Here the 2nd part of the weekend news review relating to electric vehicles, EV and other stories. Of course, most news will concentrate on Detroit and especially GM as all three will unfold, hopefully workabe and practical plans to save their countries before the final say on December 2, tomorrow.
Alternative Energy Storage Investments. Let’s start with good news first, with John Peterson covered at Seeking Alpha on the state of investing in alternative energy. The trend toward reduced waste through energy storage is already well underway and has taken the world by storm. Stories of using waste to convert to energy already abound. The entire article recaps what is happening and makes for a good case.
GM Cash Flow. The cash flow will run out in weeks, not months as was reported on bloomberg, via USNews. Chief adviser’s and apparent news of board clashing with CEO, leave the auto giant in a dire shape. Maybe they will drag this long enough into the next year and had it over to the next administration.
GM’s Plan. We told you it was going to be mainly Detroit news. So far here is what the tentative GM plan for recovery is, according to Bloomberg. Hoping the current Congress will authorize a short- term bridge loan, GM wants to cut its $43 billion in debt, even after getting the government loans, to ensure its future viability. How? By closing plants and end to provisions that pay union employees not to work when their plants are shut down, delay a $7 billion payment to a union retiree health fund. We’ve talked about dropping brands, such as Saab, Pontiac and Saturn and rework an accord with GMAC LLC to prove it can survive and repay the government.
Barron’s Pre-Packaged Bankruptcy. According to Seeking Alpha, Barron believe a pre-package bankruptcy would be the only solution where GM would enter bankruptcy protection with almost all of its financing in place, backed by the government for a year or so. Needing $100B to survive through 2009 in its current for, a traditional Chapter 11 would slide into a full scale liquidation Chapter 7. A hybrid financial state for a company that should be making hybrids…
The Lowdown On Worker’s Union Numbers. Interesting numbers put forth by Gather, who outs the numbers back into perspective by saying that then famous $73 an hour is derived from taking: “The contract negotiated with the UAW in 2007 set the average auto worker’s wage at $28. The $73 number was arrived at by taking all the costs of retirement and healthcare programs and dividing by the total number of hours worked by all employees. But those total numbers include the costs for the hundreds of thousands of retirees.”
Interesting things will happen this week.