Key details from U.S. autos task force findings

(Reuters) FACTBOX: Key details from U.S. autos task force findings
Mon Mar 30, 2009 2:22am EDT

DETROIT (Reuters) - The U.S. task force overseeing the restructuring of the auto industry on Monday said the plans submitted by General Motors Corp and Chrysler failed to show how they could be viable.
GM will receive 60 days of additional working capital to resolve the situation and Chrysler, about 80 percent controlled by private equity firm Cerberus Capital Management, will have 30 days to complete an alliance with Fiat SpA.
The task force said an expedited bankruptcy process to help GM and Chrysler eliminate unsustainable debt loads may be the best path if out-of-court restructurings with creditors cannot be negotiated.
The government also said it would launch a plan to guarantee the warrantee coverage of consumers who purchase new GM and Chrysler vehicles during the next phase of their restructuring.
Key findings by the autos task force follow: Read more...
http://www.reuters.com/article/GCA-autos/idUKTRE52T0R920090330?virtualBrandChannel=10112

A Look at the Autos on the Chopping Block

A Look at the Autos on the Chopping Block
1/16/2009 (Video MarketWatch)
Detroit's Big Three automakers are looking to downsize. WSJ's John Stoll talks about some of the brands that might be sold or scrapped, including the Hummer.

Detroit's Big 3 Make Second Pitch to Congress and ask for $ 34 billion bailout.

Carmakers try to sell Congress on rescue for troubled US industry that could reach $34 billion

Detroit's Big 3 Make Second Pitch to Congress and ask for $ 34 billion bailout.
WASHINGTON (AP) -- U.S. automakers are returning to Congress for high-stakes hearings they hope will persuade skeptical lawmakers to save their troubled industry with $34 billion in emergency aid, but a top Senate Democrat wants to hand their problem to the Federal Reserve.
Two weeks after a botched attempt on Capitol Hill, repentant leaders of General Motors Corp., Ford Motor Co. and Chrysler LLC were appealing to the Senate Banking Committee on Thursday with three separate survival plans that include massive restructuring, the ditching of corporate jets and vows by CEOs to work for $1 a year.

Rumors circulating in the automotive press suggest that the companies may propose eliminating or selling off some brands (GM is widely expected to propose closing its Hummer, Pontiac, Saab, and Saturn divisions), renegotiate labor contracts to reduce costs, and cut executive pay.

What happens after a 100 years of the Model T?

What happens after a 100 years of the Model T?
Under certain conditions the auto industry will get government help but they have to get their act together.
The U.S. auto industry needs a management shake up, a reorganisation and an innovative vision for the next 50 years. That will save them.




Congress, White House tussle over form of automaker rescue
WASHINGTON -- The White House and congressional Democrats launched a post-election showdown Monday over how to rescue U.S. automakers with millions of jobs, more than a century of iconic brands, and potentially economic confidence, riding on the outcome.
As the year that celebrates the 100th anniversary of the Model T races to a close in volatile political environment, the Bush administration and many lawmakers agree that up to $25 billion in loans should be extended to General Motors Corp , Ford Motor Co and Chrysler LLC.
But there are key differences on the details. Democratic leaders plan to forge ahead with an industry-backed proposal that would offer $25 billion from the Treasury Department's $700 billion financial industry rescue fund.

Shelby favors changing automaker management teams
Wednesday November 19, 7:23 am ET - By Ken Thomas, Associated Press Writer
Republican Shelby favors bankruptcy instead of bailout money for troubled automobile industry
WASHINGTON (AP) -- The top Senate Banking Committee Republican says nothing will turn around the troubled U.S. auto industry until its top management is ousted and the manufacturing model overhauled.
Sen. Richard Shelby of Alabama said Wednesday he didn't think providing $25 billion in emergency loans to Detroit would do the jobs, calling that a "life support" option.
Shelby said on CBS's "The Early Show" that he believes filing for bankruptcy might be the better choice. He said: "I don't think they have immediate plans to change their model, which is a model of failure."
Rep. Barney Frank, a Massachusetts Democrat who heads the House Financial Services Committee, said he didn't think filing for bankruptcy would be a good strategy. He noted that such a move would likely mean that contracts with organized labor would have to be broken, saying "we already have too much union busting."



(Reuters Video) Congress weighs auto bailout (01:34) Report