Barack Obama
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Bankruptcy is the word of the day for Chrysler, but 'merger' will soon be replacing it. The whole bankruptcy process is being pushed forward quickly to eliminate the remaining obstacles between Chrysler's viability and the Fiat merger. President Obama's speech today reflected this path, confirming both that bankruptcy is the only way forward, and that his task force finds a joined Fiat-Chrysler alliance to be viable. "Over the past month, seemingly insurmountable obstacles have been overcome," the President said during his speech. "Chrysler and Fiat have formed a partnership that has a strong...
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GM says Pontiac and GMC are safe, updated restructuring plan coming tomorrow
General Motors is currently seeking a buyer for Hummer, is looking to sell a stake in Opel, plans to cut its ties with Saab, and is open to almost anything with Saturn, but despite the drastic moves the auto industry task force established by President Obama is still seeking more. After rejecting...
James Martinez -
Suppliers only allocated $3.5 billion in aid, not $5 billion
In the first major sign that the U.S. government was keen on helping out the entire domestic auto industry and not just the Detroit 3 carmakers, the U.S. Treasury approved a $5 billion aid package last month for automotive parts suppliers. The aid is to come in the form of guarantees for...
James Martinez -
Obama throws weight behind car scrapping, new car tax incentives
The 'cash for clunkers' type programs have proven hugely successful in Europe - particularly in Germany - and today President Obama put his support behind at $7,500 trade-in incentive for old cars. Along with the car scrapping push, Obama has also lent his support to a set of new car tax incentives...
Nelson Ireson -
Wagoner nabs $20 million retirement package on forced exit from GM
When you're Rick Wagoner, you get a golden parachute even when you're thrown out of the plane. The news today of Wagoner's $20 million retirement package might come as a surprise to some, following so closely on the heels of his Presidential ouster over the weekend. Wagoner won't get the cash all...
Nelson Ireson -
Auto industry task force rejects GM and Chrysler viability plan
The Obama administration auto industry task force has rejected viability plans for General Motors and Chrysler and threatened that both may be forced into bankruptcy unless further sacrifices are made. The task force has consistently stated that its goal is to solve the industry's problems rather...
Ralph Hanson -
General Motors has confirmed that CEO Rick Wagoner will resign at the behest of President Barack Obama and his auto industry task force. Wagoner is stepping down from the top spot, effective immediately, and will be replaced by the company’s current COO Fritz Henderson. Wagoner confirmed that his decision was made purely to appease the White House, but with losses of more than $82 billion since 2004 and a 95% decline in the company's share price since 2000 – about the same time Wagoner stepped in – it may be time for GM to get a new boss. Another managerial switch taking...
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U.S. raises fuel economy floor to 27.3mpg for 2011
You might disagree with his methods, but you can't deny President Obama's determination to improve the U.S. car industry's situation and to remedy the nation's current energy policy. Part of both plans is a rise in the fuel economy requirements to 27.3mpg fleet-wide by 2011. It's actually a step...
Ralph Hanson -
Obama backs EPA proposal that could lead to national emissions framework
For some time now the American environmental movement, especially in regards to CO2 emissions from cars, has been held back by state-specific legislation that makes it difficult to demand uniform change across the nation. A new proposal from the Environmental Protection Agency (EPA), however...
James Martinez -
Small car, hybrid sales taking a long drive off a short pier
The short-sightedness of the car-buying public is breathtaking. It was just months ago that fears over $4 gas prices had people scurrying about, dumping loaded SUVs for a fraction of their purchase price and replacing them with smaller, more efficient vehicles. But today, with fuel well under $2...
Nelson Ireson -
Chrysler: We’re a safer bet than GM
If asked whether General Motors or Chrysler were in a better financial position, many of us would conclude that GM looks better. However, Chrysler's chief financial officer Ron Kolka has come out boasting that Chrysler, "on a pure-business basis," is more viable. The reasoning behind the claims is...
Ralph Hanson -
Obama approves $2.4 billion in electric vehicle funding
Calling the U.S. federal government's expenditures under the end of President Bush's tenure and the beginning of President Obama's a 'spending spree' is to beggar the term understatement. But in many instances, there hasn't been a valid alternative aside from letting parts of the economy wither and...
Ralph Hanson -
On last night’s episode of The Tonight Show Jay Leno announced his plan for stimulating America with what he does best – telling jokes. Leno will make an appearance in Detroit early next month to perform his standup act and hopefully cheer up many of the employees (both current and former) from the embattled automotive industry, and anyone else discouraged by the global financial crunch. With a title like ‘Comedy Stimulus Plan’ and Leno’s habit of paying out the president, you can expect plenty of jokes directed at president Obama and his auto industry task...
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Chevrolet Volt driving day planned for Obama’s auto industry task force
They did it in the nation’s capital at the first round of viability meetings and tomorrow in Detroit government officials will once again be able to drive a prototype for the upcoming Chevrolet Volt plug-in hybrid. This time around the officials will include the Obama administration’s...
James Martinez -
Obama's car industry task force shuns domestic cars for personal use
The resurgence in domestic car quality (it's real) hasn't quite caught up with the members President Obama's newly-formed Task Force on the Auto Industry, or at least so it would seem from their personal car choices: 18 of 20 members and senior aides drive imports. It's not a surprise the majority...
Nelson Ireson -
White House: GM, Chrysler to get another $7 billion today
Detroit's carmakers are due to submit their latest viability plans to the government later today, but already a White House source has leaked that General Motors and Chrysler will both be getting new loan funds. GM's $4 billion loan and Chrysler's $3 billion will bring the total amount handed out...
Ralph Hanson -
Analyst: tax breaks on new cars could spark up to 100,000 new sales
A lot of hullabaloo on the topic of the need (or lack thereof) to act quickly and decisively on the economy, and to help kick-start the car industry in particular, has been flying about living rooms, bars, offices and Houses of Congress lately. To help give some life to the debate, the analysts at...
Nelson Ireson -
Obama to auto industry: "Get me a plan that works"
President Obama and his administration has made much political hay over the impending disaster that could befall the U.S. economy barring swift action. Today Obama called directly on the American auto industry for a clear plan for viability so the government could step up its aid. Speaking with...
Nelson Ireson -
President Barack Obama today tied another string to the money received by GM and Chrysler, setting a cap of $500,000 on executive salaries for companies in receipt of taxpayer funds. The move is likely to prove popular with the public, which often perceives corporate executives as overpaid. The salary limits also apply to Wall Street businesses that took bailout money, perhaps further securing a positive public sentiment by limiting the further damage that can be done in the financial sector. But it's not yet clear what impact the decision might have on those that run the companies. "In order...
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Report: GM has no plans for non-core brands
General Motors has made it clear that it intends to focus most of its resources on just four core brands in North America but has left much doubt about the long-term viability of its other brands. The Buick, Chevrolet, Cadillac and GMC brands accounted for 83% of GM's total sales volume in the U.S...
Viknesh Vijayenthiran -
Automakers, legislators to meet concerning EPA emissions waivers
President Barack Obama this week kept a campaign promise that could potentially allow California and other states to set their own fuel economy and vehicle emissions standards by signing a memorandum to the Environmental Protection Agency requiring it to reconsider California's application for a...
Ralph Hanson -
Michigan representatives ask for $25B in new loans for auto industry
The first $13.4 billion in auto industry loan funds have been disbursed to General Motors and Chrysler, but already Michigan's congressional representatives are seeking another $25 billion in industry loans. The funds would be targeted at suppliers and carmakers, with some funds set aside to help...
Nelson Ireson -
Bush administration defers CAFE decision to Obama
In a reversal on Bush's prior commitment to make a decision on the issue of Corporate Average Fuel Economy (CAFE) standards, the U.S. Department of Transportation (DOT) today revealed it will not make a decision before President-Elect Barack Obama takes office later this month. Proposed CAFE...
Ralph Hanson -
Detroit 3 head back to Washington December 5 to offer plan for future
The heads of the Detroit 3 headed to Washington earlier this month in the hope of securing a second emergency aid package to supplement the previously earmarked $25 billion for more efficient vehicles to meet looming CAFE regulations. Unfortunately for the carmakers, top Democratic legislators...
Ralph Hanson