General Motors (GM), the US car giant behind various brands including Vauxhall, took a step closer to receiving a US government bailout over the weekend. As part of negotiations with the White House, GM Chairman & Chief Executive, Rick Wagoner has agreed to step down from the dual post which he has held since 2000.Mr. Wagoner's departure paves the way for a further injection of $16.4bn. This, together with the original bailout of $13.4bn, is essential to stave off the risk of bankruptcy in light of losses to the tune of $82bn in the last four years.
GM, and fellow struggler Chrysler, have until March 31 to submit new restructuring plans to the White House. A decision will then be made as to whether the two car makers are viable and capable of surviving the economic storm.
Whilst President Barack Obama is due to announce interim plans on how to nurse GM and Chrysler back to health, it is widely expected that he will postpone decisions regarding new loans and instead apply further pressure on other stakeholders to restructure existing arrangements and agreements. Indeed, President Obama said that there would be “a set of sacrifices for all parties involved — management, labour, shareholders, creditors, suppliers, dealers”.
However, postponement of a further financial injection could spell the end for the world's second largest car manufacturer with analysts suggesting that GM only has enough money to keep going for another month.
GM and Chrysler are not the only car makers in trouble. This week also saw the departure of Christian Streiff, Chief Executive of Peugeot Citroën, in response to falling sales of the French brands.
GM owns the Vauxhall brand which manufactures light commercial vehicles and vans including the Astravan, Corsavan and Vauxhall Vivaro van. See Vansdirect.co.uk's latest deals on the Vauxhall van range by clicking here.Peugeot Citroën manufacture vans including the Citroën Relay, Citroën Nemo, Citroën Dispatch, Citroën Berlingo and Peugeot Bipper van. Click here for the Peugeot range or here for the Citroën range at Vansdirect.co.uk - the UK's largest independent van retailer.
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