Auto Industry Archive

If you had to pick only one or two statistics to show why GM and Chrysler are on their knees in Washington asking for a bailout, with Ford not far behind, the 2008 J.D. Power Customer Retention Study makes the short list. The brands at the top of the chart with the highest loyalty are No. 1 Honda, which kept 64.7 percent of its customers, followed by Toyota, Lexus, Mercedes-Benz and BMW. You...

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Fairly or not, U.S. automakers are paying a political price for the perceived haste and lack of oversight with which Congress passed the much bigger $700 billion bailout for the financial services industry. Sen. Jeff Sessions, R-Ala., who favors bankruptcy as a prerequisite for a bailout for the Detroit car companies, made just that point in a Dec. 9 statement, calling for more oversight....

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Could Chrysler be expendable? In the same way that GM Chairman and CEO Rick Wagoner is almost inevitably first in line to take the heat for the past sins of the U.S. auto industry, it’s almost inevitable that with everything else on the table, the debate surrounding the auto industry bailout will get around to the obvious fact that Chrysler is uniquely vulnerable. That’s because...

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Congress could pass a compromise auto-industry bailout this week, but it could be a costly victory for GM and Chrysler, if the automakers are forced to accept a “car czar” who could still force them into bankruptcy. White House Press Secretary Dana Perino said in a Dec. 8 press briefing that Congress and President Bush were close to a deal, in which Congress would provide $15...

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To regain its financial health through a taxpayer-sponsored bailout, GM may be forced to give up a few things: Saab, Saturn and maybe Chairman and CEO Rick Wagoner, too. Wagoner is taking some serious heat, as the Detroit Big Three leader with the longest tenure. In one capacity or another, he’s been responsible for GM’s crucial North American Operations since 1994. Sen. Chris Dodd,...

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Congress and the White House may reach a compromise after all on an auto-industry bailout, which still would have to pass the House and Senate, possibly as soon as this week. The CEOs for Ford, GM and Chrysler appeared before committees for the House and Senate last week to plead their case for a bailout. The Detroit Big Three automakers say they need $19 billion to $34 billion, to avoid...

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A federal bailout for Ford, GM and Chrysler looks increasingly like a long shot, as the Detroit Big Three head into a hearing today before the House Financial Services Committee. Besides hearing detailed business plans from the Big Three CEOs, the House committee will also hear testimony from some of the industry’s harshest critics, including the Union of Concerned Scientists, and a New...

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With the drama surrounding the Detroit Big Three automakers in Washington, it’s easy to forget life goes on for the rest of the auto industry. Mercedes-Benz USA, for instance, is about to launch the GLK350 small SUV in January 2009, as an early 2010 model. A four-wheel-drive version follows in April 2009. The GLK gets a moderate starting price, by Mercedes-Benz standards, of $33,900....

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Even if they’re successful in winning a federal bailout, which looks increasingly iffy, the Detroit Big Three automakers won’t be out of the woods yet, by any means. The car companies are asking Congress in hearings this week for loans and available credit ranging from a total of $19 billion to as much as $34 billion. Chrysler wants a loan of $7 billion. GM wants a loan of $12...

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GM hung the dreaded “strategic review” tag on the Saab brand, signaling Saab will likely be sold or closed; announced it is “exploring alternatives” for the Saturn brand; and apparently demoted the Pontiac brand in size and importance, as part of the business plan it submitted to Congress on Dec. 2. GM is asking Congressional committees this week to approve loans of up...

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