Oil may hit $35/barrel in wake of auto bailout bust originally appeared on Autoblog on Fri, 12 Dec 2008 18:58:00 EST. Please see our terms for use of feeds.

The president of the United Auto Workers union, Ron Gettelfinger, said in a recent CNN interview that U.S. automakers need to tell Congress they will limit corporate pay, bonuses and severance packages in return for more government loans. Gettelfinger also said that the Detroit Three only need the loans to hold them over during these tough times. While the first statement from the union's top player seems like basic common sense, the second seems highly optimistic... especially when one considers the size of the industry and the depth of its issues. While no single event (or loan, for that matter) will likely turn around the downslide, all of those affected by the auto industry's potential demise will be interested in tomorrow's events. That's because Dec. 2 is the day House and Senate leaders told the automakers that they need to submit a "credible restructuring plan" that's convincing enough to get Congress to open its wallet when it reconvenes next week.

[Source: Reuters]

UAW wants executive pay to be limited originally appeared on Autoblog on Mon, 01 Dec 2008 12:32:00 EST. Please see our terms for use of feeds.

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.

Auto industry advertising slump hurting old media originally appeared on Autoblog on Tue, 12 Aug 2008 09:30:00 EST. Please see our terms for use of feeds.

Asian brands beat Big 3 sales in May originally appeared on Autoblog on Thu, 05 Jun 2008 08:57:00 EST. Please see our terms for use of feeds.

Continue reading Big Three market share steadily running toward empty

Big Three market share steadily running toward empty originally appeared on Autoblog on Tue, 23 Oct 2007 17:31:00 EST. Please see our terms for use of feeds.

Fed official apologizes for recommending imports in newsletter originally appeared on Autoblog on Fri, 21 Sep 2007 10:33:00 EST. Please see our terms for use of feeds.

Them are fightin' words: Lutz goes off on the 'experts' originally appeared on Autoblog on Fri, 10 Aug 2007 17:54:00 EST. Please see our terms for use of feeds.

Ford is not #4, still part of Big 3 originally appeared on Autoblog on Fri, 02 Feb 2007 12:29:00 EST. Please see our terms for use of feeds.

"We're really trying to be more like companies like Apple, where we can innovate and move faster," said Mark LaNeve, vice president of sales, service and marketing for General Motors Corp.

"I think a fresh, creative mind is something that you can appreciate and focus simply on some complicated things," said Eric Ridenour, chief operating officer of DaimlerChrysler AG's Chrysler Group.

Could the Big Three learn from Apple? originally appeared on Autoblog on Sun, 14 Jan 2007 09:33:00 EST. Please see our terms for use of feeds.

The automotive industry isn't back on the upswing yet. 2007 may prove to be a nine-year low for sales at 16.2 million units, with Detroit automakers taking the biggest hit. CSM Worldwide, leading auto industry analysts, released a report recently indicating that U.S. light-vehicle sales would drop 1.2 percent from the 16.4 million units expected to leave dealer showrooms by the end of this year.

The leading reason -- surprise, surprise -- is that folks have bought their new cars already, or as CSM says, the industry has "depleted pent-up demand." Contributing to the problem is the soft housing market and vehicle devaluation, but efforts to eliminate incentives and raise the value of vehicles should help out. Despite efforts to raise the values of its vehicles, however, the situation poses major challenges for Ford and General Motors in their restructuring efforts.

Asian automakers, on the other hand, are poised to do well despite the market contraction, with Toyota actually gaining a full point of market share.

[Source: Automotive News]

Riding out the storm: 2007 going to be a bad year for sales originally appeared on Autoblog on Fri, 15 Dec 2006 09:31:00 EST. Please see our terms for use of feeds.

Continue reading Bush meets with Big Three, has open ear but no commitments

Bush meets with Big Three, has open ear but no commitments originally appeared on Autoblog on Tue, 14 Nov 2006 14:45:00 EST. Please see our terms for use of feeds.

Toyota passes Ford, DaimlerChrysler in U.S. sales originally appeared on Autoblog on Wed, 02 Aug 2006 07:58:00 EST. Please see our terms for use of feeds.

Even as the domestic manufacturers lose the East and West coast, they can always count on Michiganders to buy something from the Big 3, right? A new poll by the Detroit News and WXYZ-TV7 shows that a rather surprising 51 percent think that Detroit is doing a "poor" or "only fair", and that 60 percent are "somewhat" or "very" concerned about the future prospects of the US auto industry.

Industry insiders, however, say that things may not be as bad as they look right now. David Cole from the Center for Automotive Research claims that people don't know what's going on at the Big Three and are "just reacting to the press". While that may be true, the public may also be reacting to their paychecks - or rather the lack thereof. Auto-related employment in the state is down nearly 30 percent in the last six years, and statewide unemployment is among the worst in the nation.

[Source: Detroit News]

New poll shows Michigan public down on domestics originally appeared on Autoblog on Thu, 29 Jun 2006 10:28:00 EST. Please see our terms for use of feeds.

• international brands will continue to gain market share in the U.S.
• the U.S. market will become more like Europe - many brands, no really dominant players
• biofuels will be important in the U.S., but tariffs and regulations cloud the crystal ball

Pundits predict future of the U.S. auto industry originally appeared on Autoblog on Fri, 16 Jun 2006 14:58:00 EST. Please see our terms for use of feeds.

General Motors CEO used the bully pulpit at GM's annual shareholders' meeting to repeat a complaint that has been made several times in the past few decades (and will likely will be heard many times again) - the Japanese government is artificially holding the value of the yen low relative to the dollar to help its exporters. The same complaint was recently issued by Chrysler's Tom LaSorda as well. A lower value for the yen makes it easier to stick a lower price tag on an auto that's imported from Japan; or, alternatively, it makes the sale of that vehicle more profitable at the same price.

The yen has experienced two significant slides in value relative to the dollar twice in the past ten years, but at this time it is close to trading near its strongest position over the same time period. While the Big Three do not enjoy the same relationship with their government as the Japanese automakers, it's unclear whether the Hill's financial policy of large federal and trade deficits would allow any significant manipulation of the dollar's value, even if the feds wanted to help the automakers.

[Source: Forbes]

GM's Wagoner joins chorus blaming weak yen originally appeared on Autoblog on Thu, 08 Jun 2006 08:59:00 EST. Please see our terms for use of feeds.

Bigwigs from DiamlerChrysler, Ford Motor Company and General Motors will have to wait for their date with the President. The expected meeting between the Big Three and President George W. Bush is now slated for June 2, moved back from the May 18 date as previously reported. The CEO deligates and the White House would have readers believe that the change in date isn't actually a 'postponement,' but rather the first time a firm date has been set. Regardless of any calendar semantics, the auto summit is expected to cover energy issues, health care and trade.

[Sources: Crain's Business Detroit; The Associated Press]

Bush and automakers delay meeting originally appeared on Autoblog on Tue, 16 May 2006 08:03:00 EST. Please see our terms for use of feeds.

Toyota's quarterly profit jumped 39 percent over year-ago figures, with the automaker earning $3.6 billion on sales of $51.6 billion in the first quarter of 2006. Those aren't exactly Exxon Mobil numbers, but they're not chump change, either. Sales were up 18 percent over the same period, and the automaker sold more cars everywhere except in its stagnating home market of Japan.

Some analysts think that a weaker dollar may eventually erode these profits, as current exchange rates are said to have contributed $2.7 billion to Toyota's bottom line last year (nearly 25 percent of the automaker's net profit in 2005). Indeed, with that in mind, Toyota sees its profit dipping by 4.5 percent in the next year, despite a projected sales increase of 6 percent.

[Source: AP via Yahoo!]

Toyota posts big jump in quarterly profit originally appeared on Autoblog on Wed, 10 May 2006 13:30:00 EST. Please see our terms for use of feeds.

Along with the steady stream of bad news coming from Motown has also come a tide of talent, with some employees evidently seeking employment elsewhere in the business, or looking outside the industry altogether. The growth of "transplant" OEMs such as Toyota and Hyundai in the US are providing opportunities beyond the former Big Three, and the recovery in other segments of the economy means that execs can find less pain in those industries that have already endured their own downsizing cycles. Then there's also the draw of suppliers, many of whom can provide substantially higher compensation.

Ex-GM CFO Mary Boland sums things up just about perfectly: "Southeast Michigan is a pretty depressing place to be right now."

[Source: BusinessWeek via Yahoo Finance]

Is Detroit losing its top talent? originally appeared on Autoblog on Wed, 12 Apr 2006 08:04:00 EST. Please see our terms for use of feeds.