Lee Iacocca to lose pension and company car

We already know that Lee Iacocca, the man responsible for turning around Chrysler in the 1980s, is going to lose his life-long company car due to the Auburn Hills automaker’s bankruptcy filing.

Today, CEO Bob Nardelli told the U.S. bankruptcy court that Iacocca would also lose his pension since Chrysler will no longer have to pay it if gets bankruptcy court approval to sell itself as “Chrysler Group LLC,” which will be owned by Fiat, the U.S. and Canadian governments and its union.

Typically, Iacocca would be paid after secured creditors get their money but even secured creditors are not expected to get paid in full in the bankruptcy process.

Other former Chrysler executives will also lose their cars and pension.

Chrysler said it regretted the decision “in light of the many contributions these individuals have made to Chrysler over the years” and that Chrysler Group LLC does not expect to reinstate the car program.

- By: Kap Shah

Source: MSNBC

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Papa John’s going on a cross-country trip to find his 1972 Z28 Camaro

John Schnatter, otherwise known as “Papa” John, is the founder and chairman of Papa John’s International. He founded the company in 1984 with $1,600 dollars that was needed to pay for the initial equipment for his first store. Today Papa John’s has grown to more than 3,000 stores in over 26 countries and has a market value of $750 million.

Of course, it wasn’t all fun and success for Schnatter. Like every other business started from the ground up, there was a lot of blood, sweat and tear involved.

One of the many sacrifices Schnatter made was giving up his 1972 gold-and-black Z28 Camaro to get the $1,600 he needed to start his pizzeria dreams. Well, Papa John now wants his Camaro back and is willing to give whoever has it, or finds it, a $25,000 reward. Schnatter will be going on a cross-country search for his lost car in another Z28 he purchased a couple years ago (pictured above).

Of course, at this time you might think that this is some clever marketing campaign - and it is. The search for the Papa John’s Z28 Camaro has a website and everything - but at the end of the day, John just wants his baby back (believe us we know the feeling).

Recalling his emotions at the time when selling his original Camaro Z28 Papa John said: “it was so painful I had to look away so I couldn’t see it driving off.”

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UAW ratifies new GM labor deal, Fritz Henderson to hold press conference on Monday

GM has just dropped a short statement saying that “CEO Fritz Henderson will host a press conference on Monday, June 1.” The conference will be around mid-day at the GM Building, 767 Fifth Avenue, in New York.

After a whole week of GM heading towards bankruptcy news, we’re left wondering what possibly could Henderson have to tell us?

While the UAW employees have ratified the modifications to the GM-UAW 2007 National Labor Agreement, there are no bondholders lining up to show support for the struggling automaker. We will be up bright and early Monday morning preparing for all the GM news - stay tuned.

You can read GM’s statement regarding the newly ratified GM-UAW 2007 National Labor Agreement after the jump.

Newly Ratified GM-UAW 2007 National Labor Agreement Modifications Eliminate Competitive Gap for GM

DETROIT, Mich. - General Motors today confirmed that its UAW-represented employees have ratified the modifications to the GM-UAW 2007 National Labor Agreement. The amended agreement covers approximately 54,000 hourly employees located in 46 U.S. facilities.

“The leadership demonstrated by UAW president Ron Gettelfinger and UAW vice president Cal Rapson, and the hard work from the members of the GM and UAW negotiating teams, resulted in an innovative agreement that will enable GM to be fully competitive and has eliminated the gap with our competitors,” said Diana Tremblay, vice president of GM’s Labor Relations. “We very much appreciate the support of our employees and retirees. Their shared sacrifices will enable GM to become a stronger, more viable company that will continue to deliver world-class cars and trucks.”

Key highlights under the modified agreement include attainment of cost and cash savings comprehended in the GM Viability Plan that will enable the company to eliminate the wage and benefit gap with its competitors. It also includes changes to the agreements regarding the Voluntary Employee Beneficiary Association (VEBA) trust for retiree healthcare. The agreement also highlights GM’s plan to utilize an idled assembly and stamping facility for future production of a compact/small car in the United States to meet future fuel efficiency regulations.

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Major GM bondholders agree to a new sweetened deal, creditors may get 25% of new GM

In its original offer to bondholders, GM was offering creditors a 10 percent stake in a new GM in exchange to reduce its $27 billion debt. That didn’t work out to well since GM failed to get the near 90 percent support of bondholders it needed to fight off bankruptcy.

Nonetheless, today a committee of major bondholders at GM and the U.S. Treasury Department have reached an agreement that would give creditors a larger stake in GM.

Revealed in a Securities and Exchange Commission filing by GM, the agreement says that bondholders would get 10 percent of the new company that comes out of bankruptcy but would also give creditors the rights to buy an additional 15 percent of the company’s stock at a low price.

While this is good news for GM, it will not help the struggling Detroit automaker avoid a Chapter 11 filing. The move, however, will clear potential obstacles for GM during its stay in court.

- By: Omar Rana

Source: CNNMoney

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New York’s Time Square closed off to cars

In attempt to reduce traffic and cut down on pedestrian accidents, sections of Broadway from 47th to 42nd streets and 35th to 33rd streets have been closed to cars making New York’s Times and Herald Square a little more people friendly.

The Department of Transportation has set up barriers around the two squares in Midtown Manhattan and Transportation Commissioner Janette Sadik-Khan says her group will monitor the closed-off area during the setup period of the block.

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Bentley to Reveal High-Powered Flex-Fuel Continental GT - Car News

What’s the fastest and most powerful Bentley ever? Currently, that crown is placed atop the Continental GT Speed, capable of a claimed 202 mph courtesy of its 600-hp twin-turbo W-12 engine. Bentley will have a new answer come March, though—we just don’t know what it is yet.

The folks in Crewe are calling this new variant “the extreme Bentley” (they’ve even set up a teaser site at www.extremebentley.com), a description we’re not likely to argue with. Details are scarce at this point, with the few facts accompanied by a lone teaser image and a nearly information-free video (viewable on the aforementioned site). What we do know is that the engine will top the Speed line’s 600-hp W-12—likely using a reworked-again version of that 6.0-liter 12—and that it will be able to reach velocities of at least 203 mph. And while it is claimed to be the most powerful, we doubt it will beat the torque output of the Brooklands and its top-down mate the Azure T—both of which use a 500-hp, 738-lb-ft twin-turbocharged 6.8-liter V-8—as the Speed-y Contis crank out a mere 553 lb-ft.

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Mini Airstream caravan

The Mini Airstream caravan will be presented at the Milan Salone del Mobile (furniture design) event, though it is designed for “California dreamin” beaches, surf and girls. The Mini caravan design is as original as it is superfluous, designed to show off refined liberty.
Danish brand Republic of Fritz Hansen was employed to redesign the interior, and features include waterproof materials and the removal of the rear seats to make way for a scuba set.
© Source: eurocarblog

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