Autoblog

Detroit's new emergency city manager worked on Chrysler bankruptcy [w/video]

Zach Bowman — Fri, 15 Mar 2013 11:31:00 EST

Filed under: Government/Legal, Hirings/Firings/Layoffs, Videos, Chrysler, Earnings/Financials

Kevyn Orr, the new emergency city manager of Detroit, has a history with one of Michigan's most famous residents: Chrysler. Governor Rick Snyder (at right) appointed Orr to the position yesterday with the belief that Detroit needs outside assistance to right the city's mounting financial woes. Orr (at left), a partner with the Jones Day law firm, will begin work on March 25 and receive $275,000 a year for his work. While state officials believe the new city manager will be able to complete his duties in 18 months, the contract is technically open-ended.

The 54-year-old attorney helped steer Chrysler through its 2009 bankruptcy, earning $700 per hour for his efforts. He was also instrumental in convincing the courts to allow Chrysler to shutter 789 dealerships in a single month. Orr says he's aware that his efforts won't have made him any friends in Southern Michigan.

"I'm prepared to be the most hated man for a period of time," Orr is quoted as saying in The Detroit Free Press, "but some of that vitriol will abate."

Moving forward, Orr will have widespread power to put Detroit on whatever course he sees fit, including everything from eliminating the city's mayor and council's pay and fringe benefits to stripping them of fiduciary powers. You can watch Snyder introduce Orr in the video below.

Continue reading Detroit's new emergency city manager worked on Chrysler bankruptcy [w/video]

Detroit's new emergency city manager worked on Chrysler bankruptcy [w/video] originally appeared on Autoblog on Fri, 15 Mar 2013 11:31:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Fiat's Marchionne ponders Chrysler going public again

Chris Paukert — Mon, 04 Mar 2013 09:27:00 EST

Filed under: Plants/Manufacturing, Chrysler, Earnings/Financials, Fiat

Fiat boss Sergio Marchionne says there's a real possibility that its majority-owned Chrysler Group may eventually return to the ranks of publicly traded companies. According to Bloomberg, the Fiat and Chrysler CEO gives that a "50 percent chance" of happening, but he doesn't appear to favor that scenario: "My preference is to be one single company... we belong together."

Marchionne has seemingly been operating under the assumption that Fiat will eventually own all of Chrysler, working to buy up the shares it doesn't own and looking to buy out the retiree trust fund that it shares Chrysler ownership with. Certainly, Chrysler going independent again would be increasingly difficult, as the companies continue to blend products, technologies, facilities and staffing, a trend started immediately after the Italian automaker became custodian of the brand following Chrysler's bankruptcy in 2009.

Marchionne's remarks to the media came at Chrysler's Kokomo, Indiana plant, where he was on hand to announce a major investment at four facilities in the state to build eight- and nine-speed automatic transmissions.

Fiat's Marchionne ponders Chrysler going public again originally appeared on Autoblog on Mon, 04 Mar 2013 09:27:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Judge won't dismiss Chrysler dealer termination suit stemming from '09 bankruptcy

Jeff Sabatini — Wed, 29 Feb 2012 13:59:00 EST

Filed under: Car Buying, Government/Legal, Chrysler, Earnings/Financials

A Federal judge will allow some 75 Chrysler dealers to proceed with a lawsuit against the U.S. Treasury Department, according to Automotive News. The dealers insist that the government violated the Fifth Amendment in administrating the Chrysler bankruptcy when it terminated their dealership franchises.

The lawsuit asks for some $200 million in damages, according to the report, but does not name the bankrupt automaker. Chrysler shed 789 dealers as part of its 2009 bankruptcy, a process that has led to no shortage of lawsuits and angry former stakeholders.

Whether the ranks of jilted dealers participating in the suit will swell remains to be seen. AN quotes the dealers' attorney, Leonard Bellavia of Mineola, N.Y., as saying, "We received a very important decision today. After this decision, I expect those dealers sitting on the sidelines to join the case."

The lawsuit, filed last February, will now move to discovery, according to Bellavia, who told AN he plans to depose Treasury officials who worked on the auto task force headed by "Car Czar" Stephen L. Rattner.

Judge won't dismiss Chrysler dealer termination suit stemming from '09 bankruptcy originally appeared on Autoblog on Wed, 29 Feb 2012 13:59:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Chrysler posts $183M profit for 2011

Jeff Sabatini — Wed, 01 Feb 2012 18:29:00 EST

Filed under: Chrysler, Earnings/Financials

Good news has been in abundant supply for the domestic automakers the last twelve months, and nowhere is that more evident than in the headline to this press release: "Chrysler Group Reports Full Year 2011 Net Income of $183 Million." Now, $183 million isn't exactly a king's ransom in the auto industry (or elsewhere - Apple made $25.92 billion last year). But if Chrysler is making money again for the first time since emerging from bankruptcy, well, perhaps the U.S. auto industry has finally recovered from 2009.

The smallest of the Big Three automakers reported sales of 1,369,114 vehicles in 2011, up 26 percent from 2010. Chrysler led all automakers in percentage sales gains last year, and finished fourth in U.S. sales, behind General Motors, Ford and Toyota. To read the full press release, click past the jump.

Continue reading Chrysler posts $183M profit for 2011

Chrysler posts $183M profit for 2011 originally appeared on Autoblog on Wed, 01 Feb 2012 18:29:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Memo says Bush administration almost pushed GM and Chrysler into earlier bankruptcy

Chris Shunk — Tue, 24 Jan 2012 10:28:00 EST

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

2008 was one crazy, almost surreal year. It was the year when the economy took a nosedive, and the U.S. auto industry nearly ceased to exist. One of the last major decisions former President Bush made before he left office was to give Chrysler and General Motors a combined $17.4 billion to keep their doors open.

That money held over the two automakers for a few months, but The Detroit News reports that the Bush administration almost took a different tack. The New Yorker published a 57-page economic memo that was written by economist Larry Summers to President Elect Obama. The memo claims that President Bush was noodling an earlier bankruptcy for the automakers, backed by up to $100 billion in government financing.

By instead forwarding GM and Chrysler a bridge loan, Bush (pictured here with former Chrysler CEO Bob Nardelli) effectively prolonged the inevitable and pushed the tough decision on to the next administration. But that could have been the best possible action to take - Summers was reportedly of the opinion that pushing the automakers through bankruptcy too early could have severely damaged the entire U.S. auto industry - not just at Chrysler and GM.

In the end, Chrysler entered bankruptcy in April, followed by GM in June. Chrysler no longer owes the federal government any money, though Uncle Sam still owns 26.5 percent of The General. As a result of the Bush administration's choices, the Obama administration is the one that gets the blame and credit (depending on your political viewpoint) for shepherding the two automakers through bankruptcy.

Memo says Bush administration almost pushed GM and Chrysler into earlier bankruptcy originally appeared on Autoblog on Tue, 24 Jan 2012 10:28:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Romney blames Obama for GM layoffs

Jeremy Korzeniewski — Tue, 20 Dec 2011 15:29:00 EST

Filed under: Government/Legal, Hirings/Firings/Layoffs, Plants/Manufacturing, Chrysler, GM, Earnings/Financials

"The president is going to go after me. I'll go after him." That pretty much sums up every presidential race in recent memory, where it seems attacking the opposing side is just as important as proving your own personal worth. And the 2012 U.S. presidential election, unsurprisingly, is shaping up much the same.

The words above came from former Massachusetts Gov. Mitt Romney, who is in the running for the Republican nomination. According to a Romney interview conducted by Fox News, President Obama is responsible for closing factories and laying off workers during the government-backed bankruptcies of Chrysler and General Motors. Detractors would argue that factory closings and a shrinking workforce were unavoidable at the automakers and that the plans were effectively put in motion on former President George Bush's watch.

This new line of reasoning from Romney comes as he himself is under attack for his role in Bain Capital, a highly profitable Boston-based private equity firm. Depending on who you're asking, Bain was either a creator of jobs and a savior of broken companies or a group of rich investors whose sole goal was to make money at the expense of everything else. Either way, there's no denying that many facilities were closed and many jobs were lost under the ownership of Bain Capital.

As for President Obama's reaction, The Detroit News quotes Michigan spokesman for the Obama campaign, Clark Pettig, as saying:

"We know what Mitt Romney did when 1.4 million jobs were on the line - he opposed the rescue loan the president extended to avoid liquidation, and made clear he would let Detroit go bankrupt. It's no wonder he did that, because when he was a corporate buyout specialist, he laid off thousands of workers, closed factories and outsourced jobs solely in order to create profits for himself and his partners."

Welcome to election season, folks.

Romney blames Obama for GM layoffs originally appeared on Autoblog on Tue, 20 Dec 2011 15:29:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

"Car Czar" Rattner settles with Cuomo over pension fund kickbacks

David Kiley — Fri, 31 Dec 2010 08:57:00 EST

Filed under: Etc., Government/Legal

New York Attorney General Andrew Cuomo has announced that his office settled with former White House Task Force "Car Czar" Stephen L. Rattner for $10 million. The agreement comes following charges that Rattner engaged in a kickback scheme involving New York's pension funds while he was an executive with Quadrangle Group.

Rattner, who oversaw the U.S. government rescue of General Motors and Chrysler in 2009 and shepherded the companies into bankruptcy, will also be barred from doing business with the State's pension fund for a period of five years as part of the agreement with Cuomo. The deal will settle two lawsuits filed in November against Rattner.

"I am gratified that we have been able to reach an agreement in this case, as it resolves the last major action of our multi-year investigation," Cuomo said in a statement. "The state pension fund is a valuable asset held in trust for retirees and supported by taxpayers. Through the many cases, pleas and settlements in this investigation, I believe we have been able to help restore and protect the integrity of the state pension fund."

Mr. Cuomo will be sworn in as New York's governor on Jan. 1.

Rattner said in a statement: "I am pleased to have reached a settlement with the New York attorney general's office, which allows me to put this matter behind me. I apologize if during the course of this process there is anything I did that may have made reaching this agreement more difficult. I respect the work of the attorney general and his staff to ensure that the New York State Common Retirement Fund operates properly and in the best interests of New Yorkers."

[Image: Neilson Barnard/Getty]

Continue reading "Car Czar" Rattner settles with Cuomo over pension fund kickbacks

"Car Czar" Rattner settles with Cuomo over pension fund kickbacks originally appeared on Autoblog on Fri, 31 Dec 2010 08:57:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Report: Fed reduces auto bailout loss forecast to $17B

Chris Shunk — Wed, 06 Oct 2010 14:01:00 EST

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

The federal government spent roughly $86 billion in taxpayer money to bail out the auto industry. That's a lot of Monopoly money, folks, and when the industry we know and love was at its weakest point, early projections suggested that that the U.S. government and American taxpayers would never see $30 billion of that money. But as the economy slowly crawls back to life and cars and trucks are beginning to move with greater regularity, those forecasts are being adjusted downward.

A few months ago the Treasury Department proclaimed that the industry could, if everything fell just so, lose only $8 billion by the time the dust settles. We're now in October, and according to The Detroit News, the DoT is settling on a loss that looks a lot like $17 billion. That figure was revised downward from $24.3 billion due to increased optimism that the bailout of Ally Bank, the Cerberus-owned finance arm for both General Motors and Chrysler, wasn't going to be as big of a cash drain as was originally expected.

The revised auto industry loss comes out of a 200-page report that details the overall plight of the $700 billion ($475 billion has been spent to date) Troubled Asset Relief Program. The report states that the U.S. government stands to lose a grand total of $29 billion of the $475 billion spent. That $29 billion number is definitely tentative, though, because a lot of the numbers are heavily dependent on the price of stocks at the time the federal government decides to sell.

For example, at the current price of AIG shares, the government would actually book a profit of $21.9 billion. The bank bailouts are said to have produced another $16 billion in profits, while the mortgage securities buys are currently underwater to the tune of $46 billion. The $29 billion figure could go further up or down based upon the price of the initial public offerings at General Motors and Chrysler. The government put $43 billion into The General in exchange for 60.8 percent of the company's stock, and another $12 billion for a 10 percent stake in Chrysler. GM's IPO is expected to open next month, though the feds aren't expected to sell off all of its shares in the first offering. Industry watchers suggest that Chrysler's IPO could happen in 2011.

[Source: The Detroit News | Image: Mario Tama/Getty]

Report: Fed reduces auto bailout loss forecast to $17B originally appeared on Autoblog on Wed, 06 Oct 2010 14:01:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Former Chrysler execs file class-action suit over pension losses

Jonathon Ramsey — Sun, 12 Sep 2010 11:07:00 EST

Filed under: Government/Legal, Chrysler, Mercedes-Benz

More than 450 executives from Chrysler's white collar force, going all the way back to Lee Iacocca, have sued Daimler and Cerberus for gutting the value of their collective supplemental pensions to the tune of $100 million. The class action suit took the noted step of not suing Fiat-owned Chrysler, with the lead attorney saying that "Everybody involved in this suit loves that company and like everybody else wants to see it succeed."

Plaintiffs accuse Daimler and Cerberus of not adequately protecting the supplemental pensions from creditors as Chrysler's health slid from trouble to terminal. Those pensions weren't moved to the new Chrysler, and now the former execs are paying the price. Follow the jump for a press release from the lead firm handling the case.

[Source: AFP]

Continue reading Former Chrysler execs file class-action suit over pension losses

Former Chrysler execs file class-action suit over pension losses originally appeared on Autoblog on Sun, 12 Sep 2010 11:07:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Chrysler posts financial results, loses $197 million in first quarter

Zach Bowman — Wed, 21 Apr 2010 13:00:00 EST

Filed under: Chrysler, Earnings/Financials

Chrysler just released its first financial report since emerging from bankruptcy last year. The company announced that while it's still operating at a net loss of around $197 million, it somehow managed to create $1.5 billion in cash during the first three months of 2010. That cash, along with an additional $7.4 billion from past cash reserves, went toward putting a dent in the company's remaining debt.

The smallest of the Big Three also managed to increase its market share one percent compared to the last three months of 2009. What's more, it produced a whopping 56 percent more vehicles in North America from January to March than it did during the same period last year, despite seeing sales decline by 5.3 percent. That bump in production is largely thanks to the fact that Chrysler idled many of its plants through 2009.

The company says that despite the loss, it's still on track to meet its goals and return to profitability by the end of this year. That's due to the fact that revenue increased by around $300 million from the fourth quarter of 2009 to the first quarter of 2010 and that the company is continuing to reduce its debt. At the same time, a rash of new models, including the long awaited 2011 Jeep Grand Cherokee will be hitting the market soon. Follow the jump for the official word.

[Source: Chrysler via Freep | Image: Bill Pugliano/Getty]

Continue reading Chrysler posts financial results, loses $197 million in first quarter

Chrysler posts financial results, loses $197 million in first quarter originally appeared on Autoblog on Wed, 21 Apr 2010 13:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Report: Chrysler to reinstate at least 50 dealerships, maybe more

Eric Loveday — Tue, 30 Mar 2010 07:34:00 EST

Filed under: Hirings/Firings/Layoffs, Marketing/Advertising, Chrysler, Earnings/Financials

Company representatives for Chrysler have been in contact with at least 50 dealerships regarding reinstatement into the the automaker's dealer network. According to a leader who represents the 400-plus dealerships seeking arbitration, the dealers contacted will receive intent letters to begin the lengthy reinstatement process.

Two weeks ago, Chrysler signaled that it had no intention to reinstate any dealers, who were seeking arbitration, back into the network. Now Chrysler has released a statement confirming that they have been in contact with the dealers and will issues letters of intent for reinstatement.

According to Tamara Darvis, a co-leader of the Committee to Restore Dealer Rights, more than a dozen dealers contacted her regarding discussions with Chrysler representatives and the promise of letters of intent to begin the reinstatement process. The letters are expected to be mailed immediately.

Right now, it's unclear if any additional dealerships have been contacted regarding reinstatement, but it's believed that up to 30 more dealerships could be included. According to several reports, the arbitration process is long and costly to the automaker, but reinstatement of dealerships seeking arbitration may actually be more economically feasible for Chrysler and could become a solution for more and more dealerships seeking arbitration.

[Source: Automotive News - Sub. Req.]

Report: Chrysler to reinstate at least 50 dealerships, maybe more originally appeared on Autoblog on Tue, 30 Mar 2010 07:34:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Detroit News: Chrysler sues multiple states over dealer laws

Dan Roth — Sun, 03 Jan 2010 15:42:00 EST

Filed under: Etc., Government/Legal, Chrysler

So you're Chrysler, and you hop into the Chapter 11 pool to save your own skin. While you can wash away some of your past sins with a bankruptcy-protection filing, the deal with Chapter 11 is that you've got to come up with a way to get out of your financial pickle and return to profitability. Part of the Chrysler plan to keep its head above water was divestiture of 789 dealers, a very unpopular idea with the rejected sales organizations (and no small number of politicians, whose ears were subsequently bent by the affected dealers).

When adversity strikes, what else is there to do but unleash legislative changes and legal challenges to and fro like archers' arrows? Recent alterations to dealer laws in Oregon, Maine, North Carolina and Illinois contradict bankruptcy code and are unconstitutional. The new laws allow the states to block Chryser from granting a new franchise or relocating an existing dealership into a market once belonging to a rejected dealer.

In response, Chrysler has fired off a lawsuit in Manhattan bankruptcy court naming eight parties as defendants, including the Oregon Attorney General, secretaries of state in Maine and Illinois, and other transportation officials. The filing argues that the laws being contested would force Chrysler to give consideration to the dealers for rights that they do not have, and furthermore, the dealer rejections were approved as part of the sale to Fiat.

[Source: The Detroit News]

Detroit News: Chrysler sues multiple states over dealer laws originally appeared on Autoblog on Sun, 03 Jan 2010 15:42:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Christmas List 2010: Rattner's book to debut in time for next Christmas

Dan Roth — Fri, 18 Dec 2009 10:03:00 EST

Filed under: Etc., Government/Legal, Chrysler, GM, Earnings/Financials

Planning for the future is perhaps an alien concept to big business - even automakers, with their protracted product development cycles. Take a cue of what not to do from them, then, and start planning now for next Christmas. May we suggest that your 2010 wishlist starts with what's destined to be a hotly-anticipated tome: Steven Rattner's memoir of his spearheading the bailout of General Motors and Chrysler. Tentatively titled "Overhaul," the cloyingly-named book will tell the story of the quick-rinse bankruptcies Rattner presided over.

A fascinating piece that Rattner wrote for Fortune Magazine back in October gave us a glimpse of how riveting such a seemingly-dry subject can be. The book is on track for a debut in the fall of 2010, and might be even more interesting in a year depending on how Rattner's deals work out. The hardest part is going to be behaving well enough for an entire year so this thing gets stuffed in our stocking.

[Source: The Detroit News | Image: Neilson Barnard/Getty]

Christmas List 2010: Rattner's book to debut in time for next Christmas originally appeared on Autoblog on Fri, 18 Dec 2009 10:03:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Former President Bush asks Obama to exit the car business

Jonathon Ramsey — Mon, 26 Oct 2009 12:58:00 EST

Filed under: Government/Legal

When Former President George W. Bush spoke to the Montreal Board of Trade recently, he made a public appeal to the Obama administration to "get out of the private sector," adding "I hope our government gets out of the autos and the financials in which they have a stake." His premise is that it takes private companies to turn an economy around, not government-run ones.

As we have found out during America's recent economic troubles, a lot of people find it easy to say a lot of things when they're not on the hook. And the former Commander-in-Chief isn't the first (nor the only) ex-President to offer such advice; they've all done it - he's only the most recent. But this is coming from the man whose VP sold him out as giving TARP money to prevent General Motors and Chrysler bankruptcies on his watch. Lest we forget, Bush is also the man who said:

"Well, I have obviously made a decision to make sure the economy doesn't collapse. I've abandoned free market principles to save the free market system. I think when people review what's taken place in the last six months, uh, and put it all in one, in one, (sigh), you know, in one package, they're realize how significantly we have moved."

Forget about politics, it isn't even that what Bush has said is wrong, per se - by most accounts, the American government shouldn't be in the car business nor the retail banking business, and the current administration agrees with that, having said repeatedly it wants to get out of both. But they inherited the issue, and now it's up to them to figure out the best way out of it. Hat tip to Avinash!

[Source: Bloomberg | Image: Getty]

Former President Bush asks Obama to exit the car business originally appeared on Autoblog on Mon, 26 Oct 2009 12:58:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

REPORT: 'Old' Chrysler defaulting on loan obligations

Jonathon Ramsey — Tue, 08 Sep 2009 17:20:00 EST

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

Before there was a Motors Liquidation Co, post-bankruptcy GM's hived-off shelter for useless assets, there was Old Carco LLC. That's the company Chrysler built to house its useless assets, and unsurprisingly, it doesn't have good news for unsecured creditors. Old Carco was left with liabilities of $20.5 billion, but has less than half of that to pay off everyone it owes.

The latest accounting says there is $2.345 billion to pay things off. With a shortfall that drastic, even the U.S. Treasury and the Canadian governments are waiting for their money, with a $3.34 billion loan and $29 million in interest going not being repaid. The Treasury sent Old Carco a notice of default last month, which strikes us as a waste of a stamp and paper.

And since Old Carco isn't allowed to borrow any more money, there is almost no chance that creditors will be made whole. At this point, as the company tries to unload leftover factories and property, it looks like the best anyone's going to get is pennies on the dollar -- or just fractions of that -- and that could be for the folks first in line. Old Carco is dead, long live Chrysler...

[Source: Detroit News | Image Source: Bill Pugliano/Getty]

REPORT: 'Old' Chrysler defaulting on loan obligations originally appeared on Autoblog on Tue, 08 Sep 2009 17:20:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

The tale that wagged the dog: Cerberus' Stephen Feinberg speaks

Jonathon Ramsey — Fri, 14 Aug 2009 19:58:00 EST

Filed under: Government/Legal, Chrysler

Now that the crime is over, the verdict issued and the sentencing issued, we can look forward to a few ~~months~~ years of the CSI treatment applied to what really happened at Chrysler. The first exhibit is a New York Times piece with Cerberus co-founder Stephen Feinberg, coming off almost as The Man Would Would Be Iacocca.

The first quote - "I don't know what we could have done differently. From the day we bought it, we worked hard to improve it" -- is the kind of statement that, no matter how true it is, would likely elicit numerous objections. Yet the issue of whether Cerberus should have bought Chrysler or whether it knew what is was doing is only the second most compelling theme of the Times piece.

The real hook is the competing justifications of why Cerberus bought Chrysler. On the one hand, many feel that it was a play to get Chrysler Financial and marry it with GMAC. The other hand, as Feinberg notes more than once, was supposedly holding an American flag - that is, the Cerberus deal was about patriotism and doing what's right for the country. That's a narrative we had never even considered - private equity and The Good of America don't often dine together in our world - but have a read and decide for yourself.

[Source: New York Times | Photo by Bill Pugliano/Getty]

The tale that wagged the dog: Cerberus' Stephen Feinberg speaks originally appeared on Autoblog on Fri, 14 Aug 2009 19:58:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Autoblog Podcast #133

Dan Roth — Wed, 24 Jun 2009 13:29:00 EST

Filed under: Podcasts, Etc., Government/Legal, Buick, Chrysler, Ford, GM, Hyundai, Opinion/Editorial

Click above for the Autoblog Podcast in iTunes, RSS or listen now!

The dynamic duo of Chris and Sam carry off Episode #133 of the Autoblog Podcast without a hitch. Though down a man, the pair didn't cheap out on topics or duration, it's the same podcast goodness. It kicks off with Hyundai's impressive showing in the recently released Initial Quality Survey results. From there, they hit Chrysler's RWD/FWD dilemma with its Sebring/Avenger replacement, the rumor that Mustangs could have had IRS for $100 per car, and reports of an Ecotec engine for the Buick LaCrosse. Keeping it on the Buick tip, spyshots of a Tri-Shield variant of the new 2010 Astra get mentioned. The nullification of all pre-bankruptcy liability claims against GM and Chrysler is next before talk settles briefly on Hyundai's 2010-on lineup and then turns to your questions. It almost seems like the Chris and Sam show is a juggernaut without that other guy. Thanks for listening, and please, keep your questions and comments rolling in to Podcast at Autoblog dot com.

In our ongoing efforts to promote and direct the Podcast, please fill out our quick survey so we can snag the best sponsors for your favorite listening experience!

Continue reading Autoblog Podcast #133

Autoblog Podcast #133 originally appeared on Autoblog on Wed, 24 Jun 2009 13:29:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

REPORT: GM pursuing Chrysler for repayment of Two-Mode Hybrid development

Jeremy Korzeniewski — Tue, 23 Jun 2009 19:28:00 EST

Filed under: Hybrid, Truck, Government/Legal, Green, Chrysler, Dodge, GM

Our friends at PickupTrucks.com are reporting that General Motors has filed documents in court in an attempt to get "New" Chrysler to honor its full pre-bankruptcy debt of $531,275 (of which Chrysler has so far only agreed to pay back about a third) for work on the sophisticated Two-Mode hybrid powertrain that was jointly developed by the two American automakers along with Daimler and BMW.

Chrysler and General Motors have both filed for Chapter 11 protection from creditors, which allows the automakers to renegotiate - or in many cases completely cancel - past contracts that are no longer desirable. It seems that Chrysler's contract with The General, which is supplying the hybrid transmissions to Chrysler, has yet to be picked up by New Chrysler.

This case is a bit more intriguing than most - such as Chrysler's canceled contract with Cummins for light-duty diesel engines for the Ram pickup - as it pits General Motors across the courtroom and on the other side of bankruptcy negotiations. We suspect that New Chrysler may be keen to pick up its old tab since the automaker is still planning to use the Two-Mode Hybrid technology for future vehicles, starting with the 2010 Dodge Ram, though possibly with more favorable terms.

[Source: PickupTrucks.com]

REPORT: GM pursuing Chrysler for repayment of Two-Mode Hybrid development originally appeared on Autoblog on Tue, 23 Jun 2009 19:28:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

REPORT: Iacocca leads retiree volunteer army offering free help to Chrysler

Chris Shunk — Fri, 12 Jun 2009 13:29:00 EST

Filed under: Chrysler, Fiat

Lee Iacocca loves him some Chrysler. He cared enough about the Pentastar to rescue the automaker from bankruptcy back in 1979, and now in retirement as the honorary chairman of the National Chrysler Retirement Association, he's offering his support for his former employer post-bankruptcy. Iacocca, along with 19,000 Chrysler retirees, took out a full page ad in the Detroit News offering any means of support necessary to help the new Chrysler succeed. The ad offered help in "any way capacity you might require," and added, "just put us to work." It also showed the retirees' approval for the Fiat alliance; something that didn't come as easily when Daimler became Chrysler's overlord.

The heart-felt advert may have had an ulterior agenda, though. The open letter said that it hoped there were "some exceptions that we hope will be reevaluated," which is likely a reference to the axing of executive retirement packages. For many current and former Chrysler employees, Iacocca is an icon for what Chrysler can do if it gets its priorities straight. We're hoping Fiat takes him up on his offer, because if you can find a better executive willing to work for free, take him.

[Source: The Detroit News | Image: Paul Hawthorne/Getty]

REPORT: Iacocca leads retiree volunteer army offering free help to Chrysler originally appeared on Autoblog on Fri, 12 Jun 2009 13:29:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Fiat to Chrysler: "We won't walk away"

Jonathon Ramsey — Tue, 09 Jun 2009 13:39:00 EST

Filed under: Government/Legal, Chrysler, Fiat

In spite of pleas from the White House and the Justice Department, the Supreme Court yesterday put a hold on Chrysler's sale to Fiat. On one side are Indiana pension funds who want to protect their investment. On the other side are Chrysler and Fiat, who want to protect Chrysler's very existence, and the government which wants to protect the economy and jobs. In between all of that is the law.

Chrysler was given until June 15 to arrange its affairs or Fiat had the right to walk away from the deal, which would mean almost certain liquidation for the Pentastar. A Fiat spokesman, however, has come out today and said "Fiat won't walk away from Chrysler."

No reason was given for Fiat's new commitment, but in addition to the fact that Fiat intimately knows how long it takes to get a stumbling business through necessary hurdles, this is probably the company's best near-term chance to get into the U.S. market with a whole lot of helping hands. For the time being, everyone now waits to see what the Supreme Court will do with the case. Thanks for the tip, Dave!

[Source: Yahoo!]

Fiat to Chrysler: "We won't walk away" originally appeared on Autoblog on Tue, 09 Jun 2009 13:39:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments