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Motor Authority - blog Tag: obama

  • Obama signs $2 billion emergency funding for 'Clunker' program

    Obama signs $2 billion emergency funding for 'Clunker' program August 7th, 2009 ByRalph Hanson Ralph Hanson, Author, August 7th, 2009 Ralph Hanson 8 Comments

    Obama signs $2 billion emergency funding for 'Clunker' program That was quick. Just a month after President Obama signed in the $1 billion ‘cash for clunkers’ bill, and less than a week of it running, the program has already run out of money once and received approval from both the House and Senate for another $2 billion. With Obama's signature today, the money is official, and available to buyers that haven't yet cashed in their clunker.

    The additional funds come less than a week after confusing and conflicting messages about the program's possible termination from the White House and the Department of Transportation. The latest action by the Senate makes it clear that the government wants... That was quick. Just a month after President Obama signed in the $1 billion ‘cash for clunkers’ bill, and less than a week of it running, the program has already run out of money once and received approval from both the House and Senate for another $2 billion. With Obama's signature today, the money is official, and available to buyers that haven't yet cashed in their clunker. The additional funds come less than a week after confusing and conflicting messages about the program's possible termination from the White House and the Department of Transportation. The latest action by the Senate makes it clear that the government wants to see the highly popular program continue. The money will be taken from part of the $787 billion stimulus package approved earlier this year. Originally expected to last through the next several months at least, Ray La Hood, U.S. Transportation Secretary told Automotive News that the additional funding will extend the temporary program through Labor Day and spur about 500,000 new auto sales on top of the 250,000 already completed. Under the original program, owners of old cars that cannot achieve above 18mpg in their combined cycles were eligible for a $3,500 voucher from the government towards the purchase of a new car that is at least 4mpg more efficient. Up to $4,500 is available to those who improve their gas mileage figures by 10mpg or more. Trucks use a different system, where the new truck being purchased has to achieve at least 18mpg and also be 2mpg more efficient than the traded in vehicle. This gets owners the $3,500 voucher, while those improving their mileage by 5mpg get the full $4,500. Read More

  • Foreign luxury carmakers could get loophole in upcoming fuel regulations

    Foreign luxury carmakers could get loophole in upcoming fuel regulations July 31st, 2009 ByAlex Kaufmann Alex Kaufmann, Author, July 31st, 2009 Alex Kaufmann 5 Comments

    Foreign luxury carmakers could get loophole in upcoming fuel regulations In May the White House unveiled a new fuel efficiency policy calling for 35.5mpg fleet averages by 2016, and almost immediately the carmakers began talking about how much it would cost them. But now it looks like the luxury carmakers in the U.S. - primarily foreign marques - could catch a break thanks to an exemption being considered by the Obama administration.

    Currently the plan would put an industry-wide standard into place, but the exemption, nicknamed the 'German provision' by lobbyists, would allow carmakers that sell fewer than 400,000 vehicles in the U.S. each year to be held to a less stringent standard, report The Wall Street... In May the White House unveiled a new fuel efficiency policy calling for 35.5mpg fleet averages by 2016, and almost immediately the carmakers began talking about how much it would cost them. But now it looks like the luxury carmakers in the U.S. - primarily foreign marques - could catch a break thanks to an exemption being considered by the Obama administration. Currently the plan would put an industry-wide standard into place, but the exemption, nicknamed the 'German provision' by lobbyists, would allow carmakers that sell fewer than 400,000 vehicles in the U.S. each year to be held to a less stringent standard, report The Wall Street Journal. Obvious beneficiaries of the exemption would be the German carmakers Porsche, BMW and Mercedes-Benz, two of the loudest opponents of the rule in the first place. In many ways the provision makes sense, since smaller carmakers are ostensibly less able to absorb the costs necessary to improve emissions to requisite levels due to the lack of small, low-end vehicles to boost their efficiency figures. The per-unit costs of such upgrades would also be huge for a small-volume carmaker, and legislating companies out of business isn't the goal. On the flip side, allowing these companies to continue with less strict fuel efficiency standards works against the intent of the single national framework sought by the Obama administration and also undermines the ecological benefits of more efficient vehicles. Other carmakers that could see some benefit from the proposed exemption include Mitsubishi, Suzuki and Subaru. Read More

  • GM gets 5 new board members appointed by U.S., Canadian governments

    GM gets 5 new board members appointed by U.S., Canadian governments July 25th, 2009 ByRalph Hanson Ralph Hanson, Author, July 25th, 2009 Ralph Hanson 1 Comment

    GM gets 5 new board members appointed by U.S., Canadian governments General Motors' recent bankruptcy proceedings have seen the company transformed as it leaves behind failing assets, and according to the company these changes have also been reflected through a restructured board of directors. Five new members have been added to the board following the bankruptcy, with major stakeholders being given discretion to hire new board members depending on the size of their stake.

    For the U.S. Treasury, which now owns roughly 68% of GM, the government department was able to select 4 of the new 5 board members. The Treasury appointed Daniel F. Akerson, David Bonderman, Robert D. Krebbs and Patricia Russo as their... General Motors' recent bankruptcy proceedings have seen the company transformed as it leaves behind failing assets, and according to the company these changes have also been reflected through a restructured board of directors. Five new members have been added to the board following the bankruptcy, with major stakeholders being given discretion to hire new board members depending on the size of their stake. For the U.S. Treasury, which now owns roughly 68% of GM, the government department was able to select 4 of the new 5 board members. The Treasury appointed Daniel F. Akerson, David Bonderman, Robert D. Krebbs and Patricia Russo as their designated board members for the new company. Akerson is a director at the Carlyle Group, a private equity firm based in Washington D.C. that is ranked as the world's largest. Meanwhile, the Canadian government also has a stake in the new GM, and although it is not as sizable as the U.S. Treasury's, its 11.7% stake affords the Canadians a spot on the board to designate someone of their own choosing, which in this case was Carol Stephenson, a business school dean and director of ING Canada. According to GM, there will be a total of 13 directors on the board, including the 5 new additions that will join current board members such as CEO Fritz Henderson and Kent Kresa. Each of the non-GM executives will be paid $200,000 annually for their services. Read More

  • Car Czar Rattner Wants Cadillac Free, And Soon

    Car Czar Rattner Wants Cadillac Free, And Soon July 7th, 2009 By Marty Padgett Marty Padgett, Executive Editor, July 7th, 2009 Marty Padgett 1 Comment

    Car Czar Rattner Wants Cadillac Free, And Soon With General Motors setting a land-speed record in clearing bankruptcy court, the White House and de facto car czar Steven Rattner want out of General Motors, and quick.

    GM could exit bankruptcy as soon as tomorrow, now that a federal court has okayed the Section 363 sale of the "new GM" assets to a new company owned by the government, the United Auto Workers, and creditors. The New GM includes the Cadillac brand, which is in the midst of launching its important 2010 Cadillac SRX crossover; it also includes Buick, which has a 2010 LaCrosse in the works, and the GMC and Chevrolet brands, too.

    Once the new GM is launched, the Detroit Free... With General Motors setting a land-speed record in clearing bankruptcy court, the White House and de facto car czar Steven Rattner want out of General Motors, and quick. GM could exit bankruptcy as soon as tomorrow, now that a federal court has okayed the Section 363 sale of the "new GM" assets to a new company owned by the government, the United Auto Workers, and creditors. The New GM includes the Cadillac brand, which is in the midst of launching its important 2010 Cadillac SRX crossover; it also includes Buick, which has a 2010 LaCrosse in the works, and the GMC and Chevrolet brands, too. Once the new GM is launched, the Detroit Free Press reports, the government wants to rid itself of its 60.8-percent stake in the company as quickly as possible. The government's spent $27 billion in loans to the automaker thus far; that total is expected to rise to $40 billion total, from last October's first loan guarantees to ongoing money needed to keep the company afloat through the next restructuring phase. While the White House wants to be finished with GM soon, it won't make money on the loans as initially it had mused. The quicker it sells its stake, the less likely it is to get a good price for the assets. But that's not Rattner's concern--political goodwill from American citizens is motivating the exit strategy. “We are not trying to be Warren Buffet here," Rattner said. "The most important thing is to get the government out of the car business.” Before GM and Washington can part ways, the new GM board of directors must be filled out. Former AT&T Chairman Ed Whitacre has been named chairman, and CEO Fritz Henderson will continue in his position as board member. Other slots have yet to be filled. Rattner's hands will be full, in the meantime, presiding over the auction of "old GM" assets and simultaneously overseeing the final stages of the wind-down of "old Chrysler" assets. [Detroit Free Press via TheCarConnection]2010 Cadillac SRX crossover Read More

  • Bankruptcy court approves GM asset sale

    Bankruptcy court approves GM asset sale July 6th, 2009 ByJames Martinez James Martinez, Author, July 6th, 2009 James Martinez 1 Comment

    Bankruptcy court approves GM asset sale General Motors is one step closer to emerging from bankruptcy, with a judge on Sunday approving an asset sale to allow the most profitable assets to exit bankruptcy protection under government ownership. Judge Robert Gerber of the U.S. bankruptcy court in Manhattan said the sale would "prevent the death of the patient on the operating table."

    Gerber has issued a four-day stay of the order approving the sale, which should allow it to close as early as Thursday.

    The sale will include substantially all of GM’s assets to the newly established NGMCO Inc., an entity funded by the U.S. Department of the Treasury. Once the sale is... General Motors is one step closer to emerging from bankruptcy, with a judge on Sunday approving an asset sale to allow the most profitable assets to exit bankruptcy protection under government ownership. Judge Robert Gerber of the U.S. bankruptcy court in Manhattan said the sale would "prevent the death of the patient on the operating table." Gerber has issued a four-day stay of the order approving the sale, which should allow it to close as early as Thursday. The sale will include substantially all of GM’s assets to the newly established NGMCO Inc., an entity funded by the U.S. Department of the Treasury. Once the sale is completed, NGMCO Inc. change its name to ‘General Motors Company’ and continue to operate under GM's historic corporate and sub brands. The new company, with Fritz Henderson as CEO, will acquire GM's strongest operations and will have a competitive operating cost structure, partly as a result of recent agreements with the United Auto Workers (UAW) and Canadian Auto Workers (CAW). Furthermore, the new General Motors Company will have lower debt and a stronger balance sheet, which when combined with a lower break-even point, will allow it to reduce its risk and operate profitably at much lower volume levels. Importantly, GM's subsidiaries outside the U.S., such as Holden and Daewoo, will be acquired by the new company and are expected to continue to operate without interruption. The company shares will be broken down into a 60.8% stake owned by the U.S. Department of the Treasury, a 17.5% stake owned by the UAW Retiree Medical Benefits Trust, a 11.7% stake owned by the Canadian and Ontario governments, and finally a 10% stake that will consist of the old GM’s bondholders. Additionally, the old GM and the UAW Retiree Medical Benefits Trust will hold warrants that are exercisable for 15% and 2.5% of the interests in the new GM, respectively. Once the restructured General Motors Company is fully up and running, shares in the company may be offered via an initial public offering conducted by the government. This is expected to take place sometime next year, however, no official confirmation has been given yet. Read More

  • EPA gives California and 13 other states waiver to regulate greenhouse gas emissions

    EPA gives California and 13 other states waiver to regulate greenhouse gas emissions July 1st, 2009 ByJames Martinez James Martinez, Author, July 1st, 2009 James Martinez 1 Comment

    EPA gives California and 13 other states waiver to regulate greenhouse gas emissions The U.S. Environmental Protection Agency this week granted California a long-anticipated Clean Air Act Waiver. Under the plan, California - along with 13 other states - will enforce its own emissions standards until the 2012 model year, when the federal government will begin phasing in new national standards that will require a fleet average of 35.5mpg by 2016.

    The issue dates back to 2004, when California adopted standards that were then significantly tighter than those of the federal government. Under the Bush administration, California had been denied the permission by the Environmental Protection Agency to enforce the new rules, after... The U.S. Environmental Protection Agency this week granted California a long-anticipated Clean Air Act Waiver. Under the plan, California - along with 13 other states - will enforce its own emissions standards until the 2012 model year, when the federal government will begin phasing in new national standards that will require a fleet average of 35.5mpg by 2016. The issue dates back to 2004, when California adopted standards that were then significantly tighter than those of the federal government. Under the Bush administration, California had been denied the permission by the Environmental Protection Agency to enforce the new rules, after a long, intentional delay, but the decision to uphold them has been expected for some time under the Obama administration. In 2007, Congress had proposed a 35-mpg standard by 2020; with the anticipated slow ramp-up of the rule, it would have created more than a decade in which automakers would have to deal with complying with two disparate standards - costing the industry tens of billions of dollars, by some accounts. The new federal standards will be in step with California's effort to achieve another 30% reduction in tailpipe emissions - effectively avoiding the need for automakers to comply with two different standards, and hopefully keeping vehicle cost down. As part of the agreement, California retains its rights to develop future emissions standards independent of the federal government, but it won't impose tougher standards on greenhouse gas emissions until 2017; and in return automakers are expected to drop remaining lawsuits against the state. Although this means that automakers will have to comply with stricter standards in the 14 California-emissions states in the interim, this likely won't have much if any effect on the current market. Most automakers have already been issuing lower-emission PZEV versions of vehicles for these states. The Alliance of Automobile Manufacturers (AAM) responded to the decision cautiously. "We are hopeful the granting of this waiver will not undermine the enormous efforts put forth to create the national program," said Dave McCurdy, the group's president and CEO. Read More

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