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

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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.
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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

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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

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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

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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

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GM dealers face tough standards, sales goals

GM executives met with 430 dealers from around the Midwest at the Rock Financial Showplace as part of a nine-city tour to discuss the future of the automaker's four core brands: Chevrolet, Cadillac, Buick and GMC.
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United Way to get $525,000 from Chrysler PAC

Money in Chrysler's dormant political action committee fund totaling $525,000 will be donated to the United Way, The Detroit News has learned.


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Why does GAZ want Opel?

General Motors is still trying to find a solution for its Opel division after the automaker’s board apparently balked at a deal for Magna and Russian bank to acquire control.
One of the winners in a deal for Magna and Russian state-owned bank Sberbank to acquire Opel would be Russian automaker GAZ, which has close ties to both the Canadian supplier and Russian bank....More

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Chrysler to accept more liability claims

Chrysler Group LLC will accept liability for injuries or deaths occurring after its June 10 exit from bankruptcy that were caused by faulty vehicles produced before that date, the company said today....More

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Chrysler may be ending partnership in Dundee

Hyundai, Mitsubishi logos are removed from engine plant

Chrysler Group LLC has removed logos of Hyundai and Mitsubishi from the entrance of the Global Engine Manufacturing Alliance plant in Dundee, in an apparent move to end the four-year-old partnership and take full control of the factory.

Chrysler spokesmen declined to confirm that the partners' logos were removed or that the partnership is being dissolved. Hyundai and Mitsubishi also had no comment. But employees at the plant, who asked not to be named, said Chrysler executives have communicated their intent to end the alliance....More

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Big 3 sales fade as 'clunkers' wraps up

Low inventories cited in sinking U.S. share of incentive program

David Shepardson / Detroit News Washington Bureau

Washington -- The Detroit Three automakers' share of "cash for clunkers" sales fell sharply, compared to foreign nameplates, in the final week of the $3 billion incentive program.

General Motors Co., Ford Motor Co. and Chrysler Group LLC sold 38.6 percent, or about 266,000 of the nearly 700,000 clunker replacements. That's far below their combined 45.3 percent share of 2009 auto sales.

The U.S.-based companies said they were hampered by a comparative shortage of small, fuel-efficient vehicles that buyers were seeking and that the Asian automakers provided....Freep--More

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