loans
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No one in the U.S. can reasonably be unaware of the current condition of the U.S. car market or its primary domestic companies. The carmakers' current pleas to the U.S. Congress for federal loan packages to help prevent bankruptcy - or worse - are the focal point of even mainstream news coverage of late. Perhaps that's why General Motors has issued its apology and explanation for the current situation to the American buyer. The somewhat perplexing message of the missive, released today as a statement and in advertising, is that while GM admits it has allowed its quality to 'fall below...
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Detroit carmakers approach Canada for $6.8B in loansA decision on the U.S. government's loan package is expected to come from Congress sometime today, but already carmakers are approaching the Canadian government, seeking more aid. The $6.8 billion sought from Canada would still fall short of the $25 billion originally asked for from Congress, even...
Nelson Ireson -
Report: Chrysler has hired bankruptcy firm Jones Day
The U.S. Congressional hearings on Capitol Hill are still underway, and thus far no definitive result has been reached. Chrysler CEO Bob Nardelli has at times appeared apologetic and even regretful, but always concerned with securing additional funding for the company. The near-desperation...
Nelson Ireson -
Washington: Automakers, Senators working on solution
The CEOs of America's major carmakers, before the Senate Banking, Housing and Urban Affairs committee today, are acknowledging their past shortcomings but also projecting future strategies based on lessons learned. Lawmakers thus far appear to be more receptive to the idea of loans now that the...
Nelson Ireson -
GM CEO will head to Washington in a Chevrolet Volt
Previously we reported that GM CEO Rick Wagoner would be driving a Malibu hybrid to Washington for this week's auto industry bailout hearings, however it has come to light that he will actually be driving the company's much anticipated Chevrolet Volt plug-in hybrid. Wagoner will be driving a...
Ralph Hanson -
UAW will suspend jobs bank, make other concessions to Detroit 3
The controversial jobs bank system, which pays laid-off workers nearly full salary and benefits packages will come to a temporary end as the UAW works with the Detroit carmakers to reach a solution to the current financial crisis. Other concessions include revised payments into the union's health...
Ralph Hanson -
Yesterday all three of America's major carmakers revealed their future plans to Congress, and a part of General Motors' was the possible sale of Saab. While the brand is still being reviewed, and no decisions have yet been made, GM says it will make the choice to keep or sell quickly. "We will work to bring a resolution to this. Sooner is better," said GM vice chairman and COO Fritz Henderson in a conference call on the matter. "We will look at all the possible options, including possible sale, starting immediately," he said. No time line for the review has been given, reports Automotive...
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Chrysler's viability plan calls for $7 billion emergency loan before 2009
Just as Detroit compatriots General Motors and Ford are revealing their strategies for future viability - and need for funding in the meantime - Chrysler has come out with its plan for the future, both near-term and long-term. An immediate need for $7 billion in emergency loans before the end of...
Ralph Hanson -
GM offers to cut brands, salaries and jobs in $12 billion restructuring plan
The Chevrolet Volt captured the mind of the public and the press when it was revealed during the company's 100th anniversary celebrations in September, though even then it was suspected that trouble was brewing for the company. Last month's announcement of an impending cash shortage and this...
Nelson Ireson -
Ford submits plan to Congress, promises EVs, possible profits by 2011
The return trip to Washington by the nation's key automotive CEOs will be a considerably more concrete happening, with real-world plans, hard numbers and specific goals. Ford is the first to announce its ideas for the future, and the plan revealed today offers a goal of profitability by 2011, and...
Nelson Ireson -
Ford considering Volvo sale, joins GM to ask Sweden for aid
General Motors has disavowed selling any of its brands but Hummer, but tough financial and market situations are bringing serious pressure to bear. Just this morning, Ford has announced it is opening up consideration of 'strategic options' for its Volvo brand, reversing repeated denials that the...
Alex Kaufmann -
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 -
The European Commission has reportedly given its stamp of approval to a large aid package to help the struggling European economy, with at least €5 billion earmarked for the automotive industry. In total, the proposed package will encompass €200 billion for a number of sectors of the economy, and will be meted out to all 27 nations in the union, although the exact figures of this distribution are uncertain. The figure of €5 billion is significantly less than the €40 billion that European carmakers requested early last month, but more aid for the auto industry is not...
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Carmakers planning eco-caravan to D.C. for next round of talks
Barack Obama has backed Congress' decision to delay a decision on additional auto industry loans, urging the carmakers to have a clear plan when they return to Capitol Hill in December, and the carmakers are already reportedly planning to show up in dramatic style, forming a caravan of Detroit's...
Nelson Ireson -
Big Three CEOs speak before U.S. Senate
The three men at the head of Chrysler, General Motors and Ford are on the spot before lawmakers in the U.S. Senate today, pleading their case for a 'bridge loan' to help the automakers span the gap to a perceived future of prosperity. Remarks released ahead of the hearing before the Banking...
Nelson Ireson -
Obama reaffirms commitment to auto industry aid
During his campaign for U.S. President, Barack Obama repeatedly declared his support for the auto industry and indicated he would support it against the tide of the economic downturn. Today President-Elect Obama reaffirmed that commitment with a speech on the economy delivered in Chicago, noting...
Nelson Ireson -
Federal loans could breathe new life into GM's RWD vehicles
Just this week the $25 billion federal loan package was approved for the car industry, and already insiders are hinting that the extra cash could revive plans for GM's rear-wheel drive Alpha platform. Movement toward more RWD models had been shelved on concerns over spending and efficiency...
Nelson Ireson -
EU carmakers want $55 billion loan package
American carmakers recently secured a $25 billion loan guarantee from the federal government, and now their European counterparts are seeking the same sort of deal from the European Commission. Asking for a somewhat more significant $55 billion in loans, the industry has the money earmarked for...
Nelson Ireson -
Call it a bailout or call it an aid package, the car industry is only concerned with securing the funds it believes it needs to remain competitive as CAFE standards tighten. The federal government has taken heed of calls from both unions and the carmakers, with both houses of Congress having recently approved the loan package, and now President Bush has taken the final step and signed the bill into law today as part of an interim budget exceeding $630 billion. The majority of the budget bill will go to the Pentagon and other national security-related agencies, but in amongst the defense...
