Free Republic

We’ve been here before. The government mandates more fuel-efficient vehicles across the board, yet the American public continues to gravitate toward what’s big and powerful. Barring this era of greater responsibility and restraint, which might pass like a fleeting fancy with the recession, why not pick the bigger or more powerful car, we say? A lot of things are different this time around, though. Perhaps most remarkably, quite a few executives of automakers and major auto-supplier companies are voicing out in favor of higher fuel taxes—of more rigorous regulation of what types of vehicles can be built and sold—as a...

DETROIT -- Chrysler Group will launch Fiat-designed diesel engines and dual-clutch transmissions in its North American products, Chrysler said today. The company also will launch its new Pentastar V-6 engine on the 2011 Jeep Grand Cherokee in the second quarter of 2010, said Paolo Ferrero, Chrysler powertrain chief. The Pentastar will replace all Chrysler’s V-6 engines, from 2.7-liter to 4.0-liter displacement. The first dual-clutch transmission will appear on a D-segment vehicle at the end of 2010. Also about that time, Chrysler will launch stop-start technology on the Jeep Wrangler. Chrysler did not immediately specify when it would introduce Fiat-derived diesel...

China to launch case against U.S. Big Three automakers Doug Palmer Thu, Oct 29 08:37 AM China has told the United States it is launching a trade investigation that could lead to new import duties on autos and sports utility vehicles made by Chrysler, Ford and General Motors, a U.S. industry official said on Wednesday. The action comes as U.S. Commerce Secretary Gary Locke, Trade Representative Ron Kirk and Agriculture Secretary Tom Vilsack are in China for high-level talks aimed at resolving trade irritants between the two countries. President Barack Obama, who will visit China in mid-November, angered Beijing last...

Obama lifts accountability and transparency rules for Unions as he cuts CEO pay of bailout firms!Remember the shock this week when Obama's pay czar announced up to a 90% cut in the salaries of executives at firms which took federal bailout help? The thinking is that those firms, which include Chrysler and General Motors took government help and will live by government rules. Fair enough perhaps but what about the Auto Unions? They got a huge handout in both GM and Chrylser bailouts. The Auto workers union will end up owning Chrysler. Yet, in a move which got no publicity...

Rattner defends rescue of automakers, says some money is gone But ex-official believes most of GM investment can be recouped By Peter Whoriskey Washington Post Staff Writer Thursday, October 22, 2009 The U.S. government's stake in General Motors is currently worth about $25 billion, or about half the amount it poured into the ailing automaker, the former chief of the Obama administration's task force on the auto industry said Wednesday. But in his most extensive remarks since leaving the post in July, Steven Rattner defended the Obama administration's decision to rescue U.S. automakers. Rattner said there's "a good chance" the...

Shockingly poor financial management at General Motors and Chrysler weakened their case for a federal bailout, but officials feared letting them collapse, the former head of a government auto task force said Wednesday. In a first-person account posted on Fortune magazine's Web site and in a Brookings Institution speech, Steven Rattner said he was alarmed by the "stunningly poor management" at the Detroit companies and said GM had "perhaps the weakest finance operation any of us had ever seen in a major company." GM's board of directors was "utterly docile in the face of mounting evidence of a looming disaster"...

PDATED (October 2, 2009): Volkswagen has now officially released details on the 2010 Golf TDI. The new model is rated at 30/41 mpg (city/hwy) for the manual transmission and 32/42 mpg with VW’s advanced DSG automatic transmission. The car is priced from $21,990. Noticeably absent from the North American market since 2006, the Volkswagen Golf TDI will return for 2010. The new model was showcased today at the New York Auto Show, along with the high performance GTI (see our review here). There weren’t any standard Golfs on the floor, but we do have info on that model too....

Link only due to copyright............. http://www.wired.com/autopia/2009/10/biodiesel-hybrid-bu/

Internet hot spots are already available in some models of Chrysler, Jeep and Dodge, the Volkswagen Routan and Cadillac CTS vehicles as a dealer option. Autonet Mobile, maker of a Wi-Fi hot spot for the car, has created an OEM developer kit to allow its “hotA” spot to be embedded in new cars. According to Reed Business Informaton’s Twice Magazine, the Autonet hot spot produces an EV-DO cellular connection that is then converted to Wi-Fi, allowing anyone in your car access to the internet on a number of devices. Users in a car can watch YouTube, check Facebook and listen...

The verdict is finally in on the “cash for clunkers” program, and I doubt that any rational person will applaud. I know you will find this hard to believe, but, it appears that new car sales weren’t “stimulated” at all, they were just moved from one time period to another.

DETROIT -- Chrysler Group LLC will suspend production of its popular Jeep Wrangler and Wrangler Unlimited vehicles due to a shortage in parts from an unidentified supplier. Chrysler will idle its Toledo Supplier Park facility in Ohio for one week starting Monday, the company said Friday without disclosing more details. The Wrangler has been one of Chrysler's best-performing vehicles in terms of sales for the year. This is the second time Chrysler has changed its production schedule because of a parts issue. The auto maker also delayed adding a second shift to an Illinois plant by more than a month...

DETROIT – In a stunning shake-up, Chrysler Group LLC appointed new chief executives for its Chrysler and Dodge brands as the heads of each line resigned. Peter Fong, chief of the Chrysler brand, resigned for personal reasons and Michael Accavitti, head of the Dodge brand, left for personal reasons, the Auburn Hills, Mich., auto maker said Monday. Mr. Fong will be succeeded by Fiat SpA veteran Olivier Francois. The changes mean the introduction of another Fiat executive into the Chrysler ranks. Mr. Francois serves as head of the Lancia brand for Fiat Group Automobiles, a position he will retain. He...

Some significant items worth sharing in the automotive field today: Roger Penske has backed out of a deal to buy Saturn from GM at the last moment. Penske was unable to finalize a deal with Renault to sell vehicles produced at Renault factories in the coming years (GM had agreed to keep producing Saturns for Penske for the first few years). GM had said the Penske deal would save 13000 jobs. There is no indication of a backup plan now for Saturn, it sounds like it will be dead in about a year. In other news, the head of the...

It seems Al Gore's ambitions are limitless. After inventing the Internet, saving the planet from global warming, receiving a Nobel Peace Prize and an Academy Award, he now has ventured into green transportation. "Honest Al" has secured $529 million in taxpayer money for Fisker Automotive, a small car company he is backing to build a hybrid sports car. The price tag? Only a mere $89,000. That's not exactly affordable to the average American. Al knows that only the wealthy can afford to go green when it comes to cars. Judging by the early release photos it will be a sharp...

This week, Ford Motors announced that India would be a global manufacturing hub for its new small car, the Figo. This underlines a remarkable new development. India has overtaken China as a car exporter this year, exporting 201,138 cars in January-July against China’s 164,800. What’s more, Indian exports in this period went up 18%, while China’s fell by 60%. ............. What accounts for India’s success? Visionary planning? Long-term strategy? No, India’s triumph was completely unplanned. No planning document ever envisioned or planned for beating China. Analysts say China has become a great auto exporter because of huge subsidies, an undervalued...

Obama is still slow with his Cash for Clunkers reimbursements, but as soon as the vouchers are paid off, the 700,000 mostly top-quality used cars that were turned in will be destroyed, decimating America’s once best-in-the-world used car market. Do people know that most 2009 models qualified for vouchers? Democrats define “clunkers” the way Islam defines those in need of subjugation. If it is not a “green” vehicle then it is by definition a “clunker” whose demise is not to be mourned, but is to be paid for and celebrated. (Check here whether Democrats would pay for the destruction of...

Taxpayers face losses on a significant portion of the $81 billion in government aid provided to the auto industry, an oversight panel said in a report to be released Wednesday. The Congressional Oversight Panel did not provide an estimate of the projected loss in its latest monthly report on the $700 billion Troubled Asset Relief Program. But it said most of the $23 billion initially provided to General Motors Corp. and Chrysler LLC late last year is unlikely to be repaid. "I think they drove a very hard bargain," said Elizabeth Warren, the panel's chairwoman and a law professor at...

The prospect of recovering the government's assistance to GM and Chrysler is heavily dependent on shares of the two companies rising to unprecedented levels, the report said. The government owns 10 percent of Chrysler and 61 percent of GM. The shares "will have to appreciate sharply" for taxpayers to get their money back, the report said. Treasury Department officials have acknowledged that most of the $23 billion provided by the Bush administration is likely to be lost. But Meg Reilly, a department spokeswoman, said there is a "reasonably high probability of the return of most or all of the government...

The Obama administration's auto czar on Tuesday said political interference by Congress could jeopardize the bailouts of General Motors and Chrysler.

Auto dealers are already starting to see consumer interest drop off now that clunkers is over. Watch video: http://www.cardealerreviews.org/?p=117185

This video should be shown to every teenager in this country...and anyone else who ever has an inclination or temptation to "text" while driving. Be forewarned, though a depiction, the video if fairly graphic in terms of injury. PSA Texting while Driving, U.K., August 2009 Please spread this one around. Consider showing it in schools and churches.

WASHINGTON (AP) -- The Toyota Corolla remained the top-selling vehicle under the Cash for Clunkers program, according to data released Friday by the government. Asian automakers also continued to increase their share of sales under the government incentive program that offers car buyers rebates on new vehicle purchases of $3,500 or $4,500 in return for turning in older, less fuel efficient vehicles. Toyota vehicles accounted for 19.2 percent of the 489,269 sales recorded through Friday morning, while General Motors had the second spot at 17.7 percent.

WASHINGTON (Reuters) - President Barack Obama said on Wednesday that General Motors Co GM.UL and Chrysler Group were companies worth saving, but he expects both to repay their government loans. In a speech on the economy, Obama defended the decision for the government to extend GM and Chrysler roughly $64 billion in direct aid and facilitate their bankruptcies this spring. "If GM and Chrysler were willing to do what was necessary to make themselves competitive and if taxpayers were repaid every dime they put on the line, it was a process worth supporting," Obama said in Raleigh, North Carolina. "We...

The CARS program, otherwise known as “Cash for Clunkers” program, which pays consumers to junk old cars and buy new ones kicked off Monday to cheers and jeers from auto companies, dealers, environmentalists and consumers. Edmunds.com, which is benefitting from all the extra site traffic generated by CARS nonetheless issued a report Monday saying that each car bought under the progream would actually cost the U.S. tax-payer $20,000 per vehicle sold, not the $3.500-$4,500 actually paid out. Edmunds figures that CARS will only help drive about 50,000 incremental new car sales. How is this possible? Edmunds.com’s research shows that typically...

General Motors reduced its lobbying spending in the second quarter by only 1.4% compared to the first quarter, even though the second quarter saw the company go bankrupt, be taken over by the government, and announce it was cancelling its outside lobbying contracts. In April, May, and June, GM spent $2,760,000 on lobbying according to its Q2 lobbying filing, compared to $2,800,000 in the first quarter.

WASHINGTON - A spending bill passed by the U.S. House would force General Motors and Chrysler to restore franchise agreements with approximately 3,000 dealerships. Dealers across the country were cut loose as part of restructuring plans approved by bankruptcy courts. Meanwhile, the House Financial Services committee is seeking documents from the Obama administration on the "bailouts of General Motors and Chrysler.” Lawmakers have questions about how the President's auto task force reached its decisions to send the auto companies into bankruptcy.

WASHINGTON — A House committee asked the Obama administration Friday to release documents on the federal bailouts of General Motors Co. and Chrysler Group LLC, seeking more details on decisions that led to the auto industry bankruptcies. The request to the White House, approved by the House Financial Services Committee on a voice vote, seeks information about the work of the Obama administration's auto task force, the billions in federal aid to GM and Chrysler and reductions in benefits to Delphi Corp. workers and retirees. Committee chairman Barney Frank, D-Mass., said the resolution "does suffer from a certain selective memory...

The White House on Wednesday slammed legislation in the U.S. House of Representatives that would try to help Chrysler and General Motors dealerships facing closure stay in business. The House is expected to vote this week on a must-pass annual spending bill that includes a provision aimed at restoring the rights of the hundreds of dealerships affected by the two U.S. automakers' historic bankruptcies. The White House criticized the provision as setting a "dangerous precedent, potentially raising legal concerns, to intervene into a closed judicial bankruptcy proceeding on behalf of one particular group at this point." However, the White House...

As part of the GM (Government Motors) bankruptcy fallout, Democrats and Obama admin are now on a collision course between conflicting ideals. One would be their devotion to unions, combined with their love of regulation for US industries, driving many to the point of non-competitive status. The second is their now, first hand reality check that "outsourcing" and the ensuing US job loss may be an ugly necessity for business survival. Unlike community organizing, there's nothing like owning a car manufacturer that drives home basic business common sense, eh? One of the darlings of the Dems, Montana Governor Brian Schweitzer,...

By Joe Mcdonald, AP Business Writer BEIJING (AP) -- China surpassed the United States as the world's biggest auto market for the first half of 2009 after June sales soared 36.5 percent from a year earlier, according to data reported Thursday. Total sales for the first half of the year rose to 6.1 million, up 17.7 percent from a year earlier, the industry group said. That outpaced the United States, where passenger car sales in the same period plunged to 4.8 million amid an economic slump.

<p>ORION TOWNSHIP, Mich. -- Michigan has snatched back a few of its fast-disappearing auto jobs, winning a high-stakes competition with two other states to build General Motors Corp.'s next-generation subcompact car.</p> <p>The news is a bright spot in an otherwise gloomy Michigan economy that has seen unemployment hit a nation-leading 14.1 percent, lots of housing foreclosures, unpaid furlough days for state workers and uncertainty for thousands of others worried about whether they'll still be getting a paycheck in the months ahead.</p>

President Barack Obama is creating a White House council to handle issues that affect American communities and workers tied to the automotive industry. The White House says Obama will sign an executive order Tuesday to establish the White House Council on Automotive Communities and Workers. The council will be chaired by the president's economic adviser, Larry Summers, and his labor secretary, Hilda Solis.

The latest JD Power new vehicle survey, the Miss America pageant of the auto industry, showed the quality of US cars closing the gap with Japanese models to the point where the difference is nearly meaningless. This accomplishment comes as the fall of Detroit is nearly over and foreign car companies are likely to build more vehicles per year in the US than domestic companies for the first time in history. Toyota (TM) kept its crown as the car brand with the fewest defects. Lexus, the company’s luxury division, had only 84 problems per 100 vehicles, the survey of 80,000...

(WXYZ) - Workers in Michigan are again feeling the stinging effects of the struggling economy. According to Department of Energy, Labor & Economic Growth, Michigan's unemployment rate continues to worsen. The unemployment rate jumped from 12.9 percent in April to 14.1 percent in May. “Major events continued to unfold in Michigan’s auto industry in May, which had a considerable impact on the state’s unemployment rate,” said Rick Waclawek, director of DELEG’s Bureau of Labor Market Information and Strategic Initiatives. “Curtailed production negatively influenced suppliers and other related sectors, resulting in further weakening in the labor market. Michigan’s jobless rate in...

American Axle sues steel maker to resume shipments NEW YORK (AP) -- Auto parts supplier American Axle & Manufacturing Holdings Inc. is seeking a court order to get one of its steel suppliers to resume deliveries, saying that cutting off supplies threatens the entire auto supply chain. ... In its request filed earlier this month, American Axle alleged that Republic wrongfully backed out of a four-year contract to supply custom-made steel. According to court documents, Republic sought from American Axle a "binding schedule" for deliveries, citing the parts maker's weak financial condition.

NASHVILLE, Tenn. -- Gov. Phil Bredesen is expressing doubt that Tennessee can afford the financial demands from General Motors to select its Spring Hill plant to build a new small car. The Democratic governor said Thursday that it became clear in meetings with GM officials this week that the automaker wants a large cash payment from Tennessee to pick Spring Hill. The other sites competing for the work are in Orion, Mich., and Janesville, Wis. Tennessee's incentive packages are usually tilted toward long-term tax incentives, training and infrastructure improvements. Bredesen says the state doesn't have "a lot of spare money...

Rep. Thaddeus McCotter, a Republican Congressman from Michigan speaks of Government involvement in further bankrupting the auto industry, the lack of jobs created in Michigan by the stimulus bill, inappropriate growth of Government jobs, etc. Visit our website to view the video. http://washingtonnewsobserver.com/?p=91

...."For the United States government to step in, the executive office of the United States government, who under the Constitution is charged with enforcing the laws to step in and try to in effect break the laws, I think we should all be concerned about that," he said. "That is a constitutional issue."....

Andy McCarthy demolished White House Official Austin Goolsbee's interview this morning: I caught a panel on which Obama economic advisor Austin Goolsbee conceded that the administration had previously predicted unemployment would top out at around 8%, that it was now up to 9.4%, and that double-digit unemployment was a distinct possibility in the near future. Goolsbee didn't resort to the administrations's blather about "saving or creating jobs," but he did repeat its fustian about how last month's loss of 345,000 jobs (resulting in a half percentage point jump in the jobless rate) is somehow good news because it beat predictions...

One of my favorite books is Fools Rush In about the AOL/Time Warner merger. That was supposed to be a media/internet company that would redefine both industries. Instead, it turned into a debacle that derailed the careers of everyone involved. It ruined two giants in two different industries. Ultimately, it cost billions for shareholders and employees.

Grants for extended unemployment benefits, money to hire police officers, enlarged credit lines for small business, federal dollars to research clean diesel engines: These were some of the consolation prizes that Obama administration officials offered this week as they swarmed across Midwestern communities rocked by Monday's General Motors bankruptcy. All are worthwhile interventions. But they don't compose a convincing strategy for stabilizing, much less reviving, the fraying auto belt. Without more-ambitious thinking, the communities across the Midwest that rose with the auto industry in the 20th century will continue to fall with it in the 21st. The GM bankruptcy, following...

WJR and the Detroit Newspapers that we cannot post, are reporting a deal is close for Roger Penske to buy Saturn from GM.

It might be a bad day for GM but it’s a much worse one for Toyota. Really. The days (decades, really) of weak domestic manufacturers shooting themselves in the foot with bad design, poor assembly, and non-existent customer satisfaction in passenger cars are coming to an end. Toyota didn’t have to outrun the bear, it just had to stay ahead of GM, Ford, and Chrysler. Years of producing huge profits in North America hit the wall for Toyota in 2009, and they’re likely not to return. Ever. The game has now changed—and it’s not good for Toyota. Thanks to US...

Republicans call for investigation into political favoritism in auto restructuringBy: Susan Ferrechio Chief Congressional Correspondent 06/03/09 5:08 PM EDT Two top House Republicans are calling for an investigation into the Obama administration's handling of the way Chrysler and General Motors filed for bankruptcy. Reps. Jeb Hensarling, R-Texas and Spence Bachus, R-Ala., say some stakeholders were given preferential treatment by Obama's Auto Task Force in the restructuring of the two auto giants and they want the House Financial Services Committee to hold oversight hearings. Spencer is the top Republican on the panel and Hensarling is the ranking member on one of...

NEW DELHI -- The Indian unit of General Motors Corp. said Monday it isn't included in a Chapter 11 bankruptcy protection filed by its U.S. parent and will continue its operations normally. GM India will proceed with plans to introduce three new cars this year, including a minicar, and has no intention of cutting staff or stopping its expansion plans, the automaker said in a statement. "GM India operations are not included in the U.S. filing for Chapter 11. Consequently, all GM India dealers, warranty and customer support services will remain unaffected and continue to function as normal," General Motors...

Top-20 selling vehicles in U.S. through May ... RANK VEHICLE 2009 2008 '08 RANK % Chng 1 Ford F-Series P/U 143,717 235,924 1 -39.1 2 Chevy Silverado-C/K P/U 125,183 197,030 2 -36.5 3 Toyota Camry 123,848 198,309 3 -37.5 4 Honda Accord 107,088 166,158 6 -35.6 5 Toyota Corolla 101,708 152,308 4 -33.2 6 Honda Civic 97,505 164,994 8 -40.9 7 Nissan Altima 80,078 133,465 9 -40.0 8 Dodge Ram P/U 80,038 112,795 5 -29.0 9 Ford Fusion 66,585 73,197 20 -9.0 10 Honda CR-V 65,197 89,017 11 -26.8 11 Chevrolet Malibu 64,363 74,925 26 -14.1 12 Chevrolet Impala 63,756...

NEW YORK (Reuters) - General Motors Corp's bankruptcy will forever be tied to one dealership in an often-ignored neighborhood due to the quirks of U.S. bankruptcy law. Before GM filed its historic bankruptcy on Monday, Chevrolet-Saturn of Harlem made its own Chapter 11 filing. The dealership's move gave the automaker legal access to its preferred bankruptcy court in Manhattan. Normally a Detroit-based company such as GM would file in Michigan or Delaware, where it is incorporated. The only way for it to file in New York would be through a subsidiary that did most of its business in New York...

If you've ever seen Chip Foose at work, it's hard not to admire the guy. He's got more natural talent in his pinky finger than most of us car guys can dream of, and each of the vehicles he builds ends up being a work of art. He recently got his hands on a brand new 2010 Ford Mustang GT, which was Foosified on an episode of Spike TV's MuscleCar. The best part? You can enter to win the car on PowerBlockTV.com. This customized pony car features an Edelbrock supercharger system, Roush body kit, Magnaflow exhaust, Foose wheels and Pirelli...

There are some startling statistics starting to come out from the Chrysler dealership closures - like that Republican dealers are 10 times more likely to be closed than Democrat dealers...

Much has been written about the Insight, Honda’s new low-priced hybrid… So far, though, you have not been told what it’s like as a car; as a tool for moving you, your friends and your things from place to place. So here goes. It’s terrible. Possibly the worst new car money can buy. It’s the first car I’ve ever considered crashing into a tree, on purpose, so I didn’t have to drive it anymore. Jeremy Clarkson The Sunday Times, May 17, 2009