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bailout

  • Bill Ford, Jr.

    It's easy to look at the bailouts and bankruptcies of General Motors and Chrysler as a big-government bonanza. Some even see tints of socialism in the loans and subsequent government ownership stakes. But as Ford points out today, there was more at stake than just two companies. The entire industry, and in some ways, the entire U.S. economy, was riding on the survival of GM and Chrysler, says Ford Motor Co executive chairman Bill Ford, Jr. "It would have been so catastrophic to have a supply-base meltdown because it would have brought down all the auto manufacturers and frankly some other...

  • 2009 Volvo XC70
    Volvo may receive lifeline from Belgian government

    Despite Volvo being a Swedish company, the trouble-stricken carmaker may have to look to the Belgian government for financial aid to help keep it on its feet. Volvo currently operates a plant in the Flanders region of Belgium, and the Flemish Premier Kris Peeters has been in talks with Volvo CEO...

  • GM American flag
    GM receives additional $4 billion in Treasury loans

    General Motors received an additional $4 billion in loans from the U.S. Treasury late on Friday, while also reaching a cost-cutting agreement with the Canadian Auto Workers union ahead of a rumored Chapter 11 bankruptcy filing expected next week. This is in addition to the $19.4 billion already...

  • Jaguar XKR production line
    Jaguar and Land Rover bailout talks close to breakdown

    Although most of the news of late tends to focus on GM and Chrysler, these Detroit-based carmakers are not the only companies trying to gain vital government support in order to stay propped up in the current economic climate. While there's no doubt the global financial crisis has affected the U.S...

  • GM American flag
    Bondholders consider increased debt-for-equity-swap as GM bankruptcy looms

    GM's decline over the course of this year wasn't enough to convince bondholders and the UAW to grant any concessions, but recent reports that the carmaker was in precautionary preparations for filing a Chapter 11 may have galvanized action on the part of the bondholders. Allowing GM to go to...

  • Capitol Hill
    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...

  • President Barack Obama

    No one really knows what to make of the auto market right now, least of all the industry itself. Fiat is forecasting blue skies, GM is on the brink of failing to meet a restructuring deadline, and Ford is still chartering private jets - but President Obama and the task force on the industry are prepared to hand out more lonas - at a price. The price is a series of mandatory concessions and changes to the way the industry operates. "If they're not willing to make the changes and the restructurings that are necessary, then I'm not willing to have taxpayer money chase after bad money. And so a...

  • Department of Energy crest
    Department of Energy's $25 billion fuel-efficient vehicle fund still untapped

    Last November, the Department of Energy issued interim rules for the use of a already-approved $25 billion loan package earmarked for the construction of more fuel-efficient vehicles. But now, almost five months later, there has still been no disbursement of the funds. Over 75 applications for the...

  • Ratan Tata
    Ratan Tata asks British government to offer assistance to Jaguar-Land Rover

    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...

  • opel insignia01
    Germany's interior minister suggests insolvency may be best bet for Opel

    Saturn is expected to go its own way, Pontiac is being pared down, Hummer is up for sale and Saab has already announced it will be seeking independence. General Motors' brand hemorrhage continued last week with the announcement that Opel will be spun off from the brand as well, with a potential...

  • 2009 dodge challenger rt review 004
    Chrysler incentives cost a massive $5,566 per car in February

    People aren't buying new cars. It's really that simple in a lot of ways; the economy is down, the future is uncertain and no one wants to bet their house that they'll still have a job in six months. So Chrysler has been going wild with incentives to try to prop up sales in a market that just...

  • 2009 volvo s60 concept 001
    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...

  • 2011 Chevrolet Volt

    Earlier this month General Motors announced that it was putting plans for the construction of a new engine plant in Flint, Michigan, on hold. The plant was to build a new range of 1.4L four-cylinder powertrains for cars like the Chevrolet Volt and Cruze, but a company spokesperson has now revealed that those plans have now been scrapped. The first batch of engines to be used in the Volt will be sourced from a plant in Aspern, Austria, but eventually GM plans to update one of its existing Flint plants to start construction of the new powertrains. The move will save money and utilize available...

  • The Toyota Highlander was among the imports chosen
    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...

  • GM American flag
    GM viability plan calls for $16.6 billion in additional aid, 47,000 job cuts

    Chrysler’s request for an additional $2 billion in government funded loans in its latest viability proposal looks trivial compared to the $16.6 billion requested by General Motors today in front of the U.S. Treasury. Without this funding GM says it could run out of money as early as next...

  • Daimler CEO Dieter Zetsche speaks at the press conference
    Chrysler cost Daimler $1.75 billion in 2008

    The divorce of Daimler from Chrysler in 2007 wasn't complete - the German company Daimler still holds 19.9% of Chrysler - and now that lingering relationship has come back with a vengeance. Despite a year that would be only moderately unsuccessful for Daimler, Chrysler's involvement more than...

  • Chrysler CEO Bob Nardelli
    Chrysler's viability plan requires additional $2 billion in loans

    Building a foundation for the reconstruction of the industry, General Motors and Chrysler are required to submit new plans for viability today as part of the loan agreement established late last year. GM has yet to unveil their reworked plan, but Chrysler has just released the key details of its...

  • The White House
    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...

  • President Barack Obama

    President Barack Obama has made no bones about his commitment to using the government to help prop up the ailing automotive industry, but his earlier plans to instate a ‘car czar’ to oversee the industry’s restructuring have reportedly been dropped. The original bill passed for the Detroit 3 bailout actually called for multiple overseers to administer the funds, and whose job would also be to prohibit a carmaker merger or sale, inspect financial records of any carmaker or majority shareholder accepting funds, and to periodically evaluate the carmaker’s efforts and...

  • President Barack Obama
    Obama caps executive salaries for firms accepting loan money

    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...

  • Chrysler CEO Bob Nardelli
    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...

  • BMW Munich headquarters
    Report: BMW may apply for state aid, plans to cut production

    American carmakers recently secured a multi-billion dollar loan guarantee from the federal government but their counterparts across the pond haven’t been so lucky. Late last year the European Commission approved plans to provide up to $6 billion to its automotive industry, far short of the...

  • Chrysler logo
    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...

  • GMAC Logo
    GMAC drums up $21.6 billion in debt-for-equity swaps

    GMAC has leveraged the recent promise of U.S. Treasury funds to boost its lending capacity, and now it has generated another $21.2 billion in cash via debt-for-equity swaps with its bondholders. The fund raising is part of the company's' effort to raise enough cash to meet the regulatory...

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