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

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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

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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

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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

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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

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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

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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

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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....
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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

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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

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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

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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

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