Washington to Detroit: let's see a plan

US lawmakers have begun talking to Wall Street financial experts to see if there are ways to speed Chapter 11 bankruptcy and recovery plans should this prove necessary to rescue struggling Detroit automakers.

US: That B-word arises in DC and Wall Street

3 December 2008

TALKING POINT: Should Congress approve a Big Three bailout?

3 December 2008

Should Congress approve a Big Three bailout? No, it’ll be painful, but the US automakers must be left to their fate instead of being bailed out by the US government, argues Mark Bursa. Yes, these are exceptional times requiring exceptional measures and the alternative could be very much worse, not just for Detroit but for the whole US economy, says Dave Leggett.

US: November sales fall 36.7%

3 December 2008

Optimistic suggestions US light vehicle sales might have bottomed out after October's 34.5% plunge were dispelled last night after November's data was in – a 36.7% dip to just 744,037 units versus 1,175,381 a year ago.

US: GM asks Congress for $12bn

3 December 2008

General Motors has asked Congress for term loans of up to $12bn to provide adequate liquidity levels through to 31 December 31, 2009 and has requested an “initial draw” of $4bn this month.

US: Chrysler needs $7bn by year's end

3 December 2008

Chrysler needs a $7bn secured working capital bridge loan by 31 December or it may run out of cash and be unable to operate beyond the first quarter of next year, the automaker said in its submission to the Senate Committee on Banking ahead of the congressional hearing in Washington starting tomorrow (4 December).

SWEDEN: Automaker eyes are on Saab - CEO

3 December 2008

Several as yet unnamed companies are interested in snapping up Saab if General Motors decides to sell.

US [updated 16:15GMT]: Ford bets the farm and sells the company jets

2 December 2008

A US$14bn investment in fuel saving technology, including electric commercial and passenger vehicles due out by 2011, should boost Ford's overall and North American automotive business pre-tax results to at least break-even in 2011, Ford said in a submission to the US Senate Banking Committee today, ahead of a second congressional hearing starting on Thursday.

US [updated 16:30GMT]: Crunch time: Speculation rife as Big Three ready for hearings

2 December 2008

Today is D-Day for the Detroit-based 'Big Three' as they submit their detailed restructuring plans to US lawmakers ahead of congressional hearings on Capitol Hill on Thursday and Friday into their requests for a US$25bn taxpayer-funded bailout.

US: Congressman says Detroit CEOs should go

2 December 2008

Detroit's Big Three automakers should quit rather than just making pay concessions in return for a US$25bn taxpayer loan, a senior US congressman has said.

US: Chrysler chief rallies port worker support

2 December 2008

Chrysler president and vice chairman Jim Press today (2 December) met Maryland Port Authority employees and state officials to discuss the scope of the auto industry and its local impact from an auto trade perspective.

US: Ford looks again at Volvo sale

1 December 2008

Ford on Monday said it would “re-evaluate strategic options for Volvo Car Corporation, including the possible sale”, confirming speculation over the last several months it would sell the Swedish brand.

US: GM 'could drop Saab'

28 November 2008

GM is reportedly considering dropping a number of brands, including Saab, as part of its plan to secure USD12bn in US government loans.

US: Detroit CEOs may leave the 'planes behind next time

25 November 2008

As PR gaffes go, it was a pretty large one. Top executives from GM, Ford and Chrysler did themselves no favours last week by going cap in hand to Washington for financial help - and arriving in private 'planes.

US: Obama emphasises need for Detroit plan

25 November 2008

President-elect Barack Obama has said the US auto industry is too vital to disappear, but he also emphasised his support for Congress' approach in asking Detroit for a plan and said that there could be no blank cheques.

Scrapping incentives?

25 November 2008

I guess there may well be some people in Detroit who will have to shorten their Thanksgiving break later this week. There's a need for a report on the way forward before any 'bridging loans' bailou...

US: Pelosi, Reid letter to US auto execs (full text)

24 November 2008

Speaker Nancy Pelosi and Senate Majority Leader Harry Reid have sent the following letter to the Big Three U.S. auto executives, calling on them to "submit a credible restructuring plan that results in a viable industry, with quality jobs, and economic opportunity for the 21st century while protecting taxpayer investments" by December 2nd.

US: GM board won't rule out bankruptcy

24 November 2008

While GM's Rick Wagoner has made clear his opposition to the company filing for Chapter 11 bankruptcy, members of the board may nevertheless feel that it is an option to be considered.

US: GM could face supplier cash calls

21 November 2008

Suppliers to GM may be seeking to tighten up on credit terms extended to their financially challenged customer.

US: Congress wants auto industry plan

21 November 2008

Congressional leaders have told the Detroit Big 3 to present a detailed 'path to viability' plan ahead of a US$25bn emergency federal loan.

US: Big 3 return to Detroit empty-handed

20 November 2008

After a second day in Washington DC to discuss Detroit's possible bailout amid financial crisis, the political deadlock remains. That news sent new shock waves through the financial markets as they weighed the possibility that Detroit's problems could worsen and pull the US economy down further in 2009.