Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/www.autoblog.com/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2009 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[GM updates state of Saturn, potential buyers being reviewed]]>http://www.autoblog.com/2009/05/05/gm-updates-progress-of-saturn-sale-potential-buyers-being-revie/http://www.autoblog.com/2009/05/05/gm-updates-progress-of-saturn-sale-potential-buyers-being-revie/http://www.autoblog.com/2009/05/05/gm-updates-progress-of-saturn-sale-potential-buyers-being-revie/#commentsFiled under: ,



General Motors is busy putting the finishing touches on its third (or is it fourth?) viability plan, part of which involves the sale or shut down of the Saturn division. While many were expecting GM to close down Saturn, GM has released a press release to tell the world that the fledgling marquee is on the block, and there are several suitors in hot pursuit. The new owner will inherit the Saturn name and its 400 dealer-strong retail network. Advisory firm S.J. Girsky & Co. has been retained by GM to facilitate a deal.

The biggest of the Detroit 3 isn't putting a timetable on a Saturn sale, but the General is hoping to get something done later in the year. GM also isn't identifying any potential buyers at this time, but the Saturn dealer body has expressed interest in saving the marquee.

What isn't known is how much GM would be involved in future Saturn planning. All Saturns currently share platforms and are built in factories with other GM products. Unless GM also sells the new owner a factory (there will likely be a few open facilities to choose from), it will have to provide product for several years.

We'll likely find out more about Saturn's fate when GM submits its viability plan to the U.S. Auto Task Force on June 1. Follow the jump to read the brief GM press release.

[Source: GM]

Continue reading GM updates state of Saturn, potential buyers being reviewed

GM updates state of Saturn, potential buyers being reviewed originally appeared on Autoblog on Tue, 05 May 2009 08:58:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>GMrestructuringsaturnsaturn dealersaturn saleSaturnDealerSaturnSaleviability planViabilityPlanTue, 05 May 2009 08:58:00 EST<![CDATA[REPORT: GM to shed 1,600 white-collar jobs by May 1]]>http://www.autoblog.com/2009/04/20/report-gm-to-shed-1-600-white-collar-jobs-by-may-1/http://www.autoblog.com/2009/04/20/report-gm-to-shed-1-600-white-collar-jobs-by-may-1/http://www.autoblog.com/2009/04/20/report-gm-to-shed-1-600-white-collar-jobs-by-may-1/#commentsFiled under: , , ,



According to General Motors spokesman Tom Wilkinson, the struggling automaker will shed 1,600 white-collar jobs by May 1 as part of its continuing restructuring efforts. The cuts, which are scheduled to begin this week, are part of a larger action to shed 3,400 white-collar jobs this year.

Details about what brands and/or aspects of GM's business will be most affected by the headcount reduction are not being disclosed at this time. According to the AFP news bureau, GM has thus far reduced its workforce globally by some 47,000 jobs (26,000 of which are outside of the U.S.), and it presently has about 200,000 employees.

[Source: AFP via Google | Image: Bill Pugliano/Getty]

REPORT: GM to shed 1,600 white-collar jobs by May 1 originally appeared on Autoblog on Mon, 20 Apr 2009 11:39:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>General MotorsGeneralMotorsGMlayoffrestructuringThe GeneralTheGeneralTom WilkinsonTomWilkinsonwhite collarwhite-collarWhiteCollarMon, 20 Apr 2009 11:39:00 EST<![CDATA[Chrysler brass sends letter asking CAW workers for concessions. Workers burn it. ]]>http://www.autoblog.com/2009/04/18/chrysler-brass-sends-caw-workers-letter-requesting-concessions/http://www.autoblog.com/2009/04/18/chrysler-brass-sends-caw-workers-letter-requesting-concessions/http://www.autoblog.com/2009/04/18/chrysler-brass-sends-caw-workers-letter-requesting-concessions/#commentsFiled under: , , , ,



It boils down to this: In 12 days, Chrysler's fate is likely to be sealed, one way or another. Both the United States and Canadian federal governments have told the automaker that in order to get continued funding, it must restructure dramatically. After consulting with his task force on the auto industry, President Obama made it abundantly clear at the end of March that this meant a Fiat deal needed to be in place within 30 days, otherwise it's basically curtains for Chrysler as we all know it. Without the inter-continental partnership, bankruptcy is a lock. It's just a matter of which number follows the letter C.

Complicating matters further for Auburn Hills is the fact that the Fiat deal is by no means guaranteed, either. This week, Fiat CEO Sergio Marchionne said that taking a stake in Chrysler is only a 50-50 proposition right now, and that for a deal to happen, Chrysler's labor costs would need to be cut down to a point where they're in line with the Asian and European transplant automakers, who happen to run non-union shops. With the April 30th deadline hanging over Bob Nardelli and co. like the Sword of Damocles, the Chrysler execs made a plea for concessions from the Canadian Auto Workers via a letter delivered yesterday. These include cost-saving reductions in health and prescription coverage, the elimination of life insurance, and the elimination of other "non-traditional" benefits such as tuition reimbursement, among other things. (A copy of the letter is pasted after the jump.) The letter also includes dire language that essentially states the concessions are required for the company's survival.

The Windsor Star reports that the letter was not well received by some CAW workers at the Windsor, Ontario assembly plant, who responded to it by gathering outside at lunch hour on Friday, whereupon they proceeded to burn the letters during an impromptu rally. And so the stage is set for what are sure to be contentious negotiations between Chrysler and union brass, which are set to begin on Monday. As Bob Nardelli and Tom LaSorda said in their letter to the CAW rank-and-file: "The clock is running."

[Source: The Windsor Star]

Continue reading Chrysler brass sends letter asking CAW workers for concessions. Workers burn it.

Chrysler brass sends letter asking CAW workers for concessions. Workers burn it. originally appeared on Autoblog on Sat, 18 Apr 2009 09:51:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bailoutcawchryslerconcessionsreorganizationrestructuringSat, 18 Apr 2009 09:51:00 EST<![CDATA[Ford announces it has successfully reduced debt by $9.9 billion]]>http://www.autoblog.com/2009/04/06/ford-announces-it-has-successfully-reduced-debt-by-9-9-billion/http://www.autoblog.com/2009/04/06/ford-announces-it-has-successfully-reduced-debt-by-9-9-billion/http://www.autoblog.com/2009/04/06/ford-announces-it-has-successfully-reduced-debt-by-9-9-billion/#commentsFiled under: ,



The Ford Motor Company has announced that it has completed more of its financial restructuring initiatives, lessening its debt by some $9.9 billion (from a starting place of $25.8 billion at the end of last year). The company says this move will lower its annual interest costs by more than $500 million. Ford and its financing arm, Ford Credit, are using 468 million shares of stock and $2.4 billion in cash to reach that figure.

Other parts of the company's debt restructuring efforts include the tendering of approximately $4.3 billion in Senior Convertible Notes (not due until December 15, 2036) for purchase related to Ford's conversion offer, along with previously announced gains like its revised agreements with the United Auto Workers and a cash tender offer for the company's unsecured, non-convertible debt securities. For the full gorey financial details, you number crunchers can click on the jump to check out Ford's official press releases.

[Source: Ford Motor Company | Image: Spencer Platt/Getty]

Continue reading Ford announces it has successfully reduced debt by $9.9 billion

Ford announces it has successfully reduced debt by $9.9 billion originally appeared on Autoblog on Mon, 06 Apr 2009 10:29:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>debt restructuringDebtRestructuringFord CreditFord Motor companyFord Motor CreditFordCreditFordMotorCompanyFordMotorCreditrestructuringsenior convertible notesSeniorConvertibleNotesUAWUnited Auto WorkersUnitedAutoWorkersMon, 06 Apr 2009 10:29:00 EST<![CDATA[Opinion: What should happen to Saturn, Vauxhall and Opel during GM's reorganization?]]>http://www.autoblog.com/2009/01/05/what-will-happen-to-saturn-vauxhall-and-opel-during-gms-reorga/http://www.autoblog.com/2009/01/05/what-will-happen-to-saturn-vauxhall-and-opel-during-gms-reorga/http://www.autoblog.com/2009/01/05/what-will-happen-to-saturn-vauxhall-and-opel-during-gms-reorga/#commentsFiled under: , , , , , , ,



Amidst all the recent bailout talk, one question being asked is what role GM's Opel division will serve in a new-and-hopefully-improved General Motors. More succinctly, will Vauxhall and Saturn soldier on unchanged or will they simply fade into automotive landscape? Automotive News seems to think the question of Opel and how it relates to Vauxhall and Saturn is so important that it's worth devoting three separate editorials to the issue, with varying levels of clarity.

Continue reading Opinion: What should happen to Saturn, Vauxhall and Opel during GM's reorganization?

Opinion: What should happen to Saturn, Vauxhall and Opel during GM's reorganization? originally appeared on Autoblog on Mon, 05 Jan 2009 16:01:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bailoutgm bailoutgm bankruptcyGmBailoutGmBankruptcyopelreorganizationrestructuringvauxhallMon, 05 Jan 2009 16:01:00 EST<![CDATA[GM to follow Ford and restructure its restructuring]]>http://www.autoblog.com/2008/05/29/gm-to-follow-ford-and-restructure-its-restructuring/http://www.autoblog.com/2008/05/29/gm-to-follow-ford-and-restructure-its-restructuring/http://www.autoblog.com/2008/05/29/gm-to-follow-ford-and-restructure-its-restructuring/#commentsFiled under: , ,

Following a slew of labor problems including the American Axle strike that cost an estimated $2 billion, General Motors is restructuring to accommodate the declining U.S. auto market. Following the lead of Ford and Chrysler, the move will likely include further cost cutting and layoffs, as production of thirsty truck and sport-utility vehicles is wound down to make room for more fuel efficient vehicles. Information is sketchy at this stage, but plan on learning the details when the restructuring is officially announced at the company's annual meeting on June 3. With its stock closing Tuesday at its lowest level in more than two decades and thousands of jobs at stake, GM had better get this next move right.

[Source: Automotive News, subs. req'd]

GM to follow Ford and restructure its restructuring originally appeared on Autoblog on Thu, 29 May 2008 13:59:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>American axleAmericanAxleGeneral MotorsGeneralMotorsGMLayoffplant closingsPlantClosingsRestructuringstock priceStockPriceThu, 29 May 2008 13:59:00 EST<![CDATA[Ford <strike>firing</strike> letting go up to 12% of salaried workers]]>http://www.autoblog.com/2008/05/28/ford-to-fire-up-to-12-of-salaried-workers/http://www.autoblog.com/2008/05/28/ford-to-fire-up-to-12-of-salaried-workers/http://www.autoblog.com/2008/05/28/ford-to-fire-up-to-12-of-salaried-workers/#commentsFiled under: , ,

Perhaps 'fired' is the wrong word, as that does imply that these white collar workers did something wrong. The only thing some 12% of Ford's salaried workforce did wrong is get hired by a company that dug itself into a hole relying on strong truck and SUV sales during the 1990s. Now, with consumers avoiding gas-hungry vehicles, the restructuring effort faltering amidst high gas prices, and news that the company has abandoned its goal of returning to profitability in 2009... cutting more salaried workers was inevitable.

Ford CEO Alan Mulally told reporters last week that sales of big trucks and SUVs crashed once gas hit $3.50 per gallon. In April, full-sized pickups accounted for 11 percent of sales. By the second week of May, the number had fallen to just 9 percent. "I don't think we've ever seen a decline week over week like this," Mulally said. "It was clear to us it was time to act." And act they did. While details have not been finalized, Ford expects to eliminate up to 12 percent of its salaried work force (with about 24,300 white-collar workers in the States, this means more than 2,000 positions will be gone). Ford Vice President Jim Farley couldn't sugar-coat the news, but he did try to spread the doom around when he spoke to his employees on Friday, saying "I would expect other car companies to make similar announcements... they have the same issues that we do -- even Toyota."

[Source: The Detroit News]

Ford firing letting go up to 12% of salaried workers originally appeared on Autoblog on Wed, 28 May 2008 12:58:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Alan MulallyAlanMulallyFiringFordJim FarleyJimFarleyLayoffRestructuringWed, 28 May 2008 12:58:00 EST<![CDATA[GMAC restructuring will shed 930 jobs from financing branch]]>http://www.autoblog.com/2008/02/22/gmac-restructuring-will-shed-930-jobs-from-financing-branch/http://www.autoblog.com/2008/02/22/gmac-restructuring-will-shed-930-jobs-from-financing-branch/http://www.autoblog.com/2008/02/22/gmac-restructuring-will-shed-930-jobs-from-financing-branch/#commentsFiled under: , ,

Two days ago we told you about Cerberus head Stephen Feinberg's rather sanguine thoughts on Chrysler. Cerberus' other big auto investment, GMAC, is having a few issues of its own. Last year GMAC's auto lending division posted a profit of $1.77 billion, but losses in the mortgage loan division turned that into a $2.33 billion for the entire company. So, GMAC is doing what companies often do in these situations: positioning itself "with a more competitive cost structure and greater operational flexibility for future growth." Which is done by firing people, shutting down offices, and consolidating what's left over.

From 20 North American offices, the company will trim down to five regional centers in the U.S. and Canada, and get rid of 930 workers, representing 15-percent of the workforce. After GM takes the charge for restructuring, the move will provide $175 million in savings.

And as with Chrysler, Cerberus isn't sweating the current state of things. Feinberg, in that letter to investors, said of GMAC, "The good news is that we bought GMAC cheaply enough so that even with all the bad news in the mortgage market and credit markets, we are still in reasonable shape with our overall investment. However, if the credit markets continue to decline and we find ourselves in a prolonged environment of capital market shutdown, GMAC could run into substantial difficulty." Still, doomsday appears to be a ways off: GMAC expects to be profitable again in 2008.

[Source: Yahoo!]

GMAC restructuring will shed 930 jobs from financing branch originally appeared on Autoblog on Fri, 22 Feb 2008 07:59:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>auto loansAutoLoansgmacmortgage crisisMortgageCrisisrestructuringFri, 22 Feb 2008 07:59:00 EST<![CDATA[Delphi, GM, UAW come to an agreement]]>http://www.autoblog.com/2007/06/26/delphi-gm-uaw-come-to-an-agreement/http://www.autoblog.com/2007/06/26/delphi-gm-uaw-come-to-an-agreement/http://www.autoblog.com/2007/06/26/delphi-gm-uaw-come-to-an-agreement/#commentsFiled under: , ,

Delphi, the UAW, and GM have come to an accord. Pending approval by UAW members and federal bankruptcy court, it would mean that Delphi can focus on the other pressing matters in front of it after spending two years in bankruptcy.


The deal would require a one-time payout from GM, in return for which Delphi could pay lower wages and trim its business operations in line with its current condition. No amount has been given yet for the payout, but wages would be capped at $18.50 an hour, down from $27 per hour now. The agreement also gives Delphi the go-ahead to close plants -- it wants to shutter 21 of its 29 US factories -- shed 4/5 of its hourly work force and thousands of salaried employees, and eliminate some of its business operations.

Now what remains pressing for Delphi is to get the new capital it needs. Talks continue for a $3.4 billion infusion from Appaloosa Management LP and other banking partners. GM estimates that during the Delphi crisis, it has been hit with an estimated $7 billion bill for Delphi's restructuring.

[Source: CNN]

Delphi, GM, UAW come to an agreement originally appeared on Autoblog on Tue, 26 Jun 2007 15:52:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>delphigmrestructuringuawTue, 26 Jun 2007 15:52:00 EST<![CDATA[Ford's cost of recovery: Over $11 Billion for accelerated restructuring]]>http://www.autoblog.com/2007/03/02/fords-cost-of-recovery-over-11-billion-for-accelerated-restru/http://www.autoblog.com/2007/03/02/fords-cost-of-recovery-over-11-billion-for-accelerated-restru/http://www.autoblog.com/2007/03/02/fords-cost-of-recovery-over-11-billion-for-accelerated-restru/#commentsFiled under: ,

In a filing with the Securities and Exchange Commission that surfaced yesterday, Ford estimated that it the accelerated restructuring plan announced last September will cost $11.2 billion when the books are finally balanced. In other words, it will cost Ford$11.2 billion to let go of 38,000 hourly and 10,000 salaried workers. The estimate includes ongoing costs for health care for any workers that didn't take the lump-sum buyout. Who knew it was that expensive to reduce your workforce?

If there is any good news here, it's that Ford has already accounted for $10 billion of that cost in 2006. The rest of the associated costs of the restructuring plan will be billed to the first quarter of 2007. Nothing like pulling the Band-Aid off quickly.

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

Ford's cost of recovery: Over $11 Billion for accelerated restructuring originally appeared on Autoblog on Fri, 02 Mar 2007 19:54:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>fieldsfordmulallyrestructuringway forwardWayForwardFri, 02 Mar 2007 19:54:00 EST<![CDATA[Chrysler Group announces Recovery and Transformation plan]]>http://www.autoblog.com/2007/02/14/chrysler-group-announces-recovery-and-transformation-plan/http://www.autoblog.com/2007/02/14/chrysler-group-announces-recovery-and-transformation-plan/http://www.autoblog.com/2007/02/14/chrysler-group-announces-recovery-and-transformation-plan/#commentsFiled under: , , ,



Project X has now officially been renamed the Recovery and Transformation plan by the Chrysler Group, which plans to reduce its workforce by 13,000 people between now and 2009. About 11,000 employees will be hourly workers, while 2,000 will be salaried employees. In addition, total production capacity for the Chrysler Group will be reduced by 400,000 units per year, aided by the immediate elimination of shifts at its Newark Assembly Plant and Warren Truck Plant, along with cancelling a shift at its St. Louis South Assembly Plant in 2008. In 2009, the Newark Assembly Plant will be completely idled. There's also the standard restructuring moves you'd expect in the plan, like reducing the number of dealers, selling less to fleets, and offering retirement and attrition packages to current workers not affected by the layoffs.

Chrysler Group hopes the R&T plan will return the company to profitability as early as 2008. It's main weapon is cost reduction by the aforementioned layoffs and plant closings. The idea seems to be that if the company can reduce costs enough, its operating profit can offset the quarterly losses it will be facing in the near term.

It's not all slash and cut though, as Chrysler also announced a $3 billion investment in new engines, transmissions and axles that will focus on producing more fuel efficient power and drivetrains. One such product will be a dual-clutch transmission it's commissioned Getrag to produce and a new V6 engine dubbed "Phoenix". There's a slew of BLUETEC diesel vehicles on the horizon, and the 2008 Dodge Durango will host the company's first two-mode hybrid, as well.

One item of note in the press release issued is DaimlerChrysler CEO Dieter Zetsche's statement that, "we do not exclude any option in order to find the best solution for both the Chrysler Group and DaimlerChrysler," which some analysts have taken to mean that selling off the Chrysler Group wholesale is still on the table as a viable option.

Check out the Chrysler Group's full press release after the jump for all the nitty gritty details, and let us know in the comments whether or not you think the Recovery and Transformation plan has what it takes to turn Chrysler around.

[Source: Chrysler Group]

Continue reading Chrysler Group announces Recovery and Transformation plan

Chrysler Group announces Recovery and Transformation plan originally appeared on Autoblog on Wed, 14 Feb 2007 10:09:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>chrysler groupChryslerGroupdieter zetscheDieterZetscheplanproject xProjectXrecovery and transformationRecoveryAndTransformationrestructuringtom lasordaTomLasordaWed, 14 Feb 2007 10:09:00 EST<![CDATA[Chrysler's "Project X" calls for 10,000 jobs cuts, two closed plants]]>http://www.autoblog.com/2007/02/05/chryslers-project-x-calls-for-10-000-jobs-cuts-two-closed-pl/http://www.autoblog.com/2007/02/05/chryslers-project-x-calls-for-10-000-jobs-cuts-two-closed-pl/http://www.autoblog.com/2007/02/05/chryslers-project-x-calls-for-10-000-jobs-cuts-two-closed-pl/#commentsFiled under: ,



We have more details on the rumored restructuring plan that the Chrysler Group is expected to announce on February 14th. First, it's dubbed internally as "Project X", which must mean it involves chimpanzees and large doses of radiation. In addition to radiated chimps (we're kidding, click the link for the punchline), Automotive News is reporting that the plan will likely involve cutting 10,000 factory jobs and closing the Newark Assembly Plant that builds the Dodge Durango and Chrysler Aspen, as well as the an engine plant in Detroit that we believe makes the 4.7L V8 motor for Jeep and Dodge. The ultimate goal is reportedly to make the Chrysler Group smaller, more efficient and more closely alligned with Daimler-Chrysler and Mercedes-Benz. The restructuring plan sounds similar to those currently being implemented by General Motors and Ford, though smaller in scale. For its part, Ford learned a valuable lesson not cutting deep enough the first time around, so we're eager to see if the Chrysler Group comes back for a second round of cuts, as well.

[Source: Automotive News]

Chrysler's "Project X" calls for 10,000 jobs cuts, two closed plants originally appeared on Autoblog on Mon, 05 Feb 2007 13:57:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>chrysler groupChryslerGroupdieter zetscheDieterZetscheProject XProjectXrestructuringtom lasordaTomLasordaMon, 05 Feb 2007 13:57:00 EST<![CDATA[Fiat puts the Auto in Autonomy]]>http://www.autoblog.com/2007/01/25/fiat-puts-the-auto-in-autonomy/http://www.autoblog.com/2007/01/25/fiat-puts-the-auto-in-autonomy/http://www.autoblog.com/2007/01/25/fiat-puts-the-auto-in-autonomy/#commentsFiled under: , ,

Changes are coming to the family as the Fiat automotive empire alters its structure to give several of its divisions more autonomy. While the Lancia, Alfa Romeo, Fiat auto and Fiat light commercial vehicles have all been divisions within the same corporate hierarchy (not unlike the structure at its one-time potential partners at General Motors), each of those brands is now being spun off and individually incorporated.

The result is the creation of four new companies: Lancia Automobiles SpA, Alfa Romeo Automobiles SpA, Fiat Automobiles SpA and Fiat Light Commercial Vehicles SpA. This also means that the executives who were simply brand managers before are getting promoted to chief executive officer of their new corporations. All four will still be fully owned by the parent company, which is changing its name from Fiat Auto to Fiat Group Automobiles SpA. For those Tifosi left wondering, Fiat's precious baby Ferrari remains unaffected by the restructuring since it was already separately incorporated and is partially owned by Fiat with some shares owned by other interests.

What practical implication does this have? None to the American market where, until Alfa Romeo returns to the US, none of these brands are sold. Meanwhile, Fiat insists the restructuring will actually enable each unit to cooperate with the others more effectively. We'd bet this gives each of the brands the freedom to make independent strategic decisions, including the Fiat brand itself. The move comes shortly after Fiat Group head Sergio Marchionne stepped down as chief of the Fiat brand to concentrate on managing the group. With sales up and its financial health looking better than ever, the Fiat empire -- or whatever you want to call it -- looks poised to continue its climb upward.

[Source: Fiat via Italiaspeed]

Fiat puts the Auto in Autonomy originally appeared on Autoblog on Thu, 25 Jan 2007 11:29:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>alfabusinesscorporatefiatlanciarestructuringromeoSpAThu, 25 Jan 2007 11:29:00 EST<![CDATA[Chrysler to present restructuring plan in February]]>http://www.autoblog.com/2006/12/26/chrysler-to-present-restructuring-plan-in-february/http://www.autoblog.com/2006/12/26/chrysler-to-present-restructuring-plan-in-february/http://www.autoblog.com/2006/12/26/chrysler-to-present-restructuring-plan-in-february/#commentsFiled under: , ,



Chrysler Group CEO Tom LaSorda travelled to DaimlerChrysler's headquarters in Stuttgart, Germany, last Wednesday to present a restructuring plan to the company's management board. The Detroit News reports that the plan will involve job cuts and and the closing of at least two plants in the U.S. The plan will be reviewed by the DCX management board and likely announced in February when the company reveals its performance numbers for 2006, which analysts expect to be billions in the red.

Just like Ford with its Way Forward restructuring plan, Chrysler needs to trim down the production side of its business to meet lower demand for its vehicles that led to a loss of $1.5 billion in Q3 of 2006. In addition to shrinking its production capacity, any analyst will tell you that Chrysler also needs more small cars in its lineup, which at the moment is overrun with trucks, minivans and SUVs.

Though the Chrysler Group is still run by Tom LaSorda, many are speculating that Dieter Zetsche wants to bring back his guy pal Wolfgang Bernhard, current head of the Volkswagen brand, to run the stumbling automaker. Other initiatives that are already happening include bringing in executives from Mercedes-Benz to the Chrysler Group reduce the cost of each vehicle it produces by $1,000. Clearly DaimlerChrysler is putting effort into fixing what's broken at the Chrysler Group, though some analysts speculate that the restructuring plan announced in February will be its last attempt before selling off the automaker it had "merged" with back in 1998.

Chrysler to present restructuring plan in February originally appeared on Autoblog on Tue, 26 Dec 2006 13:03:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>dieter zetscheDieterZetscherestructuringrestructuring planRestructuringPlantom lasordaTomLasordaturn aroundTurnAroundTue, 26 Dec 2006 13:03:00 EST<![CDATA[Ford buyouts start next week]]>http://www.autoblog.com/2006/10/10/ford-buyouts-start-next-week/http://www.autoblog.com/2006/10/10/ford-buyouts-start-next-week/http://www.autoblog.com/2006/10/10/ford-buyouts-start-next-week/#commentsFiled under: , ,

Ford Motor announced Monday that it will make its planned buyout package available to all of its 75,000 hourly workers starting October 16.

The company-wide plan follows previous efforts to cut jobs on a plant-by-plant basis, as the company shoots for its goal of cutting 30,000 hourly jobs by the end of 2008. Both salaried and blue collar jobs are on the block, as the company starts briefing employees next Tuesday on a variety of buyout packages that start taking effect next year.

Ford plans to close 16 factories as it restructures to adapt to the realities of decreasing market share and a stagnant Morth American auto market.

[Source: CNN/Money]

Ford buyouts start next week originally appeared on Autoblog on Tue, 10 Oct 2006 06:52:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>buyoutsrestructuringTue, 10 Oct 2006 06:52:00 EST<![CDATA[Delphi dumping unprofitable contracts with GM]]>http://www.autoblog.com/2006/10/09/delphi-dumping-unprofitable-contracts-with-gm/http://www.autoblog.com/2006/10/09/delphi-dumping-unprofitable-contracts-with-gm/http://www.autoblog.com/2006/10/09/delphi-dumping-unprofitable-contracts-with-gm/#commentsFiled under: , ,




It's been a year since Delphi filed for Chapter 11 bankruptcy protection, and the supplier is still trying to find ways to return to profitability. One of the things it's identified as a way to get back into the black is ridding themselves of unprofitable contracts with General Motors. They have been quietly shifting some of these orders to outside firms. One example is the contract for GM full-sized pickup truck steering knuckles that recently went to EaglePicher Corp., which is no stranger to Chapter 11 itself.

Delphi also dumped the contract to build catalytic converters for GM's new pickups, which still had three years on it, according to UAW Local 1866 president Skip Dziedzic, in Milwaukee. No firm has been identified in taking over that order yet.

Besides shifting some of these unprofitable parts-making contracts, Delphi is also offering thousands of hourly workers early retirement, with GM's financial backing. And Delphi also wants to unload eight of its 29 U.S. factories to focus on more profitable electronic components.

A total of 5,472 unprofitable GM parts contracts are being let go as part of the restructuring, but General Motors is trying to block this plan. GM itself, however, has been actively shifting some Delphi contracts to other suppliers, as well, such as in the case of Siemens VDO Automotive Corp. making the manifolds for GM's new large SUVs, slip control systems for Epsilon cars from TRW, and four separate suppliers to make spark plugs: Denso Corp., Beru AG, NGK and Honeywell International Inc., all of which were previously produced by Delphi.

[Source: Automotive News, sub req]

Delphi dumping unprofitable contracts with GM originally appeared on Autoblog on Mon, 09 Oct 2006 20:48:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bankruptcychapter 11Chapter11DelphiDetroitrestructuringSkip DziedzicSkipDziedzicUAWMon, 09 Oct 2006 20:48:00 EST<![CDATA[BREAKING: Ford slashes production]]>http://www.autoblog.com/2006/08/18/breaking-ford-slashes-production/http://www.autoblog.com/2006/08/18/breaking-ford-slashes-production/http://www.autoblog.com/2006/08/18/breaking-ford-slashes-production/#commentsFiled under: ,

As part of its accelerated "Way Forward" turnaround strategy, Ford Motor announced today that it will cut North American production by 21 percent (168,000 vehicles) in the fourth quarter of this year. Third quarter production will by cut by 20,000 units.

The result will be a 9 percent reduction in 2006 vehicle production compared to 2005 levels.

In an announcemento employees, Chairman and CEO Bill Ford said the decision is part of the company's recently accelerated North American turnaround plan, going on to say that additional actions will be announced in September.

The resulting reduced supply of vehicles will help dealers control inventory carrying costs and reduce the need for sales incentives to move slow-selling models. 2006 production in the first two quarters of the year was already 40,000 units under 2005 levels, due to cuts in truck production levels.

The announcement will mean downtime at plants producing the slower-selling vehicles affected by the plan. Plants and vehicles targeted include: St. Thomas, Ontario (Ford Crown Victoria and Mercury Grand Marquis), Chicago (Ford Five Hundred and Freestyle and Mercury Montego), Wixom, Mich. (Lincoln Town Car), Louisville, Ky. (Ford Explorer and Mercury Mountaineer), Michigan Truck in Wayne, Mich. (Ford Expedition and Lincoln Navigator), Twin Cities, Minn. (Ford Ranger) and all F-Series truck plants (Kansas City, Mo.; Norfolk, Va., Dearborn and Kentucky Truck in Louisville).

[Source: Ford]

BREAKING: Ford slashes production originally appeared on Autoblog on Fri, 18 Aug 2006 12:32:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>production cutrestructuringway forwardWayForwardFri, 18 Aug 2006 12:32:00 EST<![CDATA[Analyst gives bump to Ford; says GM nearing end of its upward run]]>http://www.autoblog.com/2006/08/16/analyst-gives-bump-to-ford-says-gm-nearing-end-of-its-upward-ru/http://www.autoblog.com/2006/08/16/analyst-gives-bump-to-ford-says-gm-nearing-end-of-its-upward-ru/http://www.autoblog.com/2006/08/16/analyst-gives-bump-to-ford-says-gm-nearing-end-of-its-upward-ru/#commentsFiled under:

An analyst with Bear Stearns delivered an interesting assessment of the domestic automakers today, stating that Ford's credit rating deserves a boost on the basis of its upcoming expected turnaround performance. The stock's rating was cranked up two notches from "underperform" to "overperform", and indeed its value has enjoyed an increase of nearly 15% in the last month (granted, it's coming off a slump that saw it nearly touch on its 52-week low, and it's still over 20% down from its peak in the last year).

General Motors, on the other hand, is viewed as having reached its peak in the near term, and was knocked down from "overperform" to "peer perform". That automaker's stock is up 50% since the beginning of the year on the basis of GM's turnaround efforts, but that ride is considered to be mostly over, and any further gains are now viewed as being incremental and tied to sales results.

Also interesting is Bear Stearns' strategy towards making money from domestic automaker stocks. Instead of looking for returns from holding onto the stocks over the long term, the firm looks to shift its money around as the restructuring cycles roll through Detroit.

[Source: Marketwatch]

Analyst gives bump to Ford; says GM nearing end of its upward run originally appeared on Autoblog on Wed, 16 Aug 2006 06:53:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bankruptcyfinancialsfomocofordgeneral motorsGMinvestmentsrestructuringstocksturnaroundWed, 16 Aug 2006 06:53:00 EST<![CDATA[Ford's Way Forward: it's a long and winding road]]>http://www.autoblog.com/2006/07/31/fords-way-forward-its-a-long-and-winding-road/http://www.autoblog.com/2006/07/31/fords-way-forward-its-a-long-and-winding-road/http://www.autoblog.com/2006/07/31/fords-way-forward-its-a-long-and-winding-road/#commentsFiled under:

As recent financial results have shown, reviving Ford Motor's North American operations is about more than just downsizing production capacity and increasing efficiency. Disappointing sales results are focusing the spotlight increasingly on Ford's promises of new, innovative products.

Ford is in a deep hole, with its minivans out of favor with consumers, only its aging Focus to combat the small car onslaught from other manufacturers, and even its stalwart F-150 pickup under fire from newer competitors.

Ford's problems with B-segment small cars highlight the automaker's challenges. Ford Americas president Mark Fields promised an aggressive attack on the booming small car market segment as recently as his keynote address at this year's Los Angeles Auto Show in January, but Automotive News reported Monday that Ford's current product plans show that new B-segment cars will not debut until the 2010 and 2011 model years. Among other things, Ford is struggling with defining the target markets for its small cars, with options ranging from low-priced, entry-level models to more upscale competitors for BMW's MINI. Or... Ford could simply rebadge a B-segment import, as Chevy did with its Aveo, in which case a 2007-2008 launch is possible.

[Source: Automotive News - sub required]

Continue reading Ford's Way Forward: it's a long and winding road

Ford's Way Forward: it's a long and winding road originally appeared on Autoblog on Mon, 31 Jul 2006 18:04:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>ford focusford mustangnew modelsproduct plansrestructuringway forwardWayForwardMon, 31 Jul 2006 18:04:00 EST<![CDATA[VW considering moving some production to Mexico]]>http://www.autoblog.com/2006/05/15/vw-considering-moving-some-production-to-mexico/http://www.autoblog.com/2006/05/15/vw-considering-moving-some-production-to-mexico/http://www.autoblog.com/2006/05/15/vw-considering-moving-some-production-to-mexico/#commentsFiled under: , ,

Another indication of the complexity of the globalized auto industry came Monday with the news that Volkswagen is considering moving Passat production for the North American market to its facility in Mexico.

The reason for the move is currency issues, specifically a declining U.S. dollar and a strong euro. Coupled with inefficiencies in its German plants, including the Passat assembly plant, exchange rate problems have hampered VW's financial recovery in the North American market.

If it happens, the shift won't happen overnight - the plan would be to start producing Passats in Mexico by 2009. The reaction of German trade unions will be interesting, and the cynical among us might label this rumor as a company move to strengthen its bid for dramatic restructuring of its money-losing plants in western Germany, a move which is strongly opposed by the unions.

[Source: Reuters]

VW considering moving some production to Mexico originally appeared on Autoblog on Mon, 15 May 2006 12:33:00 EST. Please see our terms for use of feeds.

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