39 Articles
Porsche takes a $47b loan out to bid for VW

What's it take to purchase a controlling stake in Volkswagen? Reuters' reports contacted all the major institutions involved in the deal and came up with 35 billion euros, or $46.47 billion US. To give Porsche the required 30.94-percent of shares, the guys and gals in Stuttgart have tapped ABN AMRO, Barclays Capital, Commerzbank Merrill Lynch and UBS to arrange the purchase.

Nissan offering buyouts to 775 Tennessee workers

Seems like few automakers are immune to downsizing these days, and Nissan is no exception. Today the automaker announced it's reducing its workforce in Tennessee by 12.5%, which equates to 775 heads. The reduction come via way of voluntary buyouts that include a $45,000 cash payment and additional $500 for every year worked. All the workers come from Nissan's two assembly plants in Tennessee, one in Smyrna where the Altima and Maxima, Pathfinder and Xterra are built, and the other in Decherd, wh

Lutz: One of Big 3 will die, but not us

While deftly avoiding the General Motors buyout of Chrysler issue, GM Vice Chairman Bob Lutz did say that he can see one of Detroit's Big 3 dying off in the not-too-distant future. Citing increased market pressures and too much capacity, he said in Geneva that present trends lead to only one conclusion, that one of the domestic automakers will be squeezed out. It won't be GM, however. "Right now, we're in the best position," he said. "We're approaching the end of the beginning of the transformat

Chrysler sale update: Wall St. more interested than automakers

Since Daimler Chrysler CEO Dieter Zetsche declared 'all options are open' with regards to a possible Chrysler sale, the rumors have been flying. With the exception of GM and Magna, every automaker that comes up as a potential suitor has politely denied the rumor.

BREAKING: Chrysler Group reveals details of union worker buyouts

This afternoon the Chrysler Group and the UAW released a statement revealing details of the early retirement and separation programs that will help the automaker reach its goal of shedding 13,000 jobs. Two-thousand jobs being eliminated are salaried positions, and we brought you details on those early retirement and buyout packages last week. Today's announcement affects the 11,000 h

BREAKING: Chrysler reveals details on white-collar "separation packages"

This afternoon Chrysler revealed more details on one part of its plan to extensively reduce its workforce by 13,000 workers between now and 2009. The details today concern the 2,000 salaried workers that will be leaving the company. Chrysler hopes it can entice at least 1,000 of those salaried workers to leave by June 30th of this year.

UAW has no opinion on possible GM/Chrysler deal

When asked about the possible GM/Chrysler buyout deal, Ron Gettelfinger, the head of the United Auto Workers Union said, "I have absolutely no opinion on that at all." Really?! No opinion?! No comment, we could understand. But no OPINION? This could be one of the most significant moves in the future of your organization and the U.S. auto industry in general. And you have no opi

Nissan offering voluntary buyouts to all Tennessee plant workers

Word has just come across the wire that Nissan will be offering a "voluntary transition program" to all of its hourly employees working in either its Smyrna or Dechard manufacturing plants in Tennessee. These are effectively buyouts, which can net an hourly worker a lump sum of $45,000 and a bonus $500 for each year of service. It's certainly not the sweet deal offered to members of the UAW who work for General Motors and Ford, but the offer could help Nissan reduce the rank and file of its rela

DaimlerChrysler stocks skyrockets on talk of Chrysler sale

We have no idea who will end up with Chrysler once all this madness ends, but we can say that there are already quite a few winners in the process -- DCX stockholders.

The plot thickens; Hyundai may be angling for Chrysler

Hyundai and Chrysler already share their 2.4 liter "world engine" (along with Mitsubishi), and they may share much more in the future. Rumors are trickling in from all quarters about potential suitors for Chrysler, should DCX decide to cut loose its American vessel, and Hyundai is the latest one to grab headlines. The main value in purchasing Chrysler, which is suffering from crippling pension and healthcare costs, geriatric factories and indifferent product, is the dealer network.

Big Wig to Big Rig: Pischetsrieder to oversee truck merger

The earliest reports on the "resignation" of Volkswagen group CEO Bernd Pischetsrieder indicated that while he'd be replaced as chief executive, he would be retained to take on "special assignments". What such ambiguous duties might entail was a mystery, but it's looking like he may be put in charge of managing a merger between two major European truck companies.

4,000 Ford workers take buyout

During a conference call yesterday, FoMoCo's President, Mark Fields, announced that over 4,000 workers would take early retirement from the Ford-owned Visteon plant in Michigan.

Bold Move: Ford extending buyouts to all UAW workers

Thanks to a fax sent by the United Auto Workers union to its leaders in various regions, we now know that Ford will be extending its job buyout offer to all 75,000 of its hourly UAW workers. This means that Ford is more than doubling the Way Forward plan's initial offer to buy out 30,000 of its 82,000-person work force. According to the New York Times, only 6,200 workers accepted the offer the first time around, though we expect Ford is hoping its new offer is as successful as the one General Mo

I want my baby back! Fiat to repurchase Ferrari shares

Fiat is increasing its stake in Ferrari, buying back the shares it sold to Italian investment bank Mediobanca during Fiat's financial troubles in 2002. The Turin-based auto conglomerate is the undisputed Don of the Italian car business, controlling Ferrari, Maserati, Alfa Romeo, Lancia, Iveco and Magneti Marelli (to name a few), and will exercise its option to buy back the 29% currently held by Mediobanca by the end of September.

Ford expanding buyouts to include all North American factory workers

As part of what we're calling the newly rechristened Accelerated Way Forward plan, Ford is reportedly opening up its buyout program to include all North American factory workers. Currently the buyouts are only being selectively offered at targeted plants. Apparently that's not getting the job done as effectively as GM's broader buyout program that saw over 30,000 workers accepting buy out off

Ghosn says "no" to top spot at GM; is not currently talking with Ford

As talks approach with General Motors head Rick Wagoner, Carlos Ghosn is stating that he has no desire to head up the conglomerate if a merger of sorts takes place. Apparently, he feels that he's busy enough running both Nissan and Renault. Ghosn did show some interest in getting a board seat if a deal was struck with GM, though.

American Axle looks to shake loose "job bank"

American Axle Manufacturing (AAM), one of General Motors' main suppliers, isn't bankrupt,but it is feeling financial pain from the 1,100 workers that it is currently paying not to work. A grand total of $75 million is spent by AAM each year to maintain its share of the United Auto Workers "jobs bank", which represents approximately 2 percent of the supplier's gross sales and a substantial dent in the company's $56M of profit last year.

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