Chrysler News

Filed under: Government/Legal, Hirings/Firings/Layoffs, Chrysler, LLC., Ford, GM

If there’s anyone out there who’s qualified to opine on what it takes to turn around a struggling automaker, it’s Lee Iacocca. Those old enough to remember life in the late ’70s can recall Iacocca’s first stint at the head of Chrysler, way before the automaker was ever purchased by Daimler and its subsequent sale to Cerberus. The situation in which the beleaguered automakers currently find themselves bears a striking similarity to that of Chrysler’s in 1979, except that Chrysler was the only one of the Big 3 that needed Federal help back then and the total loan offered to Chrysler was just $1.5 billion.

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Filed under: China, Chrysler, LLC., Dodge, Chery

Well, crap. For all of us who were eagerly awaiting the arrival of the Chinese-built Dodge Demon or the Chinese-built Dodge Hornet or the Chrysler-badged, Chinese-built Chery A1, fugetaboutit. It’s officially not happening.

Mike Manley, Chrysler’s executive vice president of international sales and marketing, tells The Detroit News that talks between the two companies have officially ended. Manley cites economic troubles in both the U.S. and China as the main reason the two have decided to go their separate ways. While Chrysler CEO Robert Nardelli is in D.C. begging for government money, Chery has its own problems in China.

Then again, who knows what might happen after the whole bailout saga has ended? With a cash infusion, Chrysler could restart its partnership with Chery. Or, denied a government loan, Chrysler could find itself bought by the Chinese company.

[Source: The Detroit News]

Chrysler and Chery quit talking about small car originally appeared on Autoblog on Tue, 09 Dec 2008 12:57:00 EST. Please see our terms for use of feeds.

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Filed under: Government/Legal, Chrysler, LLC., Ford, GM

Congress will likely vote this week in favor of giving Detroit automakers at least $15 billion in federal loans, but that healthy chunk of change will come with many strings attached. Several Congressmen have insisted that more concessions come from the UAW, lenders and executives before a cent is sent to Detroit. Another stipulation is a special “Car Czar” to watch over the money and make sure it is being spent wisely. Several congressional officials have mentioned September 11 fund master Kenneth Feinberg as a candidate to keep the automakers in line. Feinberg, who is also an accomplished lawyer, oversaw over $500 million in donations following the September 11 terrorist attacks in 2001. A key element of being “Car Czar” would be wielding the authority to take all the funding back if he determines it’s been used improperly.

[Source: The Detroit News]

Federal “Car Czar” could be 9/11 fund organizer originally appeared on Autoblog on Tue, 09 Dec 2008 09:02:00 EST. Please see our terms for use of feeds.

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The House of Representatives and the Senate will discuss and likely vote on the Automaker Bailout Bill (we know, it’s not technically a bailout, but rather loans that will be paid back) tomorrow, and the first discussion draft of the bill has hit the internet. The discussion bill is 31 pages long, and like you we’re not about to spend our Monday evening reading through the whole thing. Thankfully, some real auto journalists over at The Detroit Free Press have done that for us.

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The choices are: spend $15 billion in bridge loans now to keep the Detroit Two (GM and Chrysler, since Ford can apparently hold its own) from going bankrupt, or spend $70 billion over the next two years to pay for the fallout from the Detroit Two going bankrupt.

Those are the numbers according to the Anderson Economic Group and BKK, which get to their $70 million number based on 1.8 million job losses and evaporating federal and state tax revenue. And that number still doesn’t include things like the jolts to credit markets, consumer confidence and manufacturing and supplier bases, among other nuclear scenarios. The question now is: how are the two (or three) automakers going to divvy up the $15 billion and just how many strings will Congress attach?

Highlights of Chrysler LLC Plan Submitted Today to the Senate Committee on Banking, Housing and Urban Affairs and the House Committee on Financial Services

• Chairman and CEO Robert Nardelli looks forward to testifying before the committees later this week
• Chrysler will urge the immediate adoption of legislation that will allow domestic automakers to weather the current national economic crisis and continue to invest in industry-leading products, technologies and vehicles of the future

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