General Motors Corp
Great Depression on Tuesday and Nissan Motor Co <7201.T> posted a
loss and expected more amid the deep global auto downturn.
GM, less than three weeks
from a June 1 deadline to reach agreements with its stakeholders that
could avert a bankruptcy filing, saw its shares fall to their lowest
level since 1933 a day after current and former executives reported
The automaker's stockholders would be left with one
percent of the company under an out-of-court restructuring plan or
could be wiped out if GM is forced into bankruptcy leaving the equity
essentially worthless either way.
Canadian Industry Minister Tony
Clement told reporters that he would meet with top U.S. officials next
week in Washington to assess GM's progress on restructuring.
GM shares closed at $1.15, but the shares fell as low as $1.09, or down 24.3 percent, on Tuesday on the New York Stock Exchange.
on Tuesday, Nissan posted a fourth-quarter loss and forecast more
losses this year as it looks to conserve cash by putting launches and
growth plans on hold.
Nissan's forecast follows Toyota Motor Corp
<7203.T> last week forecasting a bigger-than-expected annual loss
and saying it expected to sell one million fewer vehicles on the year.
auto industry globally continues to fight through a downturn that
forced Chrysler into bankruptcy protection on April 30 and has
threatened the survival of numerous auto parts suppliers as well.
GMAC FINANCING FOR CHRYSLER DEALERS
Bankruptcy Court Judge Arthur Gonzalez on Tuesday approved Chrysler's
request that GMAC LLC be allowed to provide financing for Chrysler
dealers, a decision enabling them to boost vehicle inventories if
More than 60 percent of Chrysler's 3,200 dealers had been getting
financing through Chrysler Financial, which halted its lending almost
entirely after Chrysler filed for bankruptcy.
Without the GMAC financing, the dealer body would run out of working capital within weeks.
has received bankruptcy court approval to proceed with a rapid sale of
most of its assets to a new company held by Italy's Fiat SpA
told, Chrysler hopes to have completed the bulk of its bankruptcy
process within 60 days of the filing. The sale would bring an end to
Chrysler's ownership by private equity firm Cerberus Capital Management
has been offering buyouts to all of its UAW workers in the United
States and plans plant closings under its restructuring with new
special buyouts that must be completed by May 26 for the plan to remain
on track, according to a union memo obtained by Reuters.
Hayes Lemmerz International Inc
a maker of wheels and other auto components, filed for Chapter 11
bankruptcy protection on Monday in Delaware. The supplier expects the
lenders who provided the debtor-in-possession financing to own
substantially all of the equity in the reorganized company when it
emerges from court protection.
warned on Monday that it could be forced to seek court protection if
discussions with lenders to restructure its debt are unsuccessful.