117-413: Motors Liquidation Company ( MLC ), formerly General Motors Corporation , was the company left to settle past liability claims from Chapter 11 reorganization of American car manufacturer General Motors . It exited bankruptcy on March 31, 2011, only to be carved into four trusts; the first to settle the claims of unsecured creditors , the second to handle environmental response for MLC's remaining assets,
234-627: A going concern ". A qualified going concern audit letter like this is only issued by the auditors when the company is in extreme financial distress and it is likely that it may file for bankruptcy protection. March 12, 2009: GM's CFO Ray Young said that it would not need the requested $ 2B (~$ 2.76 billion in 2023) in March noting that the cost-cutting measures are starting to take hold. March 29, 2009: GM's Chairman and CEO , Rick Wagoner , agreed to immediately resign his position as part of an Obama administration automotive restructuring plan. Wagoner
351-655: A knock-down kit , customized dashboard, and steering components) as it entered the Japanese market. In January 1999, Saturn rolled out its two millionth car. Also in 1999, Saturn began production of its all-new L-Series for the 2000 model year. By the time the Saturn brand was launched in Japan, the Japanese economy was already in a sharp decline following the 1990 collapse of the Japanese asset price bubble . Resultantly,
468-424: A suicide door behind the driver side door. The S-Series was produced in three variations: coupe (SC), sedan (SL), and wagon (SW). The wagon was introduced for the 1993 model year and it was produced until 2001. The SW model had a relatively obscure run as a USPS vehicle, which resulted from GM's failed plan to attack the Japanese market directly with right-hand-drive Saturn S-Series vehicles. Upon its failure in
585-644: A 12% stake, the United Auto Workers and Canadian Auto Workers unions with a 17.5% stake, and the unsecured bondholders of General Motors with a 10% stake. "Old GM" was renamed Motors Liquidation Company. A creditor meeting, at the New York Hilton , held by the United States Trustee Program , was scheduled for June 3, 2009. On July 10, 2009, the purchase of the ongoing operational assets and trade name of "old GM"
702-568: A 17.5% stake, and the unsecured bondholders of General Motors with a 10% stake. The selling company was Motors Liquidation Company ("Old GM") (see below ). A creditor meeting, at the New York Hilton Hotel , held by the United States Trustee Program , was scheduled for June 3, 2009. On June 1, 2009, GM announced that the Hummer brand would be discontinued. On October 9, they reached an agreement to sell their entire stake in
819-685: A 2.0L LSJ engine equipped with an Eaton M62 roots-type supercharger. The Sky Red Line featured the 2.0L LNF engine equipped with a twin-scroll turbocharger. On the other hand, the Vue Red Line featured first a naturally aspirated 3.5L Honda J35A3 V6 from the years 2004 to 2007. After 2007, the Vue was given a second generation, which featured GM's 3.6L naturally aspirated LY7 V6 also used in the Vue XR. This change in engine also came with an additional 7 horsepower (6 kW; 8PS) and 6 lb⋅ft (8 N⋅m) from
936-509: A beneficial financial payout, on credit default swaps held by these creditors. Due to a lack of transparency, there was no way to find out who the CDS protection buyers and protection writers were, and they were subsequently left out of the negotiation process. On March 29, 2009, the U.S Treasury committed to fund a government guarantee of General Motors' warranty liabilities, up to US$ 360.6 million (~$ 498 million in 2023). On May 27, 2009,
1053-421: A broader response to the increasing urgency of GM's own cash flow problems. That was a result of Chrysler's senior bank debt currently trading at less than 50 cents on the dollar and because Chrysler's other owner – Daimler, formerly DaimlerChrysler – recently revalued its 19.9% Chrysler stake down to zero, which may or may not reflect its value in a potential sale. December 12, 2008: General Motors stated that it
1170-666: A congressional hearing in Washington D.C. All three companies were unsuccessful in their attempts to obtain legislation to authorize U.S. government aid, and were invited to draft a new action plan for the sustainability of the industry. On December 2, 2008, General Motors submitted its "Restructuring Plan for Long-Term Viability" to the Senate Banking Committee and House of Representatives Financial Services Committee. Congress declined to act, but in December 2008
1287-522: A deal with the Renault Group for vehicle replacements in 2012, but since that deal fell through Penske cancelled the planned sale. GM has said that the Saturn brand will be phased out by the 2010 model year, and the brand was declared defunct on October 31, 2010. On June 16, 2009, it was announced that the Swedish firm Koenigsegg Automotive AB and a group of Norwegian investors planned to acquire
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#17327728464651404-661: A dealership in Manhattan that was owned by GM itself, filed for bankruptcy protection there, followed in the same court by General Motors Corporation (the main GM in Detroit), GM's subsidiary Saturn LLC , and Saturn LLC's subsidiary Saturn Distribution Corporation. All cases were assigned to Judge Robert Gerber . The filing by the dealership declared General Motors to be a debtor in possession . The Manhattan dealership's filing allowed General Motors to file its own bankruptcy petition in
1521-618: A failed attempt by Penske Automotive to acquire Saturn from GM in September 2009, Saturn ended production in October 2009, ended outstanding franchises in October 2010, and ceased operations 25 years after it began. Alex C. Mair began discussions of a "revolutionary new" small car project, codenamed Saturn, in June 1982, soon after the GM J platform was introduced internationally. In November 1983,
1638-513: A federal Manhattan court in New York on June 1, 2009, at approximately 8:00 am, planning to re-emerge as a less debt-burdened organization. The filing reported US$ 82.29 billion in assets. The case was assigned to U.S. Bankruptcy Judge Robert Gerber , who had previously presided over another high-profile bankruptcy case of Adelphia Communications Corp. Shortly after the Chapter 11 filing, it
1755-630: A half of sales, the V6 option was AWD exclusively. 2004 brought about the Red Line model , as well, which featured the same Honda V6 in addition to an AWD powertrain, lower suspension, larger wheels, different body cosmetics, and an overall more luxurious interior. In late 2006, the Vue Green Line was released as a mild hybrid model, featuring a 2.4L Ecotec I4 ( LE5 ), however now also with an electric motor's assistance. The Vue would be carried over into
1872-417: A news conference on February 17, 2009, that Saturn would remain in operation through the end of the planned life cycle for all Saturn products (2010–2011). In February 2009, GM declared its intent to part with this brand by closing or selling the division, either to investors or to dealers, as part of restructuring plans dependent upon the receipt of a second round of government loans (" bailout " funding). It
1989-560: A part of the Bankruptcy Code), the purchaser of the assets of a company in bankruptcy proceedings is able to obtain approval for the purchase from the court prior to the submission of a re-organization plan, free of liens and other claims. It is used in most Chapter 11 cases that involve a sale of property or other assets. This process is typical of large organizations with complex branding and intellectual property rights issues upon exiting bankruptcy. As ranked by total assets,
2106-509: A plan that would assemble all of their viable assets, including some U.S. brands and international operations, into a new company. Less than a week later, its Saab subsidiary filed for bankruptcy protection in Sweden. March 5, 2009: GM's independent public accounting firm ( Deloitte & Touche ) issued a qualified opinion as part of GM's 2008 annual report that stated "[these conditions] raise substantial doubt about its ability to continue as
2223-624: A second generation following 2007, even retaining its model trim levels, but it would not retain the definite Saturn-brand elements of the first generation. It would go on to lose its spaceframe construction and plastic body paneling in favor of the cues of the Opel Antara , that being the model it was badge-engineered from. In 2003, the Saturn ION replaced the S-Series compact, marking the end of Saturn's fully-original car designs. The Vue
2340-516: A significant change to Saturn's treatment as a pseudo-independent company from General Motors, which would only intensify with time. Saturn introduced its long-awaited SUV model in 2002 with the release of the first generation Saturn Vue . The design featured a 5-door spaceframe layout with the plastic body panels long-familiar to the brand. The Vue released with, similarly to the L-Series, an Ecotec I4 ( L61 ) and V6 ( L81 ). In an unorthodox move for
2457-406: A similar financial situation, warned that it, too, was nearly out of cash and might not survive much longer. December 18, 2008: President Bush announced that an "orderly" bankruptcy was one option being considered for both General Motors and Cerberus -owned Chrysler LLC . Sources said that setting up this type of "orderly" bankruptcy would be complicated because it would not only involve talks with
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#17327728464652574-602: A speech from the White House four hours and three minutes after the court filing. The General Motors bankruptcy case was formally entitled In re General Motors Corp. , case number 09-50026 in the Southern District, Manhattan, New York. General Motors was represented by the New York specialist law firm Weil, Gotshal & Manges. The United States Treasury and an ad hoc group of the bondholders of General Motors Corporation were also represented in court. One of
2691-552: A third to handle present and future asbestos-related claims , and a fourth for litigation claims. Motors Liquidation Company's stock symbol was changed from GMGMQ to MTLQQ, effective July 15, 2009. MTLQQ stock was cancelled. Its unsecured creditors were issued stock for the Motors Liquidation Company General Unsecured Creditors Trust under the symbol MTLQU. On the morning of June 1, 2009, Chevrolet-Saturn of Harlem ,
2808-453: The Bush administration provided a "bridge loan" to General Motors with the requirement of a revised business plan. It said it needed $ 4.6 billion in loans within weeks, from the $ 18 billion it had already requested, and an additional $ 12 billion in financial support in order to stave off bankruptcy. On February 26, 2009, General Motors announced that its cash reserves were down to $ 14 billion at
2925-499: The Carlyle Group ), David Bonderman (of TPG Capital ), Robert D. Krebs (a former railroad executive), Patricia F. Russo (the former CEO of Alcatel-Lucent ), Ed Whitacre (GM Chairman) and Fritz Henderson (GM CEO). In addition to selling off brands and killing brands like Pontiac and Goodwrench, General Motors Company restructured its brand architecture and adopted a new corporate identity. The practice of putting
3042-599: The Dow Jones Industrial Average and replaced by Cisco Systems . From Tuesday June 2, old GM stock has traded Over the Counter ( Pink Sheets / OTCBB ), initially under the symbol GMGMQ and subsequently under the symbol MTLQQ. On July 10, 2009, a new entity completed the purchase of continuing operations, assets and trademarks of GM as a part of the 'pre-packaged' Chapter 11 reorganization. As ranked by total assets, GM's bankruptcy marks one of
3159-709: The GM Lambda platform . Some of the final Saturns were virtually identical to certain European Opel / Vauxhall models. For example, the 2008 Saturn Vue was a rebadged Opel Antara , while the Opel GT was based on the Saturn Sky Red Line. The Saturn Astra was a rebadged version of the Opel Astra . The Saturn Astra was also the first Saturn to be built outside of North America. The Saturn Astra
3276-667: The GM2900 platform with the Opel Vectra , along with its engine. It was built at a GM factory in Wilmington, Delaware . The 2000 model year cars were designated LS-1 (4 cylinder) and LS-2 (6 cylinder.) Since Lincoln-Mercury owned the LS designator, and to prevent a lawsuit, Saturn changed the designators to L200 and L300 for the model years 2001–2005. The Saturn L200 was discontinued after the 2003 model year. This shift in production marked
3393-502: The NUMMI joint venture with Toyota. Saturn Corporation The Saturn Corporation , also known as Saturn LLC , was an American automobile manufacturer, a registered trademark established on January 7, 1985, as a subsidiary of General Motors . The company was an attempt by GM to compete directly with Japanese imports and transplants , initially in the US compact car market. The company
3510-605: The Saab brand from General Motors . GM would have continued to supply architecture and powertrain technology for an unspecified amount of time. On November 24, 2009, it was announced that the sale of Saab to the Koenigsegg Group had collapsed. "We're obviously very disappointed with the decision to pull out of the Saab purchase," said GM CEO Fritz Henderson in a statement. "Given the sudden change in direction, we will take
3627-720: The Saturn brand would be sold to the Penske Automotive Group . GM would continue building the Aura , Outlook and Vue for Penske for two years. However, the Penske deal failed and the Saturn division became defunct. On June 16, 2009, it was announced that Koenigsegg and a group of Norwegian investors planned to acquire the Saab brand from General Motors . GM would continue to supply architecture and powertrain technology for an unspecified amount of time. It also becomes
Motors Liquidation Company - Misplaced Pages Continue
3744-810: The Saturn Aura , the Saturn Outlook , the Sky , and the Saturn Vue . GM had continued to produce the Aura, the Outlook, the Sky, and the Vue into the 2010 model year. In 2012, General Motors rebadged and reintroduced the discontinued Saturn Vue as the 2012 Chevrolet Captiva Sport . The Captiva Sport was mostly unchanged from the discontinued Saturn Vue. The Captiva Sport did not have a hybrid version available, like
3861-533: The Saturn SC and Saturn SL . Production of both Saturn vehicles started in 1990 as early 1991 model year vehicles. The Saturn SW was later added for 1993. GM had plans for a sedan , a coupe , a convertible, a wagon , and even a sport utility vehicle ; however, Saturn's first sport utility vehicle , the Vue , did not appear until the 2002 model year and Saturn's first convertible, the Sky , did not appear until
3978-497: The United States Bankruptcy Court for the Southern District of New York , its preferred court. Normally, a company would file for bankruptcy in the courts located either in the state where the company is incorporated (which for GM was Delaware ), or where it conducts operations (which would have been Michigan , where the company was headquartered). General Motors' attorneys, however, preferred to file in
4095-499: The United States Bankruptcy Court for the Southern District of New York , its preferred court. Normally for such cases, the company would have filed in the courts located in the state(s) where the company is incorporated, or where it conducts operations, which for Detroit -headquartered General Motors would have been the courts in Michigan or Delaware , where it is incorporated. General Motors' attorneys, however, preferred to file in
4212-832: The "GM Mark of Excellence" on every car, no matter what the brand, was discontinued in August 2009. The company moved from a 'corporate-endorsed, hybrid-brand' architecture structure (where GM underpinned every brand) to a 'multiple-brand, corporate-invisible' brand architecture structure. The company's familiar square blue "badge" was removed from its website and advertising, in favor of a new, subtle all-text logo treatment. October 10, 2008: GM considered exchanging its remaining 49% stake in GMAC to Cerberus Capital Management for Chrysler LLC , potentially merging two of Detroit's "Big Three" automakers. Acquisition talks involving Chrysler were cancelled, however, before November 7, 2008, as part of
4329-474: The 2000–2002 production run. The exterior body panels were updated once again, and new paint colors were offered. The sedan retained many of the same mechanical components with an updated interior design. In 1997, the second generation of the sport coupe model was introduced with the front end being changed to accommodate a stationary headlight design, as opposed to the pop-up headlights found on 1990-1992 SC and 1993-1996 SC2 models. The 1999 coupe models received
4446-517: The 2005 model year Saturn began selling the Relay , a minivan and the first Saturn based on similar models from other GM brands. That same year, the L-Series was discontinued. The Sky roadster was introduced in 2006 as a 2007 model. In 2006 for the 2007 model year, the Aura midsize sedan made its way to dealerships, alongside the Outlook , a larger CUV than the Vue, and 2006 was the last year that
4563-474: The 2006 model year. On July 30, 1990, the first Saturn was built, a red 1991 model-year Saturn SL2. The first Saturn dealership opened in Memphis, Tennessee. Saturn Corporation was launched as a "different kind of car company", and Saturn even had its own unique car models (although later models shared platforms with other GM vehicles to be more cost effective in the market), and their own dealership network that
4680-500: The Chapter 11 reorganization of "new GM" from the old is one of the largest successful corporate reorganizations in U.S. history, and the fourth-largest bankruptcy in U.S. history by total assets, following Lehman Brothers Holdings Inc. , Washington Mutual and WorldCom Inc. The same day, GM reported 88,000 U.S. employees, and announced plans to reduce its U.S. workforce to 68,000 by the end of 2009. On July 23, 2009, "new GM" announced its new board of directors: Daniel Akerson (of
4797-817: The Chevrolet Cobalt SS Supercharged and the Sky Red Line's sister car of the Pontiac Solstice GXP (although the targa hardtop variant would not make it to the Sky). The Vue Red Line, however, was an original Saturn vehicle until 2008, where it was then launched in a second generation as a badge-engineered Opel Antara. Both the ION and Sky Red Line trims used 2.0L Ecotec family powertrains. The ION Red Line and Sky Redline featured forced-induction Ecotec I4 motors. The ION Red Line utilized
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4914-462: The Democratic and Republican political parties. Prior to the U.S. Senate's announcement, General Motors announced that it had hired several lawyers to discuss the possibility of filing for bankruptcy , with Chapter 11 bankruptcy being one of the options discussed. GM stated that "all options are on the table" for the company. Chrysler LLC , which is owned by Cerberus Capital Management , in
5031-524: The Hummer brand to China -based Sichuan Tengzhong Heavy Industrial Machinery Company Ltd. and a group of private investors (Mr. Suolang Duoji, a private entrepreneur with holdings that include the Hong Kong-listed thenardite producer Lumena, would have held the remaining 20 percent stake.) The sale would have net GM around $ 150 million. The deal would have included manufacturing to continue in
5148-497: The ION was produced. TheION was replaced by the European-built Astra in 2008. During the 2008 North American International Auto Show (NAIAS), Saturn revealed its Flextreme concept vehicle, which was a rebadged Opel Flextreme . Saturn was believed to have had a disagreement with GM and was not very accepting of the company closing. In 2004, GM and the United Auto Workers dissolved their unique labor contract for
5265-473: The Japanese market, Saturn sold off its surplus of RHD wagons in an attempt to "compete in the very narrow niche of providing right-hand drive vehicles to rural route carriers". There was, even in the early stages of the company's production, work on a concept car. As mentioned in the Saturn Owner's Manuals from 1993 and occasionally in publications featuring Saturn executives, an SL3 was in the works. It
5382-526: The NGMCO Inc. ("New GM") to purchase the continuing operational assets of the old GM. Normal operations, including employee compensation , warranties , and other customer services were uninterrupted during the bankruptcy proceedings. Operations outside of the United States were not included in the court filing. The company received $ 33 billion in debtor-in-possession financing to complete
5499-548: The SL and SW models, next in 1997 for the SC models, and finally in 2000 across the board. The Saturn S-Series family of cars were produced from 1991 to 2002 over three generations: First generation cars were produced from 1991 to 1995. For the 1995 model year Saturn used a "first generation" exterior and "second generation" interior. The exterior of the 1995 model looked the same as the first generation cars, but it had larger gauge faces on
5616-752: The Saturn cars. At one point Penske was in talks with car manufacturers including Renault Samsung Motors and the Renault-Nissan Alliance ; however, talks with the Renault-Nissan Alliance had ended mainly because of objections from the Nissan part of the alliance. Another part of the deal between Penske and GM was for GM to continue making the Aura , the Outlook , and the Vue until 2011, and then another manufacturer would take over. Since Penske did not find another car manufacturer willing to continue production of Saturn vehicles,
5733-526: The Saturn idea was publicized by General Motors' Chairman Roger B. Smith and GM's President F. James McDonald. Twelve months later, the first Saturn demonstration vehicle was revealed. On January 7, 1985, the Saturn Corporation was officially founded. Citing full disclosure, Saturn was founded as a private, employee-owned company, by former GM leadership. They remained private until GM bought them out, and effectively "rewrote" company history. In
5850-585: The Spring Hill manufacturing plant, allowing Saturn operations to be integrated with the rest of GM. In US Congressional hearings on December 2, 2008, General Motors announced its intentions to focus on their four core brands ( Chevrolet , Buick , Cadillac , and GMC ), with the sale, consolidation, or closure of Saturn and the remaining brands ( Pontiac , Hummer , and Saab , with Oldsmobile having already discontinued production in 2004). General Motors chairman and former CEO Rick Wagoner announced during
5967-548: The U.S. Treasury advanced a secured loan of US$ 360.6 million to GM, and GM issued a note to the Treasury for US$ 360.6 million, plus $ 24.1 million USD as additional compensation for the warranty advance, pursuant to the terms of the Warranty Agreement dated December 31, 2008, between GM and the U.S. Treasury. The loan funded a separate account established by GM Warranty LLC, a new special purpose subsidiary of GM that
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#17327728464656084-435: The U.S. Treasury, Canada, and a labor union, purchased the desirable assets of "old GM" via the bankruptcy process, thus renaming it to "General Motors Company" and forming a "new GM". This marked the emergence of a new operation from the "pre-packaged" Chapter 11 reorganization. The claims of former stakeholders and remaining pre-petition creditors of "old GM" would be handled by the "Motors Liquidation Company", with
6201-476: The U.S. would initially likely become the largest shareholder of the reorganized GM following a bankruptcy filing and re-emergence from bankruptcy. The U.S. government would invest up to $ 50 billion and own 60% of the new GM and the Canadian government would own 12.5%. Some observers also claimed that creditors were encouraged to push GM into bankruptcy protection because it would trigger a credit event, and thus
6318-431: The United States). The brand was immediately known for its "no haggle" prices. The first Saturn model, the S-Series , was initially quite successful, selling its highest recorded number of annual units in the company's history just three years after first starting sales. A year later, Saturn entered the Canadian market. In 1993, Saturn's 500,000th car, "Carla", was built. In May 1995, Saturn's one millionth car entered
6435-428: The United States. Penske was not planning to buy the factories so it would eventually have had to contract other car companies to build cars sold as Saturns. GM would have built the Aura, Vue, and Outlook for Penske for the first two years. To replace GM as the brand's manufacturer, Penske was in discussions with several global automakers, including Renault Samsung Motors of Korea, and the Renault-Nissan Alliance . By
6552-420: The Vue did. Originally, the company's products used a dedicated platform called the Z-body and a dedicated engine, the 1.9 L Saturn I4 engine , and a dedicated plant in Spring Hill, Tennessee . The original Saturns featured dent-resistant plastic body panels which were promoted as easily enabling quick styling revisions, which would happen repeatedly throughout the run of the S-Series, first in 1996 for
6669-409: The automakers, but also the unions and other stakeholders would have to be involved. December 19, 2008: President Bush approved a bailout plan and gave General Motors and Chrysler $ 13.4 billion in financing from TARP ( Troubled Assets Relief Program ) funds, as well as $ 4 billion to be "withdrawn later". As of February 14, 2009: General Motors was considering filing for Chapter 11 bankruptcy under
6786-452: The bondholders of General Motors Corporation was also represented in court. One of the first motions filed in court was one to void the leases on the seven corporate jets, and corporate aircraft hangar at Detroit Metropolitan Wayne County Airport, for being no longer valuable to the company's business — a lease that the company had, according to its spokesman, found itself unable to escape in 2008 when it had tried to. On June 1, 2009,
6903-444: The brand would be gradually re-integrated into the GM corporate hierarchy, losing its semi-independent nature and beginning to work on models that increasingly compromised the independence of the brand, first with mild use of shared GM products and platforms in their lineup, but later with a myriad of " parts-bin " cars built mostly or entirely from pre-existing GM equipment rather than independently-engineered material. As GM struggled in
7020-401: The brands and the good assets of the old GM, including the Buick , Cadillac , Chevrolet , GMC , GM Daewoo , Holden , Opel , Pontiac , SAIC-GM , SAIC-GM-Wuling , and Vauxhall brands. Pontiac was quickly phased out by October 31, 2010, GM Daewoo was renamed GM Korea in 2011 and the Daewoo brand was retired, Opel and Vauxhall were sold to Groupe PSA in 2017, and Holden was closed by
7137-539: The company only having $ 2 billion cash in hand. The United States Treasury had argued in court that it was the only source of such debtor in possession funding, and that without the money from the loan General Motors would have no option but liquidation . Other motions in the first-day hearing included motions to approve payments to key suppliers and to employees and distributors who are in possession of goods manufactured for General Motors. All motions passed in court without substantial objection. The case schedule laid out by
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#17327728464657254-435: The company's proposals had avoided tough decisions, and that Chapter 11 bankruptcy appeared the most promising way to reduce its debts, by allowing the courts to compel bondholders and trade unions into settlements. GM Chairman and CEO Rick Wagoner was also forced to resign. GM bondholders rejected the government's first offer, but the unions agreed to the preferential terms. A bondholder debt to equity counteroffer
7371-466: The court filing. The General Motors Chapter 11 filing formally was entitled " In re General Motors Corp.", and was case number 09-50026 in the Southern District, Manhattan, New York. General Motors was represented by the New York specialist law firm Weil, Gotshal & Manges. The United States Treasury was represented by the United States Attorneys Office for the Southern District of New York and Cadwalader, Wickersham & Taft LLP. An ad hoc group of
7488-648: The court gave interim approval to GM's request to borrow US$ 15 billion as debtor-in-possession funding, the company only having US$ 2 billion cash in hand. The United States Treasury argued in court that it was the only source of such debtor in possession funding, and that without the money from the loan General Motors would have no option but liquidation . Other motions in the first-day hearing included motions to approve payments to key suppliers and to employees and distributors who are in possession of goods manufactured for General Motors. All motions passed in court without substantial objection. The case schedule laid out by
7605-449: The court is as follows: General Motors auctioned off its assets in a section 363 sale . Because the price of these assets were very high, there was only one bidder in the auction, NGMCO Inc. ("New GM"). This company was formed by the United States government with a 60.8% stake, the federal government of Canada and provincial government of Ontario with an 11.7% stake, the United and Canadian Auto Workers unions VEBA fund with
7722-400: The court was as follows: On June 1, 2009, GM announced that the Hummer brand would be discontinued. The following day GM announced that it had reached a deal to sell the brand to an undisclosed buyer. Later, on June 2, 2009, the buyer was disclosed to be Chinese road equipment manufacturer Tengzhong . Tengzhong itself confirmed the deal on their website the same day. The proposed transaction
7839-432: The deal between Penske and GM ended. As a result, General Motors announced that Saturn Corporation would be ceasing all operations in 2010, and that all Saturn dealerships would be closed by October 31, 2010, or until all of their inventory had been sold. GM ended Saturn production October 7, 2009 and ended its outstanding franchises on October 31, 2010. In February 2010, to aid customer retention , GM announced that it
7956-422: The end no sale could be finalised and Hummer was declared defunct on May 24, 2010. On June 5, 2009, GM announced that the Saturn brand would be sold to the Penske Automotive Group . GM was to continue to build the Aura , Outlook and Vue for Penske for two years, however, as of September 30, 2009, the deal had fallen through. Penske had asked GM to extend the time it was to build Saturns until it could reach
8073-448: The end of 2008. G.M. lost $ 30.9 billion, or $ 53.32 a share, in 2008 and spent $ 19.2 billion of its cash reserves. Mr. Wagoner met with President Obama’s auto task force, and the company said that it could not survive much longer without additional government loans. On the March 30, 2009 deadline, President Barack Obama declined to provide financial aid to General Motors, and requested that General Motors produce credible plans, saying that
8190-499: The end of 2009, GM closed all of its 46 Saturn dealerships in Canada, even those Saturn dealerships also selling Saab vehicles. GM and Penske decided that they could no longer make a business case to distribute Saturn vehicles in Canada after the sale of the brand. Saturn's customer service, parts, and warranty operations moved to other GM dealerships in Canada. On September 30, 2009, Penske ended its deal with General Motors because of Penske not finding another manufacturer to manufacture
8307-461: The end of 2020. MLC exited bankruptcy on March 31, 2011, and was immediately carved into four separate trusts; the first to settle the claims of unsecured creditors of MLC (General Unsecured Creditors Trust); the second ( RACER ) to manage, perform environmental activities at, and ultimately dispose of certain remaining MLC real and personal property assets; the third to manage asbestos-related claims against MLC (Asbestos Personal Injury Trust); and
8424-563: The federal courts in New York, because those courts have a reputation for expertise in bankruptcy. In a press conference later that day, the GM Chief Executive Officer, Fritz Henderson , stressed that he intended for the bankruptcy process to move quickly. In addition to Mr Henderson's press conference, President of the United States Barack Obama made a speech from the White House after
8541-401: The federal courts in New York, because those courts have a reputation for expertise in bankruptcy. In a press conference that began four hours and eighteen minutes after the filing, the GM Chief Executive Officer, Fritz Henderson , stressed that he intended for the bankruptcy process to move quickly. In addition to Henderson's press conference, President of the United States Barack Obama made
8658-457: The first generation Red Line models. Green Line trims, like Red Line trims, were models based upon pre-existing vehicles, however this iteration favored a focus on fuel economy. Two vehicles in the Saturn roster received Green Line variants, those being the Saturn Aura and the Saturn Vue . The Vue was initially given a 2007 Green Line variant during its first generation, making it Saturn's only original hybrid vehicle. This would be done away with
8775-471: The first motions filed in court was to void the leases on the seven corporate jets, and corporate aircraft hangar at Detroit Metropolitan Wayne County Airport, which the company said were no longer valuable to the company's business. A GM spokesman said that the company had found itself unable to escape the lease in 2008 when it had tried to. On June 1, 2009, the court gave interim approval to GM's request to borrow $ 15 billion as debtor-in-possession financing ,
8892-641: The following year, as the second generation Saturn Vue came out with a Green Line trim. The Saturn Aura would, shortly after its debut in 2007, offer a Green Line package in March. Results of the Green Line models were not exceedingly remarkable, although it was advertised that the Vue Green Line could have up to a "20-percent improvement in fuel economy, depending on driving conditions". The Aura Green Line gained similar, albeit somewhat enthusiastic reception, as it would be noted to have fuel economy that
9009-430: The former corporation's assets. General Motors was financially vulnerable before the automotive industry crisis of 2008–2010 . In 2005, the company posted a loss of US$ 10.6 billion (~$ 15.9 billion in 2023). In 2006, its attempts to obtain U.S. government financing to support its pension liabilities and also to form commercial alliances with Nissan and Renault failed. For fiscal year 2007, GM's losses for
9126-582: The fourth for litigation claims against MLC (Action Avoidance Trust). General Motors Chapter 11 reorganization The 2009 General Motors Chapter 11 sale of the assets of automobile manufacturer General Motors and some of its subsidiaries was implemented through Chapter 11, Title 11, United States Code in the United States bankruptcy court for the Southern District of New York . The United States government-endorsed sale enabled
9243-555: The instrument cluster and a redesigned center console. First generation engines were rated at 85 horsepower (63 kW) for the single overhead cam engines, while the dual overhead cam engines were rated at 124 horsepower (92 kW) for the entire run of S-Series cars (1991–2002). In 1996, the second generation S-Series sedan was introduced. Changes carried through until 1999 included a redesigned body and single overhead cam power being increased to 100 horsepower (75 kW). The third generation sedan received only minor design changes for
9360-629: The largest corporate Chapter 11 bankruptcies in U.S. history. The Chapter 11 filing was the fourth-largest in U.S. history , following Lehman Brothers , Washington Mutual and WorldCom. A new entity with the backing of the United States Treasury was formed to acquire profitable assets, under section 363 of the Bankruptcy Code, with the new company planning to issue an initial public offering (IPO) of stock in 2010. The remaining pre-petition creditors claims are paid from
9477-433: The last brand/subsidiary from GM to be sold ( Hummer was first, followed by Saturn ). The deal failed on November 24, 2009. GM, however, requested Spyker Cars to acquire Saab from MLC a few weeks later. But however, MLC announced it would close Saab on December 19, 2009, although this plan was later reversed. Motors Liquidation Company had until January 7, 2010, for the deadline of the revised bid. The sale of Saab to Spyker
9594-414: The market. In 1996, Saturn dealerships distributed the electric GM EV1 , the first electric car released under the GM brand. In 1997, Saturn became the first General Motors North American vehicle to be fully built with right-hand-drive on the same assembly line as the left-hand-drive vehicles (the previous right-hand-drive GM North American vehicles were built in countries with a left-hand road rule using
9711-475: The mid-1980s, GM released the Saturn Concept Car. The car, which resembled the first Saturn SL , was not originally meant to start up a brand; however, GM planned to release the Saturn car under one of its brands, which, at the time, were Chevrolet , Pontiac , Oldsmobile , Buick , Cadillac , and GMC . In 1985, GM changed their plan and founded Saturn as its own brand, with its first cars being
9828-419: The name General Motors Company. The purchase was supported by $ 50 billion in U.S. Treasury loans, giving the U.S. government a 60.8% stake. The Queen of Canada , in right of both Canada and Ontario , held 11.7% and the United Auto Workers , through its health-care trust ( VEBA ), a further 17.5%. The remaining 10% was held by unsecured creditors . In other words, a company called "NGMCO Inc.", financed by
9945-538: The new company planning to issue an initial public offering (IPO) of stock in 2010. The directors of Motors Liquidation Company stated that they believed shares in the "old" GM would eventually have no value since the company had far more debts than assets. Under the reorganization process, termed a 363 sale (for Section 363 which is located in Title 11 , Chapter 3, Subchapter IV of the United States Code ,
10062-447: The next several days to assess the situation and will advise on the next steps next week." On February 23, 2010 GM sold Saab to Spyker Cars , later renamed Swedish Automobile . The Saab brand would collapse under Spyker in 2012 after filing for bankruptcy . As part of a reorganization plan agreed to with the U.S., Canadian and Ontario governments, and the company's unions, General Motors filed for Chapter 11 bankruptcy protection in
10179-484: The onset of the 2008 economic recession , the parent company further curtailed Saturn's development budgets, leaving Saturn to almost fully badge engineer products from other divisions, notably a series of federalized models from Opel . With the gradual shift in internal practices and external outcomes, Saturn lost its unique selling proposition , and the market lost interest. Annual sales achieved their highest level in 1994, with 286,003 vehicles marketed. Following
10296-449: The optimistic projected targets, in part because of the early 1990s recession . It also proved cannibalistic, as 41% of Saturn buyers already owned a GM car. Its separation from the rest of its GM parent, plus the fact that it drained $ 5 billion from other car projects, stirred discontent within GM's other divisions. Also, Saturn opened at considerably higher cost than the Japanese transplants (factories that Japanese automakers established in
10413-477: The process. GM filed for Chapter 11 reorganization in the Manhattan New York federal bankruptcy court on June 1, 2009, at approximately 8:00 am EDT. June 1, 2009, was the deadline to supply an acceptable viability plan to the U.S. Treasury. The filing reported US$ 82.29 billion in assets and US$ 172.81 billion in debt. After the Chapter 11 filing, effective Monday, June 8, 2009, GM was removed from
10530-563: The requirements set by the White House, a prepackaged bankruptcy is probable. President Obama reiterated that GM will be part of the future even if bankruptcy is necessary. April 22, 2009: GM stated that it will not be able to make their June 1, 2009, debt payment. April 24, 2009: GM announced that they will be scrapping the Pontiac brand in an effort to invest more money into their major brands (Buick, Cadillac, Chevrolet, and GMC). It
10647-543: The same architecture as existing models, but with an emphasis heightened performance. Three models were given Red Line variants, those being (in chronological order) the Saturn ION Red Line, The Saturn Vue Red Line, and the Saturn Sky Red Line. The ION and Sky's Red Line trims were badge-engineered variants on other GM divisions' higher-tier performance vehicles, those being the ION Red Line's sister car of
10764-400: The same court by General Motors Corporation (the main GM in Detroit), GM's subsidiary Saturn LLC , and Saturn LLC's subsidiary Saturn Distribution Corporation. All cases were assigned to Judge Robert Gerber . The filing by the dealership declared General Motors to be a debtor in possession . The Manhattan dealership's filing allowed General Motors to file its own bankruptcy petition in
10881-428: The stock symbol was changed to MTLQQ (" Motors Liquidation Company "). Despite these developments, the organization expressed optimism in the future success of a "new GM". On July 10, 2009, after an auction process and approval by Judge Gerber concluded, GM's continuing operational assets and trademarks were transferred to the sole bidder, a primarily government-owned entity called "NGMCO Inc.", which upon sale assumed
10998-553: The surplus was mitigated with the retooling of the right-hand-drive SW models into SWP, or station wagon postal, models, which were then sold to the United States Postal Service. Saturn's first compact crossover SUV was introduced in 2001 for the 2002 model year as the Vue based on a globally used GM design. In 2002 for the 2003 model year, Saturn introduced the ION as a replacement for the S-Series. In 2004 for
11115-501: The traditionally American-branded, Japanese-competitive brand, the Vue shed the L81 V6 option in 2004, instead opting for a Honda J35S1 V6. The I4 also could be coupled with GM's first passenger car CVT, albeit for only three years, as by 2005 the CVT option had been discontinued due to poor dependability. Both front-wheel-drive and all-wheel-drive were available, though for the first year and
11232-462: The two final Saturn models with plastic body panels were the Vue and ION. Plastic body panels were discontinued on all Saturn models after the 2007 model year. None of the 2008 Saturn models used plastic body panels. The 2009 Saturn models were the Sky roadster, the Aura sedan, the Astra hatchback, the second generation Vue compact crossover SUV, and the Outlook full-size crossover SUV built off
11349-404: The two plants that GM already uses to produce the Hummer trucks through June 2011, with a possible extension until 2012. On February 24, 2010, GM announced that the sale could not be completed with Sichuan Tengzhong and that they would discontinue the brand. They were approached by several other companies interested in purchasing the Hummer brand and began reviewing potential buyers. However, in
11466-441: The year were US$ 38.7 billion, (~$ 54.8 billion in 2023) and sales for the following year dropped by 45%. On November 7, 2008, General Motors reported it had projected it would run out of cash around mid-2009 without a combination of government funding, a merger, or sales of assets. Ten days later General Motors representatives, along with executives from Ford and Chrysler testified about their need for financial aid at
11583-514: Was announced that on Monday, June 8, 2009, GM would be removed from the Dow Jones Industrial Average , and replaced by Cisco Systems . This coincided with the announcement that Citigroup Financial would also be removed and replaced by insurer Travelers Co. $ GM was delisted from the NYSE. Beginning June 2, GM stock traded on the Pink Sheets OTC market under the symbol GMGMQ. On July 15,
11700-552: Was approved on January 26, 2010, and completed on February 23, 2010. Since the early 1990s, GM had been trying to close dealership locations under its Project 2000. At the time, GM had about 9,000 franchise dealers nationwide, most selling a single brand. Many of these locations sold few vehicles and supporting them was costly for GM. Under Project 2000, GM would eliminate or relocate dealerships, and also focused on establishing multi-brand locations, selling Buick, Pontiac and GMC vehicles or Cadillac, Hummer and Saab vehicles. The program
11817-719: Was built in Antwerp, Belgium. Saturn's version of the Astra was available as a captive import from late 2007 until Saturn was discontinued following GM's 2010 bankruptcy . Saturn had featured two sub-lines of their vehicles: the Green Line and the Red Line. The Green Line Saturn models were environmentally-friendly, more economical mild hybrid vehicles, and the Red Line Saturn models were high-performance and driver-oriented vehicles. The Red Line trim vehicles were built from
11934-511: Was completed and the purchasing entity, "NGMCO Inc", changed its name to "General Motors Company LLC." The new GM held an IPO on November 17, 2010, that raised an estimated $ 20.1 billion. By December 2013, the US government sold the last of its GM stock. By February 2015, the Ontario government sold the last of its 4% stake in GM, and by April 2015, the Canadian federal government sold the last of its own 8% GM stake. The "new" GM acquired most of
12051-606: Was controversial with dealers, many who didn't want to close their dealership or sell their franchise rights. However, Section 363 of the Federal Bankruptcy Code allowed GM to force thousands of dealerships to forfeit their franchise rights. Dealers accused GM of fraud and theft and formed the Committee to Restore Dealer Rights . The group helped draft HR 2743 in 2009, which asserted the action taken by GM to consolidate its dealer network without compensation
12168-472: Was expected to keep a 35% minority stake in the new company. It was announced on November 3, 2009, that the GM board had decided not to sell off Opel. However, after the reorganization in 2017, Opel and Vauxhall would later be sold to Groupe PSA for $ 2.3 billion (~$ 2.81 billion in 2023). On the morning of June 1, 2009, Chevrolet-Saturn of Harlem , a dealership in Manhattan that is owned by GM itself, filed for bankruptcy protection there, followed in
12285-441: Was formed to operate the warranty program. GM also on May 29, 2009, contributed $ 49.2 million to GM Warranty LLC to fund the program. On May 30, 2009, it was announced that a deal had been reached to transfer New Opel ( Opel plus Vauxhall , minus Saab ) assets to a separate company majority-owned by a consortium led by Sberbank of Russia (35%), Magna International of Canada (20%), and Opel employees and car dealers (10%). GM
12402-431: Was ignored. Efforts to sell General Motors' European operations ran into difficulties, as the corporation was expected to file for bankruptcy protection by June 1, 2009. United States government officials suggested that, if they were satisfied with the company's plans to restructure, the U.S. government would take at least a 50% equity stake and reserve the right to name board members . On May 31, 2009, news broke that
12519-443: Was illegal. However, HR 2743 died in committee, and was never reintroduced. GM's assets were sold in a section 363 sale . Because the price that these assets were expected to sell for was very high, there was expected to be only one bidder in the auction, a new company NGMCO Inc. This company had been formed by the United States government with a 60% stake, the federal government of Canada and provincial government of Ontario with
12636-682: Was known for its 'no-haggle' sales technique. Saturn marketed itself as a "different kind of car company" and operated quasi-independently from its parent company, —comprehensively introducing a new car, dealer network, pricing structure, workforce and independently managed manufacturing plant in Spring Hill, Tennessee . The first cars themselves launched five years after the company's inception, and they advanced GM's spaceframe construction—manifesting Saturn's market proposition with their dent-resistant polymer exterior panels. Over time, as Saturn drained resources from GM's extensive brand network,
12753-478: Was left as the most original Saturn production, albeit even that used both global GM and Honda engines rather than in-house designs. Production of the Saturn ION was temporarily stopped for three weeks in 2003 due to Saturn dealerships having an overstock of ION vehicles. The Saturn L-Series was discontinued after the 2005 model year due to poor sales, one year after Oldsmobile had been discontinued. In 2007,
12870-421: Was nearly out of cash, and may not survive past 2009. The U.S. Senate voted and strongly opposed any source of government assistance through a bailout bridge loan (originally worth $ 14 billion in emergency aid) which was aimed toward helping the struggling Big Three automakers financially, despite strong support from President George W. Bush and President-elect Barack Obama , along with some mild support from
12987-574: Was offering existing Saturn owners up to US$ 2,000 in incentives to purchase a new Chevrolet, Buick, Cadillac, or GMC vehicle until March 31. Customers were required to have owned their Saturns for at least six months and were not required to trade them in to be eligible for the incentives. Saturn Authorized Service Providers were introduced since the closing of the Saturn brand, available at GM dealers. Saturn Authorized Service Providers are responsible for all aspects of service, including warranty service, on Saturn vehicles. Saturn's last vehicle models were
13104-634: Was replaced by Fritz Henderson . In announcing that plan, on March 30, 2009, President Obama stated that both GM and Chrysler may need to use "our bankruptcy code as a mechanism to help them restructure quickly and emerge stronger". He also announced that the warranties on cars made by these companies would be guaranteed by the U.S. Government . March 31, 2009: President Barack Obama announced that he would give GM 60 additional days to try and restructure their company and prove their viability. If they succeeded, Washington would provide General Motors with additional bridge loans. However, if GM could not meet
13221-450: Was said to be aesthetically similar to an SL2, however it would sport the front bumper and retractable headlamps featured on the SC2 models. It was to be powered by a 2.5L inline 6 with five valves per cylinder, which would reportedly output roughly 250 horsepower (186 kW; 254 PS). The first significant change in Saturn's lineup came with the 2000 Saturn L-Series mid-size car. It shared
13338-495: Was scheduled to close in the third quarter of 2009, subject to customary closing conditions and regulatory approvals; financial terms of the agreement were not disclosed. Chinese regulators refused to allow for the purchase of the brand and GM decided on February 24, 2010, to retire the brand. Despite the failed sale, GM discussed entertaining interest in part of the Hummer brand, subsequently made no effort in that direction, leaving Hummer to close. On June 5, 2009, GM announced that
13455-518: Was separate from the rest of GM. Results at Saturn were more doubtful than positive. According to The Wall Street Journal , the project was too ambitious, as "everything at Saturn is new: the car, the plant, the workforce, the dealer network and the manufacturing process. Not even Toyota , a highly successful and experienced automaker, tackles more than two new items on any single project." While Saturn cars proved popular and successful in forming emotional connections with buyers, actual sales never met
13572-574: Was the second discontinuation of a major GM brand in the 21st century, after Oldsmobile (which ended production in 2004). May 4, 2009: German Economy Minister Karl-Theodor zu Guttenberg said Fiat (among others) might be interested in the GM European unit. June 1, 2009: GM filed for Chapter 11 Bankruptcy , the fourth largest filing in the United States history after Lehman Brothers , Washington Mutual , and Worldcom . On June 29, 2009, General Motors announced that they would discontinue
13689-407: Was the third such action for GM in the 21st century, following those of Oldsmobile , which ceased production in 2004, and Pontiac, which ended production for the 2010 model year by the end of 2009. General Motors announced in June 2009 that it was selling the Saturn brand to Penske Automotive Group . The arrangement was similar to the deal under which Penske distributes Daimler AG's Smart Car in
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