place in Europe for technology perfected with the Volt. There is absolutely no guarantee there will be such a market available and they are in violation of the agreement with the people of the USA and Canada.
In seeking to continue to manufacture autos in Germany, it is moving jobs that rightfully belong in the USA with the sale of Opel to Europe.
GMC is in GROSS and FRANK violation of the agreement crafted to protect the company from a liquidation of its assets to help insure American Auto Workers still continued to be employed and retirees were provided for in the best interest of the USA economy.
The company should be seized and operated to the satisfaction of both governments under management supervised by a Board of Trustees that will serve the best interest of the American and Canadian people, to insure the integrity of the Agreement and compliance with the repayment of the GMC debt !
Geither needs to 'get the lead' out of his lethargy and indifference and insure the sale of Opel to Magna as the German government perfers and as insures the BEST interest of the people of both Canada and the USA. In case Mr. Geithner doesn't 'get it,' it is called living up to the letter of the law. It is enforceable in court. Anything short of it is negligence of the power of his office !
05.09.2009 18:41
Steinbrueck to Geithner: Germany wants Opel decision (click here)
LONDON, Sept 5 (Reuters) - German Finance Minister Peer Steinbrueck said he told U.S. Treasury Secretary Timothy Geithner on Saturday that Berlin wants a decision on the future ownership of Opel, which parent GM is considering selling.
Steinbrueck said he reiterated Germany's preference for a bid from Canadian auto parts maker Magna, which is competing with Belgian-listed financial investor RHJ for Opel.
'I told him (Geithner) our position -- that it's very important to us to fill this vacuum with a decision,' Steinbrueck said of the drawn-out process to decide the future ownership of Opel.
'My impression is that the U.S. government is leaving the decision to the GM board,' he told a news conference in London.
The U.S. Treasury owns a 60 percent stake in GM, acquired by providing some $50 billion in taxpayer loans and bankruptcy financing to the automaker.
