Auto Industry Archive

In the midst of the doom and gloom surrounding Ford, GM and Chrysler, it’s fair to point out that even mighty Toyota Motor Corp. lost money in North America in the last six months. Toyota had an operating loss of 34.6 billion yen in the first half of its 2009 fiscal year, the period ending Sept. 30, versus an operating profit of 263 billion yen. Depending on the exchange rate,...

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In a move that normally would have been big news, if Ford, GM and Chrysler hadn’t been fighting for their lives in Washington last week, Ford abruptly announced it will sell most of its share of Japan’s Mazda Motor Corp. for about $540 million, and give up control of Mazda. The two companies have been partners since the early 1970s, culminating in Ford buying a controlling share of...

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The U.S. auto industry traditionally hates and resents government regulation – unless, of course it benefits the industry. If Ford, GM and Chrysler win a government bailout, the victory is going to be more bitter than sweet. Take a look at just a few of the bullet points in an open letter Congressional Democrats – theoretically the allies of the Detroit automakers – sent the car companies...

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No, it’s not your imagination, auto industry end-of-year clearance sales, which usually start around Thanksgiving, started unusually early this year. Ads for “December to Remember,” for instance, the annual Lexus promotion featuring cars with a big red bow on the roof started well before Thanksgiving, which is when it usually starts. Lexus says the national ad campaign starts...

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Congressional Democrats gave Ford, GM and Chrysler just 10 days to come back to Washington with a “credible restructuring plan that results in a viable industry, with quality jobs, and economic opportunity for the 21st century while protecting taxpayer investments.” They’re desperate for a U.S. government bailout, so the Detroit automakers probably won’t reply, “We...

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Congress roundly rejected the CEOs of the Detroit 3 in their appeal for a government bailout earlier this week. Even the supporters of a bailout piled on, like House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid. “It is all about accountability and about viability,” Pelosi said in a Nov. 20 press conference. “Until we can see a plan where the auto industry is...

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When counting your blessings for Thanksgiving this year, be sure to include the fact that you’re not among the handful of people who gave up thousands of dollars worth of rebates last June for a “$2.99 gas card” from Chrysler. Unless you are. When Chrysler rolled out the “Let’s Refuel America!” card in June, it seemed like at least an OK idea. Back then, $2.99...

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The Detroit 3 spent a lot of their precious time on Capital Hill this week spreading a message that amounts to, “We don’t need your advice, just your money.” General Motors submitted a presentation to Congress with a strong subtext about what a swell job the current management is doing. In fact, under Chairman and CEO Rick Wagoner, the company said GM is building “the...

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The Detroit 3 and the UAW presented a united front at a hearing before the Senate Banking Committee, insisting that the present downturn in auto sales is not of their making, and asking Congress for bridge loans. UAW President Ron Gettelfinger might have had the most effective presentation, stressing the dire consequences to his members and to the whole U.S. economy if the Detroit 3 are...

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A lot of the General Motors appeal for financial help from Congress this week is devoted to a self-serving pitch for what a swell job the current management is doing, under CEO Rick Wagoner. GM says it is now building “the best cars in its U.S. history,” according to the presentation GM submitted the Senate Banking Committee on Nov. 18, and the House Financial Service Committee, on...

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