During his state of the economy speech on Capitol Hill, President Obama was passionate in stating his commitment to saving the domestic auto industry. While domestic automakers have the President's support, the general public may be less receptive to more government loans. A recent USA Today poll taken in the days before President Obama's speech shows that only 25% of the 1,013 Americans polled are
General Motors may have put a merger with Chrysler in its rear view mirror, but the Pentastar apparently thinks a tie-up might still be a good idea. Chrysler called a potential pairing with the General the "best option" for the Auburn Hills, MI-based automaker, saying that it would reap five times the benefit of a Fiat merger. Chrysler pointed out in its viability report to the U.S. government that the two companies would have more purchasing power, the deal would generate $36 billion in cash an
Detroit automakers are frantically working to cut costs in an effort to stay out of bankruptcy court. A very big piece of the puzzle is labor, and leaders from the Canadian Auto Workers Union are reportedly ready and willing to make concessions. Talks are set to begin next week in advance of a February 17 deadline for the Detroit automakers to submit their viability plans to the Canadian government. The CAW would like to exchange wage concessions in return for job guarantees.
The French government has put €6 billion ($7.79 billion USD) on the table for car companies. And as part of the effort to make sure that every drop of the money goes toward maximizing performance and retaining jobs, the French government has asked that Peugeot/Citroen and Renault company bosses take a pass on their bonuses.
BMW builds terrific cars and crossovers, but even Germany's finest is struggling to tread water in a brutal automotive climate. Lagging demand has forced BMW to cut 26,000 workers for the months of February and March and BMW's factories in Dingolfing and Regensburg will be effected by the eliminations, which will cut 38,000 units. BMW is also reducing hours at Berlin and Landshut to better align output with demand. The reduced production hours and labor cuts won't result in any permanent layoffs
Every year, Chrysler rewards its top dealers with an all-expenses paid trip to some exotic location. But with the financial situation at the privately-owned automaker in the crapper, the Pentastar decided to cancel this year's excursion. Chrysler spokesman Stuart Schorr told the Detroit News that "the state of the market and the financial challenges the company faces, it made sense not to hold this year's reward meeting." We're sure the decision to cancel the trip to the Hilton Los Cabo
The last few weeks may have been some of the worst in GM's 100-year history. Sales have tanked, CEO Rick Wagoner faced a firing squad in Washington -- twice -- and a CNN poll showed that 61% of Americans didn't want the automakers to get federal loans. It appears Congress is on the verge of approving up to $18 billion dollars to keep GM and Chrysler in business, and the General is thankful for the chance to keep the lights on. GM crafted a letter expressing its gratitude, and published it in tod
It's taken two rounds of Congressional hearings, some major pride swallowing and three detailed business plans, but it looks as if the Detroit 3 will be getting the federal loans they need, though not as much they asked for. A deal was reportedly reached between Democratic leaders and the White House that will supply around $15 billion in federal loans to the struggling U.S. auto industry. While General Motors, Ford and Chrysler asked for a combined maximum of $34 billion, the $15 billion is des
General Motors CEO Rick Wagoner has arrived in Washington to deliver testimony at Senate hearings scheduled for today and tomorrow, and as we reported late yesterday, his transportation this time was not a private jet, but rather a series hybrid Chevy Volt mule in the body of a John Neff
Detroit automakers are busy putting the final touches on its Congress-bound revitalization plans, but all three automakers are also making plans in the event government loans are turned down. GM has a back-up plan, and it reportedly includes more factory closures, white-collar cutbacks, further slashed marketing budgets, and delayed product introductions. Automotive News is reporting that cuts also could hit research and development, which would further hurt the General's ability to com
President-Elect Barack Obama has been in favor of assisting Detroit automakers, but the soon-to-be Commander in Chief agrees with a Congressional demand to see concrete plans before any checks are signed. Obama's Cheif of Staff, David Axelrod, was all over the boob tube Sunday sharing the President Elect's thoughts on what the industry needs to do, saying a real plan to "retool and rationalize" is needed. Without a solid plan, Axelrod said there is little taxpayer dollars can do to fix the probl
In the latest development of The Incomprehensible Union, General Motors is reportedly asking the U.S. government for $10 billion -- on top of the $25 billion loan approved recently -- to help it merge with Chrysler. The supplemental infusion would give the government, i.e. you and me, a stake in the merged company in the form of preferred stock, would see the government taking over pension ob
While the U.S. banking industry is still waiting for Congress to give it a $700 billion hand, President Bush signed into law last night the spending bill that gives U.S. automakers $25 billion in loans to get their collective act together.
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 a