GM's top electric car exec quits

Bob Kruse, who recently led a critical Chevrolet Volt team and devised the automaker's long-term electric vehicle strategy, has resigned months before the vehicle's debut, The Detroit News has learned.---...More

read more...

Toyota to Issue Largest-Ever Recall - Killer floor mats

USA - Toyota says it will recall 3.8 million vehicles in the United States to address problems with a removable floor mat that could interfere with the vehicle?s accelerator and cause a crash. The company says it will be the largest recall in its history. Owners could learn about the safety campaign as early as next week. Toyota and the government warned owners of Toyota and Lexus vehicles about safety problems tied to the removable floor mats. They say the mats could interfere with the vehicle?s accelerator and cause a crash.---...More

read more...

GM's return policy may not be worth the hassle

You fell in love with that $22,000 Chevy Malibu because of its color, style and price. After driving it home, you realize it's not what you wanted. Maybe it's the way it handles on the highway, the location of the cup holders or the shape of the seats.--...More

read more...

Chrysler to ship 400 Ohio jobs to Michigan

Workers headed to metro Detroit plants
Chrysler Group LLC plans to offer about 400 jobs in metro Detroit to workers from its Twinsburg, Ohio, stamping plant, while the automaker prepares to freshen its slow-selling midsize sedans -- a move that could temporarily extend jobs of about 1,300 workers at the Sterling Heights assembly plant.
Twinsburg, one of eight U.S. factories not included in the government-backed sale to the new Fiat-controlled Chrysler, makes doors, roofs and hoods for the Chrysler Town & Country and Dodge Caravan minivans. It is to close by the end of this year, but most of the plant's hourly employees will be able to transfer to the metro Detroit plants, where the work is to be consolidated.---...More

read more...

Chrysler group mulls how to make most of Fiat's technology

Chrysler group mulls how to make most of Fiat's technology

Alisa Priddle / The Detroit News

The Chrysler Group LLC board met in Auburn Hills on Friday to figure out how best to use Fiat engineering and technology to make future products such as midsize sedans -- and where.

The nine-member board is to provide a report to the U.S. auto task force next week.

A person familiar with the board's agenda said it included addressing the struggling sales of Chrysler's midsize sedans -- a key segment because of its volume -- and the development of replacement vehicles that will be built from Fiat engineering and components. The midsize Chrysler Sebring and Dodge Avenger, combined, have been outsold by almost 200,000 Toyota Camrys so far this year.--More

read more...

Chrysler refines product, business plan

Alisa Priddle / The Detroit News

The board of Chrysler Group LLC will meet in Auburn Hills today to go over details of the five-year product and business plan that will be presented to the U.S. government next week and made public in mid-November.

It is a plan that has had Chrysler employees at all levels working long days and weekends to refine since the new Chrysler Group was formed June 10 in partnership with Fiat SpA. The automaker has kept most of the strategy secret as the new management team under Chief Executive Sergio Marchionne has worked to identify areas where Chrysler and Fiat engineering and technologies can be shared. Chrysler is counting on its minivans, Dodge Ram pickups, Jeep lineup and the Dodge Journey cross utility vehicle as the foundation of sales in North America while increasing sales internationally with Fiat's help.

New vehicles include the small Fiat 500 for North America at the end of next year and new versions of the Jeep Grand Cherokee and Chrysler 300.....More

read more...

Chrysler prepares to rehire some employees

After 35,000 job cuts in the past two years and a bankruptcy that shifted control to Italy's Fiat SpA, Chrysler Group is preparing to rehire an unspecified number of salaried workers and ask current workers to put in overtime to get new models to market by mid-2011, according to people familiar with the company's plans.
Chrysler and Fiat Chief Executive Officer Sergio Marchionne is to present a five-year plan to the company's board of directors Friday. If the board approves, he will submit the plan to President Barack Obama's auto task force next week, said company insiders....More

read more...

GM rehiring 2,400 workers as production ramps up

General Motors Co. is rehiring 2,400 workers at three plants that are boosting production and absorbing work lost in an unprecedented round of closings announced before the automaker's bankruptcy filing....More

read more...

Chrysler exec Jim Press owes IRS, credit union more than $1.4M

Deputy Chief Executive Jim Press owns more than $18 million worth of real estate in some of the country's priciest ZIP codes, but he has financial problems more commonly found on the factory floor, not the boardroom.---More

read more...

GM dealers clamor for more vehicles

In an internal report, obtained by The Detroit News, General Motors Co. officials were surprised to find dealers wanted far greater numbers than the company had projected.---...More

read more...

American Axle deal reached

Detroit-based American Axle & Manufacturing Holdings Inc. has avoided bankruptcy with a new agreement with its lenders and a cash infusion from its largest customer, General Motors Co.---...More

read more...

Dealers indicate Penske close to buying Saturn

Saturn dealers nationwide have received new sales and service agreements from Roger Penske, a sign the auto icon is close to finalizing a deal for the castoff General Motors Co. brand.--...More

read more...

Automakers can top fuel rules, energy chief says

Washington -- U.S. Energy Secretary Steven Chu said Thursday automakers are capable of going beyond the 34.1 miles per gallon fleetwide fuel efficiency standards proposed by the Obama administration for the 2016 model year.---...More

read more...

Ford F150 Uses Tires Made In China-Tire tariff jolts Ford supplier

Tire tariff jolts Ford supplier

Korean firm with factories in China weighs options to keep outfitting F-series trucks
Bryce G. Hoffman / The Detroit News

Few things scream "American" louder than Ford Motor Co.'s F-series pickup, but some models of the best-selling vehicle in the United States sport tires made in China.

And that means Chinese tire makers are not the only ones scrambling in the wake of President Barack Obama's new tariffs.

Hankook Tire supplies the base tires for the Ford F-150. It is not a Chinese company, but a Korean manufacturer with factories in China.

That still means that tires produced at those facilities, including those for the F-150, will be subject to the 35 percent tariff that goes into effect on Sept 26....More

read more...

Chrysler to start leasing; dealers await sales boost

The Chrysler Group said Wednesday that it will start leasing again, a move that dealers hailed as holding the potential to improve sales.
Through August, Chrysler's U.S. sales are down 39% compared with a year ago. At the Frankfurt auto show Wednesday, Fiat and Chrysler CEO Sergio Marchionne warned of a further decline. "We are going to see harsh reality in September, it is going to drop," he told the Associated Press....More

read more...

Fiat can hit sales target with Chrysler alone

FRANKFURT (Reuters) - Italy's Fiat (FIA.MI) can reach its target of selling between 5.5 and 6 million vehicles with Chrysler alone but the group still considers renewal of Italy's car sale incentives as vital.
If the Italian government did not renew car incentives in 2010 "it would have a disastrous impact," Fiat Chief Executive Sergio Marchionne told reporters at the Frankfurt motor show.....More

read more...

Chrysler CEO Has Five-Year Plan

FRANKFURT -- Chrysler Group LLC Chief Executive Sergio Marchionne said Wednesday he has designed a five-year plan for the auto maker and plans to share some of the details in November.

Mr. Marchionne, who is also CEO of Fiat SpA, said Fiat expects Chrysler's restructuring to initially progress slowly but significantly improve next year. He said Fiat is scheduled to present the plan for Chrysler by the end of November and that Chrysler will start reporting quarterly results by the end of the year.

"We are going to become a normal reporter in the U.S. hopefully by the end of 2009," Mr. Marchionne said at the Frankfurt auto show. "You will see numbers like you see for everyone else. I think we need to lift the shroud of secrecy from around the house. We have nothing to hide."

Mr. Marchionne said he had a "whole pile of surprises" when Fiat took control of the bankrupt Chrysler in June.......More

read more...

Magna executive says EU won't block Opel deal

Frankfurt -- The co-chief executive of Magna International Inc. said Tuesday that he doesn't believe the European Union will block his company's acquisition of a majority stake in Opel....
...More

read more...

Marchionne Managing Chrysler Means 5 Mobile Devices in Backpack

Sept. 14 (Bloomberg) -- To save Chrysler Group LLC, Chief Executive Officer Sergio Marchionne has to create a mid-size sedan that can compete with the world’s best. It’s a three- to five-year job, and he may have two years to do it.

Chrysler, which got a $15 billion government bailout, may be out of cash in 24 months if he doesn’t return the Auburn Hills, Michigan-based company to profitability. Developing a car to rival perennial top sellers Toyota Camry and Honda Accord would normally take at least three years, analysts say.

Marchionne, 57, the CEO of Fiat SpA who brought that company back from near ruin, stepped into the toughest challenge of his career by taking control of Chrysler. Failure may mean not only the demise of the third-largest U.S. automaker and tens of thousands of jobs, it may prevent Marchionne from turning Turin, Italy-based Fiat into a global player.

“He’s going to have a much harder time than at Fiat,” said Maryann Keller, president of consulting firm Maryann Keller & Associates in Stamford, Connecticut. She’s covered the industry since 1972 and said the question is “whether they have time to fix the product problem before they run out of money.” ...More

read more...

GM rescinds 27,000 pay cuts for white-collar workers

General Motors Co. restored salaries for white-collar workers and some executives Friday in a bid to retain employees critical to the automakers revival.--More

read more...

GM offers 60-day, cash-back guarantee

Board chairman to pitch four brands in major ad campaign
Robert Snell / The Detroit News
General Motors Co., trying to woo consumers after a trip through bankruptcy, will launch a new advertising campaign Monday touting a 60-day money-back guarantee featuring GM Chairman Ed Whitacre.

The move is a bid to boost slumping sales and market share at a crucial time for the automaker, and for GM executives under government pressure to improve the company's fortunes.

GM, which received $50 billion in federal aid, is pouring millions into the "May the Best Car Win" campaign. The promotion will urge consumers to try 2009 and 2010 models from one of the automaker's four core brands -- Chevrolet, Cadillac, Buick and GMC. Anyone who is unhappy with their purchase can return the vehicle within 60 days....More

read more...

GM sells Opel to Magna, Sberbank

General Motors Co. will enter into the latest of a series of alliances in key overseas markets after agreeing to sell control of its German carmaker Adam Opel GmbH.--...More

read more...

Chrysler buys out engine plant in Dundee

Chrysler Group LLC, the automaker run by Fiat SpA since exiting bankruptcy in June, said Thursday it bought out Mitsubishi Motors Corp. and Hyundai Motor Co. stakes in a Michigan engine factory.--...More

read more...

GM rolls past 1 million miles in fuel cell demo

Buffalo, N.Y. -- General Motors Co. is now 1 million miles into its fuel cell experiment and company officials say having everyday people drive a test fleet of pollution-free cars has convinced them they are on the right track.---
...More

read more...

President Obama to make first auto plant visit

Washington -- President Barack Obama plans to make a speech at General Motors Co.'s assembly plant in Lordstown, Ohio, next week, his first visit to a U.S. auto plant as president.--...More

read more...

GM to lay off about 1,000

General Motors Co. needs to lay off about 1,000 white-collar workers this month because only 1,900 accepted early retirement and buyout offers, the automaker said Wednesday.--...More

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

read more...

Chrysler: Dodge Ram No. 1 in vehicle accessories

The Dodge Ram full-size pickup boasts the most accessories of any vehicle in Chrysler Group LLC's lineup, the automaker said Tuesday.

The Jeep Wrangler is a close second, followed by the Chrysler Town & Country and Dodge Grand Caravan minivans, the automaker said.

Chrysler, which is partnered with Fiat SpA, wants to bump up awareness of the Mopar brand of accessories. Under new Chief Executive Officer Sergio Marchionne, who is also CEO of Fiat, Chrysler has restructured its management team to support four brands: Chrysler, Dodge, Jeep and Mopar.

Ram owners spend an average of $389 on Mopar accessories, with more than 70 items to choose from, the automaker said. ..More

read more...

Chryslers New Ram Plan Poses Brand Jam

Chrysler is potentially headed for a brand problem that will rival the pickle that GM is trying to extricate itself from.

Here is the deal. Chrysler has three main brands at the moment: Chrysler, Dodge and Jeep. But it has made it clear to the ad agencies pitching its ad account that it is splitting off its pickup truck and commercial vehicle business off to a new brand?Ram.

That?s right. Going forward, and as soon as Chrysler has the idea to run with, the pickup it sells now won?t be sold as Dodge Ram, but rather?.Ram. Other vehicles that will come from the Fiat-Chrysler tie up in the commercial segment will also be called Ram.

So, now we are up to four brands to support. Now, add the Fiat 500, which will be sold as a Fiat when it arrives in Chrysler showrooms in 2011. And, don?t forget Alfa Romeo, which Fiat will sell through Chrysler distribution in key markets that make sense for the Italian sport car maker.

This seems like a lot of brand differentiation to manage and support by a company that has been poor at both.

As I look at auto sales numbers through August, I see a 9.2% market share for Chrysler spread among the three brands it has. That share is inevitably going to go down as the company pares models. Indeed, Merrill Lynch projects that Chrysler loses a whopping five to six points of share in the next four years unless it comes up with some product surprises from the Fiat alliance.---...More

read more...

GM: Fleet airbags required

General Motors Co. will not allow fleet purchasers to skip buying side airbags on 2010 models, the company said Friday.---More

read more...

GM plant restarts production in Venezuela

CARACAS, Venezuela -- General Motors Co.'s Venezuela affiliate says it has restarted an auto assembly plant that was idled for two and a half months.--More

read more...

Old Chrysler defaults on loan payment

The portion of Chrysler LLC that remains in bankruptcy had costs of $10.2 billion in June, which is more money than the company was left with to cover the costs of liquidation.--< a href="http://www.detnews.com/article/20090905/AUTO01/909050313/1148/rss25">More

read more...

Old Chrysler's costs outstrip assets

The portion of Chrysler LLC that remains in bankruptcy had costs of $10.2 billion in June, which is more than the amount the company was left with to cover the costs of liquidation.
The June operating report for Old Carco LLC, the name for the bankrupt pieces of the automaker, was filed with the New York bankruptcy court Friday. Chrysler LLC filed for bankruptcy April 30, and the choice assets were sold to a new entity, Chrysler Group LLC, which was formed in partnership with Fiat SpA on June 10.

Former Chief Financial Officer Ron Kolka was put in charge of winding down the assets of Old Carco, which contain seven assembly plants, almost 3,000 vehicles valued at $51 million and contracts with dealers and suppliers that were not transferred to the new Chrysler.--...More

read more...

Big Three get image boost

An overwhelming percentage of new-car buyers said they would consider a vehicle made by Detroits Big Three, according to a survey released Wednesday by the Consumer Reports National Research Center.--...More

read more...

GM to pay another $50 million for Delphi benefits

Washington -- General Motors Co. has agreed to pay another $50 million to fund health benefits to nearly 50,000 Delphi Corp. hourly retirees and their dependents, union officials said Tuesday.href="http://www.detnews.com/article/20090902/AUTO01/909020331/1148/rss25">...More

read more...

Car sales rebound during Cash For Clunkers

The federal "cash for clunkers" program lifted U.S. auto sales in August to the first monthly, year-over-year gain since October 2007, raising hopes the market is beginning to rebound.Analysts and auto executives expect demand to fall in September, in part because some buyers pulled ahead purchases to take advantage of as much as $4,500 in government rebates. But recent signs that the economy may be improving could prevent sales from dropping to new lows.

Still, the outlook is uncertain. "People are feeling the uptick, but how long will it really last, no one can say for sure," said Laurie Harbour-Felax, president of Harbour Results Inc.
...More

read more...

RHJ ups cash in Opel bid

RHJ International SA increased its offer for General Motors Co.'s Opel unit, agreeing to inject more cash into the unprofitable division and seek less in loan guarantees from the German government.

Under the revised bid, RHJ would contribute 300 million euros ($426 million) instead of 275 million euros, Arnaud Denis, a spokesman for the Brussels-based investor, said in an interview. The offer foresees loan guarantees of 3.2 billion euros instead of 3.8 billion euros, with repayment planned by 2013, one year earlier.

The German government, which has provided 1.5 billion euros in short-term loans to keep Opel afloat, is pushing GM to accept a bid by a group led by Canadian parts supplier Magna International Inc.

Germany has said it would provide 4.5 billion euros in guarantees for Aurora, Ontario-based Magna's offer.....More

read more...

Idle GM plants spark interest from automakers

Prospective buyers eyeing sites considered difficult to unload

Foreign and domestic automakers have expressed interest in buying factories being sold by the former General Motors Corp. as part of its bankruptcy case.

Al Koch, chief restructuring officer of the old GM, would not disclose the prospective buyers or sites in a recent interview with The Detroit News. But the nibbles illustrate a surprising level of interest in properties -- including a $25 million proposal for 220 acres of land in Flint -- previously thought to be too large, too old and, in some cases, too polluted to sell.

Any completed deals could generate revenue for GM creditors who lost billions when GM filed for bankruptcy, and for communities that are losing tax revenue and jobs as the properties sit idle.

Koch's push to sell the assets left behind when the new General Motors Co. emerged from bankruptcy in July will intensify in mid-September when he plans to meet with members of the Obama administration's auto task force, which is overseeing GM's restructuring.

Koch will talk to the task force about possible uses for the properties and shuttered facilities and about environmental remediation at sites controlled by the old GM -- now known as Motors Liquidation Co.

While Koch would not identify the automakers or the plants being considered, experts say the most logical sites are four GM assembly plants, including Pontiac Assembly, where the factory's 2,800 workers make the Chevrolet Silverado and the GMC Sierra. The plant is supposed to close in October.

The others are located in Wilmington, Del., Shreveport, La., and Moraine, Ohio. The old GM also has five stamping and six powertrain plants.

Industry analysts said any of the assembly plants would give a foreign automaker, perhaps a Chinese or Indian company, entry into the U.S. market or might interest Chrysler Group LLC, which will produce cars made in conjunction with its new partner, Italy's Fiat SpA...More

read more...

Chrysler Group LLC-Several models sell out in August

Chrysler Group LLC today reported a 5 percent sales increase compared with July 2009 despite low inventory levels on a number of popular nameplates.

Dealership traffic continued at a high level during the month of August, in part due to the U.S. government’s Car Allowance Rebate System (CARS), more commonly known as “cash for clunkers.”

“Chrysler Group had another strong sales month in August with the majority of Chrysler Group nameplates posting year-over-year or month-over-month sales improvements,” Peter Fong, President and Chief Executive Officer–Chrysler Brand and Lead Executive for the Sales Organization, said. “The CARS program gave a boost to the industry in August, and as a result, we’ve increased production by more than 50,000 units, our factories are full-steam ahead building Chrysler, Jeep® and Dodge vehicles for customers and replenishing dealer inventories.”
The Chrysler Group reported total U.S. sales for August of 93,222 units, an increase of 5 percent compared with July and a decrease of 15 percent compared with the same time period in 2008. Retail sales for August were 68,958 units. The company finished the month with 100,238 units in inventory, representing a 28-day supply. Inventory is down 74 percent versus August 2008 when it totaled 380,560 units. Overall industry figures for August are projected to come in at an estimated 14.4 million annual sales rate.

“Chrysler Group’s large car, minivan, crossover and truck segments all posted increases in retail sales in August,” Steven Beahm, Vice President–Sales Operations, said. “The Dodge Avenger, Dodge Grand Caravan and Chrysler PT Cruiser were very popular with consumers looking for high-quality, fuel-efficient vehicles.”...More

read more...

Dodge Ram pickup is only new Chrysler for '10

Chrysler has only one all-new vehicle for 2010 but is adding fuel-efficient versions of existing products and making more features standard in a lineup that must carry it through next year.

Competes with: Ford F-Series, Chevy Silverado
Looks like: A bigger version of the redesigned Ram 1500
Drivetrain: 383-hp, 6.7-liter diesel

read more...