Just three years out of bankruptcy, Chrysler posted a $1.7 billion profit in 2012 and said it expects to earn more than $2 billion this year.
Steven Rattner, former automotive adviser to President Barack Obama, has just written a juicy account of last year's automotive bailout, complete with insights on the coming and goings of CEOs, courting foreign saviors and the General Motors plan to abandon its Renaissance Center headquarters. In his book, "Overhaul: An Insider's Account of the Obama Administration's Emergency Rescue of the Auto Industry," Rattner says that GM wanted to walk away from its expensive towers in downtown Detroit and
You don't have to be a pollster to know that for the most part, the American public remains none too happy about the federal government handing over the people's hard-earned tax dollars to pull General Motors and Chrysler out of the fires of insolvency. Despite the fact that both companies have managed to keep their lights on, doors open and paychecks flowing due to their generous federal loans, Joe Plumber still can't stand the thought of paying the price of the two companies' failures. With mi
The government of the United States may be actively avoiding any direct involvement in the day-to-day management of General Motors, but that doesn't mean it won't have a say when the time comes for the automaker to go public again. According to The Detroit News, the U.S. Department of the Treasury has hired investment bank Lazard Frères & Co. to provide it with advice on the initial public offering process.
One year ago, the U.S. auto industry was at the weakest point in its history. To make matters worse for the both the industry and the Obama Administration, the majority of Americans wanted nothing to do with a bailout, having just undertaken an even pricier propping up of the country's lending institutions. But President Obama and the Auto Task Force made the difficult decision to push General Motors and Chrysler through bankruptcy while providing $50 billion in loans to keep the doors open at t
Without the government bailout of General Motors and Chrysler, the U.S. auto industry would likely have two fewer domestic automakers and hundreds of thousands of high paying jobs would be history. The Detroit News reports that ex auto task force chief Steve Rattner recently told an audience at a bankruptcy conference that the state of Michigan and the city of Detroit would have faced municipal bankruptcy if Chrysler and GM were liquidated.
President Obama has just finished his press conference on the government's determination of the viability of General Motors and Chrysler, and the gist is that both automakers have failed to convince the feds that their business plans deserve further investment. Obama and his task force will give GM enough working capital to survive another 60 days and prove its viability, though no dollar amount was given. Chrysler, meanwhile, is being given another 30 days and working capital up to $6 billion t
With all the rescue/bailout talk going on here at Autoblog and, oh, just about everywhere else, you may find that it's tough to keep up with it all. Thankfully, the scribes over at Detroit Free Press have consolidated the discussion down to one easy-to-read but tough-to-comprehend figure: $97.4 billion. That's the total you get when adding up the initial $25.4 billion that automakers were promised to help retool their plants to build more fuel efficient cars; the $25.5 billion that auto supplier
Following in the footsteps of similar programs in the United States and the United Kingdom, the French government has approved a bailout of sorts for its domestic automakers and their financial arms. Portions of these funds are to be used to further the development of green automotive technologies, including hybrids and fully electric vehicles. The main condition to receiving this money is that the automakers must keep their French factories open and operational.
Cue the angels! General Motors reports that it has received the second installment of the $13.4 billion government loan that it was promised by former President Bush late last month. Sure, it may have arrived a few days late, leading GM's coffer-keepers to anxiously check their mailboxes every few minutes, but it showed up with time to spare before The General ran out of funds to pay the bills on March 31st.
On Monday, December 29, Chrysler and General Motors were supposed to get the first installments of its allotted funds from the $17.4 billion dollar bridge loans. On Wednesday, GM got it's $4 billion. Chrysler, on the other hand, is still "finalizing the details of our financial assistance." The U.S. Treasury – the body disbursing the funds – didn't have much to say beyond that, either, merely reiterating that it wants to get the deal done within a timeline that satisfies Chrylser's f
GMAC, General Motors' finance arm, was granted bank holding status, but there is still no word on whether the bond buyback was successful. The deadline for GMAC to have converted enough of its bonds - said to be 75 percent - into $28 billion in liquidity was on Friday, December 26, at 11:59 p.m. In return for bondholders converting their bonds to those of lesser value, they would receive a higher dividend.
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 Ame
GMAC – and ergo General Motors – just got another Christmas present: the Federal Reserve has granted GMAC bank holding status. GMAC has billions of dollars of bonds coming due over the next 12 months, but doesn't have the liquidity to cover the obligations. As of last week, the financing company was in the midst of a bond buyback effort in order to raise enough money to qualify for bank holding status. Now that it's been granted, GMAC can tap the Troubled Asset Relief Fund intended f
A rubber bullet has been dodged: NASCAR can still count on sponsorship dollars and involvement provided by the Detroit 3. Chrysler has stated that it will reduce the funds that flow from its taps into NASCAR, but won't leave the sport. As far as marketing and advertising goes, the "stock cars" still pay. Mike Acavitti, who runs the motorsports program at Dodge, said "We have to get our expenses in line with our revenues," but also said that "We're not going to pull out. We are going to throttle
A columnist over at Slate.com is recommending -- and not lightly, he wants you to know -- that with the domestic automakers enduring "Detroit's version of The Troubles," now would be a good time to "euthanize" NASCAR. He makes a long argument, but the crux of it is simple: if the domestics get a heap of money from the government, should that money really be used to sponsor a specialized race series that arguably doesn't have the national pull or the return it once did? His supporting arguments a
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