GM is fixing to drop the hammer on 1,200 dealerships according to a Reuters source. The company has been losing 60-65 dealers per month, and has announced plans to end relationships with 2,600 out of its 6,000 dealers. Looks like the first 1,200 might find out as early as today.

[Thanks to Stock Market News for the tip]

Bank of America is refusing to give laid off employees permission to accept other jobs in the financial field unless they give up their compensation agreements or their right to sue the bank. Apparently, the company is classifying fired employees as ‘resigning’ if they go to work for a competitor, and thereby relinquishing their right to sue the bank. According to a lawyer who is representing fired BofA employees: “What Bank of America is doing is warping the statute to their advantage.”

A company flack said that this characterization of the bank’s practices were “inaccurate” but wouldn’t comment further.

[Reuters] BofA presses fired staff to give up right to sue

Charter Communications, bankrupt baby that they are, has filed a lawsuit against DirecTV because of an ad campaign that mocks Charter’s bankruptcy filing. The company is asking for unspecified damages, and to try to block DirecTV from running the ads. If they really wanted to avoid criticism, maybe they shouldn’t have filed for bankruptcy.

[LA Business Journal] Charter sues DirecTV over ads

Sirius XM has fought back from a predicted bankruptcy by conning Liberty Media into investing $530 million into

the fledgling operation. The investment will be structured as a loan at 15% interest which matures in 2012. In exchange, Liberty will get 12.5 million shares of preferred stock — convertible into 40% of the company.

Round of applause for Mel Karmazin.

[Breitbart] Liberty Media deal staves off Sirius bankruptcy

The high-falutin’ NY Times has sold its first-ever front page advertisement. In today’s paper, a full-color ad for CBS appears on the bottom of the paper. It isn’t much to look at, just a few stock photos and the ever-creepy CBS eye.

This move was a long time coming for the old gray lady, which has had to cut stock dividends, freeze wages, and mortgage its headquarters in order to deal with plummeting revenues.

Take a look at the remedy to their problems:

[Gawker] Times Finally Runs Display Advertising on Front Page

It looks as though failed bank IndyMac, which was seized by the feds last July, may be sold off as early as tomorrow. A holding company has applied to the Office of Thrift Supervision to buy the assets of the bank for $14 billion. IndyMac is the only failed bank that the government has not been able to find a buyer for.

The company that has applied to purchase the bank is HoldCo LLC, which was formed by hedge-fund superstar John Paulson, “buyout investor” Christopher Flowers, and Dune Capital chairman Steve Mnuchin. This group might have had some credibility in 2006, but will they be able to hack it now?

[Biz Journal] Report: $14B IndyMac sale could come by Wednesday

The federal government will be investing $5 billion into auto-lender GMAC in order to stave off a possible bankruptcy of the company. Predictably, GMAC will now transform into a “bank holding company” along with every failed lender that needs to take money from Uncle Sam.

In addition to the money GMAC is receiving directly, General Motors, part-owner of GMAC, will receive $1 billion to help the lender’s transition into a bank.

Kirk Kerkorian, the billionaire investor who was briefly Ford’s largest shareholder, has sold his entire 6.5% stake in the company at a loss of hundreds of millions of dollars. Kerkorian’s investment firm had amassed 133.5 million shares in the automaker, but obviously put its traders on more overtime than a Ford factory worker in order to sell the huge position.

Estimates of the loss on the trade were between $475 million and $800 million. This is a terrible sign for Ford, which didn’t take any bailout money.

[Reuters] Kerkorian sells off Ford shares at deep loss

Chrysler will be shuttering its manufacturing plants for one month beginning on Friday in order to “align production and inventory with U.S. market demand.” In total, 30 plants will be closed. Affected workers won’t resume their jobs until January 19th at the earliest.

More info:
[Bloomberg] Chrysler Idles Plants for a Month; GM Halts Volt Engine Factory
[Globe & Mail] Chrysler halts all production for one month
[WSJ] Chrysler to Close Manufacturing Plants for a Month Starting Friday

The Detroit Media Partnership — which owns the Detroit News and The Detroit Free Press — has announced that they will only be offering home delivery three days per week, and will be laying off 9% of their total workforce. The papers currently employ 2,151 workers.

David Hunke, publisher of the Free Press showed off his remarkable ability to state the obvious:

“Our decision to limit home delivery to three days a week reflects the reality that major newspaper markets are facing daunting economic challenges. Advertising in this economy is down and costs are up. We can’t live in the past.”

It’s that kind of prescience that has put these newspapers on the cutting edge of media…

[Chicago Sun Times] Detroit newspapers cut back home delivery, announce layoffs

Electronics retailer Best Buy announced that its third quarter profits sank 77% compared to the year before as the company faced “the most challenging consumer environment” in company history.

The company aims to cut capital spending by 50% in 2009. To pursue this, the company will offer “massive buyout packages to about 4,000 employees at its headquarters.”

CEO Brad Anderson had this to say:

“We need to prepare our organization to operate in a wide range of potential macroeconomic scenarios in the coming year. We believe our broad, voluntary program helps prepare us for the unpredictable year ahead while reflecting our company values and respect for our people.”

Bravo, Brad. I doubt you’ll be taking home $49.3 million this year, though.

[Yahoo Finance] Best Buy 3Q profit sinks, offers staff buyouts

The Arena Football League has announced that its board of directors has voted to cancel the 2009 season because of the “unprecedented economic climate.” The 22-year-old league and its 16 teams will spend next year “developing a long-term plan to improve its economic model.”

[Boston Herald] Arena Football League cancels 2009 season
[Sports Couch Potato] Arena league shuts down for ‘09

Because of freefalling automobile sales, Honda has announced that it will be cutting its North American vehicle production by 119,000 cars. Production will be scaled back at facilities in Ohio and Alabama, but the company claims that no layoffs are planned.

The cuts represent almost 10% of the company’s yearly automobile output, and is the second time the company has slowed production this year.

[Yahoo Finance] Honda cuts North American production again

Dealbreaker points us to the Chrysler homepage which has been turned into a plea for bailout money a loan to help them succeed.

Also included is a video of Chrysler employees explaining why the company deserves a bailout. Are you convinced yet?

The New York Times Company will borrow up to $225 million by guaranteeing its debts against its Manhattan headquarters as the company scrambles to deal with an ever-shrinking cashflow. The company owns 58% of the 52-story skyscraper, which some investors claim is too much of a weight on the Times’ balance-sheet. Now the building will be collateral for a fresh new round of loans. Let’s hope it means they won’t have to gut the newsroom.

[IHT] Times Co. to borrow against building