March 2007
Chrysler Close to Sale?
By Michelle Krebs March 30, 2007Next week could see significant movement in the sale of Chrysler Group. DaimlerChrysler holds its annual shareholders meeting Wednesday in Berlin. It is possible that bids for Chrysler could be received by the automakerâs investment banking firm, J.P. Morgan Chase, by then. No formal bids had been received as of yesterday. However, Detroit newspapers are reporting some bids are close to being sent. Three potential buyers supposedly have the inside track: private equity firm Blackstone Group, teaming with Centerbridge Partners; private equity firm Cerberus Capital Management; and Canadian auto supplier Magna International Inc. The Detroit Free Press reported an Asian more
Chevys Replace Saturns in Spring Hill, Tenn.
By Michelle Krebs March 30, 2007General Motors told employees at its Spring Hill, Tenn., plant that the factory will get a new product to replace two Saturn models, which end production today. It sounds like the Tennessee plant will get the new Chevrolet crossover vehicle, based on the same architecture as the recently introduced Saturn Outlook and GMC Acadia and the upcoming Buick Enclave. Edmunds.comâs Inside Line reported this week that the Chevy crossover in the works for the 2009 model year may be called "Nomad," reviving a storied nameplate that dates back to the 1950s and a 2004 concept vehicle. more
Where Have All the Women Gone?
By Michelle Krebs March 30, 2007The drain of talent, both male but especially female, is one of the most dangerous signs of weakness for Big Three automakers and top suppliers, says a former Ford executive and television broadcaster turned industry consultant. Anne Doyle, president of Anne Doyle Strategies, is a leadership and communications coach appearing on the television program, AutoLine Detroit, which began airing Sunday. Hosted by John McElroy, the show’s segment features Sarah Webster of the Detroit Free Press and me as guest panelists to discuss the massive departure of women from the top ranks of the auto industry. For few decades, women executives more
âSpongeBobâ Rides in Chryslers
By Michelle Krebs March 29, 2007Chrysler Group and Sirius Satellite Radio announced today that Chrysler will be the first and only auto manufacturer to offer Sirius Backseat TV in its vehicle lineup in the 2008 model year. The feature debuts on 2008 Chrysler Town & Country and Dodge Grand Caravan minivans. It will also be available on the 2008 Chrysler 300, Dodge Charger, Dodge Magnum, Jeep Commander and Jeep Grand Cherokee. Chrysler sees innovative technology as a way to stand out from the crowd, generally, and in minivans, specifically. Three channels of family TV programming -- from Cartoon Network, Disney Channel and Nickelodeon -- more
Cerberus: Expanding Its Auto Base
By Michelle Krebs March 29, 2007If you work in the auto industry, Cerberus Capital Management may well be your next employer. The private equity firm is becoming a household name in the auto industry, especially in Detroit, as it expands its automotive base and shows interest in even more holdings. On Wednesday, after the stock market closed, it was announced that Cerberus had agreed to buy bankrupt auto supplier Tower Automotive Inc., in a deal valued at about $1 billion. Cerberus is said to be a front-runner to purchase Chrysler. It is part of a group planning an investment of up to $3.4 billion for more
Chevy Unveils a Trio of Minicar Concepts
By Michelle Krebs March 29, 2007General Motors’ Chevrolet division will unveil a trio of minicars at the New York auto show next Wednesday. The automaker has released a photo of one of the three, one called the Chevrolet Trax. By unveiling the minicars in New York and allowing visitors to vote for their favorite of the three on www.vote4chevrolet.com, GM certainly is exploring the minicar segment in North America, where it has no such offering at the moment. However, the minicars are more important for world markets, where Chevrolet is vastly increasing its presence and sales. The minicar unveilings are also intended to further emphasize more
Toyota Enriches Tundra Incentives
By Michelle Krebs March 29, 2007Toyota has added dealer incentives on some versions of its newly launched Tundra full-size pickup truck in an effort to stir slow sales, Edmunds.comâs AutoObserver has learned. âToyota apparently is coming up short on sales numbers and wants to drive volume,â said Alex Rosten, manager of pricing and market analysis for Edmunds.comâs AutoObserver. âThis is not a good sign for Toyota. Tundra incentives are: 3.9 percent to 5.9 percent financing on all models, depending on the loan term; special lease rates on all models; $1,000 trade-in assistance for early termination of leases on the previous-generation Tundra; $2,000 dealer cash incentive more
UAWâs Gettelfinger: A Rock and a Hard Place
By Michelle Krebs March 28, 2007Talk about being stuck between a rock and a hard place. UAW President Ron Gettelfinger opened Tuesday’s convention of 1,500 union delegates in downtown Detroit with a fiery speech about protecting worker interests amidst pressure by Detroit automakers for concession. The convention marks the start of negotiations between the UAW and Detroit automakers for a new contract to replace the one that expires in September. “Our union does not want to strike,†Gettelfinger told delegates, “but when employers act as if collective bargaining is a one-way street and not a two-way street, we will do what we have to do. more
Mulally: Ford Will Expand Partnerships
By Michelle Krebs March 28, 2007Ford CEO Alan Mulally said Ford will expand its collaboration with other automakers, particularly in such areas as powertrain engineering and manufacturing. In an interview with trade journal Automotive News, Mulally said he has made it a priority to meet leaders of other auto companies during his first six months on the job. He now says he's "just about talked to all of them" and that new business relationships are likely to result. "We have a really good set of partners and alliances on both technology and the vehicles themselves," Mulally said in the interview. "As we go forward, more
UAW Tries Unionizing Toyota
By Michelle Krebs March 30, 2007The Union Auto Workers (UAW) will host a meeting of Toyota factory workers Saturday in Lexington, Ky., as a step in trying to unionize Toyotaâs oldest and biggest U.S. plant. The union says the meeting will be a town hall forum to air their grievances and to provide âan opportunity for Toyota workers to share with the community the human cost of Toyota's success," said a union official. The UAW is desperate to maintain its shrinking ranks, but has been unsuccessful in organizing Asian-owned factories. more