Filed under: Government/Legal, Chrysler, GM
Without the government bailout of General Motors and Chrysler, the U.S. auto industry would likely have two fewer domestic automakers and hundreds of thousands of high paying jobs would be history. The Detroit News reports that ex auto task force chief Steve Rattner recently told an audience at a bankruptcy conference that the state of Michigan and the city of Detroit would have faced municipal bankruptcy if Chrysler and GM were liquidated.
Instead, Rattner claims the government bailout not only saved untold thousands of jobs and two enormous American car companies, but the price tag for the government is shrinking as time goes on. Initial estimates by the task force showed that the auto bailout would cost U.S. taxpayers $20 billion or $30 billion after GM and Chrysler’s initial stock sale, but Ratner claims that the current price tag is $10 billion or less. The estimated loss has gone down due in part to the fact that old GM’s assets are worth more than previously estimated and The General is turning around its operations more quickly than originally thought. If GM continues to surprise and delight, the government may even make some money when it goes public with a stock offering this year or next.
Would the city of Detroit and the state of Michigan have gone bankrupt if GM and Chrysler were liquidated? There is no way to be sure, but if the government hadn’t stepped in and bailed them out, its inaction would have probably cost taxpayers untold billions of dollars as well.
[Source: The Detroit News | Image: Neilson Barnard/Getty]
Ratner: Auto bailout saved Michigan from bankruptcy originally appeared on Autoblog on Thu, 11 Mar 2010 13:59:00 EST. Please see our terms for use of feeds.
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Filed under: Car Buying, Marketing/Advertising, Toyota
As Toyota’s recall issues hit a fevered pitch over the past few months, customer confidence faltered and sales predictably suffered. We were wondering how Toyota would react to the comparative dearth of showroom traffic, and the answer was to take a page out of the domestic’s tattered handbook: big-time incentives.
On March 1, Toyota announced zero percent financing, subsidized leases and free maintenance for two years, and the early results appear to be extremely favorable. Automotive News reports that analysts are seeing big-time gains for the Japanese automaker, with evidence that sales are up 50 percent so far for the month. A 50 percent sales increase for the month would more than wipe out Toyota’s depressing January and February, but analysts like Edmund’s Jessica Caldwell reportedly feel sales will level out to a predicted 30 percent rise by March 31. “Incentives work best in the early going, but they start to peter out as the month goes along.”
So does news of a Toyota sales increase means that Americans are tuning out the recent influx of bad news including a pair of reported runaway Prius hybrids in the interest of saving money? AN reports that analysts like Caldwell and George Magliano at IHS Global Insight feel Toyota loyalists are jumping at the company’s big-time incentives, and the brand will have to try new things to attract new customers in the months ahead. That may be true, but we’re thinking Toyota must be more than a bit relieved that customers are coming back to showrooms, at least for now.
[Source: Automotive News - sub. req. | Image: Ronaldo Schemidt/AFP/Getty Images]
Report: Toyota sales may bounce back big time in March originally appeared on Autoblog on Thu, 11 Mar 2010 11:30:00 EST. Please see our terms for use of feeds.
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Filed under: Etc., Celebrities
We know some habitually bad drivers, and we’re guessing you do too. Problem is, there isn’t much we can do to keep them off the road until their license is taken away. Thanks to a new show on Travel Channel, we at least have an opportunity to humiliate them, or perhaps more.
The new program, called “America’s Worst Driver,” airs Sunday night at 10 PM Eastern and Pacific Time and is hosted by Last Comic Standing Season 3 winner Alonzo Bodden. It looks for the four worst drivers from a city, as nominated by their friends and family, to compete for the dubious title. But there is more than a mean moniker at stake here, folks. The loser from each city, or the worst of the chronically bad lot, will have his or her car crushed (by Carasaurus no less) and replaced with a bicycle and a bus pass. Ouch. The “loser” from each city visited by the show will also be flown to Los Angeles to compete for the title of “America’s Worst Driver.” The finalists will then compete against one another for the chance to win a new car. Hopefully that vehicle will have plenty of air bags.
The new show has reportedly already shot episodes in New York, Miami, Dallas, Chicago and San Francisco, and the competition reportedly includes a closed course driving test graded by a real live police officer. We don’t know about you, but we wouldn’t go on any show where there is a one in four chance of having our vehicle crushed. But if we were so bad at driving that we failed a worst driver competition, maybe it would be for the best.
[Source: Travel Channel via Kicking Tires]
“America’s Worst Driver” set to air on Travel Channel originally appeared on Autoblog on Thu, 11 Mar 2010 09:00:00 EST. Please see our terms for use of feeds.
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Filed under: Government/Legal, Chrysler, Dodge
Remember a couple weeks back when we told you about Chrysler’s improbable legal battle against little Lake Mary High School in Florida? Chrysler’s legal team put the smack down on the school for using the Ram logo as its school insignia, and the law jockeys in Auburn Hills, MI were giving the school until June 15 to remove all instances of the logo at a considerable cost to the school district and neighborhood taxpayers.
It appears cooler heads have prevailed at Chrysler, as Allpar is reporting that the school and automaker have made an agreement that allows the school to keep the admittedly perfect-for-a-football-helmet logo, at least until wear and tear requires their replacement. The reported agreement stipulates that the school must declare its partnership with Chrysler on signs stating “Lake Mary: Proud Partner of Chrysler.” We think Chrysler should also sponsor the prom and provide a 300C stretch limousine for every senior. C’mon, think of the good will!
When we originally told you about the legal tussle between Lake Mary HS and Chrysler, we were more than a little critical of Team Pentastar for its legal action against the small school in a town of 15,000. It wasn’t because Chrysler didn’t have every legal right to protect its trademarks, but rather making a school district pay lots of money to remove a logo when it wasn’t really damaging is just bad PR for a company that can ill afford any more bad PR. Compromise can be a very good thing, and it’s nice to see that the folks at Chrysler see that. Good people of Lake Mary, Florida: feel free to continue purchasing vehicles from the Chrysler group.
[Source: Allpar]
Update: Texas high school gets to keep using Ram logo originally appeared on Autoblog on Wed, 10 Mar 2010 16:28:00 EST. Please see our terms for use of feeds.
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By and large, the Geneva Motor Show isn’t like U.S. auto shows in that grandiose press conferences just don’t exist like they do here. Or, at least, like they used to here. Most vehicles just show up on the show floor and we snap photos at a fevered pace in an effort to get those pics to you as quickly as possible. The upside for us is that we can rip through posts at a fevered pitch for your enjoyment. The downside is that every once in a while we miss something, and this year we forgot to cover the Dacia Duster, though we did tell you about it in advance. Still, our bad.
Renault’s Romanian-bred SUV is built to be affordable, attractive and capable, with a 30 degree approach and a 36 degree departure for relatively some serious off-roading. The Duster even comes diesel-ready, with a 105 horsepower, 266 pound-feet of torque powerplant that we’d love to try for ourselves. And if an earlier report from The Wall Street Journal is correct, Renault is even pondering bringing the Duster to U.S. shores.
Until that happens, we have to make do with a couple of videos showing off just how capable the Duster is. The first spot shows us how the Dacia handles off-road chores and the second seeks to illustrate that it isn’t a dud on dry pavement, either. Hit the jump to watch the two videos for yourself.
Gallery: Dacia Duster 4×4
[Source: Dacia via YouTube]
Continue reading Videos: Dacia Duster looks good in motion
Videos: Dacia Duster looks good in motion originally appeared on Autoblog on Wed, 10 Mar 2010 15:29:00 EST. Please see our terms for use of feeds.
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Filed under: Mercedes-Benz, Tata
Daimler has been hit hard by the weakening global demand for luxury automobiles, as evidenced by the German automaker’s larger than expected 2009 losses and the company’s decision to cut its dividend for the first time in 14 years. Automotive News reports that Daimler is looking to raise money to rebuild its business in developed regions by selling its 25.6 million shares of Tata Motors stock. The move would reportedly net the German automaker an estimated $429 million, four to seven percent below market value. Shares of Tata Motors stock are up 19 percent since February 26, so Daimler stands to earn some serious coin from the share sell off.
AN quotes Juergen Pieper at Metzler Equities as saying “we certainly now have as a priority turning around the mature markets and then China. This is certainly now a higher priority for Daimler than India.” And while Daimler is selling, it appears that Tata isn’t buying, stating that its collection of companies isn’t interested in purchasing the shares. Daimler is looking to sell the stocks on the open market in block deals, which moves large amounts of stock at once.
Daimler’s break from Tata will be likely be a clean one considering the two companies reportedly don’t have any joint ventures or collaborative projects in the pipeline. Analysts reportedly don’t foresee Daimler’s sale of Tata shares affecting the Indian automaker’s stock price.
[Source: Automotive News - Sub. Req. | Image: Sascha Schuermann/AFP/Getty Images
Report: Daimler dumping stake in Tata Motors originally appeared on Autoblog on Tue, 09 Mar 2010 18:00:00 EST. Please see our terms for use of feeds.
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The Nurburgring is the gold standard for any track not comprised of a banked oval, and it’s a blast to watch dashboard-mounted video of various vehicles taking on the best the Nordschleife has to offer. We typically share with you videos of ZR-1s and GT-Rs, but this time we have something a bit different. Achim Korden and co-pilot Guido Heindl of ringmini.de fame run the ‘Ring in reverse in an old school Mini (1971 Clubman Estate) equipped with a 1.6-liter Honda drivetrain, and they mean business.
Hit the jump to watch the little Mini battle a rain-soaked Nordschleife while starting at the end and making their way to the beginning. It’s an odd experience and further proof that you don’t need to have big power to have big fun.
[Source: YouTube]
Continue reading Video: Running the ‘Ring in reverse in a VTEC’d Mini
Video: Running the ‘Ring in reverse in a VTEC’d Mini originally appeared on Autoblog on Tue, 09 Mar 2010 16:27:00 EST. Please see our terms for use of feeds.
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Filed under: SUV, Plants/Manufacturing, GM, Hummer, Off-Road
Unless a buyer for Hummer materializes in the next few months, General Motors will continue to wind-down its environmental group dart board. The slow death of Hummer has actually been in process since before The General announced that the sale of the brand to China’s Sichuan Tengzhong Heavy Industrial Machinery fell through, as the company’s Shreveport, LA facility stopped making H3 and H3T models in January.
But while Shreveport has been down for two months, it looks like the plant could dust off the H3 tooling to fill one more big order. Brandcentric site Hummerguy.net is reporting that GM is ramping up production of the H3 from April 12 to May 13 to fill a 849 unit order. The General reportedly didn’t announce the purchaser of the reported mega Hummer order, but the Detroit, MI-based automaker did say that the order was not related to the brand’s wind-down or sale.
We’re thinking this news won’t stop Hummer from off-roading into the sunset, but it does at least prove that there are still people that like Hummers. Now all GM needs is a Hummer lover with a spare $150 million laying around the compound to step up and buy the withering brand.
Gallery: Review: 2009 HUMMER H3T Alpha
[Source: Hummer Guy]
Hummer plant coming back online to fill 849-unit order? originally appeared on Autoblog on Tue, 09 Mar 2010 10:58:00 EST. Please see our terms for use of feeds.
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Filed under: Sedan, Government/Legal, Recalls, Safety, Hyundai
A couple weeks back, Hyundai put a stop-sale on its freshly minted 2011 Sonata sedan because a front door latch could malfunction after a rather labored series of steps. The stop-sale was lifted almost immediately, though, as the Korean automaker was able to quickly ship replacement parts to U.S. dealers, at which point the vehicles in stock were repaired. At that time, though, Hyundai promised to work with the National Highway Traffic Safety Administration to put out a recall notice for the 1,300 vehicles that had already been sold; a promise that came to fruition this morning as NHTSA put out an official bulletin.
The NHTSA recall notice claims that the front inside door lock switches can remain in the unlatched position under certain conditions, making it possible for the front driver or passenger doors to open while the vehicle is in motion. Hyundai tells us that the latch may malfunction when a front inside door lock switch is held in the locked position while the inside door handle is pulled to open the door.
Sonata owners affected by the recall can bring their vehicle to the nearest Hyundai dealer for the no-cost repairs, which should take about an hour. Hit the jump to read over the NHTSA press release.
Gallery: First Drive: 2011 Hyundai Sonata
Photos by Michael Harley / Copyright (C)2010 Weblogs, Inc.
[Source: The National Highway Traffic Safety Administration]
Continue reading 2011 Hyundai Sonata door latch recall gets official
2011 Hyundai Sonata door latch recall gets official originally appeared on Autoblog on Mon, 08 Mar 2010 15:58:00 EST. Please see our terms for use of feeds.
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Filed under: Government/Legal, GM
When U.S. domestic automakers were commuting back and forth between Detroit and Washington while begging for government funds in the fall of 2008, a big deal was made of the fact that their CEOs were traveling in private jets instead of driving company vehicles. The backlash from JetGate was substantial, as each automaker quickly ended the use of expensive airfare for corporate travel and signed on with less pricey charter services. But while the private jet became taboo for auto executives, other industrial magnates kept their jets, including former AT&T CEO and current General Motors top boss Ed Whitacre, Jr.
In fact, The Detroit News reports that Big Ed’s retirement package from AT&T includes 10 monthly hours of access to a private plane. The pricey perk reportedly costs the telecommunications giant about $20,000 per month and Whitacre can use the jet for for whatever he wants. A spokesperson for GM says he doesn’t use the jet for GM business, which makes sense given the fact that 10 hours only allows for about two round trips to Whitacre’s San Antonio, Texas home. Whitacre’s use of an AT&T jet may actually help GM a bit given the fact that many automakers pay for CEO travel to and from their out-of-state homes. In 2008, for example, Ford reportedly paid a whopping $344,109 for CEO Alan Mulally’s non work-related travel expenses.
Lifetime use of a private jet is a pretty cool perk, but it’s not Whitacre’s only big ticket retirement item, either. He reportedly also gets $26,000 per year for a new car as well. We’re thinking Whitacre also has access to any vehicle in the GM portfolio, so chances are that perk isn’t being fully utilized right now. Unless, of course, Big Ed is actually paying for his GM vehicles. And why not? It’s not like the new car is coming out of his pockets.
[Source: The Detroit News | Source Image: Bill Pugliano/Getty]
Report: GM CEO Whitacre still flies on AT&T jets equipped with golden parachutes originally appeared on Autoblog on Mon, 08 Mar 2010 10:28:00 EST. Please see our terms for use of feeds.
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