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[REPORT: Chrysler again offering early retirement to 23k hourly workers]]>http://www.autoblog.com/2009/11/04/report-chrysler-again-offering-early-retirement-to-23k-hourly-w/http://www.autoblog.com/2009/11/04/report-chrysler-again-offering-early-retirement-to-23k-hourly-w/http://www.autoblog.com/2009/11/04/report-chrysler-again-offering-early-retirement-to-23k-hourly-w/#commentsFiled under: , ,



The Detroit Free Press is reporting that Chrysler is again offering early retirement packages in an effort to entice some of its 23,000 hourly employees to hit the road. The buyout packages are the first offered by post-bankruptcy Chrysler, though the terms of the buyouts are very similar to earlier offerings. The Freep is reporting that all workers with at least one year of service can walk away from their current job and receive $75,000 plus a $25,000 voucher. Those who wish to participate in this program will also continue to receive health benefits for an additional six months with the option to purchase coverage for a year after that.

Retirement-eligible workers age 55-59 with a combined 85 years of service or workers age 60 or older with at least 10 years of service can receive $50,000 plus a $25,000 voucher. A third package for workers between the ages of 55 and 62 with at least 10 years of service can receive immediate full retirement benefits. The workers have two weeks to decide whether or not to take the buyout/retirement packages, as the offer will be pulled from the table November 13.

Chrysler's newest buyout program comes as many facilities across the country are either closing or have already closed. Without a jobs bank to keep paychecks coming, we're guessing the take rate could be substantial in affected areas.

[Source: Detroit Free Press | Image: Bill Pugliano/Getty]

REPORT: Chrysler again offering early retirement to 23k hourly workers originally appeared on Autoblog on Wed, 04 Nov 2009 09:20:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>buyoutChryslerchrysler packagesChryslerPackagesearly retirementEarlyRetirementlayoffspackagesretirement packagesRetirementPackagesWed, 04 Nov 2009 09:20:00 EST<![CDATA[REPORT: Porsche reportedly offered Wiedeking nearly $200M payout]]>http://www.autoblog.com/2009/07/27/report-porsche-reportedly-offered-wiedeking-nearly-200m-payout/http://www.autoblog.com/2009/07/27/report-porsche-reportedly-offered-wiedeking-nearly-200m-payout/http://www.autoblog.com/2009/07/27/report-porsche-reportedly-offered-wiedeking-nearly-200m-payout/#commentsFiled under: , ,



Wendelin Wiedeking sat at the helm of Porsche for 16 of the company's most successful years. Under Wiedeking's watch, Porsche blessed the world's roads with the Boxster, Cayman, Carrera GT, Cayenne and now the Panamera. According to Wiedeking's lawyers, he Porsche and Piech families thought that was enough to warrant a 140 million euros ($199 million) payment to get the successful leader to leave the company.

Wiedeking was reportedly standing in the way of a deal between Porsche and Volkswagen, making his departure a something of a necessary evil. Porsche's labor reps didn't feel Wiedeking's dismissal was worth 140 million euros, so the company instead offered 50 million euros ($73 million). That's still an awful lot of money - especialy for a company that celebrates when it his 100,000 vehicles per year, and Wiedeking apparently agrees. The now ousted CEO claims that he'll give half the money to charity; a move that will likely win him a few new friends.

[Source: Automotive News - subs req'd | Image: Miguel Villagran/Getty]

REPORT: Porsche reportedly offered Wiedeking nearly $200M payout originally appeared on Autoblog on Mon, 27 Jul 2009 09:28:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>140 million euros140MillionEuros50 million euros50MillionEurosbuyoutporschevolkswagenvwWendelin WiedekingWendelinWiedekingMon, 27 Jul 2009 09:28:00 EST<![CDATA[Mercedes offers buyouts to all Alabama workers]]>http://www.autoblog.com/2008/11/04/mercedes-offers-buyouts-to-all-alabama-workers/http://www.autoblog.com/2008/11/04/mercedes-offers-buyouts-to-all-alabama-workers/http://www.autoblog.com/2008/11/04/mercedes-offers-buyouts-to-all-alabama-workers/#commentsFiled under: , ,



Nearly 4,000 employees of the Mercedes-Benz assembly plant in Vance, Alabama, are being offered buyouts in advance of another expected round of production cuts at the facility in January. The Vance plant produces the M-Class sport utility, R-Class crossover and GL-Class full-sized sport utility for the Mercedes-Benz lineup. In July, Mercedes slowed production for the first time in more than a decade of U.S. production as rising gas prices in June drastically cut sales. Although the buyout packages are being offered to all employees, Mercedes spokespersons are quick to point out that these are not to be considered layoffs. In fact, the automaker will only hand out an undisclosed limited number of buyout packages as it makes changes to the plant to bring production back in line with demand.

Alabama has been hard hit this year by the global auto industry slump. The state's automotive industry is 134,000 workers strong, and the sobering news from Mercedes-Benz only adds to earlier production cuts from Honda and slowdowns from Hyundai, two other automakers with assembly plants in the Heart of Dixie.

[Source: AL.com]

Mercedes offers buyouts to all Alabama workers originally appeared on Autoblog on Tue, 04 Nov 2008 09:58:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>alabamaassemblybuyoutlayoffmanufacturingmercedesmercedes benzmercedes-benzmercedesbenzproduction cutsProductionCutsslowdownstoppageTue, 04 Nov 2008 09:58:00 EST<![CDATA[GM to cut 5,000 salaried workers]]>http://www.autoblog.com/2008/07/30/gm-to-cut-5-000-salaried-workers/http://www.autoblog.com/2008/07/30/gm-to-cut-5-000-salaried-workers/http://www.autoblog.com/2008/07/30/gm-to-cut-5-000-salaried-workers/#commentsFiled under: ,

General Motors is looking to reduce its salaried (read: non-unionized) workforce by 5,000 employees by the end of the year, leaving the beleaguered automaker with 27,000 white-collar jobs in total. This 15% head-count reduction is part of an ongoing effort to trim costs as the automaker continues to hemorrhage cash.

Also on the docket are early retirement plans offered to a select group of workers close to retirement age, while employees who choose to stay won't be getting raises until 2010 at the earliest. If GM reaches its reduction goals, the automaker will have shed its salaried workforce by 17,000 people in the last decade alone.

[Source: The Detroit News]

GM to cut 5,000 salaried workers originally appeared on Autoblog on Wed, 30 Jul 2008 18:32:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>buyoutgeneral motorsGeneralMotorsgmgm layoffsGmLayoffslayoffsWed, 30 Jul 2008 18:32:00 EST<![CDATA[GM offering buyouts and bonuses to HUMMER dealers]]>http://www.autoblog.com/2008/07/28/gm-offering-buyouts-and-bonuses-to-hummer-dealers/http://www.autoblog.com/2008/07/28/gm-offering-buyouts-and-bonuses-to-hummer-dealers/http://www.autoblog.com/2008/07/28/gm-offering-buyouts-and-bonuses-to-hummer-dealers/#commentsFiled under: , , ,


Click on the above image for our 2009 Hummer H3T high-res gallery

Taking heed of lessons learned when it shed the Oldsmobile brand, General Motors is quietly negotiating with HUMMER dealers to prevent lawsuits if the brand is sold or extinguished. Even though confidentiality agreements have been signed, HUMMER dealers are reporting heavy discussions with GM to buy back stores and compensate owners. GM has even paid second- and third-quarter bonuses (averaging six figures) in advance. June delivered gloom to HUMMER as the brand's sales fell 59.3 percent (to just 2,072 units) as near $5-per-gallon fuel prices began flowing through pumps. If that weren't bad enough, the rugged off-road brand was hit with another mass exodus of sales on GM's announcement that HUMMER might be sold. With sales falling, experienced dealership staff leaving, and fuel prices still up in the air, GM's Jeep-fighting brand has literally fallen off the road.

[Source: Automotive News, subs. req'd, Photo by Scott Olson/Getty]

GM offering buyouts and bonuses to HUMMER dealers originally appeared on Autoblog on Mon, 28 Jul 2008 11:28:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bonusesbuy outBuyOutdealersHummerOut of businessOutOfBusinessretailersSaleSoldMon, 28 Jul 2008 11:28:00 EST<![CDATA[Ford offers up more buyouts to hourly workers]]>http://www.autoblog.com/2008/07/22/ford-offers-up-more-buyouts-to-hourly-workers/http://www.autoblog.com/2008/07/22/ford-offers-up-more-buyouts-to-hourly-workers/http://www.autoblog.com/2008/07/22/ford-offers-up-more-buyouts-to-hourly-workers/#commentsFiled under: ,

Ford is hoping to continue the reduction of both the number of vehicles the automaker will produce and, correspondingly, its hourly blue-collar workforce. In order to make good with the UAW, the same buyout packages available last year are being extended to these unionized workers. The packages have not changed since they were offered to Ford employees in Kentucky in June of 2007. These latest buyout announcements involve workers from plants in either Michigan or Ohio, a further blow to the already weakened economies in these two auto-heavy states.

Earlier this year, Ford said it was hoping for another 9,000 hourly workers to take buyouts. Between 2006 and 2007, a total of 33,600 union workers accepted either buyout packages or early retirement packages, a huge percentage of Ford's total employees. At this rate, we wonder how many UAW workers Ford will have left after it's all said and done.

[Source: The Detroit News]

Ford offers up more buyouts to hourly workers originally appeared on Autoblog on Tue, 22 Jul 2008 08:35:00 EST. Please see our terms for use of feeds.

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A key part of Chrysler LLC's agreement last year with the UAW gave the automaker the ability to hire new employees at a fraction of wages and health care of current workers. Since the deal was signed, Chrysler has been trying to show high-cost workers the door. The privately-owned automaker had a goal of 10,000 overall buyouts to cut labor costs, but it doesn't look like the Pentastar is going to get its wish. UAW Vice President General Holiefield told the Detroit Free Press that he didn't think Chrysler would hit its goal.

Holiefield cited a shaky economy as the main reason workers haven't been pulling the trigger on deals that can range from $70,000 to $100,000 just for not working. The issue is once workers leave, there are few jobs available to provide new income. Although the deadline has passed for workers to accept packages, Chrysler isn't divulging the number of workers who have grabbed the deal. Chrysler is working with the UAW to offer more buyouts in the near future.

[Source: Detroit Free Press]

Chrysler likely to miss goal of 10,000 buyouts originally appeared on Autoblog on Thu, 13 Mar 2008 19:32:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>buyoutCerberusChrysler LLCChryslerLlcUAWThu, 13 Mar 2008 19:32:00 EST<![CDATA[UAW pres expects 15,000 workers to take GM buyout]]>http://www.autoblog.com/2008/02/14/uaw-pres-expects-15-000-workers-to-take-gm-buyout/http://www.autoblog.com/2008/02/14/uaw-pres-expects-15-000-workers-to-take-gm-buyout/http://www.autoblog.com/2008/02/14/uaw-pres-expects-15-000-workers-to-take-gm-buyout/#commentsFiled under: , , ,

Once you have cut everyone, who is left to cut? That's the problem facing GM, according to UAW President Ron Gettelfinger. The General has already harvested the low hanging fruit with previous buyouts, but they're embarking on another round to try and further reduce labor costs. We've already covered the specifics of GM's latest buyout offer that attempts to sweeten the enticement to leave so that cheaper labor can be brought in. The new offer was made to 74,000 employees, and Gettelfinger estimates that about 15,000 will accept the offer. Uncertainty over what the US economy is likely to do in coming months is playing a role in the decision for the roughly 46,000 GM employees eligible for retirement. Money is no longer pouring out of the housing market, and people who thought they'd cash out for a retirement in tropical climes are rethinking their plans while we all wait on tenterhooks to see what our brush with recession will look like.

In 2006, GM was able to entice 34,000 workers to leave, but since then the world economy has been stricken by a raft of bad loans made by brokers without scruples, so sitting tight and waiting out the storm might look like a smarter option. Sitting tight for just a little longer might look wise considering the accolades for GMs cars as of late. It really appears like the turnaround has gained some traction. Then again, if you're staring down retirement, putting a fat lump of cash in a tax free 401k might look awfully attractive, too.

[Source: Detroit News]

UAW pres expects 15,000 workers to take GM buyout originally appeared on Autoblog on Thu, 14 Feb 2008 19:33:00 EST. Please see our terms for use of feeds.

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According to an inside source who spoke with Automotive News, Ford will be narrowing down the potential suitors for Jaguar and Land Rover by the end of the week. While not nearly as entertaining, or enticing, as most prime-time match-making shows, the dwindling bidder list confirms a few names that we've heard before and a few others we'll surely get to know soon.

In the second round of Who Wants to Buy an Ailing British Automaker, the bidders are rumored to be India's Tata Motors, One Equity, Ripplewood, TPG and Terra Firm (those last four are mainly buyout groups). Pricing for both brands is expected to be around $1.5 billion - far from Ford's initial hopes of close to $8 billion - and it's safe to expect a third round of talks by the end of the year that will reduce the field down to two or three.

[Source: Automotive News - Sub. Req.]

The Flava of Jag: Five bidders expected for Jaguar and Land Rover originally appeared on Autoblog on Fri, 02 Nov 2007 15:24:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>buyoutjaguarland roverLandRoverFri, 02 Nov 2007 15:24:00 EST<![CDATA[Volkswagen/Proton on-again, off-again deal back on again?]]>http://www.autoblog.com/2007/09/08/volkswagen-proton-on-again-off-again-deal-back-on-again/http://www.autoblog.com/2007/09/08/volkswagen-proton-on-again-off-again-deal-back-on-again/http://www.autoblog.com/2007/09/08/volkswagen-proton-on-again-off-again-deal-back-on-again/#commentsFiled under: , ,

Late last year reports first surfaced that Volkswagen was interested in taking a controlling interest in Malaysian car maker Proton. But by March the talks had apparently broken down. Now for the first time Volkswagen has actually made a statement about Proton.

Volkswagen is picking up the pace in talks with the Malaysian government who happens to be Proton's controlling shareholder. VW officials will meet with government officials in the coming weeks about how to proceed. The result could be either a takeover or just a partnership.

[Source: Volkswagen]

Continue reading Volkswagen/Proton on-again, off-again deal back on again?

Volkswagen/Proton on-again, off-again deal back on again? originally appeared on Autoblog on Sat, 08 Sep 2007 07:53:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>buyoutmalaysiaprotonSat, 08 Sep 2007 07:53:00 EST<![CDATA[But wait, there's one more: Former Ford exec wants Jag/Land Rover]]>http://www.autoblog.com/2007/08/11/but-wait-theres-one-more-former-ford-exec-wants-jag-land-rove/http://www.autoblog.com/2007/08/11/but-wait-theres-one-more-former-ford-exec-wants-jag-land-rove/http://www.autoblog.com/2007/08/11/but-wait-theres-one-more-former-ford-exec-wants-jag-land-rove/#commentsFiled under: , ,



Former Ford exec Nick Scheele is joining former Ford CEO Jacques Nasser as potential buyers of the Blue Oval's remaining British marques. Scheele has joined Ripplewood Holdings as an advisor, as Sir Nick has intimate knowledge of Jaguar from his time as leader of the brand in the 90's, and he was in charge of Ford of Europe when Ford purchased Land Rover. Ripplewood partner and former Chrysler President Tom Stallkamp recruited his old pal Scheele to help analyze the potential purchase. By some accounts Jaguar has lost over $10 billion for Ford since since the automaker was purchased in 1989, and a great deal of the financial and product disasters occured when Scheele was steering the ship in Europe. Hey, former Ford Exec Jim Padilla also ran Jaguar once, maybe he's next to get in on the bidding.

[Source: Automotive News - Sub. Req.]

But wait, there's one more: Former Ford exec wants Jag/Land Rover originally appeared on Autoblog on Sat, 11 Aug 2007 15:29:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>BuyoutFordJaguarLand RoverLandRoverNasserNick ScheeleNickScheeleSat, 11 Aug 2007 15:29:00 EST<![CDATA[6,400 Chrysler hourly workers want buyout, 40% more than planned]]>http://www.autoblog.com/2007/06/08/6-400-chrysler-hourly-workers-want-buyout-40-more-than-planned/http://www.autoblog.com/2007/06/08/6-400-chrysler-hourly-workers-want-buyout-40-more-than-planned/http://www.autoblog.com/2007/06/08/6-400-chrysler-hourly-workers-want-buyout-40-more-than-planned/#commentsFiled under: , , ,

Back in late February we reported on Chrysler's early retirement and separation program that the automaker hoped would help it shed 13,000 jobs over the next three years. The company was planning on saying goodbye to about 5,700 hourly (read: union) workers this year, of which around 1,000 would be from Canada. That means Chrysler hoped at least 4,700 of its hourly workers in the U.S. would take the buyout offer that offered a lump sum of up to $100,000 to workers willing to leave.

The Detroit Free Press is reporting that in fact around 6,400 hourly workers in the U.S. have said they're interested in taking the buyout, nearly 40% more than Chrysler planned. While the purchase of Chrysler by Cerberus Capital Management was seen as a good thing for the automaker going forward, the larger than expected response to its buyout offer suggests that many of Chrysler's hourly workers believe the writing's still on the wall. Analysts speculate that rather than stick around and drag down the company, these workers feel their retirement benefits will be more secure if they leave now to help the company and ensure its future.

Not expecting such high demand, Chrysler has also reportedly slowed down the buyout process to a halt. Only now have a number of workers departed who expressed interest in leaving the company when the program was announced in late February. It's like that some of those hoping to leave this year will be denied the buyout offer, which is something Ford was forced to do when too many salaried workers accepted its buyout offer.

[Source: The Detroit Free Press]

6,400 Chrysler hourly workers want buyout, 40% more than planned originally appeared on Autoblog on Fri, 08 Jun 2007 17:33:00 EST. Please see our terms for use of feeds.

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Earlier this month, Autocar reported that BMW had expressed significant interest in buying the Volvo brand from Ford Motor Company early in 2007. The report claimed BMW had gone so far as to request financial data about the Swedish automaker.

Yesterday, the Swedish newspaper Goteborgs Posten threw another logo on this rumor's fire by reporting that sources within Ford have confirmed that BMW is exploring the possibility of purchasing Volvo. Another source has even claimed BMW and Ford have already begun informal talks.

Our previous post already touched on all the questions that need answering, including why BMW, which became the go-it-alone automaker after owning Land Rover left a bad taste in its mouth, would jump back into the ownership game. Also, while BMW and Volvo have distinct identities (the Ultimate Driving Machine versus the ultimate safety machine), there would at least be some overlap in their respective lineups.

Finally, while Ford has stated that nothing is sacred when it comes to its Premiere Automotive Group, of which Volvo is a member, why would it sell one of PAG's most promising brands? We have an answer for that one: Volvo's actually worth something. While many, including Ford itself, might hate to see Volvo leave the fold, the Swedish brand would likely catch a premium price on the market and help Ford fund its turnaround.

Would a BMW/Volvo ticket capture the consumer's heart? This armchair analyst is hardly qualified to give an answer, except to say that Volvo is a brand on the verge of some big things (C30 anyone?) and requires a patient parent company with deep enough pockets to see it through.

Thanks to everyone who sent us the tip!]

[Source: Reuters]

BMW buying Volvo rumour circulates again originally appeared on Autoblog on Tue, 29 May 2007 07:32:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>BMWbreakingbuyoutmergerPAGpremier auto grouppremier automotive groupPremierAutoGroupPremierAutomotiveGrouppremiere automotive groupPremiereAutomotiveGrouppurchaseVolvoTue, 29 May 2007 07:32:00 EST<![CDATA[Jeep employees pissed about Chrysler sale]]>http://www.autoblog.com/2007/05/15/jeep-employees-pissed-about-chrysler-sale-use-photo-71730996-f/http://www.autoblog.com/2007/05/15/jeep-employees-pissed-about-chrysler-sale-use-photo-71730996-f/http://www.autoblog.com/2007/05/15/jeep-employees-pissed-about-chrysler-sale-use-photo-71730996-f/#commentsFiled under: , , ,



After months of speculation, the Chrysler sale happened without too much fanfare on Monday morning, as Cerberus came out as the top bidder, and several potential investors came away empty-handed. One of the few groups vying for control of Chrysler was its own employees, and Automotive News is reporting that those UAW members feel they never got a real chance.

Members of Toledo's Jeep plant tried to get together a bid for the beleaguered Chrysler group, but they felt as though the folks in Stuttgart and Auburn Hills stalled in order to keep the workers at bay. The members were also angered by Ron Gettlefinger's comments that the sale to Cerberus was "in the best interest of the membership" only a few weeks after stating that the UAW was opposed to any sale to a private equity group. President of the Chrysler Employee Buyout Committee (CEBC) Michele Mauder also criticized Daimler for basically paying $650 million to get out from under Chrysler's liabilities. CEBC claims that they aren't as upset by the fact that they didn't win the right to purchase Chrysler as they were that they never got a fair chance to bid.

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

Continue reading Jeep employees pissed about Chrysler sale

Jeep employees pissed about Chrysler sale originally appeared on Autoblog on Tue, 15 May 2007 12:34:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>buyoutcerebuschrysleremployeesjeepprivate equityPrivateEquityTue, 15 May 2007 12:34:00 EST<![CDATA[Porsche proposes to Volkswagen]]>http://www.autoblog.com/2007/04/30/porsche-proposes-to-volkswagen/http://www.autoblog.com/2007/04/30/porsche-proposes-to-volkswagen/http://www.autoblog.com/2007/04/30/porsche-proposes-to-volkswagen/#commentsFiled under: , , ,

It's official, Porsche has submitted an offer to buy the Volkswagen group. Unless you've been living in a cave, you probably already know that the erstwhile sportscar manufacturer is more profitable than the megalithic auto consortium, with all its subsidiaries, and has been steadily increasing its stake in VW.

When Porsche raised its stake in Volkswagen past 30%, German law mandated that it submit an offer to Volkswagen shareholders to buy them out and take over the automotive conglomerate outright. The mandatory offer has now been officially submitted, and subsequently approved by the German Federal Agency for Financial Services Supervision.

Porsche is offering ?100.92 per common share, and ?65.54 for preferred shares, coming in at the bare minimum required by law. Volkswagen shareholders have until May 29 to accept or refuse the offer. If they accept, Porsche will have full control of Volkswagen and all its subsidiaries, including the Audi, Skoda, Seat, Lamborghini, Bugatti and Bentley brands, turning what was once the niche sportscar maker into one of the largest automobile makers in the world. It's unlikely that the VW board will accept, however, considering Porsche made the bare min bid.

Related posts:

Press release after the jump.

[Source: Porsche]

Continue reading Porsche proposes to Volkswagen

Porsche proposes to Volkswagen originally appeared on Autoblog on Mon, 30 Apr 2007 12:28:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bidboardbuyoutporschesharesharesstakevolkswagenvwMon, 30 Apr 2007 12:28:00 EST<![CDATA[Porsche takes a $47b loan out to bid for VW]]>http://www.autoblog.com/2007/03/30/porsche-takes-a-47b-loan-out-to-bid-for-vw/http://www.autoblog.com/2007/03/30/porsche-takes-a-47b-loan-out-to-bid-for-vw/http://www.autoblog.com/2007/03/30/porsche-takes-a-47b-loan-out-to-bid-for-vw/#commentsFiled under: ,



What's it take to purchase a controlling stake in Volkswagen? Reuters' reports contacted all the major institutions involved in the deal and came up with 35 billion euros, or $46.47 billion US. To give Porsche the required 30.94-percent of shares, the guys and gals in Stuttgart have tapped ABN AMRO, Barclays Capital, Commerzbank Merrill Lynch and UBS to arrange the purchase.

While all the technical details escape those of us lacking any extensive knowledge of such heady financial topics, it's easy for us to understand that Porsche has to submit a slew of documentation to German regulators over the next four weeks in order to be reviewed, analyzed and approved before such a purchase could take place.

[Source: Reuters via Automotive News (Sub. Req.)]

Porsche takes a $47b loan out to bid for VW originally appeared on Autoblog on Fri, 30 Mar 2007 08:23:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>abn amroAbnAmrobarclays capitalBarclaysCapitalbuyoutcommerzbankcontrolling stakeControllingStakemerrill lynchMerrillLynchporscheubsvolkswagenFri, 30 Mar 2007 08:23:00 EST<![CDATA[Nissan offering buyouts to 775 Tennessee workers]]>http://www.autoblog.com/2007/03/23/nissan-offering-buyouts-to-775-tennesse-workers/http://www.autoblog.com/2007/03/23/nissan-offering-buyouts-to-775-tennesse-workers/http://www.autoblog.com/2007/03/23/nissan-offering-buyouts-to-775-tennesse-workers/#commentsFiled under: , ,

Seems like few automakers are immune to downsizing these days, and Nissan is no exception. Today the automaker announced it's reducing its workforce in Tennessee by 12.5%, which equates to 775 heads. The reduction come via way of voluntary buyouts that include a $45,000 cash payment and additional $500 for every year worked. All the workers come from Nissan's two assembly plants in Tennessee, one in Smyrna where the Altima and Maxima, Pathfinder and Xterra are built, and the other in Decherd, which builds the engines to supply the Smyrna plant, as well as Nissan's assembly plant in Canton, Miss. Fortunately, 303 workers were reportedly eligible for retirment anyway and happy to take the buyout.

[Source: Automotive News]

Nissan offering buyouts to 775 Tennessee workers originally appeared on Autoblog on Fri, 23 Mar 2007 16:58:00 EST. Please see our terms for use of feeds.

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While deftly avoiding the General Motors buyout of Chrysler issue, GM Vice Chairman Bob Lutz did say that he can see one of Detroit's Big 3 dying off in the not-too-distant future. Citing increased market pressures and too much capacity, he said in Geneva that present trends lead to only one conclusion, that one of the domestic automakers will be squeezed out. It won't be GM, however. "Right now, we're in the best position," he said. "We're approaching the end of the beginning of the transformation of GM."

We agree that GM is closest to being on the right track, so it remains to be seen whether Ford can survive its own turnaround, or if Chrysler will weather the current storms and right the ship before somebody comes in and dismantles it.

Lutz went on to detail the legacy costs that are behind most of the pessimism about the domestic industry. It's stuff we've heard before like pensions and health care for employees (and retirees) that are a $2,000-per-vehicle "burden" on the manufacturers. The biggest question on everybody's mind, however, wasn't directly addressed. Rather than talking about a GM/Chrysler deal, Lutz discussed the breakdown in the Renault-Nissan talks. "Generically, synergies are easier to get in the same geography than across geographies," he said. "That was the problem with Renault-Nissan. What sane auto company would sign up for that?" What company indeed?

[Source: Detroit News]

Lutz: One of Big 3 will die, but not us originally appeared on Autoblog on Thu, 08 Mar 2007 13:56:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Bob LutzBobLutzbuyoutGM ChryslerGmChryslerlegacy costsLegacyCostsThu, 08 Mar 2007 13:56:00 EST<![CDATA[Chrysler sale update: Wall St. more interested than automakers]]>http://www.autoblog.com/2007/03/05/chrysler-sale-update-wall-st-more-interested-than-automakers/http://www.autoblog.com/2007/03/05/chrysler-sale-update-wall-st-more-interested-than-automakers/http://www.autoblog.com/2007/03/05/chrysler-sale-update-wall-st-more-interested-than-automakers/#commentsFiled under: ,

Since Daimler Chrysler CEO Dieter Zetsche declared 'all options are open' with regards to a possible Chrysler sale, the rumors have been flying. With the exception of GM and Magna, every automaker that comes up as a potential suitor has politely denied the rumor. VW, Hyundai, and Ford have all denied interest in Chrysler, and the Chinese automakers haven't exactly gotten in line to throw their names in the hat.

Surprisingly, over the past few weeks Wall St. has shown some of the strongest interest in the Chrysler brand. Blackstone Group, an investment company with a whopping $125 billion in its corporate war chest, has emerged as one of Chrysler's potential suitors. In fact, the company was already given access to confidential business data about Chrysler.

Blackstone already has seen success in the automotive sector with a 56% ownership in TRW and a stake in American Axle. Another investment firm that has been eying Chrysler has been Cerberus. The company leads a group of investors looking at bankrupt Delphi and they already own a 51% stake in GMAC.

[Source: Detroit News]

Continue reading Chrysler sale update: Wall St. more interested than automakers

Chrysler sale update: Wall St. more interested than automakers originally appeared on Autoblog on Mon, 05 Mar 2007 08:28:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>blackstonebuyoutcerberuschryslerdcxdodgehttp://www.detnews.com/apps/pbcs.dll/article?AID=/20070303/AUTO0Mon, 05 Mar 2007 08:28:00 EST<![CDATA[Do you think that the Chrysler employees's buyout offer was fair?]]>http://www.autoblog.com/2007/03/01/do-you-think-that-the-chrysler-employeess-buyout-offer-was-fair/http://www.autoblog.com/2007/03/01/do-you-think-that-the-chrysler-employeess-buyout-offer-was-fair/http://www.autoblog.com/2007/03/01/do-you-think-that-the-chrysler-employeess-buyout-offer-was-fair/#commentsFiled under: , ,

We thought that we would share some quotes of Chrysler employees who were offered the incentive to leave the company for up to $100,000.

"I'm not happy with it," said Ron Toerper, a 49-year-old skilled trade worker at Chrysler's Warren Stamping plant speaking about the lack of any car vouchers that some white collar workers were offered. "I'm just asking our union representative why we can't get the same deal. Where's the parity?"

Terry Ammons, who lives in Detroit was counting on one of those car vouchers. "You have to ask yourself do you want to be in that kind of environment or do you feel comfortable with an incentive to go out with?" she said.

Debra Morton feels slighted. "Unless an act of God or an act of luck happens, it would be very difficult for a person like me to take that buyout," she said.

Mike Tremain, the odd man out from this story, said the offer is fair. "These people are going anyway," Tremain said. "It's an excellent offer for anybody that's ready. You can't beat it. It's the American way. Where else can you go and work for a year and leave with an incentive."

These quotes give an idea of what employees are thinking. You can read more by following the link to the Detroit News, which has been solicited reactions from the affected workforce. What do you think? Were the offers made to Chrysler workers fair?

[Source: Detroit News]

Do you think that the Chrysler employees's buyout offer was fair? originally appeared on Autoblog on Thu, 01 Mar 2007 13:04:00 EST. Please see our terms for use of feeds.

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