Good GM - Bad GM
60 Days to Chapter 11?


The Wall Street Journal has additional information about Monday's Barack Obama press conference on the auto bailout. The President announced that both GM and Chrysler failed to submit a viability plan acceptable to the government. (Soon afterward the Canadian government also gave the plans failing marks.) The government will be replacing most of General Motors' board of directors, and will be giving the company 60 days to put a plan in place that the government thinks is worth putting more dough on the table. If not, President Obama said, that an orderly bankruptcy is an option with government supplied debtor-in-possession financing. To assuage the fears of consumers, B.O. said that, effective immediately, the government would be standing behind the warranties of GM and Chrysler products.

The overall tone of the session suggests that the government isn't really counting on GM cutting any deals with its core creditors or labor. The government has a plan in mind to split GM into two parts, Good GM (including Chevrolet, Cadillac and some foreign assets) and (Bad GM including Hummer, Saturn and virtually all the legacy costs). Creditors and the UAW retirees would get an equity stake in Good GM, and Bad GM would be left to rot waiting for a buyer.

Whether GM goes Chapter 11 or not, it's clear the government is expecting a new collective bargaining agreement with cuts much deeper than the UAW has been willing to grant so far.

For the Marginally Relevant Youtube Clip? How about a tasty morsel of "bad Kirk" from the Classic Trek episode, The Enemy Within. Go buy the episode or dvd so Paramount doesn't get mad at me for embedding this.

"In a Brave New World, with just a handful of men. We'll start all over again."

Government to Mandate Chrysler/Fiat Marriage in 30 Days?




Google News is showing over 2,000 news articles on the Government Auto Bailout. A Bloomberg.com article posted an hour ago says that the Government is mandating that Chrysler complete a deal to combine with Fiat within 30 days, with $6 billion being the carrot on the end of the stick. Beats me how $6 billion is going to pay for operating losses for at least two years and the retooling of almost all of Chrysler's factories.

On the other hand, the Raleigh News & Observer (online) has another take on the status of the government position. The N&O says that the government has rejected GM and Chrysler's requests, and says the government is only committing to 60 days worth of operating capital for GM to get its shifts together (or something to that effect) and reform its way to viability. Apparently sending Rick Wagoner on his way on the blunt end of the Tom Dempsey express was the first part of the government's demand. Chrysler will be given 30 days to cut a deal with Fiat. Fiat will be limited to a 49% stake in Chrysler until all loans are paid and must commit to building small cars and engines in the US. The government report is especially critical of Chrysler noting its poor quality scores in Consumer Reports and its 3% market share of small cars. In essence, Chrysler is on double secret probation. It's a good thing Chrysler has Dean Bob Nardelli at the helm.

Rick Wagoner is a Goner
GM CEO Resigns under Pressure from Obama



The Detroit Free Press is reporting that GM Chairman & CEO, Rick Wagoner has resigned. Not only that but it was President Obama who pushed him out the door as a condition of getting more government money. When the news hit, there was sunshine all over the world. The lion laid down with the lamb. Yada Yada Yada. It truly is a sunshine day.

There's Always Someone More Talented than You



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Coming Soon to a Theater Near You -
SCARY MARY

The Most Annoying Guy in the Office

Can Autotune get more annoying? This clip shows it can, when your coworker has it and isn't afraid to us it.


Auto Tuning from Casey D on Vimeo.

FYI, I have Autotune, and I'm not afraid to use it.

Elon's Coming

Tesla Model S: A Tesla for the Resta Us

Yesterday, Tesla head Elon Musk formally unveiled the Tesla Model S Sedan. Now Tesla, a car maker who has been accused of spending a couple hundred million dollars on vaporware has one model (the Roadster) in series production and a higher volume model in running prototype form.

The Model S is interesting, this 4 door sedan seats not 4, not 6, but 7 -- two in the front, three in the back, and two rear-facing jumpseats extending into what would ordinarily be the trunk area. I say ordinarily because the main storage compartment is under the hood. The Model S, being all electric, doesn't need that space for an engine, since it doesn't have one.

The model S will apparently have almost the same va-va-voom as the roadster, with 0-60 in 5.5 seconds. The base model will run approximately 160 miles per charge. You can add a long-range battery pack to extend the range up to 300 miles. The price for all this 21st century goodness? $57,500, but it is projected to be $49,900 after federal tax credits. There are a lot of slower, less roomy, less interesting cars that cost a lot more than that. Tesla would like to produce 20,000 units per year if they can get a government loan to build a new factory.

Since the government is currently paying Chrysler and GM to build thousands of gas-hog SUV's and may in the future pay Chrysler to tool up to build Fiats, it seems defensible to pay Chrysler or GM to subcontract to build the Model S instead.

I'm sure the car has plenty of bugs to work out, but you have to start somewhere, and the Model S is as good a place to start as any.

(information and picture via Autoblog Green)

Bankruptcy of GM/Chrysler Unlikely on 3/31
Task Force Is Likely to Back More Loans

According to this morning's Wall Street Journal, The Presidential Task Force on Automobiles is likely to endorse more interim loans to General Motors and Chrysler rather than a mandated bankruptcy filing. This makes the March 31 deadline less likely to be a "do or die" date.

Youtube Video of the Day:
Hey Paul Krugman