Autoblog

General Motors' CEO, Rick Wagoner, who's been manning the helm for the last eight years and a part of its staff since 1977, has taken some heat for asking the Feds for a bailout. A possible condition for those funds may be the symbolic sacrificial death of its current leader, according to a slew of analysts polled by Bloomberg. Whether true of false, there seems to be a sense that the CEOs of U.S. automakers are some of "the dumbest people in the world," according to ex-Chrysler prez. Thomas Stallkamp. Ouch. Ford has stated that it doesn't need a bailout and Chrysler is actively looking for partners to keep itself alive.

In the last few months, when the government has bailed out institutions such as AIG, Fannie Mae and Freddie Mac, one stipulation was that its top management be replaced, and that sentiment may stick around if the Detroit 3 receive packages of their own. Although Wagoner isn't likely to step down willingly, he may not be given the choice if some legislators get their way. Here's an unanswered question, though... who would be the best man to replace him?

[Source: Bloomberg]

House leader Nancy Pelosi may have given the beleaguered U.S. auto industry it's biggest and best hope yet after the leading Congressional Democrat told NPR that Congress is considering more loan money for the ailing industry. Pelosi and House leadership met on Monday about a second $25 billion bridge loan that would buy the Detroit Three time during a brutal downturn. Pelosi is also meeting with management from each domestic automaker plus UAW President Ron Gettelfinger today to discuss possible loan packages. Pelosi said the potential loans are about "saving an industry," which goes a long way towards showing just how dire the situation has become. Government help for the U.S. auto industry likely won't get resistance from President Elect Barak Obama, as the new Pres has stated publicly in the past that he wants to help get Detroit automakers back on their feet.

This second round of money would come in the form of a low interest loan similar to the $25 billion that has already been approved for more efficient car tech. Washington will likely demand that executive compensation be curtailed as part of any deal, if only to keep shell-shocked Americans from blowing a gasket over the kind of money that is being thrown about our nation's capital. The Detroit News is reporting that further details of these new potential loans may be available as soon as Friday, as Congressional leaders plan to put out a statement. That's the same day third quarter financial results are due to come from Ford and GM, and those numbers aren't likely to be good at all.

[Source: The Detroit News, Photo by Brendan Smialowski/Getty]

Due to deteriorating market conditions and a dire cash crunch, General Motors CEO Rick Wagoner will be announcing "important changes" during his company's 3rd quarter earnings report on Friday at 11AM EST The Detroit News obtained an executive level email that foretells the bad news ahead but doesn't go into specifics regarding what actions the General will take. Wagoner did, however, send out an earlier email that stated cuts were necessary. Some cutbacks on the table include both voluntary and involuntary salary layoffs and the loss of certain benefits like 401k matching. GM spokesman Tom Wilkinson verified that change was coming by saying that the struggling automaker would need to make "additional adjustments."

The Friday announcement will likely include a hefty financial loss, too, as evidenced by an earlier announced loss of $2.5 billion by GMAC financial. Seems the General will use the public stage this Friday to announce additional production cuts or plant closings or delays to future products or... all of the above and more. We'll be listening and will let you know.

[Source: The Detroit News, Photo by Bill Pugliano/Getty]

Rumors of a meeting between GM CEO Rick Wagoner and top officials from Toyota in Japan has been denied. This shouldn't come as much of a surprise, considering that it's GM's policy not to comment on such matters, but Toyota has no such policy and has also denied that such discussions have or will take place. The Japanese Kyodo News had started the rumors, which specifically suggested that Toyota could offer GM hybrid technology and assistance in the assembly of small cars. That seemed rather odd, especially since GM has its own sophisticated Two-Mode hybrid system that was developed along with Chrysler and BMW. Toyota and GM also already share a factory in California that builds relatively fuel efficient compact cars, so any deal between the two automakers would just be an extension of their current agreements. What's more, General Motors is also in talks with Cerberus to make a major play on Chrysler's automotive operations, so it would seem to be an inopportune time to discuss major deals with other automakers as well.

[Source: Reuters]

Over the past few weeks, we've heard how badly Detroit automakers needed $25 billion in government-backed loans, but very few of us know exactly who gets the money. GM CEO Rick Wagoner got in front of a camera to answer some of those questions, and to talk about some of the challenges the General faces. Some of the interesting comments from slick Rick include the fact that the $25 billion is available to all automakers and suppliers that invest in the US, not just the Detroit companies. Wagoner also explains that the loan money was part of the bill passed in 2007 to increase fuel economy by 40% over the next decade, and not just some handout from Washington. Hit the jump to view the video.

[Source: GM Fast Lane]

At a press conference on Thursday, shortly after announcing plans for a new engine plant in Flint, Michigan, General Motors CEO Rick Wagoner said his employer, "should be able to put to good use its portion of a $25 billion government loan package."

Wagoner goes on to say he's concerned about the details of the plan but hopes the package is expanded to include all gas-saving technologies, not just electric cars. Which is understandable, considering GM has already invested a great deal of money into the Volt and would logically welcome financial assistance in investigating other fuel-saving methods. Then again, the Volt may just yet turn out to be classified as an electric car by the EPA, as the California Air Resources Board just did.

Wagoner was also pleased to hear about the Senate's approval of a $7,500 tax credit for buyers of electric vehicles. The tax break is something the company has been lobbying for since May, and would certainly help to get the Volt's price tag closer to the original $30k estimate and hopefully allowing the General to sell the estimated 60,000 units we once heard.

[Source: The Associated Press via Yahoo Finance]

GM began to counter the rumor and rabble with its Facts and Fiction site. Now they've gone a step further and introduced a video series called The Case for GM. The introduction video is by Christopher Barger, director of global communications technology, telling us that the series is meant to address your questions, and letting us know that the series will provide answers and insight from a large number of GM "team" members.

The second vid is from top guy Rick Wagoner, answering the question "What do you say to those with concerns about GM's future?" Let us be clear that we applaud the effort GM is making to speak to the public. Nevertheless, this video highlights the problem: Wagoner doesn't say anything. At least, nothing we didn't already know. He talks about growth in emerging markets, and hybrids are out, and GM is excited about the Volt and the "electrification of the vehicle," and how GM's design team is showing its reignited passion for cars and trucks. Yeah, so...

This also highlights the difficulty with the idea itself: how much can GM say? They can't talk about future product, they can't give away their technology R&D, they can't commit to revealing anything we don't already know. It would almost be better if they just took the day's latest bad news and said "This story isn't accurate, and this is why...," giving us any examples they could. What we would love to see is if they did a series of videos that took cars in GM's lineup and compared them side-by-side with competitor cars and showed us "This is why the GM product is as good or better."

But we realize that would be a bit unfair. Not even Toyota or Honda is going to do that. But GM says that they want this to be a dialogue, so Autoblog readers, why don't you let GM know what you really want to know -- keep it constructive, remember! -- and maybe you'll get some of your questions answered. We have little doubt that GM can win -- but we would rather see more concrete answers on the showroom floor.

[Source: GM Fast Lane Blog]

General Motors CEO, Rick Wagoner, mentioned in passing that several parties have expressed interest in purchasing HUMMER and that GM is moving as quickly as possible to seal the deal. "We have some interested buyers," Wagoner told reports while attending the opening of a new GM engineering and development center.

The sale of HUMMER would help fund GM's attempt to boost liquidity to the tune of $15 billion by the end of 2009. Other brands could be cut or paired down, but Wagoner insists that Saab will continue to soldier on. "Saab is a critical part of our European portfolio and has the potential to be quite a good moneymaker for us." He went on to say that the next Saab will be built in North America, although it wasn't divulged what model would be produced or where.

[Source: Reuters]

After being asked what the next President of the United States could do to help Detroit's automakers, Rick Wagoner, head honcho at General Motors, responded that his company could use an injection of cash for research and development into new, potentially green technology. Also mentioned were additional incentives for consumers to purchase those vehicles once the automakers actually produce them. Neither of these suggestions should be shocking to anybody paying attention to the Detroit 3's recent financial woes. Much of the admittedly meager R&D budget is already being spent on new technologies such as hydrogen fuel cells and electric drive systems, including the extremely important lithium ion battery.

Federal aid in the form consumer incentives would allow automakers to offer eco-friendly vehicles at potentially profitable prices while still being in the target range of many consumers. In the past, tax credits for hybrid vehicles have helped move that technology along when it was in its infancy. This latest meeting hosted by presidential hopeful Barrack Obama once again indicates how important the emerging green-auto sector and health of the Detroit auto industry in general will be in the coming election.

[Source: The Detroit News]

An article in the Atlantic Monthly examines the genesis and gestation of the Chevy Volt, and concludes with an intriguing mix of potential hits and misses. Calling the Volt "the Barack Obama of automobiles-everyone's hope for change," even the Atlantic Monthly knows that this car currently means more to GM and perhaps the U.S. car buying public than anything else. There is a huge amount of emotion behind the Volt, and not all of it is supportive.

The article is just as much about GM and how the company operates as it is about the car. The case is put forward that this is less about the viability of the Volt and more about whether GM can finally execute a proper long term follow through. GM has had brilliant ideas before, but its commitment and track record of seeing them through to successful ends isn't so great.

GM CEO Rick Wagoner said, "If I've learned anything over the past three or four years, it's that a lot of this business is sticking with it and persistence. In the coaching vernacular, we're going to leave it on the floor to make this happen." That's a telling quote from the captain of the ship. More heartening is the quote from another GM exec on what the Volt means to the company: "The empire strikes back." Atta boy. Thanks for the tip, quattrofan!

[Source: Atlantic Monthly]