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Late Sunday a judge approved the sale of GM’s assets to a group comprised of the U.S. government, the UAW and the Canadian and Ontario governments under the name NGMCO, Inc. The decision will see GM exit bankruptcy court quickly with the ‘New GM’ assets going to NGMCO, while the ‘Old GM’ assets will be sold off to the highest bidder.
Judge Robert Gerber then placed a stay on the proceedings to for four days to hear objections or appeals, but as most of those have already been dealt with, GM is expected to reemerge as a new government-owner company by Thursday.
In a statement Judge Robert Gerber said that he would, “prevent the death of the patient on the operating table.”
Gerber pointed out the seriousness of the matter and the alternative, stating that, “The only alternative to an immediate sale is liquidation – a disastrous result for GM’s creditors, its employees, the suppliers who depend on GM for their own existence, and the communities in which GM operates.”
The New GM will be majority owned by the U.S. government with a 60 percent stake in the automaker. The UAW will get 17.5 percent, while the Canadian and Ontario governments will get 12 percent.
In response to the news GM’s CEO Fritz Henderson released a statement saying that, “A healthy domestic auto industry remains vital to the global economy and we deeply appreciate the support the U.S., Canadian and Ontario governments and taxpayers have given GM, and the sacrifices that have been made by so many. This has been an especially challenging period, and we’ve had to make very difficult decisions to address some of the issues that have plagued our business for decades. Now it’s our responsibility to fix this business and place the company on a clear path to success without delay.”
The Obama Administration’s auto task force has said that sale of GM back to the private sector could begin as early as next year.
[Source: Automotive News]
Subaru of America is looking to set a Guinness World Record for the largest parade of Subys… er, Subies… um, Barus? And its reaching out to fanatical, AWD, boxer engine owners to help.
Subaru and the Subaru Great Lakes Region is asking owners from all over the country to meet on July 11 at 500 Park Boulevard in Itasca, Illinois.
The parade coincides with Itasca Fest, an annual fun for the whole family event that includes live entertainment, carnival rides and kids games.
Participants will receive a gift bag (one per car) and Subaru’s Great Lakes Region will donate $15 per car (to a maximum of $7,000) to PAWS Chicago and Salute, Inc. And knowing how fanatical Subaru owners are, they should probably just write the $7,000 check now.
Any Subaru owners interested in participating are asked to register here:
[Photo Credit: PicassaWeb]
Official release after the jump: