The company is betting that a refreshed product line, coupled with cost savings, will be enough to attract new buyers and restore profitability.

2010

July 27: General Motors Co.'s planned $3.5 billion purchase of auto lender AmeriCredit Corp., which received largely favorable reviews in Detroit, gets a much cooler reception in Washington. Chuck Grassley, R-Iowa, calls for an investigation into why GM is using cash to buy a subprime lender instead of to pay back the government. - Lou Whiteman

July 23: General Motors Co., fresh off announcing a deal to strengthen its financing operations, is close to finalizing plans to launch an initial public offering it hopes to complete before the November elections. - Lou Whiteman

July 7: GM says that it will sell its Saginaw, Mich.-based steering business Global Steering Holdings LLC to an entity established by two Chinese firms. Terms of the deal were not disclosed, but media reports put the value at about $450 million. - Lou Whiteman

June 23: General Motors Co. is poised to register for an initial public offering as early as next week, with a goal of going to market prior to the November elections. - Lou Whiteman

June 10: Germany turns down General Motors Co.'s request for $1.3 billion in aid for its money-losing Opel division, forcing the automaker to seek new ways to reorganize the unit, Bloomberg reports.

June 7: Spain's central government and the Aragon regional government pledge €300 million ($358.2 million) for Opel's restructuring, part of GM's continentwide push for state help. General Motors is seeking a total of €1.9 billion in state loan guarantees and, in addition to Spain, has won or is close to winning pledges totaling €500 million from the U.K., Poland, Austria and Hungary. - Lou Whiteman

June 4: General Motors Co. says that it has set up its own venture capital subsidiary seeded with $100 million to invest in promising automotive technologies. The company said General Motors Ventures LLC would focus on areas including cleantech, smart materials and so-called infotainment, products that might complement the automaker's OnStar safety and navigation system. - Lou Whiteman

Apr. 20: General Motors Co. gears up to announce plans to repay the remaining $5.8 billion in loans owed to the U.S. and Canadian governments, a key step in the automaker's quest to move beyond its controversial 2009 bailout and prep itself for an initial public offering. - Lou Whiteman

Mar. 25: General Motors Co. says it expects to make a $1 billion loan payment to the U.S. Treasury in the coming days, keeping the company on pace to potentially launch an initial public offering by year's end. - Lou Whiteman

Mar. 2: General Motors Co. says it will triple the contribution it would make to the €3.3 billion ($4.5 billion) restructuring of its Adam Opel GmbH European division. - Andrew Bulkeley

Feb. 25: General Motors Co. says that it will shut down its Hummer brand after a deal to sell the unit to a Chinese firm collapsed. - Lou Whiteman

Feb. 23: Stephen Girsky, who in the past has provided counsel to investors, unions and managements on how to best run an auto company, is appointed vice chairman of corporate strategy and business development.

In addition, ex-CEO Fritz Henderson, who was ousted in December, will be retained as a consultant working 20 hours a month to help fix GM's international operations. According to The Deal's Lou Whiteman, "it is possible Whitacre wants Henderson around to provide some institutional memory concerning Opel's plight."

Feb 12: The $400 million acquisition of iconic Swedish carmaker Saab Automobile AB by the Netherlands' Spyker Cars NV from GM shifted into high gear Friday, Feb. 12, after shareholders signed off on the agreement and the European Investment Bank approved a proposed €400 million ($544 million) loan. - Andrew Bulkeley

During an extraordinary shareholders meeting at the company's headquarters in Zeewolde, Netherlands, Spyker investors gave CEO Victor Muller permission to buy the struggling maker of the 9-3 and 9-5 sedans from owner General Motors Co.

Feb. 9: The CEO of Adam Opel GmbH, a subsidiary of GM, said the company intends to invest €11 billion ($15 billion) by 2014 to complete the turnaround. About €2.7 billion of that total is expected to come from loans and guarantees from European governments, but with GM's U.S. funds off-limits, the rest will have to come via improved sales and better profit margins. - Lou Whiteman

Feb 2: Spyker Cars NV, the agreed buyer of Saab Automobile AB, said that it still needs $24 million in financing to acquire the General Motors Co. unit. Expressing optimism that it would rustle up the funds, Spyker outlined its plan to reposition the iconic Swedish carmaker to compete with other European luxury brands and return to profitability by 2012. - Andrew Bulkeley

Feb. 1: General Motors Co. has agreed to push back a deadline to complete a deal to sell its Hummer brand to Sichuan Tengzhong Heavy Industrial Machinery Co. Ltd. to allow more time for the Chinese company to seek government approval. Detroit-based GM put Hummer on the block early last year as part of its broader restructuring effort. - Lou Whiteman

Jan. 26: Spyker Cars NV on Tuesday struck an outline deal to buy Saab Automobile AB from General Motors Co. Under the terms of the preliminary deal, Spyker would pay GM $74 million in cash and $326 million in preferred shares of a new entity created with the deal, Saab Spyker Automobiles. - Andrew Bulkeley

Also today, General Motors Co. named interim chief executive Ed Whitacre as permanent CEO.

2009

Dec. 8: Saab officials insist buyers are lining up: Officials with Saab Automobile AB reiterated hopes that a buyer can be found to keep the company alive as a new round of reports surface that parent General Motors Co. is considering selling select assets of the unit and liquidating the rest. - Lou Whiteman

Dec. 4: General Motors Co. interim CEO Ed Whitacre Jr. wasted little time putting his stamp on the company, announcing a management shake-up just days after the company's chairman accepted the resignation of former chief executive Fritz Henderson. - Lou Whiteman

Dec. 1: GM's Henderson out; Saab dangles: Fritz Henderson is stepping down as CEO of GM. Chairman Ed Whitacre will take over on an interim basis for Henderson, a 25-year company veteran who got the job in March when President Obama's automotive task force removed CEO Rick Wagoner. - Lou Whiteman

Nov. 24: GM announced that Swedish high-end sports car manufacturer Koenigsegg Automotive AB backed away from its agreement to purchase domestic peer Saab Automobile AB. - Andrew Bulkeley and Lou Whiteman

Nov. 18: Saab sale is off: Ron Bloom, the head of the White House automotive task force, reiterated the government's desire to reduce its majority stake in General Motors Co., telling Reuters the automaker could launch an initial public offering before the end of 2010. - Lou Whiteman

Nov. 16: Detroit-based GM said it lost $261 million before special items on sales of $28 billion in the quarter, which began on July 10 when the automaker emerged from bankruptcy. - Lou Whiteman  

Nov. 13: Opel workers not likely to get their 'AG' status:  CEO Fritz Henderson, trying to soothe Adam Opel GmbH employees infuriated by General Motors Co.'s decision to retain Opel, says he's willing to give the unit a certain amount of autonomy. - Sara Behunek

Nov. 9: GM CEO in Germany to talk about fixing Opel: General Motors Co. CEO Fritz Henderson kicked off a sales challenge worthy of the slickest used car dealer on Monday, traveling to Germany to meet with leaders of the company's Adam Opel GmbH unit to discuss the European automaker's future inside of GM. - Lou Whiteman

Nov. 6: GM revamps Opel management for restructuring: General Motors Co. appears set to bring in a new team to lead the overhaul of its German Adam Opel GmbH unit. - Lou Whiteman

Nov. 4: What statement is GM making?: General Motors Co.'s decision to renege on its plan to sell its Adam Opel GmbH European unit to Canadian auto parts maker Magna International Inc. (NYSE:MGA) is a strong statement from the board that it is running the show at GM, not the U.S. government. - Sara Behunek

Oct. 27: Fisker buys old GM facility: As expected, venture funded Fisker Automotive Inc. announced the purchase of a production facility in Wilmington, Del., from the old General Motors, known Motors Liquidation Co., which is still in bankruptcy. Overseeing the announcement was a parade of Delaware politicians including Vice President Joe Biden, a former senator from Delaware; a gaggle of United Auto Workers members; and founder Henrik Fisker. - Matthew Wurtzel

Oct. 14: Opel and Russia's automotive future: With the sale by General Motors Co. of a majority stake in Adam Opel GmbH now looking like it will finally close, the Financial Times on Wednesday published a big article on an underexamined element of the deal: the partnership between Magna International Inc. (NYSE:MGA) and Russia's OAO Sberbank, which together are buying the stake. - Kenneth Klee

Sept. 30: GM, dealers, take to the Web -- with mixed results: General Motors Co. has pulled the plug on its much-ballyhooed experiment to sell cars on eBay, calling the seven-week program a success but suspiciously offering no sales figures. The automaker boasted 1.5 million visits to its special section on eBay Inc.'s (NASDAQ:EBAY) Web site, but it seems GM was unable to change typical auto customer behaviors like haggling in a showroom. Dealers were unimpressed, complaining that their staffers were left to sift through low-ball offers submitted via the Web site. - Lou Whiteman

Sept. 29: Rep. Hoyer plays politics with GM, Chrysler: As expected, politicians continue to play politics with government-owned General Motors Co. and Chrysler Group LLC. - Matthew Wurtzel

Sept. 29: GM Saturn sale near close; Opel not so much: General Motors Co. appears to be moving towards completing one divestiture key to its ongoing restructuring even as another sale faces fresh uncertainty. - Lou Whiteman

Sept. 18: GM pulls American Axle back from brink: American Axle & Manufacturing Holdings Inc. appears to have avoided the fate of many of its auto parts brethren, reaching a deal with former parent General Motors Co. to secure $210 million in support that the company hopes will allow it to avoid a bankruptcy filing. - Lou Whiteman

Sept. 10: GM's Opel headache not cured yet: After months of negotiations, General Motors Co. has finally made a decision about the fate of its Adam Opel GmbH subsidiary. But the jury is still out on whether GM has solved its European problem or simply created new headaches in selling 65% of the company to a consortium of Magna International Inc. (NYSE:MGA) and Russian affiliates along with labor groups. - Lou Whiteman

Sept. 8: IP questions surface in GM Hummer auction as well: Once again, patents and intellectual property concerns appear to be getting in the way of a planned General Motors Co. divestiture.

The automaker's planned sale of its gas-guzzling Hummer unit to Sichuan Tengzhong Heavy Industrial Machinery Co. has reportedly been delayed by China's Ministry of Commerce, with the ministry seeking details about whether Tengzhong is buying Hummer's patents or just the brand. - Lou Whiteman

Sept. 2: Opel opus from Spiegel lifts curtain on auction: As we've discussed here, the sale of Adam Opel GmbH by General Motors Co. has been a months-long saga with something for everyone -- a heady mix of business, finance and politics local, national and global. We've been thinking that if only someone could really get behind the scenes, especially in the German federal government, it would make a heck of a narrative. - Kenneth Klee

Sept. 1: Opel update: RHJ increases its bid: The day's M&A news wouldn't be complete without a development in the long-running auction of Adam Opel GmbH by General Motors Co. - Kenneth Klee

Aug. 31: GM, Opel and Germany's political calendar: Over on Automotive News Europe columnist Luca Ciferri has a good piece headlined "Seven reasons why GM is considering keeping Opel." - Kenneth Klee

Aug. 28: Talking and talking and talking about Opel: "Germany says talks with GM on Opel are far from over," says the Friday morning Reuters headline. Which means that discussions about the sale of the Adam Opel GmbH unit of General Motors Co. (NYSE:GM), already months old, could continue for many more weeks, beyond the September 27 German election that has loomed so large in process. - Kenneth Klee

Aug. 24: Do politics favor GM keeping Opel?: General Motors Co. should hurry up and sell its Adam Opel GmbH unit to Magna International Inc.: That is the message coming from German Chancellor Angela Merkel. - Kenneth Klee

Aug. 20: Who is buying old GM stock?: OK, if you're a day trader and see MTLQQ.PK, don't buy it. The government and folks at General Motors Co. have warned investors not to buy old GM stock, but the price is jumping and falling by 50 cents and more on some days. - Baz Hiralal

Aug. 17: Leaked GM memo details organizational changes:
A memo detailing a plethora of organizational changes at General Motors Co., leaked to jalopnik.com, shows the once bankrupt company will focus on more global alliances. - Baz Hiralal

Aug. 12: GM-eBay: Promise & peril of selling cars on Web: What if ordering a Buick were more like ordering a laptop computer from Dell Inc. (NASDAQ:DELL)? You might like it. The new General Motors Co. might learn to like it too. - Kenneth Klee

Aug. 10: GM could go public next July, or not: With the new, streamlined General Motors Co. now out of bankruptcy, attention has turned to when the government-owned automaker will try to launch an initial public offering. And while its intention to do so is clear, the particulars of an offering are anything but. - Lou Whiteman

Aug. 6: Opel auction plot is thick, and rich in rumors: John Smith, the group vp who is General Motors Co.'s (NYSE:GM) chief negotiator for the sale of a stake in the company's Adam Opel GmbH unit, has some advice for people following this tangled auction: Don't believe everything you read in the press about it. Specifically, don't put much credence in reports that a deal with Magna International Inc. (NYSE:MGA) and its Russian partners, Sberbank and OAO Gaz, is close. - Kenneth Klee

Aug. 4 Comment from a coulda-been GM chairman: Interesting tidbit in Monday's Wall Street Journal curtain-raiser on the first meeting of the newly reconstituted board of General Motors Co.

The Journal quotes former Medtronic Inc. (NYSE:MDT) chairman Bill George on what GM chairman Ed Whitacre should be doing in the post. - Kenneth Klee

July 30: No Opel buyback, GM exec says on blog: On July 29 General Motors Co. group VP John Smith posted an update, saying (among other things) that no, "GM does not seek to reacquire majority control of Opel, from any investor candidate." Left standing are Tuesday's complaints about the Magna bid -- and, perhaps, some German suspicions that GM really does have a preference. - Kenneth Klee

July 29: Opel auction gets even more public -- and heated: There haven't been many auctions like the one for the Adam Opel GmbH unit of General Motors Co. We've commented before on the way that GM's global restructuring and the participation of the German government at federal and state level have made this an unusually public process.

Now, as it nears the finish line, it's getting even more so -- to the point where the German government has just asserted its right to have the final say in the process, according to Bloomberg. - Kenneth Klee

July 22: Publicis' GM exposure is less than anticipated: Publicis Groupe SA's (OTC:PUBGY) damage from General Motors Corp.'s Chapter 11 filing won't be as bad as originally estimated. The Paris-based advertising agency now says it's owed $12.8 million by GM following its bankruptcy. That's a large decrease from numbers that floated around in June when GM said it owed Publicis and its media agency subsidiary Starcom MediaVest Group $148 million while the French company said at the time the number was closer to $78 million. - Gerald Magpily

July 20: No Opel buyback for GM, says econ minister: With final bids due July 20 in the auction of the Adam Opel GmbH unit of General Motors Co. -- details here for The Deal Pipeline subscribers -- the financial buyers, RHJ International SA, have a hill to climb if they're to beat out the preferred bidder, Canadian parts maker Magna International Inc. (NYSE:MGA) and its Russian partners Sberbank and OAO Gaz. - Kenneth Klee

July 17: House committee digs deeper into auto restructurings: A House committee on Friday approved a resolution requesting the White House turn over all relevant information about its role in the restructuring of General Motors Corp., Chrysler LLC and Delphi Corp. - Lou Whiteman

July 15: Nummi's days numbered?: Toyota Motor Corp. is reportedly leaning toward shuttering the New United Motor Manufacturing Inc. plant in California instead of retrofitting it to continue production now that joint venture partner GM has walked away. - Lou Whiteman

July 15: Hummer deal review begins in Beijing: The purchase of  Hummer by Sichuan Tengzhong Heavy Industrial Machinery Co. Ltd. may turn out to be OK with Chinese regulators. And then on the other hand, it may not.

As you'll recall, GM in June signed a memorandum of understanding to sell the brand to Sichuan Tengzhong, a private Chinese company with no experience in auto-making. - Kenneth Klee

July 13: Toyota could shutter Nummi plant: Just weeks after GM exited the Northern California New United Motor Manufacturing Inc. joint venture, partner Toyota July 10 said it might have to do the same. - Lou Whiteman

July 13: Opel suitors are speaking up: What's going on behind the scenes in the auction of GM's Adam Opel GmbH we can only guess. But it's probably safe to say that the sellers are both busy and encouraged. Because what's going on in public is that the potential buyers are speaking up about their offers, presumably to enhance their standing in this very public auction. - Kenneth Klee

July 10: Gordian's Kaufman on GM's rebirth: GM emerged from Chapter 11 at 6:30 a.m on July 10. I spoke to Gordian Group LLC's,  president and head of restructuring and distressed M&A, Peter Kaufman, who we interviewed back in June before GM filed for bankruptcy, about the automakers' re-emergence from Chapter 11. - Maria Woehr

July 10: New tech key for new GM: How will GM compete with rivals in the hybrid and electric car market? At a press conference on Friday in Detroit, chief executive Fritz Henderson stressed that fuel efficiency and the technology around it will be a major pillar in GM's new strategy. - Baz Hiralal

July 10: Karl Rove: Whitacre an 'astute pick' for GM: At 9 a.m. EST on July 10 GM CEO Fritz Henderson held a press conference on its exit from bankruptcy. As we detail on The Deal Pipeline (subscription required), incoming chairman Ed Whitacre was on hand as well.

Whitacre's presence is important -- for political as well as business reasons. - Kenneth Klee

July 10: GM speeds out of bankruptcy: In what would be a record round trip for a company its size, multiple news reports say that the new GM emerged from Chapter 11 on the morning of July 10 at 6:30 a.m., when the papers transferring most its assets from the old debt-laden GM to the new slimmed down GM were signed. - George White and John Blakeley

July 9: An appeal of GM's sale is a nonstarter: GM remains on track to sell a majority of its assets to a U.S. Department of the Treasury-sponsored purchaser by Friday after a Manhattan judge late Tuesday denied motions to halt the sale and appeal directly to the 2nd Circuit Court of Appeals. - John Blakeley

July 7: BAIC: Big plans for Opel in China: More details have been reported about Beijing Automotive Industry Holding Corp.'s eleventh-hour bid for GM's Adam Opel GmbH European unit. In its approach, the Chinese automaker said it was ready to sink $2 billion into Opel's first plant in China, which would open in 2012 and produce cars tailored to the local market, according to Tuesday reports by the Financial Times and Reuters. - Andrew Bulkeley

July 6: Opel's Chinese suitor: In the lead to buy GM's Adam Opel unit is Canadian parts supplier Magna International Inc. (NYSE:MGA), partnering with Russia's OAO Sberbank (and perhaps with Russian automaker OAO Gaz, which may be making GM uneasy). Brussels industrial investor RHJ International SA has also submitted a nonbinding offer. - Kenneth Klee

July 6: Judge's decision approving GM restructuring:  The judge in GM's bankruptcy issued an order giving the carmaker the go-ahead to sell all of its assets to a new company. In the decision Judge Robert E. Gerber of the Federal Bankruptcy Court in Manhattan overruled 850 objections to the restructuring plan, saying that management's restructuring plan was the only alternative to liquidation. - George White

July 2: As new GM takes shape, another call for gas tax:  The deadline is July 10. The Feds won't fund bankrupt GM past then, we learned July 1, so unless the court approves a 363 sale and the creation of the new GM by, let's see, a week from July 3, we're looking at liquidation. This and much more about what happened in court July 1 you can learn in our report in The Deal Pipeline (subscription required). - Kenneth Klee

June 30: Toyota's Nummi dilemma: GM's decision to drop out of a California joint venture has created a difficult decision for partner Toyota Motor Corp.

Bankrupt GM said June 29 that its 50% stake in the New United Motor Manufacturing Inc., or Nummi, facility in Freemont would not be part of the revitalized company that comes out of Chapter 11. GM and Toyota have worked together at Nummi since 1984, when Toyota first invested in the plant. - Lou Whiteman

June 29: GM speculation about Opel, Toyota continues: The day before GM's bankruptcy sales hearing is set to begin, rumors and speculation about its involvement with Adam Opel GmbH and Toyota Motor Corp. (NYSE:TM) have bubbled again. - Matthew Wurtzel

June 23: Ad firms waiting for GM's check in the mail: Advertising-related firms who are owed millions in fees from bankrupt GM may have to wait longer than other creditors to get paid. The auto parts suppliers on the troubled carmaker's critical vendor list will be first in line for payment, according to CNN, which will come as a blow to firms like Starcom Mediavest Group, which is owed $121 million and is GM's largest creditor. - Gerald Magpily

June: 19: GM reportedly still talking to other bidders about Opel: GM, despite striking a tentative deal to sell a majority stake in Adam Opel GmbH to Magna International last month, continues to hold discussions with rival suitor Ripplewood Holdings LLC, according to a report on the London Times' Web site. Magna, along with Russia's Sberbank, was named the preferred bidder subject to completion of due diligence after beating out both Ripplewood and Italian automaker Fiat SpA after offering to invest €700 million ($975 million) in the unit in return for a 55% stake. - Lou Whiteman

June 19: Mom & pop trip up GM restructuring:  The Chapter 11 proceedings of GM has hit a speed bump with bondholders -- but not from the hedge funds or pension funds that hold millions of dollars in its bonds. Instead the bankrupt carmaker faces off against a Connecticut accounting professor and his wife who hold $400,000 of GM's bonds, the value of which would be mostly wiped out in a restructuring that would give bondholders only 10% of the new company. - George White

June 18: Detroit insider Girsky named to GM board: Stephen Girsky, a one-time Wall Street analyst who now runs his own consulting firm, was named June 18 to the board of a revitalized GM as a representative of the United Auto Workers. - Lou Whiteman

June: 18: GM: Clubbed by reality, says prof: Will the much-lamented insular culture at GM finally change? Possibly, says Marina Whitman, a professor the University of Michigan's Ross School of Business and a former chief economist at GM. - Kenneth Klee

June: 16: Koenigsegg latest unknown to buy GM asset: The bankruptcies of Chrysler LLC and GM seem to have flushed out of the garage every name in the industry looking to scavenge for parts. The latest to drive out is Swedish supercar specialist Koenigsegg Automotive AB, which has agreed to purchase GM's Swedish brand Saab Automobile AB for an undisclosed price. - Matthew Wurtzel

June 12: Honda open to GM partnership: Japan's second-largest carmaker Honda Motor Co. Ltd., which just celebrated 50 years in the U.S., said it wasn't interested in buying any GM or Chrysler assets, but it would be open to sharing hybrid and other technology. - Baz Hiralal

June 10: Pontiac isn't dead yet: Given the uncertainty surrounding its various brands, GM issued a 2010 GM Product Guide to help its customers sort out what cars will be available when the model year turns over this fall. And buried at the bottom -- a mention of the 2010 Pontiac Vibe, the only 2010 model from the doomed brand. - Matthew Wurtzel

June 10: The many perils of mixing gov't and business: The Obama administration says it has intervened in the auto sector only out of dire necessity, and looks forward to a businesslike restructuring and getting out as soon as possible. But as the bankruptcies and bailouts of Chrysler and GM move along, we are reminded daily of why it's so difficult to keep even the most well intended government incursion into the private sector on track. - Kenneth Klee

June 10: Investors want speedy payment on GM swaps: Traders are putting the pedal to the metal for the settlement auction of credit default swaps on General Motors Corp. A committee of dealers and investors are planning on holding the auction on June 12 to find out what issuers will have to pay out on the bankrupt automaker's bonds. - George White

June 9: Why Ed Whitacre as GM's new chairman?: OK, we're not even clear on what the board of the new GM is expected to do, if and when a streamlined version of the company exits bankruptcy. Still it's hard to resist setting down an initial reaction to the choice of former AT&T Inc. chairman Ed Whitacre as the nonexecutive chairman of the post-bankruptcy General Motors. - Kenneth Klee

June 9: Political blame game in GM restructuring: It will be some time before conclusions can be drawn as to the success of the restructuring of General Motors Corp. But a war of words between the political parties over how we got to where we are is already well underway. And while not directly related, the Supreme Court's move Monday to delay and possibly review the Fiat SpA-Chrysler LLC deal has surely helped to keep the tensions on the boil. - Lou Whiteman

June 9: Penske's different kind of car company:  Race-car-driver-turned-entrepreneur Roger Penske will try to create a really different kind of car company out of the hide of GM's Saturn unit, whose motto once was "a different kind of car company."

On June 5, Penske Automotive Group agreed to buy the Saturn brand from the bankrupt GM. Penske will reportedly apply a unique business model to auto sales. Penske will own the Saturn brand and look for manufacturers to supply a network of 350 independently-owned Saturn dealerships with products. - Matthew Wurtzel

June 8: GM's rebranding challenge: Does political ideology loom large in car-buying decisions? If not, the barking on the far right about boycotting products from "Government Motors" (see, for example, this Hugh Hewitt column) will probably soon give way to outrage about something else. - Kenneth Klee

June 5: China may block Hummer sale, Saturn sold: There are reasons to believe that China may block GM's sale of Hummer to Sichuan Tengzhong Heavy Industrial Machinery Co. Ltd., a private Chinese company.

And on June 5, GM agreed to sell its Saturn brand to the Penske Automotive Group. In a statement, GM said, if completed, the deal would save more than 350 dealerships and 13,000 jobs at Saturn and its retailers in the U.S. - Baz Hiralal

June 4: Penske reportedly wins Saturn auction: It appears a group headed by Detroit auto entrepreneur Roger Penske has won the auction to acquire the Saturn brand and dealer network from bankrupt GM. GM put Saturn on the block earlier this year after the brand was not deemed essential as part of the automaker's efforts to restructure. - Lou Whiteman

June 4: Sberbank buys Opel stake to sell it:  Let's be honest: Owning a stake in a wobbly car company in this global economy is not for most corporations. The chief executive of Russia's Sberbank on Thursday told Reuters his lender had no plans to remain a long-term investor in Adam Opel GmbH, General Motors Corp.'s European unit. - Andrew Bulkeley

June 4: Romney to save GM?: The Atlantic published an interesting suggestion or what it called a "modest proposal" for the Obama administration: Call upon Mitt Romney to save GM. - Matthew Wurtzel

June 3: GM lays down the law with its dealers: In a move not likely to endear the company to its new majority owners -- the U.S. government -- GM has reportedly sent its 6,000 dealers a letter demanding they go along with the company's restructuring plans ... or else. - George White

June 3: Magna not bidding on Saturn:Despite the fanfare surrounding the idea that Canadian auto parts maker Magna International could make a bid for GM's Saturn castoff, it seems the idea is a nonstarter. - Matthew Wurtzel

June 3: GM Ch. 11: Gordian's Kaufman on govt intervention:The federal government's actions in the bankruptcies of Chrysler LLC and General Motors Co. could have far-reaching implications for dealmaking. So says Peter Kaufman, president and head of restructuring and distressed M&A for Gordian Group LLC. - Suzanne Stevens

June 2: Hummer a rocky deal for Sichuan Tengzhong?: With reports that Chinese truckmaker Sichuan Tengzhong Heavy Industrial Machinery Co. Ltd. has won the auction for bankrupt General Motors Corp.'s Hummer truck business, thoughts about nationalism are bubbling up in the media. - Matthew Wurtzel

June 2: GM: What kind of company two years out?: Assuming the financial and industrial pieces all fall into place and GM successfully exits bankruptcy and manages to operate without too much  government micromanagement, who will design and market the cool cars that will be needed for a comeback? To put it more broadly, can a government-sponsored bankruptcy really be a crucible for a reborn and newly nimble company? - Kenneth Klee

June 2: GM signs MOU for Hummer sale: GM signed a preliminary agreement with an unnamed buyer to sell its Hummer brand, the symbol of gas guzzling excess that helped push it into bankruptcy. The automaker filed for Chapter 11 on Monday and received permission to sell some assets. - Baz Hiralal

June 1: GM's Ch. 11: Gordian's Kaufman on the road ahead: Peter Kaufman, president and head of restructuring and distressed M&A for the investment bank Gordian Group LLC, says opposition to a GM reorganization could be larger, more organized and more vocal than Chrysler dissenters. - Suzanne Stevens

June 1: Magna chair's comments fuels Saturn rumors: Comments Magna International Inc. chairman Frank Stronach gave Canada's leading newspaper The Globe and Mail suggest he is serious about plans to turn his 52-year-old company into a major automaker following its purchase of a 20% stake in GM's Opel unit. - Matthew Wurtzel

June 1: GM bankruptcy by the numbers: GM listed $82.29 billion in assets and $172.81 billion in debts in its prepetition filing, making it the fourth-largest bankruptcy by asset size -- the common measure of bankruptcy -- behind Lehman Brothers Holdings Inc., Washington Mutual Bank FSB and MCI Worldcom. - Matthew Wurtzel

June 1: Media industry feels pain of GM bankruptcy: Advertising agencies, newspapers and magazines, television and radio stations, and Web sites will lose hundreds of millions in GM advertising dollars from the fallen American industrial icon. - Gerald Magpily

June 1: The Deal and GM: You read it first here: GM skids, as expected, into bankruptcy, a shock only to those who haven't been paying attention and to the mass media, which has to manufacture surprise for those who haven't been paying attention. It may be less than dignified, but let me say it anyway: We told you so. Not once, but twice. - Robert Teitelman

June 1: GM finally attracts some high-pots: There's no little irony in the reports we've been seeing over the past few days on the Obama administration whiz-kids who have been focusing their attention on the problems of GM and Chrysler. The Wall Street Journal introduced us to a 37-year-old former hedge fund guy called Harry Wilson. The New York Times points to a 31-year-old Yale Law dropout named Brian Deese. - Kenneth Klee

June 1: PE firms exposed to GM filing: In GM's bankruptcy petition filing, the company listed its 50 largest unsecured creditors. The 29th- and 45th-largest unsecured creditors listed are Warburg Pincus and Sun Capital Partners Inc. The claims, which are listed as trade debt, are rather small, with Warburg Pincus' at $10 million and Sun's at $4.7 million. - Matthew Wurtzel

June 1: Auto bankruptcies, politics and dealer closings: With GM having joined Chrysler LLC in government-orchestrated and -financed bankruptcy, one question stands out: Can the restructurings proceed without major political meddling in what ought to be business decisions? - Lou Whiteman

June 1: GM in bankruptcy: What to watch: The widely expected news of GM filing for Chapter 11 bankruptcy has news outlets -- and Americans for that matter -- in a frenzy. GM will get $30.1 billion in financing as it cuts jobs and debt, and looks to a greener future. - Baz Hiralal

June 1: As expected, GM filed for Chapter 11 at 8 a.m.

May 29: Gordian's Kaufman on a GM bankruptcy: GM is expected to file for Chapter 11 bankruptcy protection on June 1, and Peter Kaufman, president and head of restructuring and distressed M&A at Gordian Group LLC, offered Dealscape some of his thoughts about the upcoming filing. - Maria Woehr

May 29: A GM bankruptcy filing made mundane: The entire bankruptcy bar, if not the entire nation, it seems, has been consumed with whether GM will file for Chapter 11 or not, and when. GM will most certainly file for Chapter 11 on June 1 amid much pomp and circumstance -- President Obama will likely give a speech, and there will be countless "location shots" of the U.S. Bankruptcy Court for the Southern District of New York in lower Manhattan. But we can't help but feel it will all be a little anticlimactic. - Ben Fidler

May 29: GM's expected Ch. 11 could drive up legal fees: GM's principal bankruptcy counsel, Harvey Miller at Weil, Gotshal & Manges LLP and Martin Bienenstock of Dewey & LeBoeuf LLP, will be rewarded handsomely based on previous high-profile bankruptcy cases such as Lehman Brothers Holdings Inc.'s filing in September. - Gerald Magpily

May 28: U.S. demand for cash hampers Opel rescue: German government officials emerged from a late-night meeting to review offers for GM's troubled European unit, Adam Opel GmbH, highly critical of U.S. government negotiators and their unexpected demand for more cash. - Andrew Bulkeley

May 28: Payday! GM pays 90,000 workers early: To help put the minds of its employees at ease, the troubled automaker paid 90,000 workers early this week so that no one would think that Chapter 11 meant they would get stiffed. - George White

THE LONG AND SHORT OF 60 DAYS

May 28: Saturn bidder assembles team of auto industry vets: Telesto Ventures, one of the bidders vying to take control of General Motors' Saturn brand and dealer network, has reportedly assembled a team of auto industry veterans that they hope will have a chance to give the left-for-dead GM unit a second life. - Lou Whiteman

May 27: GM bondholders drive markets off cliff: GM's bondholders weren't able to reach a deal with the automaker under its debt exchange offer, which came in under the 90% threshold required by the U.S. Treasury to satisfy GM's debt reduction requirements. The exchange offer expired at midnight on May 26. The Detroit automaker has a June 1 deadline set by the U.S. government to restructure or begin the process of bankruptcy. Shares of GM closed down 29 cents, or 20.14%, to $1.15. - Gerald Magpily

Also, see: GM preps for date with Chapter 11 and history

May 27: GM's secured lenders breathe easier: Even as GM's restructuring efforts break down, it's come out that the automaker's secured bank lenders will manage to avoid the full brunt of the fallout if and when the company files for Chapter 11 bankruptcy. The secured lenders will fully recover their $6 billion in loans to GM, under the bankruptcy plan being finalized this week by the U.S. Treasury, two people familiar with the matter told The Wall Street Journal. - George White

May 26: UAW asks members for big concessions: The pain is growing as GM drifts closer to a Chapter 11 bankruptcy filing. The United Auto Workers union asked its members to make even more concessions on benefits and salaries in order to steer the automaker through its troubles. See the UAW letter here. - George White

Also see The Deal Pipeline: GM reaches deal with workers

Also see: GM Chapter 11: Only a matter of when

May 21: After infusion, GMAC remains $5.6B short of target

May 22: GM reaches deal with workers

May 20: Magna to replace Chrysler in Big Three?: Not only is Magna International Inc. preparing a bid for GM's Opel unit, but now it is considering a bid for U.S. brand Saturn. As Dealscape earlier noted, Saturn for the most part is the U.S. version of Opel with four of its five models having Opel analogs. A combined Opel-Saturn under Magna ownership not only makes sense for Magna, but also might make sense for the Obama administration's industrial policies. - Matthew Wurtzel

May 19: Saab says three bidders left: With no rescue from Sweden, Saab Automobile AB filed for bankruptcy in February and now is making headway in pursuing an independent strategy, saying three bidders for the former GM unit remain. In April, it had signed confidentiality agreements with about 27 potential suitors. - Baz Hiralal

May 18: Blueprint for compromise in GM/UAW dispute?: While much is being made of the chasm that separates GM and the United Auto Workers as they entered a new round of concession talks, there appeared to be at least a road map for the two sides to reach a compromise ahead of a June 1 deadline. - Lou Whiteman

May 15: General Motors cuts 1,100 dealers

May 15: GMAC Bank, it's time for a new name: Troubled lender GMAC officially changed a unit's name as affiliated business General Motors closed dealers and got closer to finalizing a deal with the United Auto Workers. -- Maria Woehr

May 15: Traction control: GM's West Coast technology outpost bridges the gap between Silicon Valley and Detroit. - Olaf de Senerpont Domis

May 14: GM speeds supplier payments

May 12: GM insiders sell shares, outsiders follow

May 7: Cross-border auto bailouts: More arguments ahead?: A dustup now underway in Britain could be the shape of things to come in the rapidly reconfiguring and economically challenged global auto industry. - Kenneth Klee

May 7: GM bleeds gallons of red in the first quarter; May 6: GM, Chrysler: Capital vs. labor, yet again; May 5: Union rejects GM restructuring plan; May 4: GM could take Delphi along for bailout ride

May 1: GM bondholders talk to Treasury and Now for the main event: Chrysler LLC's bankruptcy sets the stage for an even bigger public-private drama at General Motors. That's no accident. - Lou Whiteman

April 28: GM, Chrysler venue hunting Ch. 11 filings: A variable in a possible Chrysler or GM bankruptcy filing is where proceedings would take place: Detroit, Wilmington, Del., or New York City. - David Elman

April 28: General Motors' looming debt-swap showdown

April 27: GM surges on possibility of more government aid: GM rose 20% on potentially receiving further government aid after releasing plans for more restructuring that includes phasing out its Pontiac brand. - Gerald Magpily

April 27: White House gives GM restructuring plan thumbs up: The White House auto task force was careful to say it has made "no final decision regarding the treatment of its current loan to General Motors Corp. or with respect to any future investments in the company." But following the release of GM's new plan officials seem more satisfied the troubled U.S. auto giant is headed in the right direction. - Baz Hiralal

April 27: GM pulls out paring knife again and GM, Chrysler should file in Detroit

April 20: GM hopes to raise $652M to fund Opel recovery: GM reportedly hopes to raise at least €500 million ($652 million) to help fund the restructuring of Opel by selling a stake in the European carmaker. - Lou Whiteman

April 17: GM to issue update on revamp

April 14: GM's new chairman talks to media, warns of bankruptcy: GM interim chairman Kent Kresa warned a bankruptcy filing might be inevitable in a series of interviews that marked his first media blitz since stepping into his new role at the behest of the Obama administration. - Kenneth Klee

April 14: Treasury could convert GM debt; April 9: Hummer auction goes to the finish line; April 8: Automakers launch supplier aid program; and April 7: GM searches for more cost cuts and PUMA will save GM?

April 1: Obama may push GM asset sales while Bankruptcy may be White House's preferred path for GM, and White House auto advisers, like many Americans, prefer imports.

funds for cash-strapped automakers. But, are the short-term loans for automakers a waste?

GM and its fellow Big Three brethren had gone before Congress the first week of December to argue their case for a bailout. (See The Deal's live coverage of the House and Senate hearings.) The House passed a bill, but the bailout died in the Senate. 

Dec. 18: The Wall Street Journal said GM and Chrysler had reopened merger talks, something that started and stopped earlier in the fall. Chrysler denied the new talks.

Meanwhile, The Deal's bankruptcy crew believes a filing is inevitable and detailed how it might play out Dec. 15, (what it could cost and how long it could take). Deal contributor Marwil, argues a filing should be inevitable. 

Elsewhere, a USA Today survey finds that even bankrupt GM would have buyers. One thing's for sure: It's assembled an all-star team of bankruptcy advisers.

Meanwhile, GM's Robert Lutz said Dec. 8 he didn't want CEO Rick Wagoner to be a "sacrificial lamb," after calls for his ouster. Still, Dealscape explored some possibilities for a replacement.

Earlier: GM and Chrysler were reportedly rethinking prepack filings; it looked as if the sale of the automaker's corporate, which execs infamously flew in on to Washington to ask for a bailout, could be run into turbulence; and Wachtell, Lipton, Rosen & Katz chimed in on a possible GM bankruptcy filing. Meanwhile, UAW chief Ron Gettelfinger pledged support for the automakers, and GM said it may need $18 billion, up from $12 billion, to avoid a potential filing.

Congress hit the breaks on an earlier plan back in November. But as bailout and bankruptcy chatter continued, the company said Nov. 17 it sold its remaining stake in Suzuki Motor Corp. for nearly $230 million. Meanwhile, GM told dealers the check was in the mail; its finance arm GMAC filed for bank status, and Bank of America Corp. CEO Ken Lewis had some ideas about what to do with the Big Three.

According to reports, GM employees were bracing for more bad news, as the company planned to announce "important changes" alongside third-quarter earnings Nov. 7, The Deal's George White noted, citing an e-mail The Detroit News obtained. (GM unveiled additional initiatives to further boost liquidity by $5 billion by the end of 2009.) And Isuzu Motors Ltd. wasn't interested in buying the ailing car company's truck unit, which it's had on the block since plans to sell it to Navistar International Corp. fell apart. Isuzu, however, might consider a joint venture, The Deal's Lou Whitman wrote Nov. 5.

In October, it looked like a merger between GM and Chrysler could get a boost from the government, but that didn't work out. A Reuters report Oct. 27 indicated GM and Cerberus had asked the government for nearly $10 billion. Sources told Whiteman that GM was hesitant to do any deal that wouldn't help at least in part with the $15 billion in new liquidity the automaker seeks to help weather the downturn.

Meanwhile, GM's latest move to shore up some of that needed cash is to auction its ACDelco unit, which sells aftermarket parts. The carmaker brought in Merrill Lynch & Co. to advise, it said Oct. 22.

Meanwhile, GM hopes to sell off its Hummer brand in early 2009, its CFO said Sept. 3. Potential bidders may include a handful of unnamed Middle Eastern investors, which, like a private equity firm, could team with an emerging-markets automaker on a bid, Whiteman noted. A deal may not do much for the ailing U.S. automaker, Whiteman noted, whose sales are down 18.5% for the year and which reported a $15.5 billion quarterly loss Aug. 1, run over by restructuring charges and weak U.S. sales. 

The Aug. 1 earnings news came a day after Standard & Poor's cut its rating on the automaker and its Big Three peers Chrysler and Ford Motor Co., as expected, and weeks after GM unveiled a plan July 15 to boost liquidity $15 billion by the end of 2009 through a series of measures. The company said it would suspend its dividend, cut its salaried worker costs by 20%, and raise $4 billion to $7 billion through asset sales and raising funds through capital markets. The news came about a week after The Wall Street Journal suggested a restructuring was imminent and weeks after GM laid out plans to explore options for the Hummer brand and shutter some plants used in truck and SUV manufacturing.

Meanwhile, as talk of bankruptcy has swirled around the automaker, Whiteman explained that it's just not that easy.

GM, which lost $38.7 billion in 2007, the largest ever by an automaker, reiterated July 8 its only brand on the block is Hummer, Reuters reported, citing an e-mail from its North America sales chief to U.S. dealers. The news came a day after The Wall Street Journal reported that GM might cut thousands of white-collar jobs and could sell or kill some of its brands, beyond just Hummer. Whiteman wondered whether the Journal item was leaked to bump GM's fallen share price.

That news came in late June, weeks after GM unveiled plans to shutter four plants where trucks and SUVs are manufactured, and undertake a strategic review for Hummer, reportedly enlisting Citigroup Inc. for advice. And Bank of America Securities LLC thought it could plow through $14 billion by the end of 2010. But with those measures, the Detroit-based company hoped to save nearly $1 billion annually beginning in 2010.

Indian firms, Tata Motors Co. and Mahindra were in early June reported to be interested in Hummer, according to the Economic Times, which also pointed to Mahindra as a possible buyer for Chrysler's Jeep brand. The Aug. 18 report, however, said Mahindra was more interested in developing its own more environmental-friendly line.

Whiteman explained the model retooling: 

"GM is making the moves after an ill-fated bet that sales of SUVs and pickups, long the profit-center for domestic automakers, would hold up even as gas prices spiked. GE chief Rick Wagoner in a statement conceded that consumer tastes are shifting, prompting the Detroit-based automaker's realignment. ...

RETOOLING

GM in December 2007 announced a tentative deal to sell its division that makes medium-duty trucks to Navistar. Terms were undisclosed, but some analyst estimates said the unit was worth up to $500 million. The agreement was scrapped in August 2008, but the deal at the time, Whiteman noted, should have wrapped up the company's divestiture plan (later expanded), which included Allison Transmission Inc., control of its GMAC financing arm and stakes in a several foreign carmakers. (See more on Allison, GMAC and the stake sales below.)

GM in October signed its eighth joint venture with Shanghai Automotive Industry Corp. Group, or SAIC. Along with OnStar Corp., the two launched a telematics, or in-vehicle communications company, Shanghai OnStar Telematics Co. Ltd. GM was in August pondering a South American joint venture with Isuzu Motors Ltd. And it could, meanwhile, buy battery supplier Cobasys LLC as it continues a widely adopted push into hybrids and, in doing so, could potentially help itself, if it were successful in curbing problems at one of its suppliers.

In October, GM had an agreement that looked like it would help the company put its labor worries aside and be more competitive. A four-year contract agreement, which GM tentatively struck early Sept. 26 with the United Auto Workers, ended a landmark two-day strike that could have delivered a staggering blow to GM. (The UAW's talks with Chrysler, which followed GM's, temporarily resulted in a strike and later ended in four-year tentative agreement.)

GM unveiled further details of the agreement Oct. 15, saying it would shed $46.7 billion of its $64.3 billion retiree healthcare obligations, the balance of which was due to workers in other unions or salaried GM employees. The agreement, Whiteman noted, would leave GM with labor costs more aligned with foreign competitors. The automaker did get its way in seeking limits over a controversial program that allowed union members to continue receiving pay and benefits even when there weren't jobs available to them. GM positioned the labor deal as a way to make it more competitive. How competitive is another question.

THE TURNAROUND

The labor tangle could have thrown a serious wrench into GM's turnaround. The latest move to right its course came in late June 2007, with the sale of Allison Transmission for $5.6 billion to Carlyle Group and Onex Corp.

If GM is indeed beginning to turn things around, it's been a long road to get here. The tale of the embattled U.S. car company incorporates many harsh business realities: the decline in power of the once-mighty American union; the possible attempt to eliminate the burden of pensions and benefits through bankruptcy protection; and the messy fallout of a changing industry.

Hope for what may have signaled a new chapter in the company's story, a three-way alliance with Renault SA and Japan's Nissan Motor Co. Ltd., faded in early October 2006. It was a lost cause that highlighted the difficulty automakers would likely face in global M&A activity, particularly from labor, but signaled that such tie-ups may prove inevitable. Debate about the fate of the troubled automaker continued into November 2006, when activist investor Kirk Kerkorian, who had lobbied for the alliance, cut his 9.9% stake in GM to 7.4%, sparking talk anew about his intentions. Days later, he sold 14 million more shares in the automaker for $28.75 each for a return of more than $400 million.

Weeks earlier, the GM board rejected the alliance as it was structured, Kerkorian said he wouldn't seek any more GM shares and that his board representative Jerome York was stepping down, and GM's shares headed south. Published reports said GM was readying for war, having hired Goldman, Sachs & Co. and Morgan Stanley to defend it in the event of a Kerkorian-speared takeover attempt.

CORPORATE TUNE-UP

In 2005 analysts said GM would need to slash its labor-related costs to stay competitive. Enter Kerkorian.

The billionaire financier, who once was Chrysler's leading shareholder and is stepping up efforts to help with Ford's turnaround, first approached GM with an offer to buy 28 million shares for $868 million. He eventually landed 7.2% of shares through his Las Vegas investment company, Tracinda Corp., and later boosted his stake to 9.9%.

• Kerkorian on June 30, 2006, pushed management for a deal with Renault and Nissan. At the helm of both companies is Carlos Ghosn, himself responsible for Nissan's turnaround. Two weeks later, GM and Renault management agreed to review for 90 days a possible three-way alliance, though industry watchers questioned the real value of a deal.

Ahead of the failed Renault-Nissan talks, GM undertook a series of moves to both raise and save cash, after many months of burning through it.

• In June 2006 GM reached a significant milestone in its overhaul plan, with 35,000 workers agreeing to buyout and early retirement offers. Still, an industry source told The Deal at the time that while the attrition program was a positive sign, it would hardly matter if GM couldn't design automobiles that U.S. consumers would want to buy.
• One move to deliver the company a substantial chunk of change came in April 2006 when after months of negotiations, GM agreed to sell 51% of its finance subsidiary GMAC to a group led by Cerberus. In exchange, GM took $10 billion to help finance its turnaround plan. (In June 2008, Cerberus agreed to bail out GMAC, whose mortgage unit, Residential Capital LLC had piled up billions in losses. ResCap said June 3 that it would need $2 billion by month's end, up from $600 million. GMAC and Cerberus agreed to buy assets and guarantee debt for ResCap.)
• Also in April, GM said it would divest its stake in Isuzu for about $300 million. Terms called for GM to sell its 90.09 million shares in the Japanese car and truck maker for ¥397 ($3.34) each to Isuzu shareholders Mitsubishi Corp., Itochu Corp. and Mizuho Corporate Bank Ltd.
• In October GM cut ties with Subaru maker Fuji Heavy Industries Ltd., selling its 8.7% stake to Toyota for $315 million. In 2001 GM paid $1.4 billion for 20% of Fuji Heavy.

AND THEN THERE'S DELPHI

As U.S. automakers have suffered, so have auto parts companies, many of which found their way to bankruptcy. One particularly messy case has been that of former GM unit Delphi Corp., which filed for Chapter 11 on Oct. 8, 2005, having lost more than $700 million through the first half of that year. The company was headed for the exit earlier in 2008, until investors pulled out of its financing plan. (Meanwhile, May 4, 2009: Could GM take Delphi along for bailout ride?)

As The Deal's Ben Fidler wrote in late May 2008, Delphi on May 16 filed two suits against the investor group, led by Appaloosa Management LP, after it went back on a deal to support the Troy, Mich., parts maker's exit with $2.55 billion in financing. The other targets of the Appoloosa suit, which alleges the investors breached obligations when they backed out of the deal April 4, were Harbert Management Corp.'s Harbinger Capital Partners Master Fund I Ltd., Pardus Capital Management LP's Pardus Special Opportunities Master Fund LP, Merrill Lynch, Pierce, Fenner & Smith Inc. and Goldman, Sachs & Co. The second suit was directed just at UBS. GM offered to provide $2.8 billion of Delphi's $6.1 billion exit financing, to the displeasure of the named investors. Fidler explained:

"The investors' decision to back out, which came just as Delphi had at long last secured the $6.1 billion in exit financing it had been seeking, destroyed the company's hopes of emerging from Chapter 11 in early 2008 and forced it back to the drawing board.

"The group said in an April 4 letter announcing termination of the deal that Delphi had breached certain provisions of the agreement, and that it would have to pay the group $82.5 million, plus other expenses for moving on a so-called "alternate transaction." That alleged move involved General Motors Corp. playing a larger role in the exit financing package, of which the investors were wary. ...

"Appaloosa had battled for its position as lead investor in Delphi's restructuring for some time. [David] Tepper's hedge fund had beaten out fellow Delphi shareholder Highland Capital Management LP, which had been proposing an alternate restructuring deal for the parts maker. Delphi, however, rejected Highland's overtures and proceeded with Appaloosa."

The 2005 filing raised fears over provisions in Delphi's 1999 spinoff agreement that could force its former parent to assume the employee benefits of terminated Delphi employees as part of its reorganization. At the time, GM said that could cost it as much as $11 billion. Terms of the Sept. 6, 2007, settlement call for the automaker to take $2.7 billion in cash and the unconditional release of any claims against it in return for supporting Delphi's labor agreements. The settlement resolved many outstanding issues and cleared a major hurdle to Delphi's emergence from bankruptcy. Now it just needs the financing.

WILL THE ENGINE STALL?

A turnaround for any of the U.S. automakers is a tall order, especially in a sour economy. How much more bleak can the outlook get? Whiteman examined the question in April 2008.

"Though [staggering] losses have continued in recent years, GM's and Ford Motor Co.'s near-term bankruptcy risk has actually decreased, thanks to divestiture campaigns ... that have left both companies with billions in the bank. Additionally, a landmark concessionary deal reached with the powerful United Auto Workers union last Fall brought domestic automaker costs closer to foreign rivals.

"Both GM and Ford continue to undergo extensive transformations aimed at restoring their North American operations to profitability. But such overhauls take time and are subject to changing car buyer tastes and design fads. While bankruptcy appears unlikely for the time being, the pain and suffering the automakers are causing for investors shows little sign of letting up."

Is GM really too big to fail? The Deal's Terry Brennan wondered June 30 2008: