Auto dealership mogul Denny Hecker has been sued by bankruptcy trustee Randy Seaver who accuses Hecker of lying, fraud and scheming to conceal cars, cash, property and other assets from the bankruptcy court.

If Seaver has his way, Hecker won’t be allowed to use the protection of bankruptcy court to shield assets and escape the $767 million in debts he has amassed to scores of banks, casinos …

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… and teams in the sport, including Dale Earnhardt Jr., Hendrick Motorsports and Stewart-Haas Racing. The company has alleged failed to pay royalties in a timely fashion and has also lost $7.878 million in 2006 and $42.975 million in 2007.

The article said:

“Motorsports Authentics stopped paying certain guaranteed royalties under several license agreements during the summer when royalties on the projected sales were less than the guaranteed minimum royalties, according to the SEC …

Tags: Auto Racing Chapter 11 Motorsport NASCAR

According to an article in the Star-Telegram, auto parts supplier Visteon Corp. is asking a bankruptcy judge for permission to terminate the company’s retiree health care and life insurance benefits. It approved by the bankruptcy court, approximately 8,000 current and former Visteon workers could find themselves without healthcare and life insurance.

The article said:

“At a hearing Thursday, Visteon representatives said the …

Permalink: /bankruptcy/bankrupt-auto-parts-supplier-requests-termination-of-retiree-benefits/

… troubles stem partly from its heavy dependence on the slumping North American and European auto markets, with 36 percent of its sales coming from North America and 49 percent coming from Europe.”

The bankruptcy filing of Lear is not much of a surprise. All three U.S. automakers have been hit hard by the recession, experiencing a huge slump in car sales. All three had to reduce their car production levels to avoid total collapse. Automotive parts makers such as Lear are heavily …

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According to an article in the Star-Telegram, more auto suppliers may be headed to bankruptcy after GM and Chrysler temporarily close factories for three months

The article said:

Now, though, many are at risk of trouble again with GM and Chrysler temporarily shutting down some factories for up to three months due to growing inventories. If the factories aren’t running, suppliers have no income, and there’s a 45-day lag between when …

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According to an article in the Star-Telegram, auto parts supplier Visteon Corp., along with some of its U.S. units filed Chapter 11 bankruptcy because of reduced demand from automakers.

The article said:

“During the reorganization period, we will seek to address our capital structure and legacy costs that are not sustainable given the current economic environment,” said Donald J. Stebbins, chairman and chief executive, in a …

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According to an article in the Star-Telegram, auto suppliers are appealing to the government for help as many face the prospect of closure (or bankruptcy ) as automakers struggle to survive.

The article said:

Several suppliers said they would be left vulnerable by Chrysler’s decision to idle all of its plants in the U.S. until it completes its sale to Italian automaker Fiat Group SpA. GM, which faces a June 1 deadline to restructure …

Permalink: /economy/auto-suppliers-next-to-go-bankrupt/

… at 8.9 percent.

The article said:

A department analyst said most of the increase was due to auto layoffs. Economists estimate Chrysler LLC has laid off 27,000 workers in the wake of its April 30 bankruptcy filing. General Motors Corp. has said it will temporarily shut 13 factories beginning later this month through July, potentially affecting 25,000 workers.

These job losses, the Chrysler bankruptcy and a possible GM bankruptcy are expected to cause an additional 100,000 job …

Permalink: /economy/auto-industry-job-losses-push-unemployment-upwards/

According to an article in the Dallas Morning News, Ford Motor Co.’s U.S. auto sales fell by nearly 41 percent in March. Ford sold 131,102 cars and light trucks last month, compared with 221,642 in March 2008. The automaker who is fighting bankruptcy reported that sales of its Focus compact car fell 42 percent, and sales of its top seller, the F-series pickups fell 40 percent and Ford Expedition sales plummeted 73 percent a huge blow for the iconic company.

As …

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… Morning News, the Treasury Department is providing a $5 billion bail out to nearly bankrupt auto parts suppliers who are dependent on Ford, GM and Chrysler automakers.

The article said:

The program will be run through U.S. automakers – General Motors, Chrysler and Ford Motor Co. – that agree to participate. Suppliers to those companies would have to agree to terms of the government-backed protection and pay a small fee for the right to participate.

The Treasury Department …

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According to an article in the Star-Telegram, many auto-parts suppliers are close to running out of money and facing bankruptcy as the auto industry is hit hard by slumping sales and the credit crunch.

The article said:

Two trade groups, the Original Equipment Suppliers Association and the Motor & Equipment Manufacturers Association, are talking with the Treasury Department about getting up to $25.5 billion in government aid. The …

Permalink: /job_loss_unemployment/auto-parts-suppliers-facing-bankruptcy/

Auto companies facing possible job losses and sinking profits, such as General Motors Corp., Ford Motor Co. and Chrysler LLC asked congress for as much as $25 billion in emergency loans from the financial industry bailout. Opponents of an auto industry bailout describe the automakers as dinosaurs who have failed to adapt to global changes unlike their foreign competitors. Opponents of any …

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