Nissan Motor Co. and Chrysler Group LLC have dropped their plans to produce vehicles for each other.
The two automakers agreed early last year to pool their volumes in the full-size pickup and subcompact segments, but doubts about the projects arose after Chrysler teamed up with Italy's Fiat SpA.
"For the past several months, teams from both companies have been studying the viability of the projects in light of significant changes in business conditions since the projects were announced," the two automakers said in a joint statement.
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"Today, it was decided it was in the best interests of both companies to end the projects."
Last year, before Chrysler joined forces with Fiat, it agreed to produce a full-size pickup for Nissan, while the Japanese automaker agreed to make two subcompacts for Chrysler.
But Fiat, a small car specialist, will provide Chrysler with small-car underpinnings and sell at least one of its own cars, the 500, in the United States.
Nissan, Chrysler cancel deal | detnews.com | The Detroit News
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Showing posts with label automakers. Show all posts
Showing posts with label automakers. Show all posts
Thursday, August 27, 2009
Sunday, December 14, 2008
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
Friday, December 5, 2008
Bush acknowledges recession, automakers may not survive!
WASHINGTON – President George W. Bush publicly acknowledged for the first time Friday that the U.S. economy is in a recession and worried aloud that Detroit's Big Three automakers may not all survive their mounting troubles.
Four days after the long-suspected existence of a recession was made official, Bush used the word himself.
"Our economy is in a recession," Bush said flatly, speaking to reporters on the South Lawn only hours after the release of a government report showing the biggest month of job losses in 34 years. "This is in large part because of severe problems in our housing, credit and financial markets, which have resulted in significant job losses."
While repeatedly listing the serious problems in the economy, the White House has refused to embrace the actual term until Monday, when a panel for the National Bureau of Economic Research said the recession began last December and is ongoing.
With automakers, particularly General Motors, in fear of bankruptcy, they are seeking from Washington a huge cash infusion of up to $34 billion, beyond an existing $25 billion loan program. Lawmakers are considering the idea, but there is uncertainty about the level of support on Capitol Hill for that plan.
Bush displayed skepticism about the wisdom of new aid to companies that still need to make "hard choices on all aspects of their business." So while urging lawmakers to act next week to help the battered industry, Bush urged a Congress controlled by opposition Democrats to follow his approach...more
Four days after the long-suspected existence of a recession was made official, Bush used the word himself.
"Our economy is in a recession," Bush said flatly, speaking to reporters on the South Lawn only hours after the release of a government report showing the biggest month of job losses in 34 years. "This is in large part because of severe problems in our housing, credit and financial markets, which have resulted in significant job losses."
While repeatedly listing the serious problems in the economy, the White House has refused to embrace the actual term until Monday, when a panel for the National Bureau of Economic Research said the recession began last December and is ongoing.
With automakers, particularly General Motors, in fear of bankruptcy, they are seeking from Washington a huge cash infusion of up to $34 billion, beyond an existing $25 billion loan program. Lawmakers are considering the idea, but there is uncertainty about the level of support on Capitol Hill for that plan.
Bush displayed skepticism about the wisdom of new aid to companies that still need to make "hard choices on all aspects of their business." So while urging lawmakers to act next week to help the battered industry, Bush urged a Congress controlled by opposition Democrats to follow his approach...more
Bush acknowledges recession, automakers may not survive!
WASHINGTON – President George W. Bush publicly acknowledged for the first time Friday that the U.S. economy is in a recession and worried aloud that Detroit's Big Three automakers may not all survive their mounting troubles.
Four days after the long-suspected existence of a recession was made official, Bush used the word himself.
"Our economy is in a recession," Bush said flatly, speaking to reporters on the South Lawn only hours after the release of a government report showing the biggest month of job losses in 34 years. "This is in large part because of severe problems in our housing, credit and financial markets, which have resulted in significant job losses."
While repeatedly listing the serious problems in the economy, the White House has refused to embrace the actual term until Monday, when a panel for the National Bureau of Economic Research said the recession began last December and is ongoing.
With automakers, particularly General Motors, in fear of bankruptcy, they are seeking from Washington a huge cash infusion of up to $34 billion, beyond an existing $25 billion loan program. Lawmakers are considering the idea, but there is uncertainty about the level of support on Capitol Hill for that plan.
Bush displayed skepticism about the wisdom of new aid to companies that still need to make "hard choices on all aspects of their business." So while urging lawmakers to act next week to help the battered industry, Bush urged a Congress controlled by opposition Democrats to follow his approach...more
Four days after the long-suspected existence of a recession was made official, Bush used the word himself.
"Our economy is in a recession," Bush said flatly, speaking to reporters on the South Lawn only hours after the release of a government report showing the biggest month of job losses in 34 years. "This is in large part because of severe problems in our housing, credit and financial markets, which have resulted in significant job losses."
While repeatedly listing the serious problems in the economy, the White House has refused to embrace the actual term until Monday, when a panel for the National Bureau of Economic Research said the recession began last December and is ongoing.
With automakers, particularly General Motors, in fear of bankruptcy, they are seeking from Washington a huge cash infusion of up to $34 billion, beyond an existing $25 billion loan program. Lawmakers are considering the idea, but there is uncertainty about the level of support on Capitol Hill for that plan.
Bush displayed skepticism about the wisdom of new aid to companies that still need to make "hard choices on all aspects of their business." So while urging lawmakers to act next week to help the battered industry, Bush urged a Congress controlled by opposition Democrats to follow his approach...more
Thursday, December 4, 2008
Automakers take Hill at 10 a.m. for showdown
Ken Thomas / Associated Press
WASHINGTON -- U.S. automakers are returning to Congress for high-stakes hearings they hope will persuade skeptical lawmakers to save their troubled industry with $34 billion in emergency aid, but a top Senate Democrat wants to hand their problem to the Federal Reserve.
Two weeks after a botched attempt on Capitol Hill, repentant leaders of General Motors Corp., Ford Motor Co. and Chrysler LLC were appealing to the Senate Banking Committee on Thursday with three separate survival plans that include massive restructuring, the ditching of corporate jets and vows by CEOs to work for $1 a year.
But they could expect a chilly reception on Capitol Hill. Even a top Democrat in charge of evaluating their aid requests made it clear he was eager to avoid voting on a bailout. Sen. Chris Dodd, D-Conn., chairman of the Senate Banking Committee, wrote to Federal Reserve Chairman Ben Bernanke on Wednesday asking the central bank chief whether there was anything stopping him from using his considerable lending authority to help the automakers....more
Automakers take Hill at 10 a.m. for showdown
Ken Thomas / Associated Press
WASHINGTON -- U.S. automakers are returning to Congress for high-stakes hearings they hope will persuade skeptical lawmakers to save their troubled industry with $34 billion in emergency aid, but a top Senate Democrat wants to hand their problem to the Federal Reserve.
Two weeks after a botched attempt on Capitol Hill, repentant leaders of General Motors Corp., Ford Motor Co. and Chrysler LLC were appealing to the Senate Banking Committee on Thursday with three separate survival plans that include massive restructuring, the ditching of corporate jets and vows by CEOs to work for $1 a year.
But they could expect a chilly reception on Capitol Hill. Even a top Democrat in charge of evaluating their aid requests made it clear he was eager to avoid voting on a bailout. Sen. Chris Dodd, D-Conn., chairman of the Senate Banking Committee, wrote to Federal Reserve Chairman Ben Bernanke on Wednesday asking the central bank chief whether there was anything stopping him from using his considerable lending authority to help the automakers....more
Wednesday, November 12, 2008
Last Hope-Automakers bailout-Pelosi, Reid to Seek Automakers Bailout Next Week
It's Next Week Or bust! Will The Automakers get the rescue money they need?
ABC News' Jonathan Karl reports: House Speaker Nancy Pelosi says she'll seek assistance for Detroit automakers during a lame-duck session next week.
The idea is to pass a bill opening up some of the $700 billion bailout money for the automakers.
I am told Pelosi will also likely seek an extension of unemployment benefits but wait until January for a major stimulus package.
"In order to prevent the failure of one or more of the major American automobile manufacturers, which would have a devastating impact on our economy, particularly on the men and women who work in that industry, Congress and the Bush Administration must take immediate action," reads a statement by Pelosi.
"Emergency assistance to the automobile industry would be conditioned on executive compensation restrictions, a prohibition on golden parachutes, rigorous independent oversight, and other taxpayer protections to ensure that any companies that benefit from this assistance – and not the taxpayers – bear the full burden of repaying any costs that are incurred."
And now Senate Majority Leader Harry Reid says he "determined" to pass legislation helping the automobile industry next week during a lame-duck session of Congress.
Reid's statement offers no specifics and reminds us that until January "we still have the slimmest of majorities in the Senate; this will only get done if President Bush and Senate Republicans work with us."
On that point:
The White House is lukewarm to Pelosi's idea of using some of the $700 billion banking bailout money for the automobile industry. One senior White House official told me it's "a slippery slope" and asked rhetorically, "who's next?"
The White House would prefer Congress pass legislation loosening the restriction on the $25 billion in loans Congress made available to Detroit in September. That money, under current law, must be used for fuel efficient technology. So far, not one dollar of it has been loaned. The auto industry says it needs money to stay alive, not to embark on new projects.
"Why does Speaker Pelosi absolutely refuse to use the $25 billion actually appropriated for the automobile industry?" asks the official. Answer: environmental groups don’t want the money to be diverted.
Meanwhile, the auto industry likes Pelosi's approach, but sees it as a stopgap measure until the new Congress passes something more comprehensive in January. As one auto industry source working with Congressional leaders told me, "We're talking about a bridge loan, a bridge to the stimulus."
Stupid Daily News---Political Roast----Lingerie Football Pics
Saturday, November 8, 2008
Will George Bush Help The American Automakers?
The legacy of George W. Bush's Presidency may not be flattering at this point in time, but can President Bush show the American public he still cares?
The Democratic leaders are asking him for help now, the American auto industry is on the brink of collapse and can't wait until January 2009.
The Republican party needs to forget it's dismal 2008 election results and get back to the business of running this country.
Remember Congress breaks for winter in a couple of weeks! The clock is ticking!
The latest report from the Detroit News
Democratic leaders ask Bush to help ailing automakers
David Shepardson / Detroit News Washington Bureau
WASHINGTON -- The top two congressional Democrats warned Saturday in a letter that Detroit's Big Three automakers were "at risk" unless the Bush Administration moved quickly to extend government financing.
House Speaker Nancy Pelosi, D-Calif., and Sen. Majority Harry Reid, D-Nev., also said in the letter to Treasury Secretary Henry Paulson that the government should get equity stake in the automakers in exchange for loans.
"The letter from Leader Reid and Speaker Pelosi is a very positive step," Sen. Carl Levin, D-Mich., said in a statement Saturday. "We in the Michigan delegation have recommended strongly that their suggestion ... is the preferred way forward."
.....More
Stupid Daily News---Political Roast----Lingerie Football Pics
Will George Bush Help The American Automakers?
The legacy of George W. Bush's Presidency may not be flattering at this point in time, but can President Bush show the American public he still cares?
The Democratic leaders are asking him for help now, the American auto industry is on the brink of collapse and can't wait until January 2009.
The Republican party needs to forget it's dismal 2008 election results and get back to the business of running this country.
Remember Congress breaks for winter in a couple of weeks! The clock is ticking!
The latest report from the Detroit News
Democratic leaders ask Bush to help ailing automakers
David Shepardson / Detroit News Washington Bureau
WASHINGTON -- The top two congressional Democrats warned Saturday in a letter that Detroit's Big Three automakers were "at risk" unless the Bush Administration moved quickly to extend government financing.
House Speaker Nancy Pelosi, D-Calif., and Sen. Majority Harry Reid, D-Nev., also said in the letter to Treasury Secretary Henry Paulson that the government should get equity stake in the automakers in exchange for loans.
"The letter from Leader Reid and Speaker Pelosi is a very positive step," Sen. Carl Levin, D-Mich., said in a statement Saturday. "We in the Michigan delegation have recommended strongly that their suggestion ... is the preferred way forward."
.....More
Stupid Daily News---Political Roast----Lingerie Football Pics
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