December 4, 2008
Bloomberg is reporting this morning that a pre-arranged bankruptcy may be the only way to go for GM and Chrysler, if they are to get the financial aid needed to survive. This is coming from someone familiar with the on-going internal discussions. If this turns out to be the case, it would be negotiated with workers, creditors and lenders, and could be used to reorganize the sector without liquidation.
Full story here.
Related story here.
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- Posted by: Bob Holland December 4, 2008, 5:34 AM
- Categories: Auto Industry, Chrysler, General Motors
The UAW has agreed to give up the oft-criticized (by everyone other than the UAW) jobs bank. This was a "perk" for laid off UAW workers, that would allow them to be paid up to 95 percent of their wages and benefits. This program symbolized to many the stereotype of the overpaid and underworked UAW factory workers.
In addition to suspending the jobs bank, the union will help the automakers' cash flow by deferring required payments into the health care trust fund, called voluntary employee beneficiary associations, or VEBAs.
Full story here.
Here's AutoObserver's take: UAW Agrees to Contract Talks, VEBA Payment Delay
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- Posted by: Bob Holland December 4, 2008, 4:50 AM
- Categories: Auto Industry, Trends
Yep, another "D-word," only this time it's "Depression."
"We're on the brink with the U.S. auto manufacturing industry. We're down to months left," Chrysler's vice chairman, Jim Press, said in an interview. "If we have a catastrophic failure of one of these car companies, in this tender environment for the economy, it's a huge blow. It could trigger a depression."
As of Wednesday, it still looks like the votes aren't there to get this bailout (or whatever you want to call it) passed. So expect a sales pitch today from the Big Three leaders, as if their lives depended on it, because it just might.
Full story here.
Then again there may be some hope. Here's Inside Line's take:
Sympathy May Be Rising for Beleaguered Detroit Automakers
Image: EVAN VUCCI/AP
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- Posted by: Bob Holland December 4, 2008, 4:00 AM
- Categories: Auto Industry, Chrysler, Ford, General Motors
VW debuted the second-generation Golf Plus at the Bologna Motor Show. The car will go sale shortly in Europe. No word yet on powertrain options, but you can bet there will both gas and diesel versions offered. I would love to see this offered here.
Full story here.
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- Posted by: Bob Holland December 4, 2008, 4:00 AM
- Categories: All Auto Shows, Hatchbacks, Volkswagen
December 3, 2008
2009 Honda Insight Hybrid
2010 Toyota Prius Hybrid
-- The Mechanic, Inside Line Contributor
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- Posted by: The Mechanic December 3, 2008, 2:37 PM
- Categories: Honda, Hybrids, The Mechanic, Toyota
Honda has released an image of the production version of their Prius-fighter, the Insight hybrid.
Some may say it's a Prius rip-off, and that's cool. I don't think so. Regardless it's still better looking than the Prius. I predict Honda has another hit on their hands here--if they can convince people to buy cars once again.
Here's Green Car Advisor's take: Honda Releases Premier Photo of All-New Production-Version 2009 Insight Hybrid
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- Posted by: Bob Holland December 3, 2008, 1:32 PM
- Categories: All Auto Shows, Detroit Auto Show, Honda, Hybrids, Toyota
Ford and GM may have paired up down in the nation's capitol, but in the showrooms they're going at it as if there's no tomorrow--hey, maybe there won't be a tomorrow for one or both! At any rate, the new Mustang base model starts at $21,845, whereas the base Camaro starts at $22,995.
It also just undercuts the new Dodge Challenger, which starts at $21,995. Winner Ford.
Here's Inside Line's take: Priced: 2010 Ford Mustang Undercuts Base 2010 Chevrolet Camaro
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- Posted by: Bob Holland December 3, 2008, 1:04 PM
- Categories: Chevrolet, Dodge, Ford, Sports Cars
While many, myself included, thought it would be announced that Pontiac would disappear, that apparently is not the case. GM announced yesterday that, in their restructuring, Pontiac would become a niche brand. Mark Phelan of the Detroit Free Press, agrees. Might the General and Phelan be correct?
Full story here.
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- Posted by: Bob Holland December 3, 2008, 5:10 AM
- Categories: Auto Industry, General Motors, Pontiac, Trends
Lot's of important stuff being discussed over at AutoObserver, so let's get to it:
Chrysler may not have enough cash on hand to get through the first quarter of next year.
Chrysler Needs $7 Billion -- Now
Some news about what the General is proposing to Congress has leaked out. Is it enough? I'm not so sure.
GM Wants as Much as $18 Billion; Prioritizes Brands
And of course, they need more money.
Turns Out, $25 Billion Is Not Enough After All
So, even if the automakers get what they want, will that be enough to get customers back in showrooms?
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- Posted by: Bob Holland December 3, 2008, 4:00 AM
- Categories: Auto Industry, Chrysler, General Motors
When was the last time that you saw Ford having a better month than either Toyota or Honda, at least in terms of sales loss percentages?
"I've been in the industry nearly 28 years and never have seen anything even remotely close to this," states Mark LaNeve, GM's North American vice president of sales. "It's breathtaking."
It just gets uglier every month, and one has to wonder how much worse will it get? Oh wait... Domestic Motors and Congress have yet to do their second Doe-See-Doe. It could get much worse folks...
Here's AutoObserver's take: Funereal November Sales Provide More Ammo for Bailout Plea
Here's Inside Line's take: November Auto Sales Continue Their Death Spiral, With No End in Sight
No, Pontiac did not make a "Super Duty" pickup, in the Ford mold. Rather, back in '63 they built a very few (as in 6), very special drag-racing Tempest Le Mans specials that were labeled "Super Duty."
So how how much this car go for? $226K. What's more the car was junker that listed for $500. To top it off--the car was missing the engine, transmission and keys!
Full story here.
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- Posted by: Bob Holland December 3, 2008, 4:00 AM
- Categories: Classic Cars, Pontiac
December 2, 2008
Alan Mulally will be driving a Ford Escape hybrid, and GM's Rick Wagoner will be driving a Chevy Malibu hybrid to Washington for Round Two of their epic sales pitch to drum up resources from Congress. No word yet on how Chrysler's Bob Nardelli or the UAW's Ron Gettelfinger will be arriving.
Full story here and here.
On a related note, GM is canceling their corporate jet service as of the first of the year.
Here's Inside Line's take: GM Boss Plans Road Trip for Next Washington, D.C., Visit
Here's AutoObserver's take: GM Ends Airport Operations, Grounds Jets and Ford, Rivals Stress New Parsimony to Congress
So... what do you think the chances are of Wagoner or Mulally getting a speeding ticket on this road trip?
Karl has a good read up on a new Edmunds.com section called Car Audio and Electronics Center; which, as you might suspect, is geared towards the techie side of cars.
I'm in full agreement with Karl in that there are no really bad new cars out there. Even the worst car is really not that bad, especially when compared to vehicles that have come before (K-car, anyone?). That being said, what makes a customer choose one good car from another good car?
Karl states that once the practical aspects have been met (gas mileage, safety, price, comfort, etc.), it boils down to styling, ergonomics and features. Again, we're in complete agreement here. It should also be noted that with each new model announcement, the audio/infotainment aspect gets even more complex and confusing. Hopefully this new Edmunds section will help sort all this out, and make choosing the right vehicle just a bit easier.
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- Posted by: Bob Holland December 2, 2008, 6:14 AM
- Categories: Car Tech
If you think that our domestic auto industries problems are a uniquely "American" problem, think again. Failing automakers are a global problem, as is illustrated by the above graphic from The Detroit News.
Full story here.
Image: The Detroit News
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- Posted by: Bob Holland December 2, 2008, 5:34 AM
- Categories: Auto Industry, Trends
Wendelin Wiedeking, chief executive of Porsche, said it could be only a matter of time before hedge funds took majority control of one of the US car manufacturers that had inflicted damage on themselves with ruinous discounts and hugely subsidised leasing rates. Cerberus, who owns Chrysler, is a hedge fund; so we know what that means...
Wiedeking also stated at Porsche's annual press conference: "We need banks to give credit, not just talk about credit ratings but start real actual lending to companies. These rules are choking us today.
"Stabilisation of the financial system has to take place rather than banks shifting hundreds of billions of euros to the European Central Bank to earn interest. They should be injecting money so healthy companies survive."
Full story here.
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- Posted by: Bob Holland December 2, 2008, 4:00 AM
- Categories: Auto Industry, Chrysler, Ford, General Motors, Porsche, Trends
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