TRENDING NOW:
According to a report from the Detroit News, the United States Treasury has plans to cut its losses and walk away from its ownership of General Motors by selling its remaining 33 percent stake sooner than many had predicted. Continue selling.
According to a report done by CNN Money, General Motors will save an estimated $14 billion in domestic tax breaks and up to $19 billion in global tax breaks in the years to come, according to a company filing. Ironically, the future tax breaks come from the previous years of operating in the red, as such breaks are usually reserved for companies struggling to stay afloat.
Interestingly, companies that elect to go through bankruptcy tend to lose such perks, as the debts shed during the process tend to balance out the previous losses.
Maybe the retention of this massive tax break shows remarkable work of the bankruptcy lawyers used that helped the company shed around $30 billion in debt during its incredibly brief 40-day bankruptcy purge. Or maybe something else is afoot here. The reasons aren’t quite clear, but both GM and the U.S. Treasury insist that this isn’t some sort of sweetheart deal and that any company that goes through bankruptcy can retain such tax breaks.
This morning, GM posted $4.7 billion in annual net income this morning for 2010, the first full year operating as a new company (in legal terms).
Source: CNN Money
After 68 years of being in operation and three different owners — the most recent being GM — Willow Run Assembly will be shutting its doors for the foreseeable future.
Though The General owned the plant from 1953 until its bankruptcy filing in 2009, all of the cool stuff that made the building truly historical happened just before GM acquired the title deed to the 5 million square-foot facility. Continue reading.
Apparently if you want a slab of trade secrets, all you have to do is pick up a copy of Overhaul: An Insider’s Account of the Obama Administration’s Emergency Rescue of the Auto Industry by Steven Rattner. Amongst the pages of his accounts on leading the Automotive Task Force, Rattner revealed that each and every 2011 Chevrolet Volt costs roughly $40,000 just to produce. Continue reading.
Despite skepticism of a General Motors Initial Public Offering happening this month, it seems that the offering will indeed occur. Additionally, paperwork will be filed today that will take the asking price to $26 to $29 per share – above Chairman Ed Whitacre’s prediction. At least it’s affordable. Continue reading.
Holy anticipation, Batman!
Time for the second bold prediction of the week (here is the first,) and it’s only Tuesday. According to Steven Rattner, the current layout of the entire automotive industry “has been restructured to make money,” and by midway through this decade, companies will be “gushing profits”- with General Motors leading the way. That is a bold prediction, indeed. Continue reading.
by 
by 
