government

  • E85 fueling station

    As the U.S. struggles to bootstrap itself out of one of the worst economies in decades, the federal government continues its spending spree, earmarking $787 million to biofuels. The goal is ostensibly to meet a target set by former President George Bush of 36 billion gallons of biofuel in the national gasoline supply by 2022. The money will go to industry companies to provide 'relief' from the current market contraction. That may not be enough, however, with industry chiefs also seeking government-backed loans. President Obama pitched the deal with his typically positive message. "We must...

  • Chrysler CEO Bob Nardelli
    Chrysler CEO Bob Nardelli sheds light on resignation

    News of Chrysler CEO Bob Nardelli's departure has been making the rounds recently, but now the resigning chief has shed some light on the matter. Unlike his former counterpart at General Motors, Nardelli insists that he was not asked by the Obama administration to step down from the helm at...

  • Chrysler Group headquarters
    White House confirms bankruptcy plans for Chrysler, Nardelli to step down

    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...

  • 2009 Chevrolet Malibu
    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...

  • Fiat Chrysler logo
    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...

  • 2011 Chrysler 300 preview
    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...

  • Capitol Hill

    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 receivables, or money owed to suppliers for parts already delivered, however, suppliers will only be able to access $3.5 billion because Ford won't take its allocation of the funds. Ford revealed last month that it had enough cash for suppliers and thus had no reason to participate in the latest bailout...

  • Canadian parliament
    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...

  • 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...

  • President Barack Obama
    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...

  • Canadian parliament
    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...

  • Fiat and Chrysler logos
    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...

  • GM American flag

    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 has merely been delaying the process. Even with $13.4 billion in U.S. taxpayer money in hand, an additional $16.6 billion applied for and another $6 billion expected from foreign governments, GM says it can't afford to repay a $1 billion bond to come due on June 1, according to a regulatory filing...

  • The U.S. Treasury building
    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...

  • This 2001 Chevrolet Monte Carlo is about the age of the average American car
    Germans scrap clunkers as Americans hang on to theirs longer than ever

    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...

  • 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...

  • 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...

  • Canadian Parliament
    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...

  • New vehicles rolling off the assembly line

    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 R.L. Polk today sought to put a number to the benefits that might be seen from the proposed auto stimulus tax cuts in President Obama's economic spending package. R.L. Polk's analysts think that 94,000 new vehicles will be purchased at an average tax break of $330 over the course of 2009. To get...

  • The U.S. Treasury building
    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...

  • 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...

  • Chevrolet Volt
    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...

  • Ford CEO Alan Mulally
    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...

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