GM Marketing Mark LaNeve's Email to Dealers: Don't Worry, Be Happy

Robert Farago
by Robert Farago

Dear GM Dealers:

Last week, I sent you a note asking you for your support for the Advanced Technology Vehicles Manufacturing Incentive Program legislation. I wanted to thank you for the response you have shown to date and ask you to continue that effort. I also wanted to let you know about additional developments regarding GM’s liquidity position.

We’ve seen unprecedented upheaval in the global capital markets and GM is responding to ensure its ongoing access to capital to fund operations and the North America turnaround.

First, GM agreed last Friday with an existing institutional holder of its corporate debt to exchange $322 million worth of Series D bonds due to be repaid in June 2009 for 28.3 million newly issued shares of GM common stock. This exchange will save us money on debt repayment and interest expense and reduces the amount of debt currently on our balance sheet, a change likely to be greeted favorably by credit ratings agencies.

Secondly, GM has tapped the remainder of its $3.5 billion in its secured revolving credit facility. This facility has been in place since 2006 and allows GM to borrow funds at an attractive rate. Given the events in the banking industry in recent weeks, we felt it was most prudent to draw the funds now and have the cash on hand as the need for it arises. A portion of the funds will go toward approximately $750 million of retiring debt and, pending court approval, payments to Delphi in excess of $1.2 billion to aid in its reorganization efforts.

I also wanted to reassure you that the internal liquidity plans announced on July 15 are on track, and these latest actions are consistent with our intention to safeguard GM’s access to cash. We will continue to look to the capital markets and other sources of liquidity as opportunities become available. The economic outlook remains uncertain, but we are pursuing every avenue to guarantee GM’s ability to fund ongoing operations and to emerge from the recent downturn a stronger and more competitive company.

We appreciate your partnership in this effort and will continue to communicate with you about our activities as circumstances warrant.


Mark LaNeve

Vice President

Vehicle Sales, Service and Marketing

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2 of 9 comments
  • Eyeonthetarget Eyeonthetarget on Sep 23, 2008

    Doesn't really fill one full of confidence when a company with the size, history, and (former) prestige of a General Motors has to discuss finances in such a way as to assure their dealer body that they are still a going concern. The question is....going where?

  • Cal12345 Cal12345 on Nov 16, 2008

    With letters like this I know that dealers are no longer shaking in their boots. It's like "we are from the manufacturer and we are here to help." All I have to say to their propaganda is ___, sorry I do not care for profanity. I can't believe any dealer would care to write a letter on GM's behalf.

  • Jeanbaptiste The last time I used AM was in a Park area that said listen to 1300AM for water releases. That was a decade ago.
  • Ronin When you are driving cross country at night, and are totally bored, it's great to spin the AM dial and DX distant stations from hundreds and hundreds of miles away. It's something to do.On the other hand, the CONTENT of AM radio is abysmal. It's a trough of commercial after commercial after commercial. AM radio is destroying itself by thereby making itself unlistenable.
  • Dave M. I think I last listened to AM after 9/11, but the talk radio cesspool took its toll on my mental health. Prior to that I last listened to AM in the '70s....I'm a 20-year XM subscriber; Apple Music also has me in its grip. For traffic conditions I use Waze, which I've found to be highly reliable.
  • Art Vandelay Install shortwave so I can get numbers stations
  • THX1136 Radio World has been talking about this for a few years now. The public perception of AM has done much to malign it. As some have pointed out, there are parts of the country that work well with AM, especially when considering range. Yes indeed, there are options. To me that's what this is more about. The circuitry for AM is probably all on one chip now - or close to it. It cannot be a matter of cost - even at the inflated manufacturer asking price. Making what appears to be an arbitrary decision and reducing choice seems unwise in the area of radio in vehicles.Some have commented that they never listen to AM 'so I'm not missing it'. I'm guessing that many folks don't use ALL the features their many devices offer. Yet, they are still there for those occasions when one wants to avail themselves. Bottom line for me is it should still be an available option for the folks out there that, for whatever reason, want to access AM radio. Side note: Top 40 radio on AM was where all the music I listened to as a youth (55 years ago) came from, there were few (if any) FM stations at that time that carried the format. FM was mostly classical and talk and wasn't ubiquitously available in a portable form - AM was. FYI, the last I knew all stations - AM & FM - still have to have an EAS system as part of their broadcast chain. It's tested by the FCC at least once a year and all stations must be able to pass along the alert messages or face action from the FCC to correct the situation.