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[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[Two down, one to go: Senate approves $25 billion for Big 3]]>http://www.autoblog.com/2008/09/29/two-down-one-to-go-senate-approves-25-billion-for-big-3/http://www.autoblog.com/2008/09/29/two-down-one-to-go-senate-approves-25-billion-for-big-3/http://www.autoblog.com/2008/09/29/two-down-one-to-go-senate-approves-25-billion-for-big-3/#commentsFiled under: , , ,

Last week, the House of Representatives passed a bill approving a $25 billion loan for the Detroit 3. Now the Senate, by a similar margin, has passed the bill, which means it needs George W. Bush's John Hancock in order for the automakers to see their funds.

The process actually began last year when Congress put the language for the loan into an energy bill, but didn't allocate the money for it. Now that the actual sum has been "found" and approved, the details of the loan and repayment need to be sorted out. The energy department has 60 days to do the math once the loan becomes law, but the Energy Secretary said it could still take 18 months or more for GM, Ford, and Chrysler to get the money.

Michigan Congressional reps have cried foul, especially because the bill also included $10 million for the Energy Department to hire outside consultants to speed things up. The department probably won't want to waste time, because Michigan Senator Carl Levine has already pledged to begin work on another round of $25 billion loans for 2009 and 2010. But when the checks finally do come, you can probably expect to see automaker reps waiting outside E-Z Check Cashing.

[Source: Detroit News]

Two down, one to go: Senate approves $25 billion for Big 3 originally appeared on Autoblog on Mon, 29 Sep 2008 10:29:00 EST. Please see our terms for use of feeds.

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In the wake of GM's restructuring announcement, some observers are beginning to talk about government assistance to get automakers through tough times. President Bush has quickly shot down the idea of assitance for US automakers, saying that the government shouldn't be "bailing out companies." GM spokesman Greg Martin said the General isn't looking for a free pass from Uncle Sam, instead insisting the company is going to take care of itself.

While it's nice to see GM taking care of its own problems, there really isn't much else the Detroit automaker can say. Admitting that it needs help would be an admission of doom, which would further deplete its stock while signaling to customers that bankruptcy is near. A company in bankruptcy protection can go under, and companies that expire don't (theoretically) honor warranties or have parts available for repair.

As for President Bush's comments, it deserves noting that few industries are subject to more government oversight than the automotive sector, and no industry is more vital to reducing America's reliance on foreign oil.

[Source: Detroit News Photo: Getty/Luke Frazza]

Bush says no bailouts for automakers originally appeared on Autoblog on Wed, 16 Jul 2008 08:02:00 EST. Please see our terms for use of feeds.

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