Autoblog

President Obama's limo breaks down in Israel

John Neff — Wed, 20 Mar 2013 10:28:00 EST

Reports are coming in from Israel that President Obama's limousine, often called "The Beast," has broken down. You might be wondering how the most protected vehicle in the world could break down on an overseas visit, and the answer would surprise you. There's a bit of discrepancy over what exactly happened (and the Secret Service is living up to its name with the details, but apparently somebody filled The Beast with ~~diesel fuel instead of gasoline~~ gasoline instead of diesel, according to The Times of Israel. While we don't know exactly what type of engine powers the presidential limo, because the vehicle's based on a heavy-duty truck chassis, the fact that it's powered by a diesel motor doesn't surprise us. As the report goes...

"The Americans filled it up with diesel, rather than petrol," reports Channel 2 - stressing that it was the Americans, not the Israelis.

What does the Secret Service do when the President's ride has been compromised this way? Since calling a cab is out of the question, they reportedly have a replacement limousine being flown in from in Jordan. "Son of Beast," we'll call it.

President Obama's limo breaks down in Israel originally appeared on Autoblog on Wed, 20 Mar 2013 10:28:00 EST. Please see our terms for use of feeds.

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Obama picks new leaders for Dept. of Energy and EPA

Seyth Miersma — Mon, 04 Mar 2013 17:30:00 EST

Filed under: Government/Legal

President Barack Obama announced his nominees to lead the Environmental Protection Agency and the Department of Energy today. After speaking out about global warming in both his Inaugural Address and State of the Union speech this year, the President hopes that the new appointees will help lead the administration toward meaningful climate change policy-making.

Gina McCarthy will step from her current role as assistant EPA administrator for the Office of Air and Radiation, to replace Lisa Jackson for that agency's top spot. Meanwhile, Ernest Moniz will replace Steven Chu as Secretary of Energy in the President's Cabinet. Both nominees will require confirmation by the Senate.

Moniz most recently held a position as the Director of the Massachusetts Institute of Technology's Energy Initiative, overseeing projects that angled to reduce greenhouse gasses. Despite this, his appointment has been met with skepticism from some environmental groups who don't like his record of partnering with big oil companies like BP, Shell and Chevron.

McCarthy has worked with both Democrats and Republicans in the past, including a stint with Obama's Presidential opponent, Mitt Romney. At the announcement, the President said of McCarthy, "Gina has focused on practical, cost-effective ways to keep our air clean and our economy growing."

Obama picks new leaders for Dept. of Energy and EPA originally appeared on Autoblog on Mon, 04 Mar 2013 17:30:00 EST. Please see our terms for use of feeds.

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Transportation Secretary Ray LaHood stepping down

John Neff — Tue, 29 Jan 2013 12:59:00 EST

Filed under: Government/Legal, Hirings/Firings/Layoffs

US Secretary of Transportation Ray LaHood has announced that he will not serve a second term in President Obama's Cabinet, but will stay on until a successor is confirmed. Of his and the Department of Transportation's many initiatives, the one LaHood will perhaps be remembered for most is his efforts to reduce distracted driving, particularly the dangers of texting while driving. Secretary LaHood even addressed Autoblog readers directly about the subject back in 2010.

Before becoming Transportation Secretary, LaHood was a member of the House of Representatives representing the 18th district of Illinois and served on the House Transportation and Infrastructure Committee. Well known as a champion of bipartisan cooperation, LaHood was one of two Republicans appointed to the President's Cabinet in 2008, the other being Robert Gates as US Secretary of Defense.

Scroll down to read an email sent by LaHood to Department of Transportation employees announcing his plans.

Continue reading Transportation Secretary Ray LaHood stepping down

Transportation Secretary Ray LaHood stepping down originally appeared on Autoblog on Tue, 29 Jan 2013 12:59:00 EST. Please see our terms for use of feeds.

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Obama's limo to carry tax-protest license plate [w/video]

Jeffrey N. Ross — Thu, 17 Jan 2013 11:30:00 EST

Filed under: Government/Legal, Cadillac

The United States of America was created in part behind the belief that we should not have taxation without representation, so it is rather ironic that Washington, D.C. must deal with this same problem that helped spark the American Revolution.

For years, residents of Washington, D.C. have had license plates with "Taxation Without Representation" written on them to protest the fact that they have to pay taxes but have no voting power in Congress. Starting this weekend, President Barack Obama will join in the protest by adding the plates to all presidential vehicles including the Presidential state car - a Cadillac known simply as "The Beast."

Since it is not a state, voters in the District of Columbia are able to elect delegates to the US House of Representatives, but said delegates do not have the ability to vote on the House floor. A similar state of affairs exists for voters in the US Virgin Islands, Guam and American Samoa. This won't be the first time a president has used the plates to support those living in the District of Columbia. President Clinton had the "Taxation Without Representation" plates on his veihcles, but his successor, President George W. Bush, did not.

Continue reading Obama's limo to carry tax-protest license plate [w/video]

Obama's limo to carry tax-protest license plate [w/video] originally appeared on Autoblog on Thu, 17 Jan 2013 11:30:00 EST. Please see our terms for use of feeds.

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Bailout and gas prices hot buttons in Presidential debate

George Kennedy — Wed, 17 Oct 2012 10:44:00 EST

Filed under: Hybrid, Government/Legal, Hirings/Firings/Layoffs, Plants/Manufacturing, Electric

The pros and cons of the auto bailout and concerns about the rising price of gasoline have been a political football throughout this election season. So, it should come as no surprise that the auto industry was brought up more than a few times in last night's heated presidential debate.

Roughly a minute into the debate, the subject was raised by President Obama when asked a question about unemployment. The President's answer: "I want to build manufacturing jobs in this country again. Now when Gov. Romney said we should let Detroit go bankrupt, I said we're going to bet on American workers and the American auto industry and it's coming back."

Romney countered by pointing out that Obama followed the Governor's advice offered in his New York Times editorial "Let Detroit Go Bankrupt" from 2008. Romney stated that the President did, in fact, let Chrysler go bankrupt, and pointed out, "My plan was to have the company go through bankruptcy... and come out stronger." Obama retorted that Romney's view of taking the automakers into bankruptcy did not provide them with any way to stay open, and would have lost a million jobs in the process.

The candidates also spoke on energy and oil production, primarily in response to questions of recently spiking gas prices. The President pointed out that oil production on federal land is at its highest in 16 years and natural gas production is at its highest levels in decades. Romney responded by saying that overall oil production is down 14 percent as a result of cutting licenses for drilling. Additionally, Romney criticized Obama for blockage of the Keystone oil pipeline.

Surprisingly, yesterday's bankruptcy filing of A123 Systems was not brought up, though Republicans, including Romney, have criticized the Obama administration's investment in electric cars as well as grants and loans for battery makers. If Tuesday's Chapter 11 filing was not mentioned last night, it will most certainly come up in the days and weeks to come.

Bailout and gas prices hot buttons in Presidential debate originally appeared on Autoblog on Wed, 17 Oct 2012 10:44:00 EST. Please see our terms for use of feeds.

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GM bans political candidates from plants until after Election Day

Jeffrey N. Ross — Mon, 27 Aug 2012 16:00:00 EST

Filed under: Government/Legal, Plants/Manufacturing, GM

Looking to avoid becoming a lightning rod for the Presidential race, General Motors is asking the candidates not to tour its plants until after Election Day. Ever since its bankruptcy in 2009 where it received billions of taxpayer dollars, GM has been used as leverage by both sides of the political aisle, but the automaker is hoping that by eliminating the presidential and presidential-hopeful photo ops, it can distance itself a little more from the negative "Government Motors" label.

An article in the Detroit Free Press says that the auto bailout is expected to play a big role at the Democratic National Convention next month, and GM is still a key topic in this discussion as it is still 32 percent owned by the U.S. Treasury Department. GM has paid back $23 billion of the loans so far. Proof of GM's unwilling involvement in politics is evident by Vice President's recent quote stating: "Osama bin Laden is dead, and General Motors is alive."

The efforts of the GM's bailout/bankruptcy recovery are still just as mixed as the issue was back in 2009. The automaker has seen big profits so far this year - $3.66 billion - and its credit rating was upgraded by Fitch Ratings, but its stocks are down 35.8 percent since 2010 meaning that the government's current investment in GM would be a loss of $15.6 billion if sold now.

In addition to GM, the article also states that the Chrysler Group is closing its doors to the politicians until after November 6. Unlike GM, Fiat-controlled Chrysler has fully repaid its government loans.

GM bans political candidates from plants until after Election Day originally appeared on Autoblog on Mon, 27 Aug 2012 16:00:00 EST. Please see our terms for use of feeds.

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Ed Welburn finds a fan in President Obama

Pete Bigelow — Mon, 27 Feb 2012 17:30:00 EST

Filed under: Government/Legal, GM, Misc. Auto Shows, Design/Style

You know your job is going well when the President of the United States takes the time to mention your success. That's what happened to Ed Welburn, vice president of global design for General Motors, who was tasked with giving President Obama a tour of GM's latest offerings last month during the Washington Auto Show.

As they sat together in the front seats of a 2013 Chevy Malibu, Obama, among other matters, delivered a short assessment of all that transpired in the auto industry since the federal government bailed it out three years ago. And as they ended their tour, Obama mentioned that "the design of GM cars has gotten so much better in the past few years."

More than any person, Welburn is responsible for that improvement. Today, our sister site AOL Autos profiles the 40-year General Motors employee for a feature celebrating Black History Month. The profile focuses on his early fascination with the automotive industry, his role in helping it withstand its recent tumult and his status as the highest-ranking African American in the domestic auto market.

As for Obama's other thoughts on the rest of GM's offerings? Among the seven company models in D.C., Welburn reports the president was captivated by one in particular.

"He immediately wanted to get in the Corvette," he said.

Ed Welburn finds a fan in President Obama originally appeared on Autoblog on Mon, 27 Feb 2012 17:30:00 EST. Please see our terms for use of feeds.

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Crumbling bridge chosen as symbol of decaying infrastructure

Zach Bowman — Wed, 28 Sep 2011 16:00:00 EST

Filed under: Etc., Government/Legal

Indiana governor Mitch Daniels was forced to close the Sherman Minton Bridge over the Ohio River last week. The 50-year-old structure connects Indiana with Kentucky via Interstate 64, and after years of overuse, the bridge has deteriorated significantly.

Inspectors recently discovered a large crack in the main load-bearing element of the bridge, and structural engineers quickly recommended closing the structure to traffic. Before the closure, 75,000 vehicles flowed between Albany, Indiana and Louisville, Kentucky every day. Now those vehicles are being forced onto already over-crowded alternate routes.

The Sherman Minton Bridge has become a symbol of our nation's rapidly-deteriorating infrastructure (see also: I-35 bridge in Minneapolis), and President Barack Obama has used it as an example of exactly how America needs to focus on shoring up its innards. As a result, the president has unveiled the American Jobs Act - legislation designed to put people back to work while giving infrastructure the attention it's been lacking over the past four decades. Here's hoping it works.

Crumbling bridge chosen as symbol of decaying infrastructure originally appeared on Autoblog on Wed, 28 Sep 2011 16:00:00 EST. Please see our terms for use of feeds.

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Obama's $1.1M super bus debuts on Midwest tour [w/video]

John Neff — Wed, 17 Aug 2011 15:01:00 EST

Filed under: Etc., Government/Legal, Specialty

As President, Barack Obama debuts a lot of things: economic plans, foreign policy... likely his own library one day. This week, however, the President debuted some serious hardware in the form of a brand-new presidential bus.

Codenamed "Stagecoach" when the President is aboard, the bus was built by well-known Canadian motorcoach builders Prevost, with an interior fitted by Nashville-based Hemphill Brothers Co., all to the tune of $1.1 million. The Secrete Service actually bought two of these buses using a fund for transportation and armored vehicles. The second will be used by whoever winds up being the 2012 Republican presidential nominee. The President's protectors also claim this purchase will turn out to be both cheaper and safer than what they used to do, which is lease a bus and temporarily outfit it with the required safety equipment.

As for what keeps the President safe in his tuxedo black motorcoach, the Secret Service is understandably silent on the issue of specs. If we use the Presidential limousine as a baseline, the new bus can likely withstand bullets, small bombs and chemical attacks, at the very least. It also probably has a supply of the President's own blood on board in case of emergencies, just like the limo, not to mention a robust cache of arms. A motorcade of over two dozen support vehicles also travels with the bus.

We're also in the dark about what's inside, but we hear it's nothing like what NASCAR drivers get. ABC News reports those who have seen the inside called it "subdued," and that the full bedroom in back has been replaced with a meeting room. Not many people beyond Obama's senior staff have even seen the inside of the bus. A cabinet secretary reportedly hitched a ride for a leg of the trip, but other guests on the tour travel behind the president in a dark red bus.

Check out more pics of the President's new rolling fortress in the gallery below, as well as two videos after the jump.

Continue reading Obama's $1.1M super bus debuts on Midwest tour [w/video]

Obama's $1.1M super bus debuts on Midwest tour [w/video] originally appeared on Autoblog on Wed, 17 Aug 2011 15:01:00 EST. Please see our terms for use of feeds.

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Ex car czar Bloom asked by Congress to clarify statements made under oath

Zach Bowman — Fri, 08 Jul 2011 13:32:00 EST

Filed under: Government/Legal

Ron Bloom, the former car czar under President Barack Obama, is being asked to clarify some of the statements he made under oath to the United States Congress last month. Three members of the Congressional oversight committee are specifically interested in the Bloom's denial that he remarked "I did all this for the unions" during a farewell speech. Representative Dan Burton, R-Ind., questioned Bloom about the statement at a hearing of the Subcommittee on Regulatory Affairs, Stimulus Oversight and Government Spending. Now Congress is giving the former car czar a chance to correct his statement.

Why should Bloom feel the need to change his tune? As it turns out, both The Detroit News and Steven Rattner, Bloom's predecessor, recorded the statement for posterity. The quote was featured in an article in The Detroit News and in Rattner's book, Overhaul: An Insider's Account of the Obama Administration's Emergency Rescue of the Auto Industry. As Automotive News points out, Rattner claims that Bloom made the statement as a joke.

Ex car czar Bloom asked by Congress to clarify statements made under oath originally appeared on Autoblog on Fri, 08 Jul 2011 13:32:00 EST. Please see our terms for use of feeds.

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Obama hears it from Jeep employees after underestimating Wrangler

Aaron Richardson — Sun, 05 Jun 2011 16:03:00 EST

Filed under: SUV, Jeep, Off-Road

Obama talks to Jeep workers in Toledo, Ohio - Click above to view video after the jump

The Jeep Wrangler is renowned for its off-road capabilities. With recent updates, it has evolved from a slightly crude utilitarian workhorse, to a utilitarian workhorse with a long list of comfort options. To say the workers in Toledo, Ohio who assemble the trucks are proud of what they do is an understatement. They're fanatical about their work.

So, when President Obama jokingly questioned the Wrangler's capabilities this week, some workers didn't laugh. The President was in Toledo to take credit for Chrysler repaying money owed to the federal government for the bailout. During his speech, he said Chrysler had faced bumps in the road that even a Wrangler couldn't drive over. Jeep workers immediately voiced their consternation, and the president defused the situation with a joke. To see excerpts of Obama's Chrysler appearance, check out the video after the jump.

Continue reading Obama hears it from Jeep employees after underestimating Wrangler

Obama hears it from Jeep employees after underestimating Wrangler originally appeared on Autoblog on Sun, 05 Jun 2011 16:03:00 EST. Please see our terms for use of feeds.

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London Mayor Boris Johnson hits Obama's motorcade with congestion charge

Noah Joseph — Tue, 31 May 2011 19:25:00 EST

Filed under: Sedan, Government/Legal, Cadillac, UK

Rules are rules, and they apply equally to everyone - including the President of the United States. Especially when he's on foreign soil.

After President Barack Obama's famous Cadillac limousine - known as The Beast - got stuck exiting the US embassy in Dublin, it was shipped across the Irish Sea to England, the next leg of the president's European road trip. Now the mayor of London is demanding Obama pay the congestion charge for his limo and the rest of his motorcade.

A notorious car nut and onetime automotive journalist, Major Boris Johnson insists that the £10 ($16) charge applies to each of the president's vehicles, and that the bill is currently being tabulated. The fees are only the latest part of an ongoing dispute between the city's transportation department and foreign missions like the American embassy, an issue that Johnson reportedly raised directly with Obama during his visit.

London insists that embassies in the British capital city owe some £51 million ($83m) in congestion charges for driving through the city during peak hours, of which the American embassy's share is estimated at £5.3 million ($8.7m). Diplomats view the fee as a tax from which they are exempt under international law.

London Mayor Boris Johnson hits Obama's motorcade with congestion charge originally appeared on Autoblog on Tue, 31 May 2011 19:25:00 EST. Please see our terms for use of feeds.

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Obama's limo gets banged up in Ireland UPDATE

Jeremy Korzeniewski — Mon, 23 May 2011 12:31:00 EST

Filed under: Europe, Government/Legal, Videos, Cadillac, Police/Emergency, Celebrities, Humor, Specialty

Presidential limo gets stuck in Ireland - Click above to watch the video after the break

This is no ordinary limousine. Rumored to be built on a heavy-duty truck chassis, this stretched Cadillac boasts armor plating all around, window glass thick enough to stop bullets and enough high-tech communications equipment to run the entire United States from the comfort of its leather-lined back seat. You'd think it would take a nuclear bomb to halt the progress of President Obama's black Cadillac.

Apparently, all it really takes is one particularly nasty speed bump.

Just below the break you'll find a video shot by a casual passer-by that shows the Presidential Limousine (also known as "The Beast") getting high-centered on the apparently oversize down-ramp that exits the parking lot of the American Embassy (in other words, on U.S. soil) in Dublin, Ireland.

Nobody can say for absolutely sure (except for the Secret Service, and they ain't talkin') whether POTUS was actually in this limo or not. Some are suggesting that this may have been a decoy, and, due to the quick response from the Commander in Chief's safety crew, we can't really say for sure how this fiasco ended up for President Obama or the First Lady, or if they were even in the car.

In any case, you should definitely check out the video after the break... if only to see - and more importantly hear - The Beast getting stuck entering Ireland. Thanks for the tip, Jay!

*UPDATE: New, much clearer and closer second video added after the jump.

Continue reading Obama's limo gets banged up in Ireland *UPDATE*

Obama's limo gets banged up in Ireland *UPDATE* originally appeared on Autoblog on Mon, 23 May 2011 12:31:00 EST. Please see our terms for use of feeds.

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Obama: Entire federal fleet purchases to be alt-fuel by 2015

Sebastian Blanco — Thu, 31 Mar 2011 10:00:00 EST

Filed under: Government/Legal

President Obama has outlined a new target for the White House energy policy, one that focuses on variety. According to news reports, the plan will include ways to generate more low-carbon electricity, reduce reliance on foreign oil, expand domestic oil production and ethanol production and push up the amount of natural gas used in vehicles.

The New York Times says that the administration has been asking "outside groups" for their input in order to get the widest possible consensus on the matter. In fact, the President is so confident in the plan that the Times' headline on the story says he is "daring Republicans to call it 'Froufrou.'" Here are some highlights:

By 2015, the federal government will only buy alt-fuel vehicles.
By 2025, oil imports will be reduced by a third through lowering consumption and increasing domestic drilling (does this make more sense now?).
One suggestion on the electricity front is to have different energy goals in different regions. So, for example, places with more and reliable wind would be encouraged to build out more wind turbines. On top of this, dirty energy areas might be able to (or have to) buy clean energy credits from areas that are able to generate extra clean energy.
The White House wants "the nation to break ground on four new commercial-scale cellulosic or advanced biofuel refineries to produce ethanol in the next two years," the The Wall Street Journal writes.

Read the full text of the President's speech after the jump.

[Sources: The New York Times, The Wall Street Journal | Image: WhiteHouse.gov]

Continue reading Obama: Entire federal fleet purchases to be alt-fuel by 2015

Obama: Entire federal fleet purchases to be alt-fuel by 2015 originally appeared on Autoblog on Thu, 31 Mar 2011 10:00:00 EST. Please see our terms for use of feeds.

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Opinion: Obama should have tapped Ford's Mulally for adviser role, not Immelt

David Kiley — Tue, 01 Feb 2011 18:26:00 EST

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

When President Obama tapped General Electric chairman and CEO Jeffrey Immelt to be his top outside economic adviser, my first reaction was: Really?

Maybe I'm partial to the auto industry, the industry I follow the closest, but my next reaction was: Was Ford CEO Alan Mulally's line busy? His email down?

Immelt took over for legendary CEO Jack Welch in 2001. And I've never been aware of a huge fan club for Immelt as a great CEO. According to published reports, though, he is very socially and politically connected, and has visited the White House some 16 times since Obama took office.

Continue Reading...

[Image: J. Scott Applewhite/AP]

Continue reading Opinion: Obama should have tapped Ford's Mulally for adviser role, not Immelt

Opinion: Obama should have tapped Ford's Mulally for adviser role, not Immelt originally appeared on Autoblog on Tue, 01 Feb 2011 18:26:00 EST. Please see our terms for use of feeds.

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Obama working to pitch success of auto bailouts to American public

Zach Bowman — Fri, 30 Jul 2010 13:29:00 EST

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

You don't have to be a pollster to know that for the most part, the American public remains none too happy about the federal government handing over the people's hard-earned tax dollars to pull General Motors and Chrysler out of the fires of insolvency. Despite the fact that both companies have managed to keep their lights on, doors open and paychecks flowing due to their generous federal loans, Joe Plumber still can't stand the thought of paying the price of the two companies' failures. With midterm elections right around the corner, President Obama is in Detroit to attempt to sway that opinion.

The Commander-in-Chief will speak to crowds at Chrysler's Jefferson North plant about the positive side of loaning close to $85 billion to two of our country's largest automakers, including the fact that in 2010, the Big Three have re-hired a total of 55,000 of the 334,000 workers it sent packing a year prior. That may seem like a fraction of the total, but the President is certain to point out that without the loans, that job loss figure would have been much higher.

And then there's the matter of getting the federal government's money back. President Obama is also focusing on sharing his belief that a large majority of the country's money will be returned once GM and Chrysler go public once again.

Interested in keeping tabs on Obama's visit to Motown? The Detroit Free Press has a liveblog that you can follow along with (including live audio) by clicking here.

[Sources: Bloomberg, Detroit Free Press | Image: Jim Watson/AFP/Getty]

Obama working to pitch success of auto bailouts to American public originally appeared on Autoblog on Fri, 30 Jul 2010 13:29:00 EST. Please see our terms for use of feeds.

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NADA criticizes Obama over president's praise for GM dealer reinstatements?

Chris Shunk — Mon, 05 Apr 2010 09:01:00 EST

Filed under: Government/Legal, GM

One of the most contentious aspects of General Motors' 2009 bankruptcy was the forced closing of 1,160 dealerships across the country. GM brass and the Obama Administration Task Force insisted that a smaller dealer body was necessary to make the Detroit, MI-based automaker viable again, while also helping to make the remaining dealers stronger. Opponents of dealer closings pointed to the thousands of dealership employees who would lose a job at a time when jobs are harder than ever to find. Dealers are also often among the most powerful small business owners in small towns, and that meant that the local congressmen were put in a tough spot, indeed.

Congress was able to appease its constituencies to a point by pushing through legislation that gave dealers a second chance at life. Ultimately, it looks like 661 GM dealers have been given a new lease on life after going through the arbitration process, which, it seems, would make the National Automotive Dealers Association mighty happy, but The Detroit News reports that recent comments from President Obama have NADA spokesperson Bailey Wood hopping mad.

The President reportedly gave The General a pat on the back for reinstating the 661 dealers, adding "a year later, GM is hiring again, on the verge of reopening hundreds of dealerships." President Obama brought up the dealer reinstatement in part to show that the U.S. government's $50 billion loan was the right thing to do. But Wood was upset that President Obama would bring up the dealers after the administration spearheaded the effort to cut dealers in the first place. Even as the legislation that led to the arbitration process was taking hold, the administration was reportedly against the bill.

Does NADA have good reason to be upset over President Obama's comments? Maybe, but we're thinking the dealers NADA represents would have been in much worse shape had the administration not stepped in and bailed out GM in the first place. It's hard to sell cars when no one's making 'em.

[Source: The Detroit News | Image: Mark Wilson/Getty]

NADA criticizes Obama over president's praise for GM dealer reinstatements? originally appeared on Autoblog on Mon, 05 Apr 2010 09:01:00 EST. Please see our terms for use of feeds.

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Rattner: Auto bailout saved Michigan from bankruptcy

Chris Shunk — Thu, 11 Mar 2010 13:59:00 EST

Filed under: Government/Legal, Chrysler, GM

Without the government bailout of General Motors and Chrysler, the U.S. auto industry would likely have two fewer domestic automakers and hundreds of thousands of high paying jobs would be history. The Detroit News reports that ex auto task force chief Steve Rattner recently told an audience at a bankruptcy conference that the state of Michigan and the city of Detroit would have faced municipal bankruptcy if Chrysler and GM were liquidated.

Instead, Rattner claims the government bailout not only saved untold thousands of jobs and two enormous American car companies, but the price tag for the government is shrinking as time goes on. Initial estimates by the task force showed that the auto bailout would cost U.S. taxpayers $20 billion or $30 billion after GM and Chrysler's initial stock sale, but Ratner claims that the current price tag is $10 billion or less. The estimated loss has gone down due in part to the fact that old GM's assets are worth more than previously estimated and The General is turning around its operations more quickly than originally thought. If GM continues to surprise and delight, the government may even make some money when it goes public with a stock offering this year or next.

Would the city of Detroit and the state of Michigan have gone bankrupt if GM and Chrysler were liquidated? There is no way to be sure, but if the government hadn't stepped in and bailed them out, its inaction would have probably cost taxpayers untold billions of dollars as well.

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

Rattner: Auto bailout saved Michigan from bankruptcy originally appeared on Autoblog on Thu, 11 Mar 2010 13:59:00 EST. Please see our terms for use of feeds.

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Roll Up the Red Carpet: Obama reportedly not attending NAIAS after all

Chris Shunk — Thu, 07 Jan 2010 10:29:00 EST

Filed under: Detroit Auto Show, Government/Legal

When word got out that the amount of high ranking government officials requesting access passes for the 2010 North American International Auto Show doubled versus last year's numbers, we were less than surprised. After all, General Motors and Chrysler have received billions in bailout funds from Uncle Sam and we could understand (kind of) why officials would want to check on the progress of the American public's investment. NAIAS chairman Doug Fox reportedly intimated that President Obama could attend North America's biggest auto show.

While we're sure the President would love to check out the latest sheetmetal from Motown and around the world, Leader One will not be stopping by Cobo Hall for this year's show. Detroit News reports that White House spokeswoman Amy Brundage confirmed that President Obama would not be attending the event. DN did confirm that House Speaker Nancy Pelosi would be among several members of Congress to attend the show. We're trying to contain our excitement.

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

Roll Up the Red Carpet: Obama reportedly not attending NAIAS after all originally appeared on Autoblog on Thu, 07 Jan 2010 10:29:00 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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