Chrysler joins GM in suing auto hauler

A dispute between an auto hauler and the automakers whose cars and trucks it delivers spread Wednesday.Chrysler joins GM in suing auto hauler

GM, Chrysler may give managers bonuses of up to 50%

DETROIT, Feb 10 (Reuters) - Less than 1 percent of General Motors Co's salaried employees in the United States typically receive annual bonuses of up to 50 percent or more, the automaker said in a statement late on Thursday.

GM's comments come after a Bloomberg report that GM and Chrysler Group LLC could award managers bonuses of up to 50 percent of their salary. The report cited people familiar with the matter....More

The Ram Heavy Duty High Output Cummins Turbo Diesel out tows Ford and Chevy

Ram Heavy Duty Upgrades Deliver Class-Leading Torque and Towing
High Output Cummins Turbo Diesel now rated at 800 lb.-ft. of torque
Ram is only heavy-duty diesel pickup that doesn’t require Diesel Exhaust Fluid
22,700-lb. maximum trailer tow weight leads the segment
Gross Combined Weight Rating increased to 30,000 lbs.
Cummins-equipped Ram Trucks offer class-leading diesel exhaust brake...More

Ram Send GM back to The Drawing Board

After The 2010 Dodge Ram has won the Motor Trend Truck of The Year, GM goes back to the drawing board.

The new Dodge Ram out performs both GM and Ford Trucks, has better styling and an excellent interior.

Redesigned Chevrolet Silverado and GMC Sierra pickups will feature new exteriors and interiors, as well as better aerodynamics and fuel efficiency. Read more

Gov to shift its stakes in GM and Chrysler to independent trust

By Silla Brush - 09/09/09 The federal government should consider shifting its massive stakes in General Motors and Chrysler into an independent trust to provide better oversight and transparency, a government watchdog panel will report on Wednesday.

The government has supported the U.S. auto industry with more than $70 billion in bailout aid and has taken large stakes in both companies as they try to dramatically revamp their operations.---...More

Auto Task Force Bailout plan may be stricter than GM, Chrysler expected

By Sharon Silke Carty, USA TODAY
DETROIT — The Treasury Department will announce this week a preliminary plan to help General Motors and Chrysler that sets goals and deadlines that could be more ambitious than the companies themselves have proposed, according to a Capitol Hill staffer briefed on the plan but who wished to remain anonymous because the proposal is not yet public.
Treasury's preliminary plan also could include a bridge loan to Chrysler that's less than the $5 billion the automaker wants, the staffer said. Treasury says details still are being finalized.

A more structured version of the plan will be detailed in April, when additional loan money could become available to the two troubled companies.

The Bush administration in December set a deadline of March 31 for the automakers to prove they would be viable with the help of emergency government loans. But since then, the car market has hit the skids, and both GM and Chrysler have said they need even more money to survive.

GM and Chrysler are operating on a combined $17.4 billion in government loans approved by the Bush administration. The two automakers have asked the Obama administration for another $21.6 billion and say they need it soon.

The president's auto task force is demanding that the car companies get significant concessions first.

GM bondholders are balking at swapping two-thirds of their GM debt for stakes in the company.

Bondholders warned the government this weekend that if they can't strike a deal with the automaker, the car company might be forced into bankruptcy. A group representing bondholders says many are not willing to take stock in place of bonds because they don't believe GM will be survive long enough to make the shares valuable.

That would result in "dire consequences for the company, the tens of thousands of hard-working Americans that GM employs and the economy as a whole," bondholder advisers from investment firm Houlihan Lokey wrote.

And although the United Auto Workers, which represents U.S. hourly workers, has agreed to concessions, the Canadian Auto Workers union hasn't reached an agreement with Chrysler.

Chrysler says that if it cannot get nearly $16 an hour in wage and benefit concessions from the CAW, as well as a guarantee of $2.3 billion in loans from Canadian governments and a break on a tax dispute with Ottawa, it might have to pull out of Canada, the Associated Press reported Monday.

Canada's the source of Chrysler's U.S.-market minivans and line of big sedans that includes the Chrysler 300 and Dodge Charger.

Buy AutoTaskForce.Com----Domain Names

GM UAW News On Concessions

The latest news reported by Fox 2 Detroit:

GM will not ask the UAW for wages concessions.

Probably due to the fact that the last contract in 2007 included wages concessions. The new UAW assembly employees will earn around $14 dollars an hour.
Remember the new car czar will have to approve the companies plan. More than likely the czar will demand pay cuts.

The UAW Meltdown | The End Of The UAW

We are looking at the end of the UAW, they can no longer strike against the auto companies and that was their only strength.

As the UAW GM Concession talks begin, the future grows bleaker for UAW members. We now know that Ron Gettelfinger cut a deal, he agreed to never strike again to get the auto rescue loans for GM and Chrysler.

If the UAW strikes all the rescue loan must be paid back to the government. Which means any of the money that would be used for retirees and benefits (VEBA) would be at risk. The UAW is locked in for the ride.

If this was a condition set by George Bush or the Treasury, why did Ron Gettelfinger agree and didn't inform the Union members?

If the Government and auto companies are going to dictate what the wages and benefits are going to be, why does the auto worker have to pay a union?

The transplant auto companies are paying more pre hour and they have medical benefits, Why should the UAW worker make less than the southern workers and less benefits?

The Government will be in partial control of the auto companies and the UAW has no bargaining power.

Why would the new age auto worker want to be in the UAW if he or she is only making $14 an hour with no pension???

Good Luck UAW Members!
J.E.
GMCHRYSLERNEWS

Big 3 pension gap grows

Feds warn of risks in rising $41B shortfall
David Shepardson / Detroit News Washington Bureau
WASHINGTON -- The outgoing director of the U.S. Pension Benefit Guaranty Corp. warned Friday that Detroit's Big Three automakers face a $41 billion pension shortfall.

While the companies continue to meet government funding requirements, the situation raises concerns for the agency, which takes over pensions when companies fail, given the financial problems facing the struggling auto industry.

"We're not trying to tell people that the pension house is on fire," Charles E.F. Millard said in an interview. "The point is that in many ways this has a similar look to other situations, such as a Bethlehem Steel."

The pension corporation assumed the pensions of 95,000 people at Bethlehem Steel in 2002, when the company filed for bankruptcy, and ended up on the hook for $3.7 billion in pension costs. That plan was underfunded by $4.2 billion.

Millard said policymakers need "a clear understanding of the magnitude of the numbers and the risks" associated with the automakers.

In total, the Big Three pensions cover nearly 1.3 million people. If all three automakers were to collapse and turn their plans over to the pension corporation, the agency estimates it would pay out $13 billion of the $41 billion, because of limits set by Congress on how much the pension corporation can cover. The agency generally has a yearly cap of $54,000 in benefits for people who are 65.

A $13 billion payout would more than double the agency's $11 billion deficit.

"It is certainly possible that none of these companies ever files for bankruptcy," Millard said. "It is certainly possible that they all do." He said the risk to the agency "is significantly greater than it was six or seven months ago."

As of Nov. 30, the pension plans for hourly and salaried workers at General Motors Corp. had a combined deficit of $20 billion and Ford Motor Co. had an $11.7 billion deficit, according to Millard; Chrysler LLC had a $9.3 billion deficit as of Jan. 1. ...More

The UAW Can No Longer Strike! If So All Bailout Money is to be returned.

GM, Chrysler's federal loan deals bar strikes

DETROIT – Provisions of General Motors' and Chrysler's $17.4 billion in federal loans automatically places them in default if union workers go on strike.

A General Motors Corp. filing this week with the Securities and Exchange Commission detailed the provision as part of its $13.4 billion in federal loans.

A person briefed on Chrysler LLC's $4 billion loan, who didn't want to be identified because the company is in talks with the United Auto Workers union about concessions, confirmed Thursday that the Chrysler deal also has a similar provision.

The UAW isn't a party to the deal and hasn't threatened a strike, its most potent weapon against the Detroit automakers.

The UAW and the automakers have a Feb. 17 deadline to agree to concessions to lower labor costs.

GM News:GM says China '08 sales up 6 pct but growth slows

BEIJING – General Motors Corp. said Tuesday its sales in China rose 6 percent to 1.09 million vehicles in 2008, but growth slowed as consumers held back amid an economic downturn.

GM is looking to China's booming auto market to drive global sales growth as demand in North America and other developed markets slump. In 2007, the Detroit-based automaker's China sales, including joint ventures, rose 19 percent.

"A series of natural disasters and an increase in fuel prices earlier in the year exacerbated the impact of the global economic downturn in China," Kevin Wale, president of GM China, said in a statement.

GM is one of China's top automakers along with Germany's Volkswagen AG. Global producers have raced to open factories and tailor models for China, which has grown into the world's second-biggest vehicle market after the United States.

GM has been aggressive in China, setting up eight joint ventures, a vehicle development center in Shanghai and an alternative fuel research lab. Robert Socia, vice president of Shanghai GM, its passenger car joint venture, said in November the Chinese market is "very, very important to us."

The largest American carmaker says its new Cadillac CTS sedan was designed for China, with a bigger back seat because many buyers have chauffeurs. The company says it is working on five new models for China to be sold under its Buick and Chevrolet brands.

In its home U.S. market, GM sales of cars and light trucks fell 31 percent in December from the year earlier. Last month, Washington agreed to provide $17.4 billion in emergency, short-term loans for GM and fellow U.S. carmaker Chrysler LLC to help them survive the downturn.

China's auto sales, which grew in recent years at double-digit rates, have weakened as economic growth slowed. In November, sales of cars and light trucks plunged 13 percent from a year earlier, according to J.D. Power & Associates.

Analysts say China's total auto sales growth last year should be about 8 percent, down from 22 percent in 2007. GM says its expects passenger car sales to recover to about 10 percent growth in 2009.

Sales for GM's Chevrolet brand rose 15.7 percent in 2008, the company said.

Sales of the Wuling brand, made by SAIC-GM-Wuling, a three-way partnership with Shanghai Automotive Industries Corp. and Wuling Automobile Corp., rose 17.4 percent.

The Wuling Sunshine minivan was China's top-selling passenger vehicle in 2008, with 408,774 units sold. The company's top-selling passenger car was the Buick Excelle, with 175,417 units sold.

Shanghai GM sales were down in 2008 due to limited new model introductions. The company said it plans to renew its portfolio with two new Buicks, the Regal and Enclave, and the Chevrolet Cruze.

Ford Motor Co. says it will release 2008 China sales on Friday. Volkswagen data also are due out shortly.

China's young but ambitious domestic automakers also have seen the economic downturn erode strong sales growth.

Sales for Chery Automobile Co., the country's biggest domestic producer, were down 9 percent and those for No. 2 Geely Group Ltd. were flat in the 11 months through the end of November, according to J.D. Power.On the Net: General Motors Corp

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?

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

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

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

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."