government
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The White House has announced Chrysler's entry into bankruptcy protection today, with talks between the Treasury Department and the carmaker failing to reach an agreement on the last day before the auto industry task force’s restructuring deadline. No further talks are planned but President Barack Obama has announced that a deal between Chrysler and Fiat will go forward. Obama's speech on Chrysler's bankruptcy included both praise for its past as a central part of the global auto industry and harsh criticism of its recent failures. Criticism was also aimed at those creditors unwilling...
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Poll: most Americans will buy a new American car within two years
Despite the troubles in Detroit and Washington for U.S. carmakers, almost three-quarters of the buying public say they'd buy American - and over half of U.S. consumers are in the market for a new car within two years, according to a recent survey. The news is a glimpse of silver lining in the cloud...
Kenneth Hall -
Fiat threatens to walk away from Chrysler deal
At the end of March the President's task force on the auto industry put a 30-day window on Chrysler and Fiat reaching an alliance agreement. Just hours later Chrysler announced the two companies had signed off on the deal. That turned out to be premature, as there remains a strong chance that Fiat...
Viknesh Vijayenthiran -
Chrysler previews interior for next-gen 300
Brand new versions of both the Chrysler 300 and Jeep Grand Cherokee are coming in the next couple of years, kicking off a product renaissance at Chrysler that will include the launch of 24 new or updated models over the next 48 months. The company used this week’s New York Auto Show to...
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 -
Canada follows U.S. lead and rejects GM and Chrysler viability plans
Canada has followed the lead of the U.S. and rejected the respective viability plans of General Motors and Chrysler, claiming the plans do not go far enough in their current form. This means the carmakers may miss out on the initial $3.2 billion in loans pledged in December, though a small portion...
Viknesh Vijayenthiran -
Warning of impending layoffs should government aid for Jaguar-Land Rover not arrive soon, Tata Motors Chairman Ratan Tata restated the need for government-sourced funds. An urgent call went out in February from the company's CEO, and though aid of £2.3 billion ($3.25 billion) was approved by the EU earlier this month, it has yet to be distributed. "If funds are not available the company will not be able to run," said Tata in a television interview. "So layoffs will take place." Many are afraid, however, that a game of economic chicken is being played, with thousands of jobs and billions of...
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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 -
Chrysler threatens to pull out of Canada
General Motors and Chrysler have told authorities in Canada they need as much as $8 billion in aid to stay afloat, more than double the original amount requested just three months ago, and in the latest twist Chrysler has threatened to pull out its operations if it does not receive the funds. The...
Ralph Hanson -
Marchionne confident Fiat can help Chrysler
The Fiat-Chrysler partnership has been brewing since well before the economic meltdown and federal loan bonanza of late 2008, but it's still taking shape as the carmakers find ways to work to their mutual benefit. Today Fiat CEO Sergio Marchionne reaffirmed his confidence that Fiat will be able to...
Nelson Ireson -
GM auditors have 'substantial doubt' about the company's survival
Once again General Motors is issuing a warning that it may run out of cash. How, you might wonder, considering the billions in taxpayer dollars that have already been pumped into the company? It's unfortunately very simple: GM is still playing catchup with its debt, and all the money spent so far...
Ralph Hanson -
Washington kickstarts credit market with $200 billion in consumer loans
In a plan to stimulate the flailing American economy and instill confidence in the credit market once more, the U.S. federal government will be launching a new $200 billion program to help Americans finance large purchases. Previously, it was thought that the government could increase the program...
Alex Kaufmann -
The U.S. Senate killed the 'Cash for Clunkers' bill in February on the argument that it wouldn't have enough of an impact. While they may have been right - the bill only allowed for limited incentives - the premise has proven successful in Germany. Running against a very strong current of downward market trends, Germany reported its highest levels of car sales in 10 years, reports The AP, thanks to the government's bonuses for scrapped cars. A rise of 21% in new car registrations is big even when times are good; compared to sales figures plummeting 40-50% or more, it's miraculous. And the...
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Sweden promises €445 million in loan guarantees to Volvo
The solipsism of American media has a way of quietly filtering out much of the rest of the world, but the car industry is in a pinch just about everywhere. Nowhere is that picture clearer than in Sweden where ailing carmakers Saab and Volvo have been seeking government aid for months. Today word...
Nelson Ireson -
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 -
GM and Chrysler seek $8 billion in aid from Canada
General Motors and Chrysler have told authorities in Canada that they need as much as $8 billion in aid to stay afloat, more than double the original amount requested just three months ago. The latest request is in addition to the $26 billion the two Detroit carmakers are seeking from the U.S...
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 -
Treasury announces $1 trillion consumer lending plan
Much bloviation has been unleashed on the poor economy and its impact on the auto industry, but even where consumers have cash and carmakers have cars to sell, it's the credit industry that's failing them both. To help mend that breach, Treasury Secretary Timothy Geithner has proposed a $1 trillion...
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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Chrysler: Please sir, we want some more
Less than a month after receiving the first $4 billion from the federal government’s bailout package for the auto industry, Chrysler has revealed that it needs an additional $3 billion to help close an alliance deal with Italy’s Fiat Group. Unlike General Motors, which has been...
James Martinez -
Texas considering $5,000 tax credit for plug-in hybrids on top of federal incentives
With all the talk of the Environmental Protection Agency (EPA) reconsidering allowing states to implement their own fuel-economy emissions and regulations, and the negative flow on effects this would have on carmakers that would be forced to tailor cars to meet varying standards across the country...
James Martinez -
Ford confirms it won't need any loan money
As the economy and the car industry transform to lighter, more compact versions of their previous selves, the primary agent of change is cash. Ford CEO Alan Mulally took an opportunity this weekend to re-affirm his company's ability to stand on its own, without government-backed loans, however...
Ralph Hanson -
GM receives additional $5.4 billion in federal funding
The $17.4 billion bridge loan package signed into action by President Bush late in December has begun disbursement, with General Motors receiving $4 billion earlier this month and now the second instalment of $5.4 billion as well. This additional funding comes at a crucial time for the General...
Ralph Hanson -
Chrysler receives $4 billion in restructuring loans
Late Friday evening Chrysler received its first $4 billion in government loan money from the $17.4 billion approved as an emergency measure late in December, pushing its bottom line closer to the $2.5-3 billion minimum it needs to remain in operation. Covering debts and meeting supplier payment...
Ralph Hanson