Max Auto Updates - 19/05/2010

Chrysler Financial repays $1.9 billion in loans



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Chrysler Holding, the current owner of Chrysler Financial and former owner of the auto-making division, has repaid $1.9 billion of a $4 billion bailout loan provided by the U.S. government. The repayment helps to lift a $2 billion lien on Chrysler Financial held by the government, allowing Chrysler Holding to either expand the financing arm, wind it down or sell it off.

While Chrysler and the Government claim this to be a victory of sorts, the reality is not much to write home about. The U.S. government will likely lose at least $1.6 billion on the total deal, though previously the administration thought they would lose not recover any of the $4 billion loan package.

Trying to remain optimistic, a spokesman for the Treasury Department told the Detroit News, "[the repayment] is significantly more than the Treasury expected to recover on this loan."

The holding company is owned by Cerberus Capital Management LP, the private equity business that snapped up over 80% of Chrysler and Chrysler Financial in 2007. Neither Cerberus nor Chrysler Financial responded to interview requests.

Meanwhile, the Chrysler Group, which owns the automaker and was spun off last year after Chrysler went into bankruptcy, still owes $5.7 billion to the U.S. government and $1.2 billion to the Canadian government. This does not include $2.4 billion in loans that were approved but untapped. The Chrysler Group is partially owned by the United States, and is expected to repay all of its outstanding government debt by 2014.

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General Motors back in the black



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First it was Ford, now it's GM that is finally back in the black.

GM turned its first quarterly profit since emerging from bankruptcy last June - with a net balance of $865 million (€705 million) for the period January to March 2010 attributable to stockholders.

The new GM is also in a much healthier financial state with $35.7 billion (€29 billion) in cash and other easily convertible securities on hand and revenues of $31.5 billion (€26 billion) for the quarter.

The Detroit-based automaker is growing its sales in North America as the automotive market there is rebounding after the economic crisis that crippled car sales in late 2008 and much of 2009. GM North America profits were $1.2 billion (€973 million) for the quarter. GM International Operations also posted a $1.2 billion net gain.

"In North America we are adding production to keep up with strong demand for new products in our four brands," said GM's vice chairman and CFO Chris Liddell.

But getting to GM's stated goal - an IPO - remains a challenge. GM Europe is still losing money, reporting a $500 million (€406 million) loss for the quarter.

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Gemballa HQ closes its doors, founder still lost

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Tuning firm Gemballa has closed, following the disappearance of its founder Uwe Gemballa.

While details remain scarce, Gemballa went from earning €16.2m in 2007 to €8m in 2009. While this is understandable, given the global economic recession, it appears "dubious" transactions put added strain on the company. By January 2010, fearing collapse was imminent, Uwe decided to seek out investors in Dubai and South Africa.

On February 8th, Uwe arrived in Johannesburg for a two-day business trip. On the evening of February 9th, Uwe called his son and told him he had an accident and desperately needed one million dollars. It was the last time he was heard from.

So what happened to Uwe Gemballa? No one really knows. Speculation is rampant, citing everything from a planned disappearance to a ransom plot gone awry, but police believe Uwe fell victim to a crime.

Uwe's mysterious disappearance and the subsequent closing of his company, has left a large hole in the tuning world. Gemballa was best known for producing over-the-top supercars like the €300,000+ Mirage GT Matt Edition which we affectionately called a stealth bomber with a Porsche logo (it was based on the Carrera GT).

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BMW X6 M by AC Schnitzer



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Famous BMW tuning specialist AC Schnitzer has applied its expertise to the benefit of the BMW X6 M. The sporty coupe SAV has been treated to a complete exterior and interior kit, as well as performance-enhancements.

Among the listed performance upgrades are the delimiting of the Vmax, which means no more 250km/h speed restriction and the inclusion of a sports exhaust. Power figures are not available but AC Schnitzer says the increase will be noticeable.

Exterior garb includes a front spoiler, design elements for the front skirt, a chromed front grille, a chromed centre bar for bonnet vents, a rear roof spoiler and a rear diffuser. A really cool feature is the optional new AC Schnitzer Bonnet Top made from carbon fibre. It features a panoramic window through which the engine can be viewed. Customers can choose among the various wheel and tyre combinations featuring 20, 22 or 23-inch wheels.

Inside the X6 M by AC Schnitzer has a revised instrument panel with speedometer pointing up to 360km/h, some red lighting, white dials, a special steering wheel, aluminium footrests and velour foot mats on its menu.