Auto Industry Archive

It’s a sign of the times. Ford’s new Focus-based electric vehicle (EV), will be built in a Wayne, Michigan factory that once built nothing but SUVs—and supplied half of Ford’s worldwide profits. The Focus itself was designed in Europe and will debut in 2011. It’s a world car, destined to sell two million units around the globe. The EV version, with lithium-ion batteries, is being...

More...

General Motors has won the support of some of its bondholders for a proposed restructuring that would give the bondholders a bigger stake in the reorganized company. However, it’s important to note that even with the bondholders on board, GM is still headed towards  bankruptcy. During Chrysler’s earlier slide into bankruptcy, Chrysler sought support from its bondholders to avoid...

More...

Supporting auto parts maker Visteon through Chapter 11 bankruptcy could cost former parent company Ford $500 million to $700 million, according to Brian Johnson, auto industry analyst for Barclays Capital. Even so, Ford should be able to sustain that cost without having to seek government assistance, he said. Johnson said that in return for its assistance, Ford could take back some Visteon...

More...

According to the New York Times, as Chrysler emerges from Chapter 11 it “will be competing in a brutal marketplace that may make bankruptcy court seem, by comparison, like a refuge.” Shoppers, it added, “are steering clear of Chrysler showrooms.” But can you believe there are 1,300 motorists waiting in line for Chrysler products? And it’s not in an alternate universe, but at...

More...

The U.S. operations of auto parts maker Visteon Corp., which is closely allied with Ford, today filed for Chapter 11 bankruptcy protection from creditors. The move could prove costly to Ford, which has agreed to support Visteon financially through bankruptcy, to insure uninterrupted delivery of parts. Visteon Chairman and CEO Donald J. Stebbins said in a written statement today that while it is...

More...

The long-wheelbase 2009 BMW 750Li is one of the most sophisticated cars on the market, and you pay for the privilege of getting behind its heated steering wheel. When all the extras on a recent test car—from a $2,200 rear entertainment package to a $1,300 head’s-up display—were factored in, the car cost more than $100,000. Like all luxury carmakers, BMW is suffering in the marketplace....

More...

It takes a lot of optimism these days to build some of the world’s most expensive luxury cars, but old rivals Mercedes-Benz and BMW keep turning them out, expecting an inevitable economic recovery. “The global car markets and the demand for premium vehicles will rebound. This is in all the forecasts. And this is what we expect,” said BMW CEO Norbert Reithofer, in a speech...

More...

The race is on, and battery makers are in the driver’s seat. Can American companies capture a share of what could be a $150 billion business by 2030? They’ll certainly try. As automakers turn to electrifying the vehicle fleet, their biggest challenge is lining up a steady supply of high-quality, reliable lithium-ion (li-ion) batteries. The largest li-ion players are not American: They’re...

More...

Call me a Baby Boomer Star Trek geek, but it has struck me for a while now that the Chrysler program to remake its dealerships, Project Genesis, has the same name as the sci-fi Project Genesis device in one of the Star Trek movies. What they have in common is a nice-sounding name, but it’s not nice to be on the receiving end. Chrysler’s Project Genesis seeks to combine all of its...

More...

Did President Obama exceed his authority by announcing a fuel economy goal—35.5 miles per gallon fleet average—for automakers in 2016? The goal (which works out to 30 mpg for trucks, 39 for cars) is part of a sweeping and unprecedented rulemaking announced earlier this week that combines Corporate Average Fuel Economy (CAFE) legislation with greenhouse gas regulation. Kirk Van Tine is a...

More...