Autoblog

US Treasury signals it will sell off remaining GM shares

Seyth Miersma — Fri, 18 Jan 2013 16:28:00 EST

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

True to its word, the US Treasury Department has taken steps today to rid itself of its remaining 300-million shares of General Motors stock. The Treasury has engaged both JP Morgan and Citigroup Global Markets to handle the sale of the remaining shares, reports the Detroit Free Press.

After divesting itself of 200 million shares last month, the government agency said that it would shed its remaining investment in the automaker throughout 2013. Today, the Treasury still owns some 19 percent of GM.

When the Treasury sold stock back to GM last month, it was at a price of some $27.50 per share, or above what the issue was then trading at in the open market. More recently, GM stock has been seeing closer to $29 per share in the marketplace, offering some hope that the final "cost" to the taxpayer will be less than expected. With that said, the plan remains to sell off in segments, rather than all at once, as a way of disrupting the market as little as possible.

Obama officials are on record has having said that, even if the US Government ultimately loses money on the investment in GM stock - a virtual certainty according to the reports we've read so far - the jobs saved by the automaker bailout make this a net win for the country.

US Treasury signals it will sell off remaining GM shares originally appeared on Autoblog on Fri, 18 Jan 2013 16:28:00 EST. Please see our terms for use of feeds.

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Romney vows to dump federal stake in GM quickly

Jonathon Ramsey — Tue, 05 Jun 2012 11:32:00 EST

Filed under: Government/Legal

With a multi-volume list of issues that a presidential hopeful could discuss, we aren't sure why Mitt Romney keeps circling back to the auto industry bailouts, but here we are again. He's lately swinging his stick at the U.S. Treasury Department for not having sold its 26.5-percent stake in General Motors, accusing it of holding back on the stock sale to avoid having to report a multi-billion dollar loss before the election.

At GM's current stock price, the government would lose about $16 billion by sellings its 500 million shares, a number that hasn't much changed from several months ago. Romney said the government has "no reason" for not selling, and a report of his interview with The Detroit News says that "he'd sell the stock quickly if he wins the White House." A Treasury spokesman responded with "We have to balance maximizing recovery for the taxpayers with the speed of exit."

On top of that, Romney said that if he becomes POTUS, he would take another look at Corporate Average Fuel Economy standards, believing that "The best approach is to try and build vehicles that people want, rather than having the government telling the companies what they must make." It's a line we've heard (and even uttered) often, but the nexus of government regulations, consumer desires, viable business models and long-term industry concerns is a moving target shifty enough to confuse quantum physicists.

Either way, it's clearly fair to expect more jabs from Romney at President Obama and the auto bailout as the campaign season grinds toward election day.

Romney vows to dump federal stake in GM quickly originally appeared on Autoblog on Tue, 05 Jun 2012 11:32:00 EST. Please see our terms for use of feeds.

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GM stock price leads to greater estimate of losses on bailouts

Jeff Sabatini — Wed, 01 Feb 2012 09:59:00 EST

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

The "Government Motors" crowd isn't going to be happy about this: The Detroit News is reporting that the U.S. Treasury now says it has lost an extra $170 million in the auto industry bailout. The culprit? The declining price of General Motors stock.

According to the report, GM's stock crested at $37.23, but is down 35 percent from that level today. The Treasury Department based its calculations on a $21.29 value from November 30, 2011. The government's share of GM was initially 61 percent, but has been reduced to 26.5 percent. The News says that the lower stock price has kept the government from selling its remaining 500 million shares.

While political opponents of the Obama administration will no doubt jump all over this report, the final cost of the bailout is still looking like it will be far less than originally thought. According to the report, the $44 billion estimate was reduced to $30 billion in December 2009, and this most recent estimate puts the total sum at $23.77 billion.

Matthew Anderson, a Treasury spokesman, was quoted as saying: "The auto industry rescue helped save one million jobs and is still projected to cost dramatically less than many had expected during the crisis."

GM stock price leads to greater estimate of losses on bailouts originally appeared on Autoblog on Wed, 01 Feb 2012 09:59:00 EST. Please see our terms for use of feeds.

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NHTSA says White House didn't factor in Chevy Volt fire disclosure

Zach Bowman — Mon, 16 Jan 2012 09:59:00 EST

Filed under: Hybrid, Sedan, Government/Legal, Safety, Chevrolet, Electric

The National Highway Traffic Safety Administration has confirmed the Obama administration didn't ask the government agency to delay announcing potential safety issues with the Chevrolet Volt. According to The Detroit News, Transportation Secretary Ray LaHood was briefed about Volt fires that occurred after two crash tests in September, three months after the first extended-range hybrid began smoldering. According to the report, the office of the president was then informed of the fires shortly thereafter, as well as being notified of NHTSA's intent to investigate whether the results of the tests could be replicated.

The Detroit News quotes NHTSA administrator David Strickland as saying no one within the office of the president "requested or in any way suggested that NHTSA delay public release of information related to the Volt fire."

That seems to be a fairly definitive answer to the three house Republicans who asked General Motors and the Obama administration whether the White House had called for any delay in publicly disclosing the Volt fires. A House panel plans to undertake a hearing on the Volt controversy later this month.

NHTSA says White House didn't factor in Chevy Volt fire disclosure originally appeared on Autoblog on Mon, 16 Jan 2012 09:59:00 EST. Please see our terms for use of feeds.

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Former Chrysler CEO Nardelli backpedals on bailout comments

Zach Bowman — Fri, 07 Oct 2011 15:45:00 EST

Filed under: Etc., Government/Legal, Chrysler, Celebrities, Fiat

Former Chrysler CEO Bob Nardelli has performed a curt about face on his comments about the Obama Administration's handling of the auto bailout. The Detroit News reports that Nardelli said that he believes the administration made the correct decision for Chrysler in an email to the publication. Nardelli didn't go so far as to deny his earlier statements, but said that he understood why the government chose the path it took in the situation. He continued on to say that Chrysler was very appreciative of the government's understanding and assistance.

That's a starkly different tone from last week, when Nardelli was quoted as saying that if Cerberus had been given the same deal that the Obama Administration gave Fiat, Chrysler would still be doing as well as it is now. The former CEO went on to say that the automaker's current revival was thanks solely to moves that Cerberus put in place before bankruptcy.

Apparently Nardelli raised the wrong eyebrows with that gem.

Former Chrysler CEO Nardelli backpedals on bailout comments originally appeared on Autoblog on Fri, 07 Oct 2011 15:45:00 EST. Please see our terms for use of feeds.

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Nardelli "laments all the time" that Cerberus lost Chrysler

Zach Bowman — Mon, 03 Oct 2011 16:31:00 EST

Filed under: Etc., Chrysler, Fiat

The Detroit News reports that former Chrysler CEO Bob Nardelli believes that the Obama Administration didn't need to hand the automaker to Fiat in order for the company to continue on. Instead, Nardelli says that a private equity firm could have easily taken the reins and steered the company back toward success. As you may recall, Nardelli left Chrysler in 2009 after the private equity firm Cerberus was forced to loosen its grip on the company. We don't need to elaborate on how well that whole experience went for Chrysler. Cerberus purchased the automaker from Daimler in 2007 for $7.4 billion and later lost its stake in the company during the Chrysler bankruptcy proceedings.

Nardelli says that Chrysler would be doing just fine right now if Cerberus had been given the same deal that the U.S. government gave Fiat. The former executive then went on to say that there was no reason for Chrysler to be given to Fiat, and that the deal was all "all theater and no substance." To our ears, considering where Nardelli and Co. left Chrysler, this all sounds quite a bit like a wounded ego at work. To be fair, though, the former Home Depot exec did bring a fairly salient point to the discussion by reminding that Fiat has largely been credited with Chrysler's more recent successes - despite the fact that much of the progress was already set in motion by Cerberus before the implosion.

Nardelli "laments all the time" that Cerberus lost Chrysler originally appeared on Autoblog on Mon, 03 Oct 2011 16:31:00 EST. Please see our terms for use of feeds.

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Cheney admits he disagreed with Bush on GM bailout in new memoir

Zach Bowman — Mon, 05 Sep 2011 10:01:00 EST

Filed under: Etc., Government/Legal, GM, Celebrities

Former United States Vice President Dick Cheney didn't hold back when it came time to write his memoir of his time in office. Cheney has taken shots at everyone from Colin Powell to Condoleezza Rice, and according to The Detroit News, the VP wasn't thrilled about the idea of pulling General Motors out of financial dire straits. The memoir reveals that Cheney would have preferred that the Bush Administration hadn't bailed out General Motors with a $13.4 million rescue package and that he was disappointed, "but not surprised" that the Obama Administration took further steps to keep the world's largest automaker afloat.

Cheney said that he felt that bankruptcy was the right option.

Even so, the former vice president defended the $700 billion Troubled Asset Relief Program designed to pull U.S. banks out of hot water, saying that the U.S. government was the only body able to protect the banking system from collapse. Private companies, Cheney said, should be judged by the marketplace.

Cheney admits he disagreed with Bush on GM bailout in new memoir originally appeared on Autoblog on Mon, 05 Sep 2011 10:01:00 EST. Please see our terms for use of feeds.

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Fed nixes costly mandatory street sign replacement program

Jeff Glucker — Wed, 31 Aug 2011 10:00:00 EST

Filed under: Etc., Government/Legal, Safety

If your nearest stop sign is looking a little worse for the wear, you should reach out and let your local government know. Up until recently, that sign was one of the hundreds of thousands that were set to be replaced by 2018, according to a mandate formerly on the books. Now, however, the Obama administration is getting rid of that rule so that local governments can decide if and when a sign needs to replaced.

According to U.S. Transportation Secretary Ray LaHood, and representatives from nearly all 50 states, the mandated 2018 sign swapping would've cost millions of dollars that didn't need to be spent. Local governments can better determine when a sign needs to be changed, and it makes more sense for the move to be handled this way then by a random point in the future. It also saves everyone a lot of dough.

The state of Minnesota would need to spend anywhere from $55 to $75 million to hit the 2018 deadline, for example. Delaware would fork over $60 million, while the New York City on its own would spend millions of dollars and require 12 to 16 years just to complete the project. That would put the city while behind the 2018 deadline.

The federal government heard the cries, and it's listened. 46 of the proposed deadlines have been eliminated. 12, however are remaining active because they are deemed crucial to public safety. Examples of this important intersections include railroad crossings without flashing lights and one-way signs wherever necessary.

Fed nixes costly mandatory street sign replacement program originally appeared on Autoblog on Wed, 31 Aug 2011 10:00:00 EST. Please see our terms for use of feeds.

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First-ever heavy-duty truck efficiency standards announced, will save a month's worth of oil

Sebastian Blanco — Tue, 09 Aug 2011 14:00:00 EST

Filed under: Truck, Government/Legal

If you're not sure why today's announcement from the Obama Administration about the first-ever fuel economy standards for heavy-duty trucks and buses is important, read this.

Okay, now that we're all on the same page, let's take a look at the new standards. These aren't specific MPG targets like passenger vehicles have. Instead, different vehicle categories have different improvement targets. The headline numbers from the EPA are that the new standards will save $50 billion in fuel costs and around 530 million barrels of oil over the life of new trucks built between 2014 and 2018.

To put that in perspective, the U.S. uses around 19 million barrels of oil a day, so we'll be saving just under a month's worth of the entire country's appetite for oil from heavy-duty trucks built during these four years.

As for the standards themselves, semi trucks are required to achieve a 20-percent reduction in fuel consumption and greenhouse gasses by 2018, heavy-duty pickup trucks and vans a 15-percent reduction, and vocational vehicles (buses, garbage trucks, etc.) a 10-percent reduction. The improvements will come from mostly off-the-shelf technologies, and a second phase dealing with trucks built after 2018 will require the use of more advanced tech and save even more fuel.

Similar to the passenger car and light truck standards that were proposed the other day, initial response to the heavy-duty truck standards has been universally popular. This shouldn't be a surprise, since the administration worked with "truck and engine manufacturers, fleet owners, the State of California, environmental groups and other stakeholders" to develop the standards. The Heavy Duty Fuel Efficiency Leadership Group, for example, endorsed the rules, which you can read for yourself, as well as more reactions, after the jump.

Continue reading First-ever heavy-duty truck efficiency standards announced, will save a month's worth of oil

First-ever heavy-duty truck efficiency standards announced, will save a month's worth of oil originally appeared on Autoblog on Tue, 09 Aug 2011 14:00:00 EST. Please see our terms for use of feeds.

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Obama Administration to ease CAFE standards on full-size trucks, SUVs

Autoblog Staff — Fri, 15 Jul 2011 11:30:00 EST

Filed under: SUV, Truck, Government/Legal

In response to automakers - in particular, the Detroit Three - crying foul over the Obama Administration's proposed CAFE target of 56.2 miles per gallon by 2025, the powers that be will reportedly ease standards for the fuel economy of future trucks and SUVs, according to The Wall Street Journal.

The WSJ reports that as part of an effort to break the stalemate between government regulators and automakers, the White House is considering a proposal that allows for the fuel economy ratings of full-size trucks and SUVs to improve at a lesser pace than required for passenger cars. Word is that small trucks, compact SUVs and crossover vehicles will still be required to meet the 56.2-mpg target, but even that seems open for debate. The report further claims that several proposals are in the works, with one calling for the fuel economy of small trucks and SUVs to advance at a rate of 3.5 percent per year, well below the five percent requirement for cars.

Government regulators hope to finalize a proposal by early next week and issue formalized rules by September.

Obama Administration to ease CAFE standards on full-size trucks, SUVs originally appeared on Autoblog on Fri, 15 Jul 2011 11:30:00 EST. Please see our terms for use of feeds.

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Federal auto bailout losses estimated at $14 billion

Chris Shunk — Thu, 02 Jun 2011 10:01:00 EST

Filed under: Government/Legal, Chrysler, GM

The federal bailout of General Motors and Chrysler cost U.S. taxpayers roughly $80 billion back in 2009, but only two years later, it appears Uncle Sam will get most of its money back. The Associated Press reports that the Obama Administration now estimates that the bailout will "only" cost taxpayers $14 billion. That's down significantly from the projected 60 percent loss estimated by the Treasury Department back in 2009, and the money is also expected to arrive much sooner than originally expected.

The Obama Administration released the more optimistic view of bailout payback prospects in advance of a visit by the President to a Chrysler plant in Ohio. Conveniently, Chrysler last week paid off its $5.9 billion in U.S. loans and $1.7 billion in Canadian loans, putting the bailouts back in the news, albeit with a positive spin. GM, meanwhile, has already paid back more than half its $50 billion in loans, and the government still holds a significant portion of GM stock, which it can sell to further cut the cost of the bailout.

Treasury Secretary Timothy Geithner points to the bailouts as a cornerstone of the resurgence of manufacturing jobs, adding "While we will not get back all our investments in the industry, we will recover much more than predicted."

Federal auto bailout losses estimated at $14 billion originally appeared on Autoblog on Thu, 02 Jun 2011 10:01:00 EST. Please see our terms for use of feeds.

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Report: NADA chairman urges Fed to reconsider fuel rules

Zach Bowman — Fri, 22 Oct 2010 18:30:00 EST

Filed under: Car Buying, Government/Legal

The National Automobile Dealers Association has joined the ranks of those opposed to upping Corporate Average Fuel Economy standards to 60 mpg by 2025. The dealer group says that with fuel prices still low, consumers are more interested in horsepower and style than they are super-efficient vehicles. That means that if the federal government starts mandating ever more efficient vehicles that are significantly costlier to manufacture, dealers are likely to see sales falter as automakers have to elevate MSRPs to keep from losing their shirts. That's the fear of NADA chairman Ed Tonkin and his constituents. Tonkin should know - he himself owns a mutli-brand dealership in Portland.

Of course, Tonkin's argument hinges against further upping CAFE numbers hinges upon fuel prices staying at their current levels -- something that even the most optimistic minds are hesitant to believe. The federal government is expected to unveil its plan for increasing fuel economy standards early next year. So far, word has it that the Obama Administration is looking to impose an average of 35 mpg by 2016 and as much as 60 mpg by 2025.

[Source: The Detroit News | Image: NADA]

Report: NADA chairman urges Fed to reconsider fuel rules originally appeared on Autoblog on Fri, 22 Oct 2010 18:30:00 EST. Please see our terms for use of feeds.

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Confirmed: U.S. considering 62 mpg CAFE target by 2025

Sebastian Blanco — Fri, 01 Oct 2010 14:41:00 EST

Filed under: Government/Legal

A CAFE standard of 62 miles per gallon by 2025 might indeed come to pass. The Department of Transportation and the Environmental Protection Agency today released a "Notice of Intent to Improve Fuel Economy and Reduce Greenhouse Gas Emissions for 2017-2025" (PDF) that includes, as one possibility, decreasing greenhouse gas emissions by six percent a year for the years in question. A drop that steep would put us on track for 62 mpg, but the agencies are also looking at three, four and five percent decreases (where three percent equals a 47 mpg level by 2025).

Why does the administration think higher CAFE standards are important? Two reasons: the environment (of course) and the economy. The Notice of Intent says:

The automotive market is becoming increasingly global. The U.S. auto companies produce and sell automobiles around the world, and foreign auto companies produce and sell in the U.S. As a result, the industry has become increasingly competitive. Staying at the cutting edge of automotive technology, while maintaining profitability and consumer acceptance, has become increasingly important for the sustainability of auto companies. Trends in the world automotive market suggest that investments in improved fuel economy and advanced technology vehicles are a necessary component for maintaining competitiveness in coming years.

Nothing has been decided just yet, and we are not in a comment period. The 62 mpg level got a big pile of support from the governors of eight states - New York, Maine, Massachusetts, New Mexico, Maryland, Pennsylvania, Oregon and Washington - and other early voices are in favor of the go-big-or-go-home proposal. The governors write:

We urge you to set ambitious new standards for passenger vehicles. We have seen the automakers meet goals time and time again, and we are confident that technological improvements, including the plug-in hybrids and pure electric vehicles that they are rolling out, will increase efficiency and affordability further and will make 60 miles per gallon commonplace.

Some, though, are urging for a slow process. Dave McCurdy, president of the Auto Alliance, said in a statement that the automakers he represents want to work with the agencies on the new standard and that:

EPA and DOT should now engage a broad range of independent experts to undertake a thorough analysis and balance the technological opportunities to improve vehicle and fleet fuel economy with the economic challenges they present - for automakers and American consumers.

The government plans to issue its proposal next September and won't make a final rule until July 2012. You can read today's official government release here (PDF) and read related press releases after the jump. For more on the higher CAFE targets, read this.

[Sources: DOT, Detroit News, Auto Alliance]

Continue reading Confirmed: U.S. considering 62 mpg CAFE target by 2025

Confirmed: U.S. considering 62 mpg CAFE target by 2025 originally appeared on Autoblog on Fri, 01 Oct 2010 14:41:00 EST. Please see our terms for use of feeds.

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GM will increase Volt production by 50% - to 45,000 units - in 2012

Autoblog Staff — Fri, 30 Jul 2010 14:29:00 EST

President Obama toured the General Motors' Detroit-Hamtramck facility where the automaker will build (can we say "is building" yet?) the Chevrolet Volt today, and as any good PR person will surely agree, you can't let an opportunity like that go by without making an announcement of some sort. So, GM has something to say and it's big news, too: GM will increase Volt production capacity by 50 percent in 2012.

Details are as follows: Instead of making 30,000 Volts in the U.S. in 2012, GM will now make 45,000. These numbers are lower than production numbers we heard rumors of in years past, but they're good news for fans of plug-in vehicles. Is the increase a response to positive reaction to the Volt's $33,500 after-tax-rebate price tag? Maybe, GM said in a statement that, "In the past few weeks, more than 25,000 people have joined the Chevrolet Volt enthusiast list."

The news is good for the President, too, since the White House is pushing The American Auto Industry: A Comeback Story message this week. Part of that is an interactive version of the White House map showing places where the government has supported automakers, which you can find here.

Gallery: 2011 Chevrolet Volt

[Sources: General Motors, WhiteHouse.gov]

Continue reading GM will increase Volt production by 50% - to 45,000 units - in 2012

GM will increase Volt production by 50% - to 45,000 units - in 2012 originally appeared on Autoblog on Fri, 30 Jul 2010 14:29:00 EST. Please see our terms for use of feeds.

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White House: Auto bailout worked, but we'll still lose money

Chris Shunk — Fri, 23 Apr 2010 19:22:00 EST

Filed under: Government/Legal, Chrysler, GM

One year ago, the U.S. auto industry was at the weakest point in its history. To make matters worse for the both the industry and the Obama Administration, the majority of Americans wanted nothing to do with a bailout, having just undertaken an even pricier propping up of the country's lending institutions. But President Obama and the Auto Task Force made the difficult decision to push General Motors and Chrysler through bankruptcy while providing $50 billion in loans to keep the doors open at the two companies. The administration estimates that the move staved off an estimated 1.1 million lost jobs, but the political and fiscal cost was high.

Last year, the Congressional Budget Office and the Treasury Department estimated that the U.S. government would likely lose $30 billion in the long term. The Detroit News reports that one year later there is a lot more optimism at the White House about the industry and our money. A five-page report released by the Obama Administration points to Chrysler's first quarter operating profit and the fact that GM paid off its government loans early shows that the auto bailout was a success. The report adds that "the contrast between where these companies, and the American auto industry, are today and the situation President Obama faced when he took office is stark." And that projected $30 billion loss? The latest projections by the Treasury Department and the DOT are for a much smaller loss of $8 billion.

The next step towards the U.S. government getting our money back comes when GM executes its initial public offering, which is rumored to be happening as soon as this June. Uncle Sam currently owns 60.8 percent of The General.

[Source: The Detroit News | Image: Jeff Swensen/Getty Images]

White House: Auto bailout worked, but we'll still lose money originally appeared on Autoblog on Fri, 23 Apr 2010 19:22:00 EST. Please see our terms for use of feeds.

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Report: U.S. government to purchase first 100 Chevy Volts and thousands of hybrids *UPDATE

Eric Loveday — Thu, 01 Apr 2010 11:21:00 EST

Filed under: Hybrid, Government/Legal, Chevrolet, GM, Electric

2011 Chevrolet Volt - Click above for high-res image gallery

In an effort to make the government's fleet of vehicles more green, the Obama administration has reportedly announced plans to add more hybrids this year followed by plug-in hybrids next year. The plan should double the number of hybrids in the government's fleet, a step towards achieving its goal of reducing fleet petroleum use by 30 percent by 2020.

The new plan involves purchasing 100 plug-in vehicles by the end of next year, and the front-runner is the Chevrolet Volt. According to Ward's Auto, the White House has announced that the government will purchase the first 100 Chevy Volts to roll off the assembly line later this year. The government is also considering adding the plug-in hybrid electric Dodge Ram to its fleet, though how many units it's considering has not been released.

Whether or not the Volt and PHEV Ram are being considered because the government just happens to be part owner of their parent companies remains to be seen, but we haven't heard mention of the excellent Ford Fusion Hybrid.

UPDATE: GM has officially responded to the government suggesting that the first 100 Volts will end up in government fleets by stating,

We are pleased to see that the Federal government is interested in the greening of their vehicle fleet. Media speculation has led to reports that the GSA and DOE will be buying the first 100 Chevrolet Volt's because we will meet this criteria. At this time we have no further details regarding these purchases.

Gallery: 2011 Chevy Volt

[Source: Ward's Auto]

Report: U.S. government to purchase first 100 Chevy Volts and thousands of hybrids *UPDATE originally appeared on Autoblog on Thu, 01 Apr 2010 11:21:00 EST. Please see our terms for use of feeds.

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Report: Group of governors take issue with Obama administration handling of Toyota recalls

Chris Shunk — Thu, 11 Feb 2010 16:40:00 EST

Filed under: Government/Legal, Recalls, Safety, Toyota

Indiana governor Mitch Daniels is among a bipartisan group of governors who are taking issue with how the Obama administration is handling the Toyota recalls. Daniels reportedly told Indianapolis NBC affiliate WTHR that he feels the federal government is going too far in its investigation of Toyota floor mat and gas pedal issues, and he even went so far as to question whether the government's ownership of General Motors and Chrysler is influencing decisions. Daniels reportedly said that he agreed with the recalls and the leveraging of fines if necessary, but he added "it's very, very suspicious in view of the government conflict of interest."

According to the report, four governors are writing a letter to president Obama to voice their collective displeasure over the handling Toyota's recall of 8.1 million vehicles, adding that the hysteria over the recalls is disproportionate to that of other recalls. Daniels also questions the motive of congressmen leading the investigation, adding "these congressmen running this committee have their own agenda and it is a discriminating agenda in this case. They didn't do this the last several hundred recalls." It should be noted that all of the governors who are contributing to the letter to president Obama are reportedly residing or states which have at least one Toyota plant.

Transportation Secretary Ray LaHood has been especially tough on Toyota in recent days, questioning whether the company's fixes for the recalls were sufficient, adding that he feels that the Japanese automaker has been "a little safety deaf." At one point, LaHood even told Toyota owners to stop driving their vehicles; a statement that he later recanted. LaHood and the National Highway Traffic Safety Administration have also stated that it took a great deal of effort to get Toyota to issue the recall, and several reports from various sources claim that Toyota may have known about the issues as early as 2004. Toyota is scheduled to appear before Congress twice in the month of February. Click on the link below to read the governors' letter and see newscast footage of the issue.

[Source: WTHR]

Report: Group of governors take issue with Obama administration handling of Toyota recalls originally appeared on Autoblog on Thu, 11 Feb 2010 16:40:00 EST. Please see our terms for use of feeds.

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Report: Obama Administration looking to augment NHTSA investigative team

Chris Shunk — Thu, 04 Feb 2010 18:40:00 EST

Filed under: Government/Legal, Safety, Earnings/Financials

The National Highway Traffic Safety Administration appears to be busier than ever. Beyond the federal agency's upcoming visit to Congress to explain its actions leading up to the Toyota recalls, it also needs to prepare for 2011 changes to its New Car Assessment Program Five-Star Safety Rating System.

The Detroit News is reporting that a spot of help may be on the way, as President Obama's 2011 budget includes a $4 million budget increase earmarked for 66 new NHTSA employees. Of the proposed 66 new employees, eight would reportedly work on auto recall and safety investigations. Transportation Secretary Ray LaHood says another $12 million of the $800 million NHTSA budget would go towards beefing up the department's Five Star Rating program, which, oddly enough, goes into the effect for the 2011 model year.

In other, somewhat auto-related 2011 budget news, the proposed Energy Department budget jumps to $325 million, up from $312 million in 2010. The recommended hydrogen fuel cell budget will reportedly drop from $183 million to $137 million, and more of that money will be focused on plug-in electric and battery tech.

[Source: The Detroit News]

Report: Obama Administration looking to augment NHTSA investigative team originally appeared on Autoblog on Thu, 04 Feb 2010 18:40:00 EST. Please see our terms for use of feeds.

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REPORT: Fed predicts it will lose $30B on auto industry bailout

Chris Shunk — Thu, 10 Dec 2009 13:27:00 EST

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

2009 isn't quite over yet, but we're pretty sure most automakers would rather forget that it ever happened. And while General Motors and Chrysler suffered the pain and humiliation of bankruptcy and workers lost thousands of jobs and many plants and dealerships closed, the good news is that the General and the Pentastar are now more fiscally healthy than they've been in ages. The bad news is that it cost U.S. taxpayers an estimated $82 billion to save what has been called hundreds of thousands of jobs.

The Detroit News is reporting that after wading through the wreckage of the auto bailout, the Obama Administration only expects to get back an estimated $52 billion of its original investment. That's horrible news, right? Not so, says Gene Sperling, the senior counsel to Treasury Secretary Timothy Geithner. He said the $30 billion estimate is better than the $44 billion the government thought it would lose a few months ago. And with the perceived stabilization of the auto industry, Sperling feels the numbers could improve.

The DetNews reports that President Obama stressed during a speech on the economy that while the bailout of the auto industry wasn't politically popular, it was absolutely necessary to save "hundreds of thousands of jobs." The president then added "these were not decisions that were popular or satisfying; these were decisions that were necessary."

There are signs that at least GM will start paying the government back $6.7 billion as early as the end of the year. Chairman and interim CEO Ed Whitacre has reportedly intimated that the company could pay the money back in one lump sum. And once the auto industry is in a little better shape, the government could recoup much more cash when the General goes public. For the moment, though, Uncle Sam (e.g. the U.S. taxpayers) still owns 61 percent of the new GM.

[Source: The Detroit News | Image: Saul Loeb/AFP/Getty]

REPORT: Fed predicts it will lose $30B on auto industry bailout originally appeared on Autoblog on Thu, 10 Dec 2009 13:27:00 EST. Please see our terms for use of feeds.

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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.

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