Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/www.autoblog.com/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2009 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Blame Game: Survey says who's at fault ? Management or union?]]>http://www.autoblog.com/2008/12/27/blame-game-survey-says-whos-at-fault-management-or-union/http://www.autoblog.com/2008/12/27/blame-game-survey-says-whos-at-fault-management-or-union/http://www.autoblog.com/2008/12/27/blame-game-survey-says-whos-at-fault-management-or-union/#commentsFiled under: , , , ,



Each month, the American Pulse Survey seeks respondents' opinions regarding various political, pop culture and economic issues. Seeing that the auto bailout is a hot topic these days, it is unsurprising that much of the latest survey centered on the $17.4 billion in so-called bridge loans to the Detroit 3 automakers. So, who's to blame for the Motor City's downfall? Survey says: bad management (78.8 percent), the UAW (63.8 percent) and global economic uncertainty (57.7 percent); so say 4,117 Americans.

59.1 percent of respondents believe that the union should offer concessions to the automakers. Lastly, about half of Americans surveyed say that they are just as likely to consider a car from Detroit as they were before all this mess started.

Oh, just two more nuggets: The survey also notes that those surveyed find that "Grandma Got Run Over By a Reindeer" is the most annoying Christmas song, and 6.7 percent of respondents still believe in Santa. Amazingly, we're not kidding.

[Source: MSNBC]

Blame Game: Survey says who's at fault ? Management or union? originally appeared on Autoblog on Sat, 27 Dec 2008 10:58:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>17.4American Pulse SurveyAmericanPulseSurveyAPSauto bailoutAutoBailoutBail OutBailOutbridge loanbridge loansBridgeLoanBridgeLoansdetroit bailoutdetroit bridge loansDetroitBailoutDetroitBridgeLoansUAWUnionSat, 27 Dec 2008 10:58:00 EST<![CDATA[Toyota supports Detroit 3's pleas for bailout bucks]]>http://www.autoblog.com/2008/12/16/toyota-supports-detroit-3s-pleas-for-bailout-bucks/http://www.autoblog.com/2008/12/16/toyota-supports-detroit-3s-pleas-for-bailout-bucks/http://www.autoblog.com/2008/12/16/toyota-supports-detroit-3s-pleas-for-bailout-bucks/#commentsFiled under: , , ,



Toyota doesn't want one of the Detroit 3 to fail. Despite the fact that the Japanese automaker is a direct competitor and seemingly stands to gain long-term sales from the collapse of at least one of its American competitors, the reality is that it would be a major headache for the entire industry. The largest issue may be that a Detroit collapse, especially of General Motors, would take a number of key suppliers down with it -- suppliers that Toyota relies upon just as much as any other automaker.

Toyota, Honda and Nissan all call the U.S. market their largest, so these import car companies require the American economy to remain strong in order to keep sales figures and profits relatively healthy. The loss of hundreds of thousands -- if not millions -- of jobs would be a major blow to the already struggling U.S. economy and could also cause additional import backlash.

The last potential problem facing the Japanese automakers is a possible takeover of an American automaker by another competitor, likely from China or India, that could flood the market with low-cost cars. The last successful influx of competition came from Korea in the form of Hyundai and Kia, and Toyota isn't looking forward to losing market share to another set of automakers any sooner than necessary.

[Source: CNN Money]

Toyota supports Detroit 3's pleas for bailout bucks originally appeared on Autoblog on Tue, 16 Dec 2008 13:29:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>detroit bailoutDetroitBailouttoyotatoyota bailouttoyota detroitToyotaBailoutToyotaDetroitTue, 16 Dec 2008 13:29:00 EST<![CDATA[Canada to the rescue! (after U.S.)]]>http://www.autoblog.com/2008/12/14/canada-to-the-rescue-after-u-s/http://www.autoblog.com/2008/12/14/canada-to-the-rescue-after-u-s/http://www.autoblog.com/2008/12/14/canada-to-the-rescue-after-u-s/#commentsFiled under:

With all signs pointing to White House action on an automaker bailout despite the the bill not making it out of the Senate last Thursday, Canada has its taxpayers' wallets on standby as well. Our neighbors to the north account for a 20% share of the auto industry, and both the federal and Ontario governments are ready to add a commensurate amount of money to the bailout pot if U.S. government action does take place. So, assuming President Bush instructs Henry Paulson, the recently-crowned King of All Our Money, to give Detroit $14B out of TARP to tide them over and keep the RenCen escalators running until this all officially becomes Obama's problem next month, look for an additional $2.8B or so to float across the Detroit River. Thanks for the tip, BrandleSmith!

[Source: Reuters]

Canada to the rescue! (after U.S.) originally appeared on Autoblog on Sun, 14 Dec 2008 17:31:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bailoutbushcanadadetroit bailoutDetroitBailoutpaulsontarpSun, 14 Dec 2008 17:31:00 EST<![CDATA[GM has spent $750 million developing the Volt]]>http://www.autoblog.com/2008/12/10/gm-has-spent-750-million-developing-the-volt/http://www.autoblog.com/2008/12/10/gm-has-spent-750-million-developing-the-volt/http://www.autoblog.com/2008/12/10/gm-has-spent-750-million-developing-the-volt/#commentsFiled under: , , , , , ,


Click above for high-res gallery of the 2010 Chevy Volt

Although they're a big part of the Congressional pitch to get some federal funds, green cars aren't going to make the Detroit 3 profitable on their own any time soon. Take the Chevrolet Volt for example. When GM CEO Rick Wagoner testified that the Volt is being pushed into production for 2011, he added that, "It will not be at that point fully cost competitive." That statement might seem like the understatement of the century to some.

According to this CNN Money piece, GM has actually spent about $750 million to develop the Volt, much of that in battery research. Apparently GM recognizes the need to stay ahead of (or at least alongside) the competition in developing new technology and is willing to take the risk of spending that kind of money even in desperate times. Of course, some of that money will eventually be spread across the range when the Volt's powertrain and battery advances get shared with other GM models. Still, it's unlikely the Volt will add to rather than bring down the bottom line until a second generation model is introduced, which may not be until 2014-2016.

Gallery: 2011 Chevy Volt - Live Reveal


[Source: CNN Money]

GM has spent $750 million developing the Volt originally appeared on Autoblog on Wed, 10 Dec 2008 17:58:00 EST. Please see our terms for use of feeds.

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The choices are: spend $15 billion in bridge loans now to keep the Detroit Two (GM and Chrysler, since Ford can apparently hold its own) from going bankrupt, or spend $70 billion over the next two years to pay for the fallout from the Detroit Two going bankrupt. Those are the numbers according to the Anderson Economic Group and BKK, which get to their $70 million number based on 1.8 million job losses and evaporating federal and state tax revenue. And that number still doesn't include things like the jolts to credit markets, consumer confidence and manufacturing and supplier bases, among other nuclear scenarios. The question now is: how are the two (or three) automakers going to divvy up the $15 billion and just how many strings will Congress attach?

[Source: Detroit News]

STUDY: Detroit bankruptcy would cost four times more than bailout originally appeared on Autoblog on Mon, 08 Dec 2008 17:29:00 EST. Please see our terms for use of feeds.

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Remember the growing movement to caravan a few hundred of Detroit's most fuel efficient vehicles to the automaker's next meeting with Congress? Not happening. Interestingly, it wasn't for lack of support. In fact, it was just the opposite. So many people had voiced their support and announced their intentions to join in that the event's organizers just weren't able to keep up. Talk about a logistical nightmare.

Organizers have not given up on the idea completely, launching a new website called TheEngineofDemocracy.com that's supposed to drum up support for Detroit and fuel efficient cars in general. Along with an outpouring of support via the interwebs, a list of 51 people from various suppliers, dealership workers and Union officials will accompany the CEOs of General Motors, Ford and Chrysler to Washington - one from each state plus one from the capital itself - to prove that the loss of the American auto industry would affect everyone. At this point, we think it's safe to say that Wagoner, Mulally and Nardelli will be, ya know, driving to the proceedings.

[Source: The Detroit News Photo by Mark Wilson/Getty]

Detroit to DC caravan cancelled originally appeared on Autoblog on Sat, 29 Nov 2008 13:22:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>congressdetroit 3detroit 3 bailoutdetroit bailoutDetroit3Detroit3BailoutDetroitBailoutwashingtonwashington caravanwashington dcWashingtonCaravanWashingtonDcSat, 29 Nov 2008 13:22:00 EST<![CDATA[BREAKING: Automaker bailout agreement reached in Senate, still not a sure thing [UPDATE]]]>http://www.autoblog.com/2008/11/20/breaking-automaker-bailout-agreement-reached-in-senate-still-n/http://www.autoblog.com/2008/11/20/breaking-automaker-bailout-agreement-reached-in-senate-still-n/http://www.autoblog.com/2008/11/20/breaking-automaker-bailout-agreement-reached-in-senate-still-n/#commentsFiled under: ,

CNBC is reporting that four U.S. senators have reached a bipartisan agreement on a bill to help the Big 3 automakers in Detroit. Those senators include Michigan Democrats Carl Levin and Debbie Stabenow, Ohio Republican George Voinovich and Missouri Republican Christopher Bond. Details of the bill are not yet available, but a news conference is scheduled for 2:30PM EST, at which time we should learn more. It will likely be some compromise between the Democrats' wish for taking an extra $25 billion out of the $700 billion financial bailout fund and the plan supported by the White House that would allow automakers to use the already approved $25 billion in low interest loans for anything they wanted rather than just investing in green technology.

Still, CNBC says the bill faces some big procedural hurdles, not the least of which is that senators want to go home soon for the Thanksgiving holiday. Trying to squeak in a vote before the break will be tough, and lawmakers may have to reconvene in December to vote on the bill. Plus, there's no guarantee the House of Representatives will pass it even if the Senate would.

Regardless, Wall Street seems pleased with the news as shares of General Motors and Ford have jumped, with the latter hitting as high as $4 after ending the day yesterday at $2.79.

Stay tuned, we'll bring you all the details on the new automaker bailout bill when they become available. Thanks for the tip, everyone!

UPDATE: Senate Majority Leader Harry Reid and House Speaker Nancy Pelosi have held a press conference in which they said that the compromise agreement reached by the above senators would not be approved, and instead that Congress will come back in December and hold more hearings with the CEOs of the Big 3. Each automaker has been charged with the task of showing "accountability and viability" at this second round of hearings, specifically telling Congress exactly how they plan to use any bailout money they might be given.

UPDATE 2: For details on the compromise bill, click here.

[Source: CNBC]

BREAKING: Automaker bailout agreement reached in Senate, still not a sure thing [UPDATE] originally appeared on Autoblog on Thu, 20 Nov 2008 13:33:00 EST. Please see our terms for use of feeds.

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If we were going to continue numbering things, this would technically be Autoblog Podcast #103. We had tried to record this comeback episode once already about three weeks ago, and that turned out to be the only time I've ever toasted an audio file. Pro Tools said "uhh, what?" and that was that - our file was gone. So, before Chris Shunk headed out the door to the LA Auto Show, we sat down and breezed through a few subjects like what's in our respective Autoblog Garages, the new Mustang, the new Mazda 3, the new Lexus RX crossovers, and of course, the situation in which the Detroit automakers find themselves. It's a slightly rambly hour and only a duo this time around, but we're going to do it again soon with a trio, just like old times.

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w00t! The return of the Autoblog Podcast! originally appeared on Autoblog on Thu, 20 Nov 2008 10:58:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>2010 mustang2010Mustangautoblog podcastautoblog podcast 103AutoblogPodcastAutoblogPodcast103detroit bailoutDetroitBailoutford fusionFordFusionla auto showla auto show 2008LaAutoShowLaAutoShow2008lexus rxLexusRxlos angeles auto showLosAngelesAutoShowmazda 3Mazda3podcastpodcast 103Podcast103Thu, 20 Nov 2008 10:58:00 ESTAutoblog Podcast #103Dan Roth63:00autoblog podcast, la auto show, los angeles, auto show, podcast, 2010 mustang, lexus rx, mazda 3, detroit bailout, detroit, big 3, automakers congress<![CDATA[Calling for GM bailout may cost Wagoner his job]]>http://www.autoblog.com/2008/11/14/calling-for-gm-bailout-may-cost-wagoner-his-job/http://www.autoblog.com/2008/11/14/calling-for-gm-bailout-may-cost-wagoner-his-job/http://www.autoblog.com/2008/11/14/calling-for-gm-bailout-may-cost-wagoner-his-job/#commentsFiled under: , , ,



General Motors' CEO, Rick Wagoner, who's been manning the helm for the last eight years and a part of its staff since 1977, has taken some heat for asking the Feds for a bailout. A possible condition for those funds may be the symbolic sacrificial death of its current leader, according to a slew of analysts polled by Bloomberg. Whether true of false, there seems to be a sense that the CEOs of U.S. automakers are some of "the dumbest people in the world," according to ex-Chrysler prez. Thomas Stallkamp. Ouch. Ford has stated that it doesn't need a bailout and Chrysler is actively looking for partners to keep itself alive.

In the last few months, when the government has bailed out institutions such as AIG, Fannie Mae and Freddie Mac, one stipulation was that its top management be replaced, and that sentiment may stick around if the Detroit 3 receive packages of their own. Although Wagoner isn't likely to step down willingly, he may not be given the choice if some legislators get their way. Here's an unanswered question, though... who would be the best man to replace him?

[Source: Bloomberg]

Calling for GM bailout may cost Wagoner his job originally appeared on Autoblog on Fri, 14 Nov 2008 16:42:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>automaker bailoutautomaker bailoutsAutomakerBailoutAutomakerBailoutsdetroit bailoutDetroitBailoutgeneral motorsgeneral motors ceoGeneralMotorsGeneralMotorsCeogm bailoutgm ceogm ceo rick wagonerGmBailoutGmCeoGmCeoRickWagonerrick wagonerRickWagonerwagonerFri, 14 Nov 2008 16:42:00 EST<![CDATA[Detroit CEOs and UAW chief summoned to Washington]]>http://www.autoblog.com/2008/11/13/detroit-ceos-and-uaw-chief-summoned-to-washington/http://www.autoblog.com/2008/11/13/detroit-ceos-and-uaw-chief-summoned-to-washington/http://www.autoblog.com/2008/11/13/detroit-ceos-and-uaw-chief-summoned-to-washington/#commentsFiled under: , , , , ,

When Congress wants to hand out money, it apparently wants to include everybody. Barney Frank, Chairman of the House Financial Services Committee, is likely to propose a measure that lets automakers tap into the $700 billion vein of rescue dollars that's ostensibly intended for financial institutions, yet is being hungrily eyed by everyone.

CEOs from Ford, General Motors, and Chrysler will make the trek to Washington, DC, as will UAW chief Ron Gettelfinger. All will be pleading their collective case for an estimated $100 billion-plus vitamin pill. Many, not the least of whom is Treasury Secretary Henry Paulson, think that automakers should not be allowed to snag some of the cash that's intended for financial institutions. Things look bleak for all three of the brands, but can Congress be moved to offer up some money and prolong the jobs of so many Americans? Even if the automakers get the $100 billion they're seeking, when nobody's buying, it will merely turn into taxpayers funding an increasing glut of product nobody can afford to buy. Even those consumers with money and good credit are holding back as the economy delves into recession, emotional purchases are way down, and most vehicle purchases are driven by wants versus needs. Things will undoubtedly sort themselves out, but not before more pain for Detroit.

[Source: Automotive News - Sub. Req.]

Detroit CEOs and UAW chief summoned to Washington originally appeared on Autoblog on Thu, 13 Nov 2008 13:32:00 EST. Please see our terms for use of feeds.

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Some U.S. policymakers believe that the domestic auto industry needs a multi-billion $hot in the arm, but the sticking point seems to be where to find the funds. Rep. Barney Frank (D-Mass.) is calling for a portion of the financial sector's $700 billion TARP buyout to be apportioned to Detroit, but Treasury Secretary Henry Paulson doesn't like the sound of that at all. Instead, Paulson would like to see the automakers get the $25 billion they've already been promised, and suggests that it be made available as soon as possible. Of course, that money was supposed to go towards retooling the industry to make more fuel efficient cars, not necessarily as a cash-infusion to keep the Detroit 2.8 running. In any case, Frank has called for a meeting with the heads of each automaker in Washington next Wednesday to discuss whether a new loan for Detroit should be sectioned off from the TARP fund. This could get interesting.

[Source: Detroit Free Press, Photo by Alex Wong/Getty]

Paulson: Automaker aid won't come from financial bailout money originally appeared on Autoblog on Wed, 12 Nov 2008 17:58:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bailoutbarney frankBarneyFrankdetroitdetroit 3detroit 3 bailoutdetroit bailoutDetroit3Detroit3BailoutDetroitBailouthank paulsonHankPaulsonhenry paulsonHenryPaulsonpaulsontarptarp fundTarpFundWed, 12 Nov 2008 17:58:00 EST<![CDATA[Germans none to happy about U.S. aid to automakers]]>http://www.autoblog.com/2008/09/25/germans-none-to-happy-about-u-s-aid-to-automakers/http://www.autoblog.com/2008/09/25/germans-none-to-happy-about-u-s-aid-to-automakers/http://www.autoblog.com/2008/09/25/germans-none-to-happy-about-u-s-aid-to-automakers/#commentsFiled under: ,

Matthias Wissmann, current head of the Verband Deutscher Automobilhersteller (VDA, or Association of the German Automotive Industry for us non-German speaking folks), is none too pleased with the passing of a $25 billion financing package for the Detroit automakers. Under the terms of the legislation, which has been approved by the House and is expected to pass through the Senate as well, the Detroit 3 will receive low-interest loans in order to finance the cost of bringing more fuel-efficient cars to America.

Of course, it's not entirely unexpected that Detroit's competitors aren't happy about the federal loans, but at least one piece of Wissmann's argument certainly makes a lot of sense. "If the U.S. car industry does not resolve its structural problems, then all the subsidies in the world won't help." Ain't that the truth. The hope, of course, is that this financial aid is just what the automakers need to fix said problems. Looks like we'll find out soon enough.

[Source: Automotive News - sub. req'd]

Germans none to happy about U.S. aid to automakers originally appeared on Autoblog on Thu, 25 Sep 2008 19:28:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Association of the German Automotive IndustryAssociationOfTheGermanAutomotiveIndustrybig 3big 3 bailoutBig3Big3Bailoutdetroit 3detroit 3 bailoutdetroit bailoutdetroit loanDetroit3Detroit3BailoutDetroitBailoutDetroitLoanMatthias WissmannMatthiasWissmannvdaVerband Deutscher AutomobilherstellerVerbandDeutscherAutomobilherstellerThu, 25 Sep 2008 19:28:00 EST