Chrysler Faces Criticism for Full-Page 'Thank You America' Ads

Chrysler is facing a backlash from taxpayers and conservative groups after the ailing auto company took out a series of full-page newspaper ads last week to thank Americans for "investing" in the company through the government's $17.4 billion auto industry bailout plan. The ads ran last week in several major daily newspapers, including USA Today, The Wall Street Journal and the Atlanta Journal-Constitution. More...

GMAC Gets $6 Billion From Treasury to Revive Lending

Dec. 30 (Bloomberg) -- The U.S. Treasury committed $6 billion to support GMAC LLC, the financing arm of General Motors Corp., widening the government’s effort to keep the largest U.S. automaker out of bankruptcy.

The Treasury will purchase a $5 billion stake in GMAC and lend $1 billion to GM so the automaker can contribute to the lender’s reorganization as a bank holding company, according to a statement issued yesterday. The loan is in addition to $13.4 billion the Treasury agreed earlier this month to lend to GM and Chrysler LLC.

The fresh capital will enable GMAC to expand lending to car buyers and help save GM. The automaker’s U.S. sales plunged 22 percent this year through November after GMAC ran short on cash and limited loans to people with only the best credit. The Treasury stepped in after Congress failed to pass an auto- industry bailout earlier this month.

“The relationship with GM is probably a key reason it’s being bailed out,” said Thomas Atteberry, who helps manage $3.5 billion in fixed-income assets at First Pacific Advisors in Los Angeles. “Philosophically, I’m not very happy about the fact that the government has to save an auto-finance company because management ran it into the ground.”

In a statement, GMAC said it “intends to act quickly to resume automotive lending to a broader spectrum of customers to support the availability of credit to consumers and businesses for the purchase of automobiles.” The lender financed about 35 percent of GM’s retail customers last year.

New Rescue Program

“This is part of our strategy to position GMAC for long-term stability,” Toni Simonetti, a spokeswoman for GMAC, said about yesterday’s Treasury announcement. “The reason we’re doing this is so we can provide credit to consumers; we’ll put these funds to use right away.” More...

Autoworkers Union Keeps $6 Million Golf Course for Members at $33 Million Lakeside Retreat

The United Auto Workers may be out of the hole now that President Bush has approved a $17 billion bailout of the U.S. auto industry, but the union isn't out of the bunker just yet.

Even as the industry struggles with massive losses, the UAW brass continue to own and operate a $33 million lakeside retreat in Michigan, complete with a $6.4 million designer golf course. And it's costing them millions each year....More

Mum Is the Word From GM and Chrysler-What is Next?

Well the bailout drama is over for another week and there is no news coming from any of the Big Three. People have alot of questions and doubts,just about every plant for the Big Three are shut down. The big question is what plants will reopen and which will remain closed. GM and Chrysler have until March 31st to prove they can survive, which means cut,cut,cut...and still probably merge. 2009 will be a historical year for the American Automotive Companies. Who will survive? Who will Merge?

GMAC mum on whether it cleared bailout hurdle

Kimberly S. Johnson / Associated Press

GRAND BLANC -- Even after a crucial deadline came and went, the financing arm of General Motors Corp. remained silent Saturday on whether it cleared a final hurdle to become a bank holding company and gain access to billions in federal bailout money.

Analysts have speculated that if GMAC Financial Services LLC doesn't obtain financial help it would have to file for bankruptcy protection or shut down, which would be a serious blow to parent GM's own chances for survival.

GMAC had received the Federal Reserve's approval to become a bank holding company earlier in the week, but the approval was contingent on the ailing auto and home loan provider completing a complicated debt-for-equity exchange by 11:59 p.m. EST Friday. ...More

Toyota forecasts first operating loss as sales slump

Automotive News

NAGOYA, Japan (Reuters) -- Toyota Motor Corp. forecast a first-ever annual operating loss, blaming a relentless sales slide and a crippling rise in the yen while declaring an emergency unprecedented in its 70-year history.

The world's biggest automaker had been expected to issue its second profit warning in less than seven weeks after domestic rival Honda Motor Co. also cut its outlook again last week, but today's downward revision was bigger than analysts predicted.

"We are facing an unprecedented emergency," President Katsuaki Watanabe told a year-end news conference today. "This is a crisis unlike the crises of the past."

The forecast compounds the global automotive crisis and comes three days after General Motors and Chrysler LLC staved off bankruptcy through a U.S. pledge for $17.4 billion in emergency loans. Automakers around the world are caught in a sharp reversal of demand as the financial crisis spreads, squeezing credit and consumer sentiment.

Toyota cut its group operating forecast to a loss of 150 billion yen ($1.7 billion) for the year ending March 31, after shocking financial markets last month by slashing its group operating profit forecast by 1 trillion yen to 600 billion yen.

It made a record profit of 2.27 trillion yen last year....More

GM and Chrysler Will Get $13.4 Billion in U.S. Loans

Dec. 19 (Bloomberg) -- General Motors Corp. and Chrysler LLC will get $13.4 billion in initial government loans to keep operating in exchange for a restructuring under a rescue plan announced by President George W. Bush.

A bankruptcy is unlikely to work for the automakers at this time and can’t be allowed, Bush said at the White House.

“These are not ordinary circumstances,” Bush said. “In the midst of a financial crisis and a recession, allowing the U.S. auto industry to collapse is not a responsible course of action.”

The money will be drawn from the Troubled Asset Relief Program and the automakers will get an additional $4 billion from the fund in February for a total of $17.4 billion in assistance, according to a statement from the Bush administration. The funds would allow GM and Chrysler to keep operating until March.

Winning the assistance is a reprieve for GM, the biggest U.S. automaker, and No. 3 Chrysler after they said they would run out of operating funds as soon as this month. Bush is stepping in after Senate Republicans’ refusal last week to take up a House-approved rescue raised the prospect of a company failure costing millions of jobs.
...More

Auto Rescue: Bush to Give Low-Interest Loans to Carmakers

The White House has decided to come to the rescue of General Motors and Chrysler by providing them with $17.4 billion in low-interest loans to keep them afloat, ABC News has learned.

The money for the loans will come from the Troubled Asset Relief Program fund, signed into law this fall to bail out the financial industry. The president will provide $13.4 billion in short-term financing in December and January and plans to make another $4 billion available in February, provided it can reach into the second half of the $700 billion TARP fund to do so.

The deal also includes as a non-binding "target" a key provisions, including making work rules and wages competitive with workers at foreign car companies in the U.S.

Chrysler CEO Bob Nardelli issued a statement saying the company was grateful for the helping hand and that, "Chrysler is committed to meeting these requirements."

Pressure had been building for President Bush to act. Chrysler temporarily shut down all of its plants earlier this week to save money, and GM delayed construction on a new plant for the same reason. And House Speaker Nancy Pelosi urged Bush on Thursday to make a decision because the nation's weakened economy could not risk a massive wave of layoffs.

"This is a difficult time for a free-market person," Bush said Thursday. "Under ordinary circumstances, failed entities, failing entities should be allowed to fail. I have concluded these are not ordinary circumstances, for a lot of reasons... We got to the point where if a major institution were to fail, there is great likelihood that there'd be a ripple effect throughout the world, and the average person would be really hurt."

Treasury Secretary Henry Paulson told a business forum in New York Thursday night it was too risky to simply let the automakers fail.

"When you look at the size of this industry and look at all those that it touches in terms of suppliers and dealers… it would seem to be an imprudent risk to take," he said....More

Gm Chrysler merger-This is the End Of The Road For Chrysler

GM Chrysler News reported this 2 months ago. The GM Chrysler Merger was and is a done deal! They just need some cash to buy out Daimler and then transfer the 49% of GMAC to Cerberus and GM will Get Chrysler's assets.

I find it amusing all these supposedly automotive experts are surprised that GM Chrysler is talking merger again. Both companies have told us 2 months ago they where going to merge. The only hold up was GM needed more cash! Well guess what, the money will be coming soon.

The auto rescue bridge loan was all part of the plan to facilitate the GM Chrysler Merger!

GM idled 22 factories and Chrysler idled 30,Sadly the workers at GM and Chrysler do not know that some of these plants will never open up again, Especially if the GM Chrysler Merger goes through.

GM Chrysler News-J.F.

Chrysler News-Chrysler to idle all plants!

Carmaker moves to conserve cash, tightens lending to dealers

Alisa Priddle / The Detroit News

Chrysler LLC is shutting its North American production operations Friday for a month, the latest in a string of drastic cost-cutting measures it is making as it awaits word on emergency federal loans to prevent it from possibly having to file for bankruptcy.

The Auburn Hills automaker said the action is a response to a severe sales slump, tight credit and an urgent need to preserve cash. All 30 of the company's assembly, engine and transmission plants in the United States, Canada and Mexico will close at the end of their shifts Friday for at least 30 days, the company said.

Chrysler said people aren't buying vehicles because they can't get loans, but company dealers also have been hit by the tight credit market. Chrysler Financial has warned dealers that it may have to stop providing loans they need to stock their showrooms because dealers have been withdrawing too much money from an account used to fund the loans.

The production cuts come as Chrysler and General Motors Corp. seek up to $15 billion in emergency aid from the government to help them fund their operations for the rest of this year and into early 2009. Chrysler has asked for $7 billion in emergency loans and has warned that without the money, it could be forced to file for bankruptcy protection.

Chrysler's U.S. sales have slumped 27.7 percent this year and fell 47.1 percent in November, according to Autodata Corp.

"It's clear that the automakers are in a very fragile financial condition and they're taking steps to deal with it," White House spokeswoman Dana Perino said Wednesday. "We're aware of their financial situation and are considering possible policy options to provide assistance in an appropriate way. As we've said, a disorderly collapse of the auto industry should be avoided."

Chrysler spokeswoman Shawn Morgan said the issues aren't unique to Chrysler, which continues to restructure and invest in future products...More...

Is the Auto Rescue Loans In Limbo?

WASHINGTON (AP) — Conservative Republicans admonished the White House Tuesday not to use bank-bailout billions to rescue distressed U.S. automakers, and a key Democrat demanded the government get veto power over the companies' business decisions as a condition of any aid.

The Bush administration said it was still evaluating options and suggested any deal would require major concessions by all sides. Complicating its task, lawmakers in both parties — having failed in their efforts to push a $14 billion auto rescue through a bailout-weary Congress — were pressing for an array of terms and conditions they said should be part of any Plan B.

"We are not going to be rushed into it," presidential press secretary Dana Perino declared.

Only a day earlier, President George W. Bush suggested that a rescue package would come sooner rather than later. "An abrupt bankruptcy for autos could be devastating for the economy," Bush said on Monday. "This will not be a long process because of the economic fragility of the autos."

Still, conservative Republican lawmakers, many from Southern states that are home to Japanese auto plants, wrote to Bush asking him not to use one of the most readily available pots of money — the $700 billion Wall Street rescue fund — to help the U.S. carmakers.

And the White House and Treasury Department were in talks with Sen. Bob Corker, R-Tenn., who has been pressing for big union concessions in exchange for rescue money, on the terms and structure of a possible bailout, said a senior GOP congressional aide.

Corker came close last week to striking a deal with the United Auto Workers union for a $14 billion bill that would have forced the carmakers to bring their wages and benefits in line with those of Japanese auto companies in the U.S. by a specific date in 2009. The measure collapsed after the UAW refused to agree to wage cuts that quickly. The new contacts with the administration were disclosed on condition of anonymity because the aide was not authorized to divulge them.

Rep. Barney Frank, D-Mass. weighed in as well, urging Treasury Secretary Henry Paulson to adopt the accountability provisions included in a House-passed auto bailout bill — the product of a deal with the White House — as a condition of any bridge loans to U.S. automakers. That measure would have given a Bush-appointed overseer say-so over any major business decisions by the automakers while they were taking advantage of federal aid, including the power to nix any transaction of $100 million or more.

"Given the serious mistakes that senior auto industry executives acknowledge they have made in the past, such safeguards are absolutely necessary to ensure that taxpayers are protected and that the retooling of this critical industry proceeds as quickly as possible," Frank wrote to Paulson on Tuesday.

GM and Chrysler have said they will run out of cash within weeks if they don't get help. Ford Motor Co. has said it has enough cash to survive 2009.

Perino said the administration was still working on details of the package, which could reach $15 billion for General Motors Corp. and Chrysler LLC.

She said concessions had to be made in exchange for the money.

"I don't think that there's any possible way that this president would agree to allow taxpayer financing to go toward firms that are not willing to make tough decisions to become viable and competitive in the future," she said.

Bush said Tuesday that his administration was "considering all options" for helping the automakers, arguing that the already distressed economy could slide further into recession without prompt action.

"What you don't want to do is spend a lot of taxpayers' money and then have the same old stuff happen again and again and again," Bush told CNN in an interview. At the same time, he said, "we're trying to get this done in an expeditious way."

The administration indicated it would extend a helping hand to the domestic automakers after an aid effort died in Congress late last week. The White House had wanted Congress to act.

The timing and details of Plan B — the Bush administration stepping in to help the automakers directly — remain in flux. In the absence of action, lawmakers were eagerly offering up their counsel, particularly on the idea of using the $700 billion financial industry rescue fund, known as the Troubled Asset Relief Program, to help U.S. automakers.

"Congress never voted for a federal bailout of the automobile industry, and the only way for TARP funds to be diverted to domestic automakers is with explicit congressional approval," wrote 26 GOP lawmakers, led by Rep. Jeb Hensarling of Texas.

Seven Senate Republicans led by Sen. Jim DeMint of South Carolina fired off a similar missive saying that without restructuring, "we do not believe any amount of money will succeed in saving these companies."...More

Will George Bush Require GM and Chrysler To Go Into bankruptcy?

President Bush has said he would help GM and Chrysler with a auto Bridge loan, but what are the details?

I have read every article on the Internet and there are a thousand different variations.

Some are saying the loans will go through by tomorrow and follow the same Bill the House passed. Others are stating The treasury must really look at what the companies need.

I have read the Loans will be only $5 billion all the way to $40 Billion dollars.

An article on WSJ stated they spoke to a source close to the White House and Bush may require GM and Chrysler to go into bankruptcy to receive help!

From(Wall Street Journal)--Two people familiar with the situation said the government is also considering requiring any auto makers seeking aid to file for bankruptcy. Under such a scenario, the money would be used as so-called debtor-in-possession financing. Outside experts said such financing could require $50 billion or more for GM and Chrysler combined.

An article from Bloomberg states Bush wants to keep GM and Chrysler out of bankruptcy, Which is it?

An Article from (Bloomberg)-- President George W. Bush said deliberations by his administration on whether to tap a bank bailout fund to keep General Motors Corp. and Chrysler LLC out of bankruptcy “won’t be a long process” because of the “fragility” of the U.S. automakers

It's the old hurry up and wait....We will eventually find out.

Why Toyota wants GM to be saved

A GM failure would cause production problems, crush already weak demand and potentially open the door to low-cost competitors.
NEW YORK (CNNMoney.com) -- Detroit's Big Three aren't the only automotive companies that want to see the government step in with some much needed financial help.

Overseas automakers, most notably Toyota Motor, all endorse some form of federal aid to keep General Motors (GM, Fortune 500), Chrysler LLC and possibly Ford Motor (F, Fortune 500) out of bankruptcy.

The Senate killed an effort to get the automakers a stopgap loan last week and now the Bush administration has said it is looking at providing the automakers help from the $700 billion approved to bailout banks and Wall Street firms.

"We support measures to help the industry," said Toyota Motor (TM) spokeswoman Mira Sleilati. "We just want a strong, competitive healthy industry."

This may seem surprising at first, especially when you consider that much of the opposition to the auto bailout was from senators from Southern states home to auto plants operated by Asian auto companies, such as Alabama and South Carolina. But the Asian automakers insist they never lobbied against such help for the Big Three.

And this makes sense once you take a closer look at the dynamics of the auto industry and how intertwined the fates of all the companies are.

Here's why Toyota, Honda Motor (HMC) and other Asian auto manufacturers clearly believe they are all better off with GM and Chrysler surviving than if they go out of business.

Collateral damage
The overseas automakers, who between them produce more than 3 million vehicles a year at U.S. plants, all worry their production would be hurt if one of the U.S. automakers went under. That's because a Big Three failure would likely lead to widespread bankruptcies in the auto parts supplier industry.

Erich Merkle, lead auto analyst with the consulting firm Crowe Horwath LLP, said there is much overlap between the automakers' suppliers. Since most parts in an automobile have only a single supplier producing them, the disruptions in production will be severe and prolonged.

"It could take months for a Toyota to work through that and resume normal production," he said.

Merkle said the current network of auto suppliers, manufacturers and dealerships have worked well for the overseas automakers, who have posted steady gains in their U.S. market share during the past few years.

Besides sharing suppliers, many dealers sell both U.S. and overseas brands. So the failure of a U.S. automaker could hurt the overseas manufacturers' dealer network and their sales as well, Merkle said.

"There would be a severe disturbance in the force," he quipped.

Economic shockwaves
A collapse of one of the Big Three would also probably cause an even more severe hit to the U.S. economy. That would further eat into demand for U.S. auto sales, which hit a 26-year low in November.

"The U.S. economy would be in shambles," Merkle said. "The robust U.S. economy that Toyota and the others depend on would suddenly not be as lucrative."

The overseas automakers agree that the last thing they need is for the U.S. economy to slow further. The U.S. is the largest market for Toyota, Honda and Nissan (NSANY). All are expected to report lower U.S. sales this year for the first time ever.

"We want to get the economy back," said Michael Stanton, CEO of the Association of International Automobile Manufacturers, which represents most of the Asian automakers with plants in the U.S. "Everyone is hurting at this level of sales. Everybody is either cutting back or shutting down."

The latest cutbacks came Monday when Toyota announced it was putting plans to open a new plant in Mississippi on hold indefinitely, even though it is about 90% complete. The plant was set to start building the first domestically produced Prius in 2011.

While the overseas automakers would be certain to eventually pick up more U.S. market share if a U.S. automaker stopped doing business, Merkle said the need to sell off the inventory of the failed automaker at fire sale prices would depress all prices in the industry in the short-term....More

White House considers auto bailout options

WASHINGTON (AFP) — The White House said Monday it was studying options for a bailout of the US auto industry without indicating when an announcement would be made.

"We're reviewing automakers financial information, considering our policy options, and when we have something to announce, we'll announce it," said White House spokesman Tony Fratto.

He refused to "confirm or knock down or otherwise read out our contacts or deliberations, timing or substance."

The Big Three US automakers -- General Motors, Ford and Chrysler -- have warned that without a package of loans, millions of jobs could be lost, which would send ripple effects through the nation's already faltering economy.

President George W. Bush, who has hinted the government could tap a massive federal rescue package to aid the automakers, was Monday on his way back to Washington after surprise weekend visits to Iraq and Afghanistan.

His return could speed up a deal, after Bush said: "We're now in the process of working through with the stakeholders a way forward, and we're not quite ready to announce that yet.

He told reporters aboard Air Force One that "this will not be a long process because of ... the fragility of the autos."

Lawmakers have said time is running out for the auto giants, and traded blame with auto union chiefs over last week's collapse in the Senate of a short-term 14-billion dollar rescue bill.

The White House has now said it is ready to consider dipping into a 700-billion dollar Wall Street bailout agreed earlier this year to stimulate the economy and end a credit crunch.

But the Detroit Free Press newspaper reported that the size, scope and timing of any lifeline to the automakers was uncertain.

The White House was interested in two conditions, the paper said. The first was a steep reduction by creditors in automakers' debt, the second was requiring the United Auto Workers (UAW) union to take half the money due for a retiree health-care trust fund in stock, instead of in bonds or cash.

The Wall Street Journal reported Monday that the US government was planning a package of between 10 and 40 billion dollars.

According to the size of the deal, the administration may have to seek congressional approval, with the new Congress not set to meet again until January 6 with a boosted Democratic majority following the November 4 elections.

Republican Senator Bob Corker, who was the Senate's pointman for a series of adjustments to the House of Representatives' bailout bill, said the UAW must make pay adjustments.

"Every car they make, they're at a competitive disadvantage because they are disadvantaged by their labor costs," Corker said Sunday.

In turn, auto representatives accused Republicans of seeking to impose unfair wage cuts.

"We need this money ... this low-interest bridge loan to get us through an emergency situation here, an economic downturn," UAW chief Ron Gettelfinger told CNN, accusing Republicans of politicizing the issue by calling for US manufacturers to bring their pay in line with foreign automakers.

UAW says working to prevent "run" on GM, Chrysler

By David Bailey

DETROIT (Reuters) - United Auto Workers President Ron Gettelfinger on Friday blamed Senate Republicans for the collapse of the auto bailout bill and said the union was ready to do its part to prevent creditors from forcing General Motors Corp or Chrysler LLC into bankruptcy.

"We're going to work tirelessly to make this happen and realize that there's going to have to be restructuring," Gettelfinger told reporters.

Gettelfinger said the key now is to prevent suppliers from stopping shipments to GM or Chrysler or demanding payment in cash up front -- a situation he likened to "a run on the bank."

"We need to satisfy the suppliers that there is going to be a tomorrow," he said.

Without immediate federal help now by the White House through the $700-billion fund for the banking system, GM will not be able to make it out of December, and Chrysler's own dire cash position is similar, he said.

"If we worked for nothing, it wouldn't help them limp into January," Gettelfinger said.

Senate negotiations over a $14 billion package to extend emergency loans to the auto industry broke down late Thursday. That came after the UAW balked at requirements from Senate Republicans that would have forced the union to agree to sweeping concessions on the spot.

"We wondered, quite frankly, if we were just being set up," Gettelfinger said.

The UAW has been a stalwart ally of the Democratic party and worked hard for the election of President-elect Barack Obama.

Gettelfinger said some Republicans, particularly from southern states like Alabama, saw the bailout negotiations as a way to cripple the union while aiding the Japanese, South Korean and German automakers that have located plants and supply operations in their home districts.

"They thought perhaps they could have a twofer here maybe -- pierce the heart of organized labor while representing the foreign brands," he said....More

UAW says working to prevent "run" on GM, Chrysler

By David Bailey

DETROIT (Reuters) - United Auto Workers President Ron Gettelfinger on Friday blamed Senate Republicans for the collapse of the auto bailout bill and said the union was ready to do its part to prevent creditors from forcing General Motors Corp or Chrysler LLC into bankruptcy.

"We're going to work tirelessly to make this happen and realize that there's going to have to be restructuring," Gettelfinger told reporters.

Gettelfinger said the key now is to prevent suppliers from stopping shipments to GM or Chrysler or demanding payment in cash up front -- a situation he likened to "a run on the bank."

"We need to satisfy the suppliers that there is going to be a tomorrow," he said.

Without immediate federal help now by the White House through the $700-billion fund for the banking system, GM will not be able to make it out of December, and Chrysler's own dire cash position is similar, he said.

"If we worked for nothing, it wouldn't help them limp into January," Gettelfinger said.

Senate negotiations over a $14 billion package to extend emergency loans to the auto industry broke down late Thursday. That came after the UAW balked at requirements from Senate Republicans that would have forced the union to agree to sweeping concessions on the spot.

"We wondered, quite frankly, if we were just being set up," Gettelfinger said.

The UAW has been a stalwart ally of the Democratic party and worked hard for the election of President-elect Barack Obama.

Gettelfinger said some Republicans, particularly from southern states like Alabama, saw the bailout negotiations as a way to cripple the union while aiding the Japanese, South Korean and German automakers that have located plants and supply operations in their home districts.

"They thought perhaps they could have a twofer here maybe -- pierce the heart of organized labor while representing the foreign brands," he said....More

White House mulling TARP funds for automakers

Harry Stoffer
Automotive News

WASHINGTON -- The Bush administration, signaling a possible shift in policy, will consider using money set aside for the rescue of financial institutions to make emergency loans to automakers, the White House said this morning.

The word comes in the aftermath of stunning rejection by the Senate last night of legislation to provide $14 billion in emergency loans to prevent the collapse of General Motors and Chrysler LLC.

President Bush and his appointees have resisted using any of $700 billion approved in October for financial institutions to provide industry help under the Troubled Asset Relief Program, or TARP. Democrats contend the failure of one or more automakers would have widespread devastating economic effects.

It's unclear when the White House or U.S. Treasury will make a decision about using TARP funds for the auto bailout.

Of the first $350 billion in the TARP fund, about $15 billion has not yet been committed, wire services reported this morning.

That happens to be the amount GM and Chrysler say they need to survive to the end of the first quarter of 2009.

To access the second $350 billion, the administration must seek fresh approval from Congress.

U.S. Sen. Carl Levin, D-Mich., said the effort to provide the emergency bridge loans remains "very much alive."

"I am encouraged that the White House said today that they will consider other options to assist the auto companies, including use of the TARP program," Levin said in a statement.

"Use of TARP funds is the fastest, most feasible, most immediate and most certain approach to provide the emergency bridge loans needed by the auto companies....More

White House mulling TARP funds for automakers

Harry Stoffer
Automotive News

WASHINGTON -- The Bush administration, signaling a possible shift in policy, will consider using money set aside for the rescue of financial institutions to make emergency loans to automakers, the White House said this morning.

The word comes in the aftermath of stunning rejection by the Senate last night of legislation to provide $14 billion in emergency loans to prevent the collapse of General Motors and Chrysler LLC.

President Bush and his appointees have resisted using any of $700 billion approved in October for financial institutions to provide industry help under the Troubled Asset Relief Program, or TARP. Democrats contend the failure of one or more automakers would have widespread devastating economic effects.

It's unclear when the White House or U.S. Treasury will make a decision about using TARP funds for the auto bailout.

Of the first $350 billion in the TARP fund, about $15 billion has not yet been committed, wire services reported this morning.

That happens to be the amount GM and Chrysler say they need to survive to the end of the first quarter of 2009.

To access the second $350 billion, the administration must seek fresh approval from Congress.

U.S. Sen. Carl Levin, D-Mich., said the effort to provide the emergency bridge loans remains "very much alive."

"I am encouraged that the White House said today that they will consider other options to assist the auto companies, including use of the TARP program," Levin said in a statement.

"Use of TARP funds is the fastest, most feasible, most immediate and most certain approach to provide the emergency bridge loans needed by the auto companies....More

Chrysler purchasing boss Campi leaves

Robert Sherefkin
and Bradford Wernle
Automotive News

DETROIT -- Chrysler LLC purchasing chief John Campi told suppliers this afternoon that today is his last official day on the job. He said he was leaving because of health reasons.

Chrysler named Scott Garberding, 44, to replace Campi, 64. Garberding joined Chrysler in 1996. His most recent title was vice president of global alliance operations.

Campi joined Chrysler in January and immediately signaled a change of direction in purchasing policy. He said Chrysler needed to buy more components from low-cost countries, particularly in Asia.

He promised to collaborate, but during his tenure, Chrysler repeatedly sued suppliers over contract disputes.

Campi was a trusted ally of Chrysler CEO Bob Nardelli during Nardelli's previous tenure as chairman of retailer Home Depot Inc., where he also was purchasing chief.

Chrysler purchasing boss Campi leaves

Robert Sherefkin
and Bradford Wernle
Automotive News

DETROIT -- Chrysler LLC purchasing chief John Campi told suppliers this afternoon that today is his last official day on the job. He said he was leaving because of health reasons.

Chrysler named Scott Garberding, 44, to replace Campi, 64. Garberding joined Chrysler in 1996. His most recent title was vice president of global alliance operations.

Campi joined Chrysler in January and immediately signaled a change of direction in purchasing policy. He said Chrysler needed to buy more components from low-cost countries, particularly in Asia.

He promised to collaborate, but during his tenure, Chrysler repeatedly sued suppliers over contract disputes.

Campi was a trusted ally of Chrysler CEO Bob Nardelli during Nardelli's previous tenure as chairman of retailer Home Depot Inc., where he also was purchasing chief.

GM To Shut Down 20 Plants in the United States, Canada and Mexico.

General Motors Corp. said Friday it will temporarily close 20 factories across North America and make sweeping cuts to its vehicle production as it tries to adjust to dramatically weaker automobile demand.

GM said it will cut 250,000 vehicles from its production schedule for the first quarter of 2009, which includes a cut of 60,000 vehicles announced last week. Normal production would be around 750,000 cars and trucks for the quarter, spokesman Tony Sapienza said.

Many plants will be shut down for the whole month of January, he said, and the factories will be closed for 30 percent of the quarter.

The move affects most of GM's plants in the U.S., Canada and Mexico. During the shutdowns, employees will be temporarily laid off and can apply to receive part of their normal pay from the company. They can also apply for state unemployment benefits, Lee said.

GM and nearly all automakers who sell in the U.S. are mired in the worst sales slump in 26 years

GM To Shut Down 20 Plants in the United States, Canada and Mexico.

General Motors Corp. said Friday it will temporarily close 20 factories across North America and make sweeping cuts to its vehicle production as it tries to adjust to dramatically weaker automobile demand.

GM said it will cut 250,000 vehicles from its production schedule for the first quarter of 2009, which includes a cut of 60,000 vehicles announced last week. Normal production would be around 750,000 cars and trucks for the quarter, spokesman Tony Sapienza said.

Many plants will be shut down for the whole month of January, he said, and the factories will be closed for 30 percent of the quarter.

The move affects most of GM's plants in the U.S., Canada and Mexico. During the shutdowns, employees will be temporarily laid off and can apply to receive part of their normal pay from the company. They can also apply for state unemployment benefits, Lee said.

GM and nearly all automakers who sell in the U.S. are mired in the worst sales slump in 26 years

It's Detroit Against The World! Turn In Your Foreign Car or Be Boycotted!

Yes, now we know how little the rest of America cares for Detroit, Michigan and The America Auto Industry! We have been beat up time and time again by the US media and international media, but never did i think Americans of the South and West hated us so much.

What is more important for Detroit and Michigan is that we remember who we are! We are the salt of the earth hard working people, we are the people that built the tanks and planes that crushed the Nazi regime from taking over the world, we have made the vehicles and engines that have been used to advance our society.

We may dwindle and fade from our glory years, but with the right vision we will rise again.

We must begin a new era of renewed commitment of quality, efficiency and innovation.
We should not strive to be on par with the Japanese automakers, we need to beat them in every aspect of the game.

A large part of their success is because the Japanese Government fully backs the Japanese Autos! We need the legislation in place to make it more difficult for Japanese and foreign transplants to use our tax dollars to fund their plants and ship their profits back to Japan.

You now see how crucial the America Industry is to the foundation of this country.

We must ask and demand all those who live in Michigan, Ohio, Indiana, Illinois and other major American Manufacturing States to return their foreign cars.

If you know of Television or radio personalities who drive foreign cars don't watch and don't listen to them.

If you do watch or listen to them this is only reinforcing their belief that driving foreign cars doesn't matter. The same for shops,restaurants and any other establishment you spend your money at.

If they do not support you and your family, don't support them!

Gm Chrysler News

It's Detroit Against The World! Turn In Your Foreign Car or Be Boycotted!

Yes, now we know how little the rest of America cares for Detroit, Michigan and The America Auto Industry! We have been beat up time and time again by the US media and international media, but never did i think Americans of the South and West hated us so much.

What is more important for Detroit and Michigan is that we remember who we are! We are the salt of the earth hard working people, we are the people that built the tanks and planes that crushed the Nazi regime from taking over the world, we have made the vehicles and engines that have been used to advance our society.

We may dwindle and fade from our glory years, but with the right vision we will rise again.

We must begin a new era of renewed commitment of quality, efficiency and innovation.
We should not strive to be on par with the Japanese automakers, we need to beat them in every aspect of the game.

A large part of their success is because the Japanese Government fully backs the Japanese Autos! We need the legislation in place to make it more difficult for Japanese and foreign transplants to use our tax dollars to fund their plants and ship their profits back to Japan.

You now see how crucial the America Industry is to the foundation of this country.

We must ask and demand all those who live in Michigan, Ohio, Indiana, Illinois and other major American Manufacturing States to return their foreign cars.

If you know of Television or radio personalities who drive foreign cars don't watch and don't listen to them.

If you do watch or listen to them this is only reinforcing their belief that driving foreign cars doesn't matter. The same for shops,restaurants and any other establishment you spend your money at.

If they do not support you and your family, don't support them!

Gm Chrysler News

Auto rescue's rejection riles Metro area

Detroit Regional Chamber, radio rally Metro residents

Nathan Hurst and Christina Rogers / The Detroit News

DETROIT --Michiganians already staggering under the weight of the nation's most beleaguered state economy banded together Friday morning in ire aimed squarely at Capitol Hill after waking to news that Senate Republicans denied Detroit's Big Three automakers the emergency loans they need to survive.

Whether they had a tie to the auto industry or not, many saw the shutout of a bailout as more than just a misguided decision by lawmakers to leave Michigan's largest employers out in the cold amid the worst economic downturn in decades.

They considered it a kick in the shins to a state already down.

Jerry Watson, a 32-year-old auto supplier employee, said Congress is taking a big risk with lives of millions of Americans, not just Detroiters.

"The government is playing Russian roulette," said Watson, who lives in Farmington Hills. If their inaction leads to widespread job losses, Watson said, "it's going to be on their heads." ....More

Auto rescue's rejection riles Metro area

Detroit Regional Chamber, radio rally Metro residents

Nathan Hurst and Christina Rogers / The Detroit News

DETROIT --Michiganians already staggering under the weight of the nation's most beleaguered state economy banded together Friday morning in ire aimed squarely at Capitol Hill after waking to news that Senate Republicans denied Detroit's Big Three automakers the emergency loans they need to survive.

Whether they had a tie to the auto industry or not, many saw the shutout of a bailout as more than just a misguided decision by lawmakers to leave Michigan's largest employers out in the cold amid the worst economic downturn in decades.

They considered it a kick in the shins to a state already down.

Jerry Watson, a 32-year-old auto supplier employee, said Congress is taking a big risk with lives of millions of Americans, not just Detroiters.

"The government is playing Russian roulette," said Watson, who lives in Farmington Hills. If their inaction leads to widespread job losses, Watson said, "it's going to be on their heads." ....More

Focus on White House in auto bailout saga

WASHINGTON, Dec 12 (Reuters-By Matt Spetalnick ) - The Bush administration said on Friday it could be willing to provide emergency aid to the teetering U.S. auto industry, keeping open the prospects for a bailout the day after Congress failed to approve a deal.

Warning of dire consequences for the recession-hit U.S. economy if the once-mighty automakers collapsed, the White House -- in a reversal of policy -- said it was ready to consider dipping into a $700 billion Wall Street bailout fund to help keep the companies afloat.

'The current weakened state of the economy is such that it could not withstand a body blow like a disorderly bankruptcy in the auto industry,' White House spokeswoman Dana Perino said.

Democratic leaders and the main U.S. auto workers union appealed to Bush's Republican administration -- now in its final weeks before turning over to Democratic President-elect Barack Obama -- to provide emergency funds after a Senate deal to save Detroit's Big Three collapsed in acrimony late on Thursday.

The failure of the $14 billion bailout plan in Congress sent markets reeling around the world. Shares in Toyota Motor Corp the world's biggest carmaker, lost a tenth of their value, and European automakers also closed sharply lower.

But signs that the White House and U.S. Treasury Department were prepared to mount a last-ditch effort to help the carmakers buoyed Wall Street, and large initial losses were mostly recouped.

Focus on White House in auto bailout saga

WASHINGTON, Dec 12 (Reuters-By Matt Spetalnick ) - The Bush administration said on Friday it could be willing to provide emergency aid to the teetering U.S. auto industry, keeping open the prospects for a bailout the day after Congress failed to approve a deal.

Warning of dire consequences for the recession-hit U.S. economy if the once-mighty automakers collapsed, the White House -- in a reversal of policy -- said it was ready to consider dipping into a $700 billion Wall Street bailout fund to help keep the companies afloat.

'The current weakened state of the economy is such that it could not withstand a body blow like a disorderly bankruptcy in the auto industry,' White House spokeswoman Dana Perino said.

Democratic leaders and the main U.S. auto workers union appealed to Bush's Republican administration -- now in its final weeks before turning over to Democratic President-elect Barack Obama -- to provide emergency funds after a Senate deal to save Detroit's Big Three collapsed in acrimony late on Thursday.

The failure of the $14 billion bailout plan in Congress sent markets reeling around the world. Shares in Toyota Motor Corp the world's biggest carmaker, lost a tenth of their value, and European automakers also closed sharply lower.

But signs that the White House and U.S. Treasury Department were prepared to mount a last-ditch effort to help the carmakers buoyed Wall Street, and large initial losses were mostly recouped.

Boycott Alabama Now-New website-Stop Senator Richard Shelby

Here is another New pro American website-Boycott Alabama Now-www.boycottalabamanow.com
From Site:
This site has been developed by a grassroots number of true Americans who have had enough with uninformed politicians who are not helping the domestic auto industry, in this case Senator Richard Shelby of Alabama. Members of our website hold no grudges against all of the hard working people who live in the wonderful state of Alabama. However, it is time to fight back for America and the only way to do it is with our wallets. Our objective is to demonstrate to the senator what happens when a part of America is not supported; therefore we are launching a nationwide boycott of Alabama. It is clear to most Americans that the Big Three must obtain loans in an effort to get through this economic mess (much of which was caused by our illustrious Mr. Shelby, Mr. Barney Frank and many others who failed to prevent the banking industry from going belly up). And to the great people of Alabama, please keep in mind; we didn’t start this mess, our government did.







Contact:Senator Richard Shelby--ph: 202-224-5744

Email




communications@bcatoday.org
(This is the Alabama Chamber of Commerce)
ph: 334-834-6000

Check it out and Support America

Boycott Alabama Now-New website-Stop Senator Richard Shelby

Here is another New pro American website-Boycott Alabama Now-www.boycottalabamanow.com
From Site:
This site has been developed by a grassroots number of true Americans who have had enough with uninformed politicians who are not helping the domestic auto industry, in this case Senator Richard Shelby of Alabama. Members of our website hold no grudges against all of the hard working people who live in the wonderful state of Alabama. However, it is time to fight back for America and the only way to do it is with our wallets. Our objective is to demonstrate to the senator what happens when a part of America is not supported; therefore we are launching a nationwide boycott of Alabama. It is clear to most Americans that the Big Three must obtain loans in an effort to get through this economic mess (much of which was caused by our illustrious Mr. Shelby, Mr. Barney Frank and many others who failed to prevent the banking industry from going belly up). And to the great people of Alabama, please keep in mind; we didn’t start this mess, our government did.







Contact:Senator Richard Shelby--ph: 202-224-5744

Email




communications@bcatoday.org
(This is the Alabama Chamber of Commerce)
ph: 334-834-6000

Check it out and Support America

The Car Czar-GM Chrysler Merger-bankruptcy

Under the purposed deal the " Car Czar " will make all the decisions! The "car czar" will have the power to force U.S. automakers into bankruptcy! He will be incharge of distributing the $15Billion as he see's fit! He could also force the GM Chrysler Merger!

This is the Government taking over GM and Chrysler or the New GM Chrysler Company! Stay tuned this is going to get uglier!

The Car Czar-GM Chrysler Merger-bankruptcy

Under the purposed deal the " Car Czar " will make all the decisions! The "car czar" will have the power to force U.S. automakers into bankruptcy! He will be incharge of distributing the $15Billion as he see's fit! He could also force the GM Chrysler Merger!

This is the Government taking over GM and Chrysler or the New GM Chrysler Company! Stay tuned this is going to get uglier!

Deal reached in principle on $15B auto bailout

Deal reached in principle on $15B auto bailout
By JULIE HIRSCHFELD DAVIS and KEN THOMAS

WASHINGTON (AP) — A government "car czar" with the power to force U.S. automakers into bankruptcy would dole out $15 billion in emergency loans to the failing industry under an emerging deal between the White House and congressional Democrats.

Officials struck an agreement in principle on the measure Tuesday and hoped to finalize it and schedule swift House and Senate votes as early as Wednesday. Money could be disbursed within days to cash-starved General Motors Corp. and Chrysler LLC, while Ford Motor Co. — which has said it has enough liquidity to stay afloat — would be eligible for federal aid.

All three would have to negotiate with labor unions, creditors and others and submit blueprints by March 31 to an industry czar named by President George W. Bush showing how they would restructure to ensure their survival. If not, the emergency loans would be revoked, the companies cut off from further federal help, and the government overseer could order his own overhaul, including forcing them into bankruptcy.

After days of marathon negotiations over the plan, congressional aides and White House officials were still fine-tuning legislative details of the agreement. It could face substantial obstacles from Republican lawmakers, who remained skeptical of the White House-negotiated plan.

A group of conservatives led by Sen. John Ensign, R-Nev., who has threatened to block the measure, planned a midday news conference Wednesday.

As the measure took shape Tuesday, Sen. Mitch McConnell, R-Ky., said he was concerned that Democrats were proposing a package that "fails to require the kind of serious reform that will ensure long-term viability for struggling automobile companies."

With their approach, "we open the door to unlimited federal subsidies in the future," McConnell said.

Getting 60 votes for an agreement, with many senators expected to be absent for the emergency, postelection debate, could be tricky.

Sen. Carl Levin, D-Mich., an ally of the auto industry, said, "This gets us to the 20-yard line, but getting over the goal line will take a major effort, particularly in the Senate."

He called for Bush and President-elect Barack Obama to lobby personally for the auto bailout.

A breakthrough on the measure came when negotiators reached a compromise to require the czar to revoke the loans and deny any further federal aid to automakers that don't strike restructuring deals by next spring. Democrats had proposed giving the overseer that option but not requiring it.

"A great deal of progress has been made on auto legislation that will protect the taxpayer and ensure that short-term financing is available only to companies prepared to undertake the dramatic restructuring necessary to become viable and competitive," Dana Perino, the White House press secretary, said late Tuesday.

One potential stumbling block remained. Democrats' were still refusing to scrap language, vehemently opposed by the White House, that would force the carmakers to drop lawsuits challenging tough emissions limits in California and other states.

That measure "kills the deal," said Dan Meyer, Bush's top lobbyist.

Senior Democratic aides acknowledged as much Tuesday and said they expected the provision to be dropped.

Environmentalists, who count House Speaker Nancy Pelosi, D-Calif., among their closest allies, already were irate that the bailout uses money set aside for a program to help the automakers finance the retooling of their factories so they could produce greener vehicles.

Another remaining hang-up was over ensuring that Cerberus, the private equity firm that owns Chrysler LLC, would reimburse the government if the auto company defaulted on its loan, said a congressional negotiator who spoke only on condition of anonymity because he was not authorized to disclose details of the emerging deal.

The measure would attach an array of conditions to the bailout money, including some of the same restrictions imposed on banks as part of the $700 billion Wall Street rescue. Among them are limits on executive compensation, a prohibition on paying dividends and requirements that the government share in future profits and taxpayers be repaid before any other shareholders.

Also included in the plan is a requirement that the carmakers taking federal aid get rid of their corporate jets — which became a potent symbol when the Big Three CEOs used them for their initial trips to Washington to plead before Congress for government assistance.

Deal reached in principle on $15B auto bailout

Deal reached in principle on $15B auto bailout
By JULIE HIRSCHFELD DAVIS and KEN THOMAS

WASHINGTON (AP) — A government "car czar" with the power to force U.S. automakers into bankruptcy would dole out $15 billion in emergency loans to the failing industry under an emerging deal between the White House and congressional Democrats.

Officials struck an agreement in principle on the measure Tuesday and hoped to finalize it and schedule swift House and Senate votes as early as Wednesday. Money could be disbursed within days to cash-starved General Motors Corp. and Chrysler LLC, while Ford Motor Co. — which has said it has enough liquidity to stay afloat — would be eligible for federal aid.

All three would have to negotiate with labor unions, creditors and others and submit blueprints by March 31 to an industry czar named by President George W. Bush showing how they would restructure to ensure their survival. If not, the emergency loans would be revoked, the companies cut off from further federal help, and the government overseer could order his own overhaul, including forcing them into bankruptcy.

After days of marathon negotiations over the plan, congressional aides and White House officials were still fine-tuning legislative details of the agreement. It could face substantial obstacles from Republican lawmakers, who remained skeptical of the White House-negotiated plan.

A group of conservatives led by Sen. John Ensign, R-Nev., who has threatened to block the measure, planned a midday news conference Wednesday.

As the measure took shape Tuesday, Sen. Mitch McConnell, R-Ky., said he was concerned that Democrats were proposing a package that "fails to require the kind of serious reform that will ensure long-term viability for struggling automobile companies."

With their approach, "we open the door to unlimited federal subsidies in the future," McConnell said.

Getting 60 votes for an agreement, with many senators expected to be absent for the emergency, postelection debate, could be tricky.

Sen. Carl Levin, D-Mich., an ally of the auto industry, said, "This gets us to the 20-yard line, but getting over the goal line will take a major effort, particularly in the Senate."

He called for Bush and President-elect Barack Obama to lobby personally for the auto bailout.

A breakthrough on the measure came when negotiators reached a compromise to require the czar to revoke the loans and deny any further federal aid to automakers that don't strike restructuring deals by next spring. Democrats had proposed giving the overseer that option but not requiring it.

"A great deal of progress has been made on auto legislation that will protect the taxpayer and ensure that short-term financing is available only to companies prepared to undertake the dramatic restructuring necessary to become viable and competitive," Dana Perino, the White House press secretary, said late Tuesday.

One potential stumbling block remained. Democrats' were still refusing to scrap language, vehemently opposed by the White House, that would force the carmakers to drop lawsuits challenging tough emissions limits in California and other states.

That measure "kills the deal," said Dan Meyer, Bush's top lobbyist.

Senior Democratic aides acknowledged as much Tuesday and said they expected the provision to be dropped.

Environmentalists, who count House Speaker Nancy Pelosi, D-Calif., among their closest allies, already were irate that the bailout uses money set aside for a program to help the automakers finance the retooling of their factories so they could produce greener vehicles.

Another remaining hang-up was over ensuring that Cerberus, the private equity firm that owns Chrysler LLC, would reimburse the government if the auto company defaulted on its loan, said a congressional negotiator who spoke only on condition of anonymity because he was not authorized to disclose details of the emerging deal.

The measure would attach an array of conditions to the bailout money, including some of the same restrictions imposed on banks as part of the $700 billion Wall Street rescue. Among them are limits on executive compensation, a prohibition on paying dividends and requirements that the government share in future profits and taxpayers be repaid before any other shareholders.

Also included in the plan is a requirement that the carmakers taking federal aid get rid of their corporate jets — which became a potent symbol when the Big Three CEOs used them for their initial trips to Washington to plead before Congress for government assistance.

Sen. Richard Shelby Is Protecting Foreign Automakers, Gives Huge Tax Breaks!

Senator Richard Shelby has been attacking the America Auto Industry and Trying to Stop the Bridge Loan. He has great reason to cripple the America Auto-industry, he has all the foreign automakers in his home state of Alabama. Like Mercedes-Benz, Toyota, Honda, and Hyundai Motors!

Here are your American Tax Dollars at work, Undermining America!

In 1997, the state of Alabama granted huge subsidies to Mercedes in exchange for a plant that would employ 1,500 people. What were the details of this huge incentive package? $300 million in tax breaks, $253 million in direct incentives, $60 million in Alabama taxpayer money to send fellow Alabamans to Germany for training, and a promise to buy 2,500 of the new Mercedes SUV’s at $30,000 each. Based on just the initial $300 million grant alone, those 1,500 jobs will cost Alabama taxpayers $200,000 per job. Apparently Alabama, not Mercedes, will be paying those salaries for years to come. With deals like these, it’s no wonder foreign automakers have stepped up production in the U.S. We’ll even pay their workers’ salaries for them!

All using your tax dollars! Nice Job Senator Shelby, he has help facilitate similar deals for Toyota, Honda, and Hyundai Motors!

Billions of US Tax Payer Money to foreign companies!

Remember just because a vehicle is assembled in America it doesn't mean they are using American made parts, 80% are from foreign supplies and 90% of the profits are shipped back to a foreign country!

A dollar spent in the United States is said to circulate around the economy 7 times!

So all those billions of dollars you have given to foreign companies are not circulating in the American economy, it is in Japan and Germany!

So if you are struggling to make it and you are driving a foreign car, you might be part of the problem! You certainly aren't helping make higher paying jobs driving foreign cars.

Undermining America!

Thank You Senator Shelby For Helping Foreign Countries Destroy the Middle Class in America!

Sen. Richard Shelby Is Protecting Foreign Automakers, Gives Huge Tax Breaks!

Senator Richard Shelby has been attacking the America Auto Industry and Trying to Stop the Bridge Loan. He has great reason to cripple the America Auto-industry, he has all the foreign automakers in his home state of Alabama. Like Mercedes-Benz, Toyota, Honda, and Hyundai Motors!

Here are your American Tax Dollars at work, Undermining America!

In 1997, the state of Alabama granted huge subsidies to Mercedes in exchange for a plant that would employ 1,500 people. What were the details of this huge incentive package? $300 million in tax breaks, $253 million in direct incentives, $60 million in Alabama taxpayer money to send fellow Alabamans to Germany for training, and a promise to buy 2,500 of the new Mercedes SUV’s at $30,000 each. Based on just the initial $300 million grant alone, those 1,500 jobs will cost Alabama taxpayers $200,000 per job. Apparently Alabama, not Mercedes, will be paying those salaries for years to come. With deals like these, it’s no wonder foreign automakers have stepped up production in the U.S. We’ll even pay their workers’ salaries for them!

All using your tax dollars! Nice Job Senator Shelby, he has help facilitate similar deals for Toyota, Honda, and Hyundai Motors!

Billions of US Tax Payer Money to foreign companies!

Remember just because a vehicle is assembled in America it doesn't mean they are using American made parts, 80% are from foreign supplies and 90% of the profits are shipped back to a foreign country!

A dollar spent in the United States is said to circulate around the economy 7 times!

So all those billions of dollars you have given to foreign companies are not circulating in the American economy, it is in Japan and Germany!

So if you are struggling to make it and you are driving a foreign car, you might be part of the problem! You certainly aren't helping make higher paying jobs driving foreign cars.

Undermining America!

Thank You Senator Shelby For Helping Foreign Countries Destroy the Middle Class in America!

U.S. Rescue May Give Government Stakes in GM, Ford and Chrysler

Dec. 9 (Bloomberg) -- The U.S. government may end up holding stakes in General Motors Corp., Ford Motor Co. and Chrysler LLC if Congress and the White House reach agreement on a financial bailout for the automakers.

Under the proposed rescue, details of which are still being discussed, the Treasury would get warrants for stock equivalent to 20 percent of any government loans. With GM seeking as much as $10 billion and valued at $3 billion, the state may become the biggest shareholder. The legislation isn’t clear on what kind of holding the government would take, leaving it the option of preferred, common, voting or non-voting shares.

Democrats in Congress drafted the plan to aid automakers with $15 billion in loans. The legislation, which allows the president to appoint a so-called auto czar, needs 60 votes to overcome a Republican threat in the Senate to stall the measure in endless debate using a parliamentary maneuver called a filibuster. Some Senate Republicans yesterday expressed doubts about the plan, to be voted on in a special session this week.

“I remain concerned about committing federal dollars for the Big Three without any clear strategy that the money will be put to good use and repaid,” said Senator Judd Gregg of New Hampshire, the top Republican on the Budget Committee....More

U.S. Rescue May Give Government Stakes in GM, Ford and Chrysler

Dec. 9 (Bloomberg) -- The U.S. government may end up holding stakes in General Motors Corp., Ford Motor Co. and Chrysler LLC if Congress and the White House reach agreement on a financial bailout for the automakers.

Under the proposed rescue, details of which are still being discussed, the Treasury would get warrants for stock equivalent to 20 percent of any government loans. With GM seeking as much as $10 billion and valued at $3 billion, the state may become the biggest shareholder. The legislation isn’t clear on what kind of holding the government would take, leaving it the option of preferred, common, voting or non-voting shares.

Democrats in Congress drafted the plan to aid automakers with $15 billion in loans. The legislation, which allows the president to appoint a so-called auto czar, needs 60 votes to overcome a Republican threat in the Senate to stall the measure in endless debate using a parliamentary maneuver called a filibuster. Some Senate Republicans yesterday expressed doubts about the plan, to be voted on in a special session this week.

“I remain concerned about committing federal dollars for the Big Three without any clear strategy that the money will be put to good use and repaid,” said Senator Judd Gregg of New Hampshire, the top Republican on the Budget Committee....More

Senator calls for Chrysler merger, new CEO at GM

Is A GM Chrysler Merger going to be part of the restructuring by March 2009?

WASHINGTON – A key senator says the nation's car companies should have to replace top executives in exchange for a long-term bailout package from Congress.

Sen. Chris Dodd heads the Senate Banking Committee. He says he is hopeful Congress will pass a short-term $15 billion aid package for the automakers in the next several days. But the Connecticut Democrat says the companies should have to restructure if they want a more significant bailout from Congress next year.

Dodd says the companies need quick cash to avoid collapse in the next several weeks. But over the long-term, Dodd says Chrysler probably ought to merge with another company and General Motors should be required to replace chief executive Rick Wagoner.

Dodd says Ford is the healthiest of the Big Three U.S. automakers.

Dodd appeared Sunday on CBS' "Face the Nation."

Senator calls for Chrysler merger, new CEO at GM

Is A GM Chrysler Merger going to be part of the restructuring by March 2009?

WASHINGTON – A key senator says the nation's car companies should have to replace top executives in exchange for a long-term bailout package from Congress.

Sen. Chris Dodd heads the Senate Banking Committee. He says he is hopeful Congress will pass a short-term $15 billion aid package for the automakers in the next several days. But the Connecticut Democrat says the companies should have to restructure if they want a more significant bailout from Congress next year.

Dodd says the companies need quick cash to avoid collapse in the next several weeks. But over the long-term, Dodd says Chrysler probably ought to merge with another company and General Motors should be required to replace chief executive Rick Wagoner.

Dodd says Ford is the healthiest of the Big Three U.S. automakers.

Dodd appeared Sunday on CBS' "Face the Nation."

Report: China automaker mulls buying Ford's Volvo

BEIJING (AP) - A Chinese partner of Ford Motor Co. is talking to the U.S. automaker about the possible purchase of its Volvo unit, a Chinese newspaper reported Tuesday.

Changan Auto Co.'s president, Xu Liuping, talked with Ford executives about a possible sale at an auto show last month in China, the National Business Daily said, citing an unnamed source at Changan. It gave no other details.

A spokeswoman for Ford Motor (China) Ltd. said Ford was evaluating possible options for Volvo Car Corp. including a possible sale but declined to comment on the Chinese report.

"It will take some months to assess all of our available options," spokeswoman Lynn Ouyang said in a written statement.

Employees who answered the phone at Changan referred calls to a spokesman who they said was unavailable.

Ford is trying to raise money to see the company through a severe slump in the U.S. auto industry. Ford and rivals General Motors Corp. and Chrysler LLC are seeking government aid...More