Autoblog

WSJ looks at who the auto bailouts really left behind

Aaron Richardson — Fri, 27 May 2011 15:31:00 EST

Filed under: Government/Legal, Recalls, Safety, Chrysler, GM

According to The Wall Street Journal, Chrysler's post-bailout restructuring allowed it to effectively erase any responsibility for car accident victims. Two years after the $12.5-billion auto industry bailouts, families like the one Vicki Denton left behind are stuck between a rock and a hard place.

The WSJ reports that Ms. Denton was killed in a head-on collision in which the airbag in her 1998 Dodge Caravan failed to deploy. A court ordered Chrysler to pay Denton's son and surviving relatives $2.2 million in damages, but that was just before the bailout hit. Since Chrysler is no longer under any obligation to the family because the bailout measures absolved Chrysler from its liabilities, the Dentons will almost certainly never see their money and have no legal recourse to get it.

The Chrysler case isn't unique. The same rings true at General Motors, where a $50-billion bailout and restructuring left asbestos victims, laid off dealers and accident victims without any way to secure their damages. Beyond the unfairness of the deal, some experts suggest paying accident victims wouldn't have been out of the question.

Those who coordinated the bailouts maintain that in situations like the ones at GM and Chrysler, full recompense simply isn't possible for everyone. As far as the courts are concerned, there is standing legal precedent to allow for such omissions during a bankruptcy restructuring.

WSJ looks at who the auto bailouts really left behind originally appeared on Autoblog on Fri, 27 May 2011 15:31:00 EST. Please see our terms for use of feeds.

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Followup: Toyota 'strongly objects' to NHTSA allegations it planted story in WSJ

Zach Bowman — Mon, 19 Jul 2010 13:29:00 EST

Filed under: Etc., Recalls, Safety, Toyota

Toyota has officially spoken out against allegations that it planted a story in The Wall Street Journal that attributed the majority of the company's unintended acceleration woes to driver error rather than entrapped floor mats or faulty software. The Japanese company's American arm emailed a statement to Just-Auto saying that no one within Toyota has any access to the National Highway Transportation Safety Administration's research, and that no one in the government agency had reported any findings to the automaker.

As you may recall, The Wall Street Journal article cited "people familiar with" the NHTSA's research on the Toyota unintended acceleration problem. It wasn't long before fingers began pointing back at Toyota for supposedly planting the story with the WSJ. Just-Auto originally cited a spokesperson with the NHTSA who said that the information that the publication used came from Toyota.

In its defense, Toyota has said that any reports that claim that the company planted a news story are absolutely false. In its independent research, Toyota has found a number of causes of unintended acceleration, one of which happens to be "pedal misapplication." For those of us that don't speak corporate, that would be driver error. Whether that means that someone at the The Wall Street Journal managed to get their sources crossed or whether the NHTSA is simply trying to cover its bases after leaking otherwise confidential information remains to be seen.

[Source: Just-Auto | Image: Paul Ellis/AFP/Getty]

Followup: Toyota 'strongly objects' to NHTSA allegations it planted story in WSJ originally appeared on Autoblog on Mon, 19 Jul 2010 13:29:00 EST. Please see our terms for use of feeds.

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REPORT: GM may let dealers sell remaining "non-core" vehicles as used with big discounts

Chris Shunk — Tue, 29 Dec 2009 11:28:00 EST

Filed under: Car Buying, Pontiac, Saturn

You've seen the dealer commercials before. "Now is the time to buy.... year end sale!" Well, if you want the Pontiac or Saturn of your dreams, this really is the best ever time to deal because it's literally the last chance to get a new vehicle from these brands. The Wall Street Journal reports that General Motors is offering dealers $7,000 in cash for each new Saturn or Pontiac model sold until the deal ends January 4. Edmunds reportedly told the WSJ that it expects GM will have about 4,200 Saturn and Pontiac models by January 1.

That $7,000 in cash goes straight to dealers, meaning that a dealer can give you all or only some of the $7,000 off the vehicle if they so choose. But if you do get the entire $7,000 rebate, it could amount to 46 percent off the price of a new Pontiac G3 - you know, if driving a rebadged Chevrolet Aveo is your idea of excitement. But hey, how many new cars can you buy for $8,000 outside of India? A more compelling deal could be $7,000 off the price of a Saturn Astra. Getting a brand-new Astra with tons of options and a $13,000 price tag could be considered a steal.

The catch to the sale is that the vehicle will be sold as used since dealers will officially be the first owners of the vehicle. That could effect customers' ability to purchase a new vehicle with a GM employee or supplier discount, but in the majority of cases, the $7,000 would likely be the better deal. Hat tip to Keerthi!

[Source: The Wall Street Journal | Image: Justin Sullivan/Getty]

REPORT: GM may let dealers sell remaining "non-core" vehicles as used with big discounts originally appeared on Autoblog on Tue, 29 Dec 2009 11:28:00 EST. Please see our terms for use of feeds.

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Autoblog Podcast #135

Dan Roth — Thu, 09 Jul 2009 11:41:00 EST

Filed under: Car Buying, Podcasts, Government/Legal, Opinion/Editorial

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

Episode #135 of the Autoblog Podcast is here. Chris, Sam and Dan took time out to chat about GM's fast-moving reorganization, Smart's dubious $99/month deal, raising gas taxes as a better way to increase fuel economy, and Shunk's new car dilemma. To wrap up, we hit a question, and that's it - a nice, tidy 65-minute affair. Tell us how we're doing by filling out our survey, if you haven't already, and we'll see you next week. In the meantime, you can drop us a note at Podcast at Autoblog dot com. Thanks for listening!

Continue reading Autoblog Podcast #135

Autoblog Podcast #135 originally appeared on Autoblog on Thu, 09 Jul 2009 11:41:00 EST. Please see our terms for use of feeds.

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Cerberus to reportedly lose stake in Chrysler as part of bailout deal

Chris Paukert — Tue, 31 Mar 2009 10:05:00 EST

Filed under: Chrysler, Earnings/Financials

According to The Wall Street Journal, Cerberus Capital Management is set to shed its stake in Chrysler as part of the conditions surrounding the company's bailout arrangement with the U.S. government.

According to the article, the financial paper cites an anonymous source within the Obama administration as effectively saying that "Cerberus' equity stake no longer holds value" and "...the firm's ownership will come to an end."

According to the WSJ's sources, Cerberus will still hold on to a controlling stake in Chrysler Financial, but its stake in the automaker itself will likely be eviscerated. Such a move could make it easier for Chrysler and Fiat to come to terms on their alliance within the next 30 days (a deadline given to them by the Obama administration yesterday).

[Source: The Wall Street Journal]

Cerberus to reportedly lose stake in Chrysler as part of bailout deal originally appeared on Autoblog on Tue, 31 Mar 2009 10:05:00 EST. Please see our terms for use of feeds.

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Toyota poised to build plant number eight in US

Damon Lavrinc — Fri, 05 Jan 2007 07:52:00 EST

Filed under: Plants/Manufacturing, Toyota

The Wall Street Journal is reporting that Toyota is in the process of scouting locations and performing feasibility studies on opening another plant in the U.S.

The addition of another manufacturing center within the States would make the total number of ToMoCo plants rise to eight, further shoring up production capacity in one of its most prosperous markets.

According to sources cited by the WSJ, Toyota has five locations in mind, all of which are in the southern U.S., and currently include Chattanooga, TN and Marion, AR. Back in mid-December, the SouthernAutoCorridor.com reported that sites in North Carolina and Southwest Virginia were being reconed as well.

There may be an announcement about Toyota's intentions later this month and according to the WSJ's sources, the plant will likely produce Highlander SUVs to the tune of about 200k per year, when the plant opens in 2009.

[Source: Drive.com.au, Wall Street Journal, SouthernAutoCorridor.com]

Toyota poised to build plant number eight in US originally appeared on Autoblog on Fri, 05 Jan 2007 07:52:00 EST. Please see our terms for use of feeds.

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