Autoblog

Detroit 3 seeking $6.8 billion from Canadian government

Frank Filipponio — Mon, 08 Dec 2008 12:59:00 EST

Filed under: Government/Legal, Chrysler, Ford, GM, Earnings/Financials, Canada

What to do when you wanted $34 billion and Congress only gave you $15 billion? Try again, but this time go North young man. The Detroit 3 are now making a pitch to the Canadian legislature seeking an additional $6.8 billion from Canada where nearly 100,000 workers are employed in factories and dealerships bearing the Chrysler, General Motors or Ford name.

General Motors of Canada has asked for $2.4 billion in loans, Chrysler Canada Inc. is looking for $1.6 billion and Ford wants a $2 billion line of credit on "stand-by" to be used "only if the current economic crisis worsens." GM is also seeking an immediate $800 million to make it through the end of the year. The Detroit automakers are quick to point out that these amounts are proportional to the U.S. bailout requests and that they are asking for loans, not handouts.

Federal Industry Minister Tony Clement was in Washington during the recent hearings and says the Canadian government will have to review the requests before pledging any funds. He had previously confirmed that funds were set aside to help automakers in the most recent budget. Premier Dalton McGuinty also pointed out the need to balance the public's needs with the carmakers' requests: "We want to move as quickly as we can, but we don't want to move so quickly that we end up with a response that is irresponsible given the legitimate demands of taxpayers." Thanks for the tip, Xeyad!

[Source: The Hamilton Spectator via MotorGears.com}

Detroit 3 seeking $6.8 billion from Canadian government originally appeared on Autoblog on Mon, 08 Dec 2008 12:59:00 EST. Please see our terms for use of feeds.

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Jay Leno for, Jeremy Clarkson against Detroit 3 bailout

John Neff — Fri, 05 Dec 2008 15:06:00 EST

Filed under: Government/Legal, Celebrities

It's the battle of the big chins! (Who are we kidding, Leno would win that fight against anyone.) Two gentlemen who stand as giants in automotive culture have finally weighed in with their opinions on whether or not the Detroit 3 should be rescued by the U.S. government. Jay Leno is all for it, citing the loss of this country's manufacturing infrastructure as the most compelling reason to save the automakers. He also cites a number of points that have been mentioned here and elsewhere, including the disparity between helping white collar workers on Wall St. while hanging blue collar workers on auto assembly production lines out to dry, the huge number of suppliers and businesses that depend on U.S. automakers, and the fact that domestic products have become competitive with the world's best in the last few years and it would be a shame to "get so close to the finish line and not win the race."

Jeremy Clarkson, on the other hand, disagrees. Though the top host of Top Gear says that we may be encountering the "end of days" for the auto industry, he fears the repercussions of letting another industry off the hook. Clarkson claims that he's against state intervention while at the same time acknowledges the immensity of Ford and GM (he calls Chrysler "two bit") and the number of people who depend on them for employment. Despite the ramifications of letting the Detroit 3 slip into oblivion, he leaves us with, "Where does it end?" We'll find out soon enough. Thanks for the tip, James (May?)!

[Source: Popular Mechanics, BBC]

Jay Leno for, Jeremy Clarkson against Detroit 3 bailout originally appeared on Autoblog on Fri, 05 Dec 2008 15:06:00 EST. Please see our terms for use of feeds.

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Autoblog Podcast #105

Dan Roth — Tue, 02 Dec 2008 18:32:00 EST

Filed under: Podcasts, Budget, Hybrid, Plants/Manufacturing, Chrysler, Dodge, Ford, Nissan, Opinion/Editorial

If we keep this up, we're going to best our record of six in a row, or whatever it was. The Autoblog Podcast crew returns for Autoblog Podcast #105 with Chris, Sam, and Dan discussing a paltry sweep of subjects as the quiet gathers before the storm of Congressional hearings is unleashed this week. We kept it shorter this week, but that doesn't mean that there's not plenty of witty repartee to go around. Enjoy!

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Autoblog Podcast #105 originally appeared on Autoblog on Tue, 02 Dec 2008 18:32:00 EST. Please see our terms for use of feeds.

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OPINION: Stop arm-chair quarterbacking the auto industry

John Neff — Tue, 02 Dec 2008 15:30:00 EST

Filed under: Opinion/Editorial

We'll be hearing more about the Detroit 3 in the mainstream media this week as their homework entitled "What I Would Do With My Share of $25 Billion in Government Loans" gets turned in to Congress. While Detroit deserves much of the ribbing that's on the way, it irks our ears every time we read an op-ed piece from folks who flat-out do not know what the Hell they're talking about. Take Karen Wagner, whose opinion letter was published by the Chicago Tribune in which she claims that Ford should cancel launching the 2010 Mustang in order to receive federal loans. There are not enough appendages on the human body to count the reasons why that is a stupid idea, let alone an entirely unrealistic one. In her reasoning, she seems to believe that selling fuel efficient vehicles would equal a healthy, profitable automaker and therefore save millions of jobs, while not realizing that the Mustang has done infinitely more to help Ford's bottom line than the Escape Hybrid.

Then there's entrepreneur extraordinaire Michael Arrington, co-editor of Tech Crunch, who claims in a recent op-ed piece that what works for the tech industry will work for autos, too. His idea is that auto companies should outsource all production of their vehicles to third-party companies just like Apple does with the iPod. He also criticizes the auto industry for its business model of vertical integration, questioning why there isn't an Intel of engine manufacturers that sells to all the automakers. Well, guess what Mike, the Apple model doesn't work for everybody (it didn't work for Apple in the early '90s) and there are a tens of thousands more parts in a car than an iPod that might make outsourcing their production to the lowest bidder a logistical nightmare.

While it's easy to dog on the domestics for the sorry shape in which they find themselves, don't listen to every Karen and Michael out there who voice their ill-informed opinions on how things ought to be. There are such a myriad of factors that have contributed to the current state of the Detroit 3, some of which is their fault and some (like bad mortgages ruining the credit market) which aren't, that there just is no silver bullet fix beyond continuing to lower costs and building better products.

[Source: Chicago Tribune, Tech Crunch]

OPINION: Stop arm-chair quarterbacking the auto industry originally appeared on Autoblog on Tue, 02 Dec 2008 15:30:00 EST. Please see our terms for use of feeds.

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Autoline on Autoblog with John McElroy

John McElroy — Tue, 25 Nov 2008 14:28:00 EST

Filed under: Autoline on Autoblog

Why I Still Support Those Boneheads at the Big Three

What a week it was. Or maybe I should say, I can't believe how weak it was.

The CEOs of the Big Three and the president of the UAW showed up in Washington last Tuesday to plead their case for a bailout. But by Thursday they had managed to turn most the country against them. Even their most ardent supporters were at their wits end.

In short, their testimony was a disaster. They hemmed and hawed. They mumbled and stumbled. They skirted the questions. And even when we did learn some interesting facts and figures, the Senators at the hearing had to pry it out of them with crow bars.

Worse yet, they exhibited zero leadership, no salesmanship, and were completely unpersuasive. No wonder they can't sell cars. These guys couldn't give away free ice cream cones to a kindergarten class.

John McElroy is host of the TV program "Autoline Detroit" and daily web video "Autoline Daily". Every week he brings his unique insights as an auto industry insider to Autoblog readers.

Continue reading Autoline on Autoblog with John McElroy

Autoline on Autoblog with John McElroy originally appeared on Autoblog on Tue, 25 Nov 2008 14:28:00 EST. Please see our terms for use of feeds.

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Michael Moore mixed on Big 3 bailout

Frank Filipponio — Thu, 20 Nov 2008 17:21:00 EST

Filed under: Government/Legal, Chrysler, Ford, GM, Celebrities

While there is definitely a huge rift between those who favor a Detroit bailout and those who would rather see the Big 3 fade away, you'd think that someone like Flint-native and documentary maker Michael Moore would be all in favor of helping the Big Three succeed. After all, Moore rose to fame for his first documentary entitled "Roger and Me" that featured then-CEO of General Motors Roger Smith. According to this piece in the Detroit News, however, Moore doesn't profess unconditional support for a Big 3 bailout. It seems he has mixed feelings about the whole situation.

Moore was on Larry King last night saying that the automakers ignored the wishes of consumers by continuing to build bigger vehicles just to maximize profits. Foreign automakers, on the other hand, built SUVs and more fuel-efficient vehicles in other categories. Moore elaborated by saying that
the current managers don't deserve a dime, but that it would be terrible if so many people lost jobs because of them. He went on to suggest that Congress should demand change for any money given out, including building up alternative fueled vehicles and mass transit in the country.

[Source: Detroit News]

Michael Moore mixed on Big 3 bailout originally appeared on Autoblog on Thu, 20 Nov 2008 17:21:00 EST. Please see our terms for use of feeds.

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Germans none to happy about U.S. aid to automakers

Jeremy Korzeniewski — Thu, 25 Sep 2008 19:28:00 EST

Filed under: Government/Legal, Earnings/Financials

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.

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