Apple COO Rumored To Be Top Pick for GM CEO Job
The speculation on who will become the next chief executive officer of General Motors has 
begun with the latest rumor putting Apple COO Tim Cook at the top of the list for the job.
Cook, who took the reins of Apple when CEO Steve Jobs was on medical leave, is the first choice of GM's executive search firm Spencer Stuart for the top post at General Motors, an anonymous reader of The Business Insider's Silicon Valley Insider told the blog.
"We have no idea whether this is true or not, but it makes sense," wrote Senior Editor Nicholas Carlson, the December 31, 2009 post.
A GM spokesman said the automaker had no comment on the rumor.
(Read more...)
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GM's Sale of Hummer to Chinese Company Imminent
General Motors will finalize its sale of Hummer to China's Tengzhong as early as Friday, various media outlets, citing unnamed sources, report.
GM likely will take in about $150 million for the sale, far less than the $500 million it wanted.
Sichuan Tengzhong Heavy Industrial Machinery, a little-known heavy machinery maker, has been in negotiations with GM since June.
(Read more...)
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Toyota: No Plan To Undercut U.S. Ad Agencies
An Internet blog was entirely off-base when it suggested this week Toyota Motor Corp.'s
restructuring of its marketing organization in Japan will adversely impact the company's relationship with its U.S. advertising agencies, a senior Toyota source tells AutoObserver
.
Toyota announced it was forming two new internal marketing units, one in Japan to "primarily handle marketing within Japan," and an internationally focused unit "to carry out and assist global marketing as well as coordinate and assist the marketing activities of TMC affiliates."
(Read more...)
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Toyota Eying More Control Over Ads?
In a move that may signal significant implications for Toyota Motor Corp.'s relationship with its
U.S. advertising agencies, the company said it is establishing two new internal marketing organizations, "[one that] will primarily handle marketing within Japan and a company to carry out and assist global marketing as well as coordinate and assist the marketing activities of TMC affiliates."
Whether this means Toyota is pulling the rug out from under its U.S. advertising agencies and will bring some, or all, future creation of advertising in-house via the new marketing organization -- as one media-watching Web site surmised -- remains to be seen.
(Read more...)
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GM Names Designer To Head Cadillac, Report Says
General Motors reportedly will name designer Bryan Nesbitt to head its flagship Cadillac
division, the Wall Street Journal
Reports.
Nesbitt started his automotive design career at Chrysler where he soared to fame for his design of the innovative Chrysler PT Cruiser. GM lured him away where he penned the similar Chevrolet HHR.
Nesbitt then headed design operations in Europe, returning to the U.S. to head North American design.
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Strange Automotive Bedfellows, 2009 Edition
By Bill Visnic
There are plenty of strange auto-industry tie-ups to get accustomed to this year, such as internal-combustion innovator Daimler AG and electric-car impresario Tesla Motors Inc., or, well, Chrysler Group LLC and Fiat S.p.A.
But one of the weirder six-degrees-of-separation connections of the year is between Steve Rattner, now-retired czar of the Presidential Task Force On Automobiles and Cerberus Capital Management, former majority owner of Chrysler.
(Read more...)
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VW- Porsche Settlement Appears At Hand
Finally, Porsche and Volkswagen appear close to a settlement, according to various parties
involved who are being quoted by global media outlets.
Porsche CEO Wendelin Wiedeking told Bloomberg Television Thursday that an agreement is likely in days. He refused to provide details but he did say a proposal for Porsche to be sold to Volkswagen "is already on the table."
(Read more...)
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GM's Lutz Already Making 'Em Nuts
By Bill Visnic
The ink wasn't yet dry on Bob Lutz's new contract with the newly constituted General Motors Co. to be vice chairman of, ah, just about everything, and Lutz was back to the business of baiting the media and most likely making his peers and superiors (if he has any) slightly crazy.
Exhibit 1: Lutz - whose job GM loosely and rather unnervingly describes as "vice chairman for all creative elements of products and customer relationships" - had Automobile magazine slurping out of his hand when he tossed out the remark that GM isn't going to let the rear-drive G8 sport sedan slip away with Pontiac when the division shuts down at the end of the year. The G8, Automobile breathlessly reported, will "live on" in the Chevrolet division as a new-age Caprice.
"The last time we looked at (the G8), we decided that we would continue to import it as a Chevrolet," Lutz told Automoblile.
The problem: GM CEO Fritz Henderson was widely quoted last month, including here on AutoObserver, as summarizing his product-development preferences by saying, "I'm no fan of rebadging," squarely implying the G8 would not continue under another nameplate after Pontiac's shutdown.
(Read more...)
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What's Next for GM's Lutz?
General Motors' retiring Vice Chairman Bob Lutz could be back for an encore performance.
Fox Business is reporting that Lutz will return to GM in a new capacity when it emerges from bankruptcy Friday.
Lutz announced earlier this year that he was stepping down from his day-to-day duties as vice chairman of product development, turning that job over to Tom Stephens on April 1. Lutz was to finish out the year in a senior advisor role until his official retirement at year end.
Still, there had been much hand-wringing about GM without Lutz and who would be the champion for the product. Lutz threw out some tantalizing comments to Detroit's Automotive Press Association in May when he said he would "do something else" and "would not be unemployed."
Lutz is said to be staying on at the new GM indefinitely in a new, yet-to-be-announced operating capacity.
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Exit Package for GM's Wagoner Near
Former General Motors Chairman Rick Wagoner will find out in days about his exit package,
the Wall Street Journal
reports quoting an unnamed Obama administration official.
Wagoner, who had agreed to work for $1 a year as part of the deal to obtain federal funding for GM, was forced out of his job by President Obama in late March but technically remains a GM employee.
Pay and benefit packages for executives -- including exit packages for the many executives who will leave -- will be revealed as the "new" GM emerges from Chapter 11 bankruptcy, likely on Friday. Wagoner was eligible for about $20 million in compensation accumulated over his 32-year career at GM.
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GM Logo May Turn Green
The "new" General Motors that emerges from bankruptcy by the end of this week may well
usher in the event with a new logo -- one that is green instead of blue.
People briefed on its plans told the Associated Press that the company is looking into changing the background color of its corporate logo from blue to green in an effort to show consumers that it is leaner and greener, more focused on fuel-efficiency and better able to make quick decisions.
The wire service reported that Ed Welburn, GM's vice president of design, is leading a group that is studying name and logo changes, but no recommendation has been made yet.
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GM: Opel Fallback Being Negotiated
General Motors has a tentative deal for Canadian-Austrian auto parts supplier Magna International for GM's German subsidiary, Opel. But, just in case, GM apparently is negotiating backup plans.
GM may sign non-binding agreements with RHJ International, a Belgian industrial company that originally bid for Opel, and Chinese automaker, Beijing Automotive Industry Holding Co., which assembles Jeep and Hyundai vehicles in China, to take on Opel, Bloomberg News reported.
(Read more...)
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Supplier Lear Preparing To File Bankruptcy, Report Says
DETROIT - One of the world's largest auto-parts suppliers, Lear Corp., is preparing to file for Chapter 11 bankruptcy as soon as next week, sources have told the Wall Street Journal.
Industry experts have predicted that as automakers bring assembly plants back onstream after summer shutdowns and inventory-adjustment shutdowns, cash-strapped suppliers will not be able to come back onstream.
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Mystery Company To Assemble Cars in Louisiana
Baton Rouge, La. -- A company described as a well-financed start-up reportedly is close to
choosing a shuttered north Louisiana site to start a new automobile manufacturing facility -- its first, creating up to 1,500 jobs, two elected officials from the region told the Associated Press.
A formal announcement on the mystery company could come Wednesday from Gov. Bobby Jindal, Rep. Jim Fannin told the wire service.
Fannin said the vehicles would be the company's first, they would be fuel-efficient ones and they will be built at a former Guide Corp. plant.
(Read more...)
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Chrysler, GM Losing and Moving Execs
By Bill Visnic
The Chrysler Group's bankruptcy is over, General Motors Corp.'s is accelerating like a Corvette and both companies are moving and losing significant personnel in sync.
None of this is unexpected, particularly as Chrysler is sure to be entertaining a certain amount of Fiat S.p.A executive injections now that Fiat is Chrysler's operational owner. And most insiders and industry analysts say GM still has plenty of management dead wood to burn and will see more voluntary separations, too.
GM still dealt a serious surprise when announcing Friday that purchasing chief Bo Andersson is leaving the company. Andersson was generally well-regarded in the supplier community, despite its usually tumultuous relationship with Detroit automakers for the past decade or more. Andersson had a reputation for being demanding and calculating but eminently fair in one of the toughest jobs in Detroit, if not the entire auto industry.
(Read more...)
Posted by Michelle Krebs at 3:48 PM under Chrysler , Featured , GM , News , Personalities , Rumors | Comments (2) | digg this | del.icio.us
Chrysler Midsize-Car Plant Restart Questionable
By Bill Visnic
Not yet a month into its Chapter 11 bankruptcy, news is starting to emerge about which pieces of Chrysler's manufacturing puzzle are likely to serve a purpose in the proposed new Chrysler-Fiat global alliance -- and which won't.
One that clearly has no future is Chrysler's Sterling Heights, Michigan plant, just outside of Detroit. The plant assembles the unloved and underachieving Chrysler Sebring and Dodge Avenger midsize sedans and two-door convertibles.
(Read more...)
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Continental-Schaeffler May Shift Into Reverse
The saga of the smaller Porsche taking over the larger Volkswagen isn't the only intriguing takeover tale going on these days in Germany.
Months ago, Schaeffler Group launched a takeover of the much larger auto supplier Continental AG, which makes tires and electronic systems, like stability control. The effort has been anything but smooth -- and sensible.
Now, rumor has it that the takeover may be reversed. A group of lenders led by Commerzbank AG are considering a reverse takeover of Schaeffler, German business publication Handelsblatt reports. The German government apparently likes the plan as do stockholders. Continental's stock value rose 15 percent on the rumors.
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Chrysler To Be Taken Over By Fiat; Bankruptcy Not Ruled Out
By Michelle Krebs
DETROIT -- The precise sequence of events appears murky at the moment, but two things appear to be happening with Chrysler on the eve of the government-imposed deadline: Italy's Fiat will take over Chrysler, and Chrysler is preparing Chapter 11 reorganization papers, that may or may not be filed in bankruptcy court.
Either way, President Obama reportedly will make an announcement on Thursday on the future of Chrysler.
However, so far, no one is confirming anything -- not Fiat, not Chrysler and not the Obama administration.
A couple of scenarios are emerging on how the Chrysler-Fiat alliance will come together, a couple of them involving bankruptcy, another keeping it out of bankruptcy court..
What's clear is heavy negotiating continues as the clock until the midnight deadline Thursday ticks down.
(Read more...)
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Fiat Could Be Set To Take Stake in GM's Opel
By Michelle Krebs
General Motors appears set to shift a majority stake in its German unit
Opel, possibly to Italy's Fiat, though GM is in talks with other potential investors as well, according to European media reports Thursday morning.
GM also is talking to other parties, including Magna Steyr, the Austrian unit of Canadian auto supplier Magna International, reports say.
GM could sign a letter of intent with one of them as early as Tuesday.
(Read more...)
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GM Said To Study Dropping Pontiac, GMC - Not Surprisingly
DETROIT - General Motors Corp. reportedly is considering dropping its Pontiac and GMC
brands as part of its massive cost-cutting efforts, unnamed sources told Bloomberg News
.
That comes as no surprise. GM already has said it was paring Pontiac back to a niche brand. GMC long has been questionable since every one of its models is sold under a different GM nameplate, most notably the much larger Chevrolet truck.
Sources told Bloomberg that Chevrolet, Cadillac and Buick are likely safe from cuts, but GMC and Pontiac are being studied for
elimination. Already GM has said Saturn will be phased out by 2011 unless the brand is purchased, and GM supposedly has multiple parties interested in acquiring Saturn. Hummer is gone or sold soon. Saab leaves the GM family by year-end.
(Read more...)
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BMW Gets Loopy - and It's Not Even Octoberfest Yet
By Bill Visnic
Maybe they're growing the hops just a little too close to the medicinal marijuana over there in Germany. A media report this week says BMW AG is considering abandoning its legendary inline six-cylinder engine design in favor of a V6 layout.
A V6 in place of the magnificent inline six-cylinder engine design on which the very foundation of the company was built? Magnifying the madness, the proposed sacrilege comes from no less than BMW's high-performance Motorsports division.
Yes, the M division is considering ditching the hallowed I-6 when it's time for the next-generation M3 around 2013, Ludwig Willisch, top dog at BMW's M division, was reported as saying at Motor Trend.com.
(Read more...)
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Toyota May Report Operating Loss for Second Year, Nikkei Says
Toyota may report an operating loss for a second-straight year, the Japanese newspaper
Nikkei reported.
Toyota already is expected to post a $5-billion loss of $5 billion for its fiscal year that just ended on March 31. Now Nikkei reports Toyota could report an operating loss even larger than that for its current fiscal year, which ends March 31, 2010.
Toyota will sell about 6.5 million vehicles this year, the first time in six years its sales have fallen below 7 million.
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Fiat CEO Marchionne Could Be Chrysler CEO as Well, Trade Journal Says
Fiat CEO Sergio Marchionne could add Chrysler CEO to his list of titles under one scenario
being discussed by the two companies regarding an alliance, a trade journal reported.
The future Chrysler board also may include members of President Obama's automotive task force, Automotive News says in Monday's edition.
The publication says the companies are discussing a revised ownership structure, a new board and possibly a different management team for Chrysler. Under consideration is splitting Chrysler chairman and Chrysler CEO into two jobs. Robert Nardelli currently holds both titles. Marchionne could gain the CEO title, giving him a direct role in Chrysler's operations. The chairman role would be held by an American, Automotive News said.
(Read more...)
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Toyota Considers Revamp Of U.S. Operations To Stem Losses, Reports Say
Toyota Motor Corp. is considering a reorganization of its U.S. operations, pulling
sales, marketing and manufacturing under one powerful executive in an effort to stem its current losses, reports say.
The possible reorganization, reported by the Detroit News Wednesday and confirmed by AutoObserver sources, comes as Akio Toyoda, grandson of the company founder, is about to take over as president and CEO in Japan.
(Read more...)
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Abu Dhabi Royal Family Eyes Opel Investment
Abu Dhabi's royal family might invest in General Motors' German subsidiary Opel, press
reports said Monday.
Family member Sheikh Hamdan reportedly had a meeting with German regional premier Juergen Ruettgers of the state of North Rhine-Westphalia, home to an Opel plant. Hamdan was quoted by Westdeutsche Allgemeine Zeitung newspaper as saying the meeting was "very positive."
Agence France-Presse quoted Hamdan saying "no decision has been taken yet."
(Read more...)
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China's Geely Buys Ford Supplier; Close To Buying Volvo?
HONG KONG -- China's Geely Automobile Holdings Ltd., known to be in talks with Ford to
buy Volvo, announced Friday its purchase of Australian partsmaker Drivetrain Systems International, claimed to be the world's largest supplier of automatic gearboxes. Ford is among Drivetrain's customers.
Geely, China's largest private carmaker, is believed to be furthest along in talks to buy Volvo from Ford. Ford confirmed earlier this week that it was in talks with multiple interested parties about purchasing Volvo.
(Read more...)
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Peugeot, Renault Merger Speculated
PARIS -- Speculation has it that France's two major automakers -- PSA Peugeot Citroen and Renault SA -- are in merger talks.
Shares of both companies were on the rise on Wednesday on the rumors. Neither company is commenting.
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Beijing Auto Denies Interest in Chrysler
Chinese automaker Beijing Automotive Industry Co. denied Monday that it was in talks with 
Chrysler about buying assets or technology from the Detroit automaker, Reuters
reported.
The denial came in response to a Chinese Business News report, citing an unnamed executive at Beijing Auto, that the companies had initial talks.
Though Chrysler no longer has a car-making venture with Beijing Auto, the Chinese company still produces Chrysler 300 models for the local market.
(Read more...)
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GM Plans Job and Pay Cuts, Reports Say
General Motors will cut salaried jobs and cut salary of remaining salaried employees, various reports quoting unnamed sources say.
GM -- and Chrysler -- have a February 17 deadline to meet and show the government they have viability plans that will allow them to keep the government loans they received. GM has received $13.4 billion.
(Read more...)
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GM Looking for Warren Buffet-Style Investor, Report Says
General Motors is looking for a large investment from outside investors similar to the investment Warren Buffett made in General Electric and Goldman Sachs, the Financial Times reported Tuesday.
But the paper cited an unnamed banker as questioning the chances of GM finding an investor to do so.
A source briefed on the matter has told Reuters that representatives of GM and Chrysler's majority owner Cerberus Capital Management have approached at least one major investor with a pitch to invest in their deal. But the pitch for a capital injection for a merged automaker that would control about a third of the U.S. light-vehicle market was met with "a great degree of apprehension," the source said.
Posted by Michelle Krebs at 5:18 AM under Business , Chrysler , GM , Personalities , Rumors | Comments (0) | digg this | del.icio.us
Renault Styling Plays It Safe, But Only Bold Moves Will Ensure the Company's Survival
By Nick Kurczewski
PARIS - At the recent 2008 Paris Auto Show, Renault unveiled its new C-segment MĂ©gane hatchback and coupe. Sized and priced to compete with Europe's best-selling vehicle, the Volkswagen Golf, the Renault MĂ©gane is vital to the French automaker's financial health that has been in decline in recent months.
As designers pulled back the covers on the new Mégane to reveal its quirky-turned-conservative styling, the world's financial markets were spinning out of control, taking Renault's already downward spiraling fortunes with it.
As Renault plays it safe with the styling of its Mégane and other models, only a bold move -- as speculation has it with Chrysler or Ford -- may bolster its shot at survival.
(Read more...)
Posted by Michelle Krebs at 4:23 AM under Analysis , Chrysler , Companies , Featured , Ford , GM , Personalities , Rumors | Comments (0) | digg this | del.icio.us
Volvo: Trouble Deepening with Auto Sales Drop
By Bill Visnic
Job losses and factory downtime at Volvo Car Corp. may not be stopping with recently announced cutbacks, according to a report this weekend from Europe.
Reuters said Swedish television reported the company will cut more jobs than previously announced. Although Volvo would not confirm or deny the report, a spokesperson was quoted as saying, "We are in a tough spot, everybody knows that."
Volvo owner Ford Motor Co. already has jettisoned Jaguar Cars, Aston Martin and Land Rover - divisions that, along with Volvo, once comprised Ford's Premier Automotive Group. But Ford said it will retain Volvo, which it bought in 1999, and work to improve Volvo's profitability. Analysts aren't convinced Ford will keep Volvo, however.
(Read more...)
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One of Russia's Richest Men Talks to GM about Buying Hummer, Report Says
By Michelle Krebs
DETROIT - One of Russia's richest men Oleg Deripaska reportedly has held preliminary talks with General Motors to buy Hummer, sources told Reuters.
We're not surprised. As GM now has discovered, we guessed interest in Hummer would be high, especially from overseas investors. We figured Deripaska, with heavy interest in the auto industry and ties already with GM, was among them.
Deripaska owns Russian automaker GAZ and purchased a chunk of GM stock about a year ago. In May last year, Deripaska paid $1.54 billion for 20 percent of Canadian auto supplier Magna. It appeared his purchase was tied to Magna's attempt to purchase Chrysler, which Magna lost to Cerberus Capital Management.
(Read more...)
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Chrysler Talks Partnerships With Fiat and Tata, Reports Say
Chrysler is discussing possible alliances with foreign automakers including India's Tata
Motors and Italy's Fiat, according to media reports.
In recent weeks, Chrysler reportedly has discussed with Tata the possibility of selling and even assembling Jeeps in India, according to sources quoted by Reuters and the Wall Street Journal.
Chrysler also reportedly is talking with Fiat to lease factory space for car production and possibly share distribution with the Italian automaker, looking to return to the U.S. with its Alfa Romeo brand next year. Fiat also is considering selling its popular 500 small car here.
(Read more...)
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Harbour-Topping Chrysler JV Engine Plant Attracting Foreign Attention
By Bill Visnic
The Global Engine Manufacturing Alliance engine plant in Dundee, Mich., currently is one of the auto-manufacturing sector's more intriguing stories. Currently making three variants of the 4-cylinder "World Engine" for one-third owner Chrysler LLC, GEMA also happens to be North America's most productive powertrain plant, according to the industry-benchmark Harbour Report.
But despite its Harbour-topping performance, some inconvenient circumstances have conspired to make GEMA barely half-utilized - and foreign auto companies sniffing for North American engine-making capacity are taking notice. Sources say several automakers may have toured the GEMA facility - including one name that keeps popping up: BMW.
Regardless of who's interested in GEMA, one thing is certain: its vast amount of unused capacity, combined with industry-leading productivity, has made GEMA an extremely tempting prize in a country that - thanks to the ever-dwindling value of the dollar - has emerged as a low-cost manufacturing region.
(Read more...)
Posted by Michelle Krebs at 5:47 PM under Analysis , Chrysler , Companies , Featured , Rumors , Technology | Comments (0) | digg this | del.icio.us
Fiat, BMW in Small Car Platform Deal, Report Says
Fiat and BMW reportedly will co-develop a new platform for small cars and may develop a new family of gasoline and diesel engines.
Fiat CEO Sergio Marchionne told reporters, as reported by Reuters, that the Italian automaker would sign an industrial alliance in the car sector on Wednesday, though he did not identify the partner. "We've been working on it for a good while. It's something simple," he told reporters at a media session to test-drive the Abarth version of the Cinquecento (500) city car.
(Read more...)
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Tata, Chrysler Connect on $5,000 Electric Vehicle
The buzz is increasing on expanded collaboration between Chrysler and India's Tata Motors, which was catapulted on the world's automotive map with its announcement of the $2,500 Nano earlier this year.
India's Economic Times reports that Tata and Chrysler's Global Electric Motorscars (GEM) have developed an electric-powered version of the Tata Ace delivery vehicle with plans to sell it in U.S. The price being bandied about is $5,000 U.S.
(Read more...)
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Toyota Considering California Production of Prius, Report Says
Toyota reportedly is talking with General Motors about producing the hybrid Prius at their
joint production plant in California, Japan's Tokyo Shimbun
reported Friday.
Toyota did not confirm the report. A company spokesman told AutoObserver: "We are always considering what should be the optimum structure of our production efforts. But nothing has been decided about building the Prius
at NUMMI."
(Read more...)
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Porsche Charges Eavesdropping on CEO Via a Baby Monitor
The Porsche-Volkswagen saga is becoming more bizarre every day; the latest chapter includes charges of eavesdropping via a baby monitor.
Porsche confirmed Sunday night that it has filed a criminal complaint with authorities
regarding a suspected attempt to eavesdrop on CEO Wendelin Wiedeking. A report by the German weekly Der Spiegel
, picked up by the Wall Street Journal
Monday, said the complaint came after the microphone of a baby monitoring device was discovered behind a sofa in a hotel suite a day before last year's meeting of the supervisory board of Volkswagen.
Porsche holds 31 percent of the shares of Volkswagen and is seeking a majority stake.
(Read more...)
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Chrysler Puts Axle Plants Up for Sale
Chrysler has quietly begun looking for buyers for two Michigan axle plants – one still under
construction, sources told the Wall Street Journal
, which says the move reflects the automaker’s search for a leaner business model.
Over the past two months Chrysler has approached two axle suppliers, Dana Holding Corp., which recently emerged from bankruptcy, and American Axle & Manufacturing Holdings Inc., which has been struck by workers at five plants since late February, about buying the two plants for about $400 million. The offer has also been made to private-equity groups, the newspaper reported in Monday’s edition based on comments from anonymous sources.
(Read more...)
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Toyota Denies Japanese Government Helped with the Prius
Toyota Motor Corp. denied Wednesday it had received any funding from the Japanese
government to develop its Prius hybrid, The Associated Press reported.
Former Toyota executive and board member Jim Press, now vice chairman and president of Chrysler, had been quoted in the March 24 issue of Business Week magazine as saying, “The Japanese government paid for 100 percent of the development of the battery and hybrid system that went into the Toyota Prius."
(Read more...)
Posted by Michelle Krebs at 8:44 AM under Personalities , Rumors , Technology , Toyota | Comments (4) | digg this | del.icio.us
Nissan’s Mark McNabb To Depart the Company
By Michelle Krebs
Nissan North America has confirmed Mark C. McNabb, who returned to the automaker last July as senior vice president of sales and marketing, will leave the auto company for personal reasons on April 1.
Rumors of his imminent departure had been swirling in recent weeks. And some speculation has McNabb going to an unnamed Detroit car company.
(Read more...)
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Tata Motors To Buy Stake in Ferrari?
By Nick Kurczewski
Like a hapless A-list celebrity being hounded by the paparazzi, Tata Motors can’t seem to catch a break when it comes to avoiding being the subject of wild speculation and outlandish headlines.
The latest round of Tata’s awkward celebrity status came via a story published by Italian magazine L’Espresso, which recently reported Tata Motors now has its sights set on purchasing a stake in Ferrari.
(Read more...)
Posted by Michelle Krebs at 7:17 AM under Business , Companies , In the Media , Rumors | Comments (2) | digg this | del.icio.us
Cerberus-Chrysler: “Reality Bites” Says The Economist
Five months after Cerberus Capital Management was handed the company (for
nothing, in effect) by Chrysler's former parent, Daimler, there are growing fears that the acquisitive private-equity group may have bitten off more than it can chew, The Economist
magazine writes in this week’s edition.
The British publication notes three main problems facing Chrysler’s new management team with little or not time to solve them:
(Read more...)
Posted by Michelle Krebs at 5:42 AM under Analysis , Chrysler , Commentary , Rumors | Comments (2) | digg this | del.icio.us
Chrysler-Mahindra Cooking Up India Deal?
With Ford officially anointing India’s Tata Motors as the top bidder for Jaguar and Land Rover, it looks look Chrysler is trying to cook up a deal with an automaker in India as well.
Several global media outlets reported over the weekend that Chrysler is in talks with India’s Mahindra & Mahindra, archrival to Tata, for some kind of partnership, the nature of which is unclear.
(Read more...)
Posted by Michelle Krebs at 5:41 AM under Chrysler , Rumors | Comments (0) | digg this | del.icio.us
Report Says Tata Wins Jaguar, Land Rover from Ford
A British newspaper reports that India's Tata Motors will be named Friday as the winning bidder in the auction for Jaguar and Land Rover.
Britain's Birmingham Post newspaper says Tata will pay the equivalent of $2 billion for the two brands.
Ford has not confirmed the report.
Posted by Michelle Krebs at 1:59 PM under Ford , Rumors | Comments (1) | digg this | del.icio.us
Nissan Will Attempt To Squelch Gouging on GT-R Supercar
By Bill Visnic
Now that the $70,000-or-so price of Nissan Motor Co. Ltd.’s upcoming '09 GT-R supercar is public
knowledge, Edmunds' CarSpace.com
message boards are abuzz with discussion -– and skepticism –- about what the real price will be once dealers and associated speculators stake out their pieces of the action.
The ’09 GT-R, tested last weekend by Edmunds' Inside Line, certainly is next year’s most highly anticipated U.S. vehicle launch. Just as probable is that it will be 2008’s poster child for opportunistic dealer markups when the car goes on sale in June, what with a comparatively affordable starting price of $69,850 –- and Nissan promising a demand-stoking worldwide annual production run of just 1,500 cars.
(Read more...)
Posted by Michelle Krebs at 6:08 AM under Business , Companies , Featured , Rumors | Comments (2) | digg this | del.icio.us
Ford Picks India's Tata for Jaguar, Report Says
Ford reportedly will name India's Tata Motors as preferred bidder for its Jaguar and Land Rover brands, according to Britain's Sunday Times.
The paper, in a story picked up by Reuters news service, said Tata will pay about $2 billion for the brands. The deal could be wrapped up in early 2008.
Tata's Indiana competitor, Mahindra & Mahindra, with private equity firm One Equity Partners, led by former Ford CEO Jacques Nasser, also bid on the British brands.
Posted by Michelle Krebs at 7:27 AM under Ford , Rumors | Comments (0) | digg this | del.icio.us
Ford Shortens Bidder List for Jaguar, Land Rover
Ford has shortened its list of bidders for its Jaguar and Land Rover units.
Ford CEO Alan Mulally said in a Thursday morning conference call on third-quarter earnings that the planned sale of Jaguar and Land Rover is "progressing" with "selective parties." The sale is expected to be completed "no later than early next year," he said.
A source told Dow Jones Newswires Thursday that Indian automakers Tata Motors Ltd. and Mahindra & Mahindra Ltd. along with One Equity Partners, a unit of J.P. Morgan Chase & Co. that involves former Ford CEO Jacques Nasser, have been selected to have more detailed discussions with Ford.
(Read more...)
Posted by Michelle Krebs at 5:06 AM under Ford , Rumors | Comments (2) | digg this | del.icio.us
Ford-UAW Deal Close
Detroit media reporting Ford and the United Auto Workers union could announce a contract settlement as early as Friday.
Negotiators from the two sides remained at the bargaining table Friday morning after an all-night session, suggesting they are in the final phases of the talks.
The critical issues is job security: the union appears ready to give Ford more cost cuts in exchange for fewer plant closings and specific future product programs for plants.
Posted by Michelle Krebs at 6:12 AM under Ford , Rumors | Comments (0) | digg this | del.icio.us
Government Drops Delphi Investigation
The U.S. Department of Justice reportedly is dropping its investigation into criminal wrongdoing by former executives at Delphi Corp. An official public announcement is expected in a matter of days, according to Detroit media.
For the past two years or so, the Justice Department was investigating whether criminal intent was behind accounting irregularities at automotive supplier Delphi, which is in bankruptcy. Former Delphi executives, including former Chairman and CEO J.T. Battenberg III, are accused of using fraudulent accounting to hide the company's deteriorating financial condition between 2000 and 2004.
(Read more...)
Posted by Michelle Krebs at 6:58 AM under Companies , Rumors | Comments (1) | digg this | del.icio.us
Ford, UAW Adjourn Talks; Deal Close?
Negotiators for Ford and the UAW adjourned their marathon bargaining session in the wee hours of Thursday morning, but the buzz is the two sides are close to a deal. Talks resume later Thursday morning.
It is speculated that Ford may agree to close fewer U.S. plants than it had previously announced in exchange for increased cost savings from the union.
(Read more...)
Posted by Michelle Krebs at 6:38 AM under Ford , News , Rumors | Comments (0) | digg this | del.icio.us
Chrysler: What’s Chery’s Role?
Chrysler’s top exec in China says the automaker is exploring how to fill holes in its product portfolio in
small-car segments, the largest-volume categories in the country. And the holes won’t be plugged by Chrysler’s current Chinese partner, Chery.
Simon Elliott, president and CEO of Chrysler Group China Sales Ltd., reiterated what AutoObserver reported during the Frankfurt auto show last month, when Chrysler’s top designer Trevor Creed said Chery would not be Chrysler’s partner in building the B-segment Hornet, a concept for an international people mover. Creed said Chery’s platforms were not appropriate for the Dodge Hornet, and the hunt for another partner was ongoing.
The comments by the two Chrysler executives beg the question: So what is Chery’s role with Chrysler?
(Read more...)
Posted by Michelle Krebs at 7:01 AM under Chrysler , Commentary , News , Rumors | Comments (0) | digg this | del.icio.us
Ford Robs Toyota To Fill Top Marketing Job
Toyota has been robbed again!
Ford announced Thursday that it has hired Jim Farley away from Toyota. Farley, 45, currently group vice president of Lexus, will be Ford's first global chief marketing and communications officer.
"I wanted to bring to our team world-class marketing talent," Ford CEO Alan Mulally told AutoObserver in a phone interview just after the Ford board of directors agreed to hiring Farley.
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Posted by Michelle Krebs at 6:49 AM under Ford , Personalities , Rumors , Toyota | Comments (1) | digg this | del.icio.us
Ex-Hyundai Exec Bound for Ford?
Hyundai Motor America has confirmed its chief operating officer, Steve Wilhite, has resigned, effective Monday.
Wilhite is rumored to be a candidate for a newly created post of chief marketing officer at Ford, according to trade journal Advertising Age.
Ford will not confirm if Wilhite will be appointed to the job or is in the running.
(Read more...)
Posted by Michelle Krebs at 11:57 AM under Commentary , Ford , Personalities , Rumors | Comments (0) | digg this | del.icio.us
Indian-Owned Jag, Land Rover?
It is looking increasingly likely that an automaker from India could become the new owner of the now Ford-owned Jaguar and Land Rover.
Two Indian automakers, Tata Motors Ltd., and Mahindra & Mahindra Ltd., are among the bidders for Jaguar and Land Rover, which Ford hopes to sell as a package. And they may well be the front-runners among the bidders.
(Read more...)
Posted by Michelle Krebs at 7:55 AM under Commentary , Ford , Personalities , Rumors | Comments (0) | digg this | del.icio.us
Volkswagen of America: On the Move?
Reports have circulated, but have not been confirmed, that Volkswagen of America is seriously considering moving both of its headquarters and the headquarters of both of its brands –- VW and Audi -– from the Detroit area to new headquarters...well, elsewhere.
The reports are so strong that word is Michigan GovernorJennifer Granholm intends to step in and try to convince VWoA to stay put. The company’s U.S. headquarters are in the Detroit suburb of Auburn Hills, not far from Chrysler.
This is not the first time Volkswagen has been rumored to be leaving Detroit.
(Read more...)
Posted by Michelle Krebs at 11:58 AM under Companies , Rumors | Comments (11) | digg this | del.icio.us
Corvette Goes Midengine? Not So Fast.
Here we go again. Parts suppliers to automotive blog sites are atwitter about the prospects for a midengine Corvette. Indeed, that discussion –- which has occurred repeatedly since the 1960s -– is heating up yet again inside General Motors.
Automotive Web site AutoExtremist.com claims to have inside information that the C7 going midengine is nearly a done deal; a final decision is due next month, it insists.
Not so, say sources. Such a move is a long way from being a done deal with the C7 not due until mid next decade, and a decision to go midengine is not imminent. In the meantime, numerous enhancements will be made to the C6 Corvette before the C7 arrives, around 2013.
(Read more...)
Posted by Michelle Krebs at 7:12 AM under GM , Rumors | Comments (5) | digg this | del.icio.us
Jaguar, Land Rover Suitors Are an Intriguing Cast
Ford’s proposed sale of its British marques –- Jaguar and Land Rover –- is growing more intriguing by the day.
We’ve got a couple of up-and-coming car companies from India looking to expand globally through the acquisition of the brands, and two former Ford execs bidding against each other.
(Read more...)
Posted by Michelle Krebs at 10:51 AM under Ford , Personalities , Rumors | Comments (0) | digg this | del.icio.us
Who Killed the Chrysler Imperial? Wolfgang Bernhard, Report Says
The Detroit News reports today, on the eve of the final sale papers
being signed for Chrysler, that Wolfgang Bernhard, the former Chrysler COO and reportedly soon-to-be chairman of the New Chrysler, had the final say on the future of the Chrysler Imperial concept.
The large luxury sedan, unveiled as a concept car at the Detroit auto show in 2006 and set to go into production as a 2009 model, was reportedly scrapped in July as inappropriate in this era of likely stiffer fuel economy and emissions standards.
In gripping detail, the newspaper reports how Bernhard had the final say in the death of the Imperial, providing a glimpse into how Chrysler will operate under ownership of private equity firm, Cerberus Capital Management, which could become official as early as Friday.
(Read more...)
Posted by Michelle Krebs at 8:31 AM under Chrysler , Rumors | Comments (1) | digg this | del.icio.us
New Chrysler: Wolfgang Bernhard Reportedly to Return
As many predicted, Wolfgang Bernhard reportedly will become chairman of the board of the New Chrysler when the upcoming owner, Cerberus Capital Management LP, takes over, possibly by this Friday.
Few know Chrysler better. Cerberus hired Bernhard, who left Chrysler for Volkswagen in a political dispute and left VW for the same reason, as an adviser when it was negotiating to buy Chrysler.
(Read more...)
Posted by Michelle Krebs at 7:17 AM under Chrysler , Personalities , Rumors | Comments (0) | digg this | del.icio.us
Ford Sale of Volvo Rumors Revived
Talk has heated up once again that Ford is selling Volvo.
London’s Sunday Times, citing unnamed sources, said the decision to sell Volvo, which is part of Ford's Premier Automotive Group (PAG), was made in the past two weeks, but that the timing of the sale had yet to be decided.
If Ford sells Volvo it would the final piece to completely dismantling the automaker’s European luxury collection, the Premier Automotive Group.
(Read more...)
Posted by Michelle Krebs at 6:32 AM under Ford , Rumors | Comments (2) | digg this | del.icio.us
Why Did Top GM Designer Leave?
If the auto industry does not involve more women in its product
decisions, it risks becoming irrelevant, French-born Anne Asensio, a former designer for General Motors and Renault, told the Automotive News Europe
Congress in Prague last week.
“The industry doesn’t need cars designed for women but by women,†she told the gathering as reported by the sponsoring publication.
On the face of it, her comments were predictable and hardly new. However, they are curious in terms of their timing.
French-born Asensio recently resigned -– ever so quietly –- from GM, and there’s lots of buzz about why.
(Read more...)
Posted by Michelle Krebs at 7:29 AM under GM , Personalities , Rumors | Comments (0) | digg this | del.icio.us
Chrysler Group, Land Rover and Jaguar?
What an interesting concept: a car company that sells Chrysler, Dodge and Jeep models as well as Land Rover sport-utes and Jaguar cars.
It is a possibility, according to the Financial Times in London. The newspaper reported over the weekend that Cerberus Capital Management Group, which is set to close on its purchase of Chrysler next month, has expressed interest in bidding on one or both of the luxury brands put up for sale by Ford.
Another familiar name popped up in regard to Land Rover and Jaguar. Jac Nasser, former Ford CEO, reportedly is heading a study of the brands on behalf of buyout firm One Equity Partners.
And Automotive News reports rumors have former Ford exec, David Thursfield, head of Cerberus’ automotive units, leaving the firm. Thursfield had told the trade publication some time ago that he felt it was inappropriate for him to be involved with a Cerberus-owned Chrysler, given his long tenure at Ford. Maybe the addition of Land Rover and Jaguar will lure him to stay.
(Read more...)
Posted by Michelle Krebs at 6:25 AM under Chrysler , Commentary , Ford , Personalities , Rumors | Comments (0) | digg this | del.icio.us
Ford Confirms Considering Options for Jag, Land Rover
After rampant speculation mostly in the British press this past week, Ford decided to publicly confirm today that it is, indeed, intensifying discussions regarding what to do with its Jaguar and Land Rover brands.
A Ford spokesman said the company is working with financial advisers on strategic options for the brands, part of Ford’s Premier Automotive Group (PAG) that also includes Volvo. The company also told legislators in the U.K. Monday that Ford was looking at all options that may or may not include a sale of Land Rover and Jaguar.
(Read more...)
Posted by Michelle Krebs at 9:38 AM under Ford , Rumors | Comments (0) | digg this | del.icio.us
Ford Selling PAG: Where There’s Smoke, There's Fire
Rumors are running rampant, based on various news reports out of Europe this morning, that Ford is selling its Premier Automotive Group (PAG) or parts of it.
CityAM newspaper in Europe reported today that Jon Moulton, the venture capitalist who tried and failed to buy MG Rover, is preparing a $6-billion bid for Land Rover and Jaguar. Moulton, a partner in Alchemy Partners LLP, denied those reports in a telephone interview with Bloomberg News today.
Meantime, trade journal Automotive News Europe reports today that Ford has been actively seeking buyers for its European luxury brands after negotiations for Italy’s Fiat to buy Land Rover and Jaguar broke off late last month.
Last week, the rumors had BMW considering the purchase of Volvo.
Where there's this kind of smoke, there's bound to be fire.
(Read more...)
Posted by Michelle Krebs at 8:10 AM under Ford , Rumors | Comments (1) | digg this | del.icio.us
Fortune magazine: Cerberus Signs on Ex-Chrysler Design Chief Tom Gale
Former Chrysler Design Chief Tom Gale, reportedly has signed on as one of the many expert advisors by Cerberus Capital Management that is buying Chrysler, according to a profile on Cerberus in the June 18 issue of Fortune magazine.
Adding Gale to the growing roster of automotive experts suggests Cerberus is serious about turning Chrysler around and gets what needs to be done: get Chrysler's styling mojo back!
One of Chrysler’s major problems of late –- which under Gale had been its major strength –- is styling. Chrysler hasn't had a major design hit since the Chrysler 300, now long in the tooth.
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Posted by Michelle Krebs at 5:01 AM under Chrysler , Commentary , Featured , Personalities , Rumors | Comments (4) | digg this | del.icio.us
Chrysler Sold: Is There a China Connection?
Relief, exhilaration and even euphoria best describe the mood at Chrysler and in Detroit
last week after DaimlerChrysler announced its sale to private equity firm Cerberus Capital Management. The wait was over, and a decision was made.
Now, reality is setting, and with that is increasing wariness and even suspicion.
What’s the bigger picture for Cerberus, especially in light of a host of other automotive investments it has made? Are its automotive investments purely a money play? Or is there something else? Is there a China connection or some other kind of overseas connection?
No one will know until the story unfolds because Cerberus is private and intensely secretive.
(Read more...)
Posted by Michelle Krebs at 5:21 AM under Chrysler , Commentary , Featured , Rumors | Comments (0) | digg this | del.icio.us
Can Cerberus Still Bail If Unions Don’t Relent?
The timing of union contract negotiations and Cerberus closing on its purchase of Chrysler prompts the question: Can Cerberus bail if contract talks are looking favorable?
National contracts between Chrysler (General Motors and Ford as well) with the United Auto Workers union expires in September. The official kickoff handshake occurs in June, with negotiations in full swing throughout the summer. They will be at round-the-clock fever pitch by early September.
At the same time, DaimlerChrysler said yesterday it plans to close the sale of Chrysler with Cerberus sometime in the July-to-September quarter.
If at the point that Cerberus and DaimlerChrysler are to ink the deal union contract talks are not going smoothly and favorably, can Cerberus bail out of the deal?
(Read more...)
Posted by Michelle Krebs at 5:13 AM under Chrysler , Commentary , Personalities , Rumors | Comments (0) | digg this | del.icio.us
Ford Family Weighs Sale of Shares, Media Reports
Members of Ford Motor Co.'s founding family are discussing the
sale of part of their controlling stake in the automaker, sources with direct knowledge of the talks told Bloomberg
in a post today.
Bloomberg reports Chairman Bill Ford briefed Ford’s board directors on family members' views before the annual shareholders meeting last week in Wilmington, Delaware. At a gathering last month, some family members urged that investment bank Perella Weinberg Partners be hired to advise on a share sale or alternative strategies, Bloomberg reported.
A family attorney denied the reports to Dow Jones.
(Read more...)
Posted by Michelle Krebs at 6:51 AM under Ford , Rumors | Comments (0) | digg this | del.icio.us
GM Rear-Drive Cars On Hold; Camaro Moves Ahead
General Motors Vice Chairman Bob Lutz says the automaker’s future rear-wheel-drive cars have been
put on hold until the federal government decides on fuel economy and carbon dioxide emissions standards.
"We've pushed the pause button (on future rear-drive cars). It's no longer full speed ahead," Lutz told Chicago Tribune automotive columnist Jim Mateja in an interview in Tuesday’s paper.
But that may not be the whole story behind GM’s alterations of its future product plan.
(Read more...)
Posted by Michelle Krebs at 5:21 AM under Analysis , Business , Commentary , Featured , GM , News , Rumors | Comments (3) | digg this | del.icio.us
Chrysler Buyer: It’s Up to the Unions
Chrysler’s unions, in one way or another, will be the deciding factor in who ultimately buys the Chrysler Group.
It’ll come down to what deal is most palatable to them, and how well they’ll cooperate with -– or aggressively they’ll protest –- a potential buyer.
Of the offers now on the table, the deal likely to be most favored by Chrysler unions is an offer from Canadian auto supplier Magna International with private equity firm Ripplewood.
In contrast, a bid by Cerberus Capital Management ranks at the bottom with Chrysler’s unions, because the union suspects Cerberus intends to break it into pieces and strip it down to nothing more than a distribution company.
“Cerberus is a Trojan horse for Chinese automakers, and the unions know it,” said a source familiar with some of the bids.
Still, wild cards remain. The wildest card is the recent bid from Las Vegas billionaire Kirk Kerkorian and his Tracinda Corp. The innovative deal offers unions a stake in Chrysler and a future. Kerkorian claims Chrysler can be “a robust and lasting standalone entity,” and his Tracinda is in it for the long haul. Published reports put Kerkorian’s offered stake to the unions at 10 percent, but a source says Kerkorian is rumored to be willing to go as high as 20 percent.
(Read more...)
Posted by Michelle Krebs at 9:41 AM under Analysis , Business , Chrysler , Commentary , Featured , Rumors | Comments (0) | digg this | del.icio.us
Dow: Private Equity With a Middle Eastern Twist
A British newspaper reports U.S. private equity firms with Middle Eastern investors are preparing a bid of at least $50 billion for Dow Chemical Co., the largest U.S. chemical maker.
Rumors of Dow’s purchase have been swirling for the past couple months, and it was speculated its purchase would be the largest in history by private equity. Indeed, the latest rumored deal would be the largest by billions.
London’s Sunday Express, citing unidentified "sources close to the deal," say the offer for Michigan-based Dow, which supplies auto industry and other businesses, is between $52 and $58 a share and will be made by the end of this week. The speculation sent Dow stock soaring.
Kohlberg Kravis Roberts & Co. is among those backing the bid, the newspaper reported. At least half of the funding is coming from investors in Saudi Arabia, Kuwait, Bahrain, Qatar, the United Arab Emirates and Oman, the newspaper said.
(Read more...)
Posted by Michelle Krebs at 7:26 AM under Business , Commentary , News , Rumors | Comments (0) | digg this | del.icio.us
Chrysler Sale Is No Fire Sale
By Joseph Szczesny
Chrysler is undoubtedly in play and its sale likely is a foregone conclusion. But DaimlerChrysler
executives want potential buyers to know this is no fire sale, especially since not everyone at the German automaker is sold on a Chrysler sale.
“The company [in Stuttgart] is divided right down the middle. Half want a split and half don’t,†said one official who has worked for the company in Europe and North America. The source, however, said the company likely is past a point of no return and will be forced to sell Chrysler.
But DaimlerChrysler has certain requirements that must be met before it sells Chrysler. DaimlerChrysler CEO Dieter Zetsche set out four criteria for the sale of the Chrysler Group at this week’s annual meeting in Berlin.
(Read more...)
Posted by Michelle Krebs at 6:55 AM under Chrysler , News , Rumors | Comments (2) | digg this | del.icio.us
Ford’s Mulally Stays the Course
Ford Chairman Alan Mulally capped off a week of whirlwind visits to key media outlets and dealerships,
where he played salesman, with a keynote speech opening press days at the New York auto show.
In the off-the-cuff speech and lengthy question-and-answer session as well as in his visits with the media, Mulally has revealed virtually nothing about what he plans to do to turn around the ailing automaker.
Mulally was asked point blank by Edmunds.com President Jeremy Anwyl about incessant rumors that Mark Fields, president of the Americas and devisor of the Way Forward turnaround plan, and Cisco Codina, group vice president for North American marketing, sales and service, were history.
Seemingly surprised to hear of the rumors, Mulally responded he’s standing by his men and the plan.
Mulally reinforced that message during his speech in New York. He claims no further, deeper cuts are required, as analysts and industry observers insist are needed.
Asked at the New York show about Ford’s prospects for survival, highly respected auto analyst, Joe Phillippi, of AutoTrends, in Short Hills, N.J., responded: “Dicey.â€
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Posted by Michelle Krebs at 5:18 AM under Commentary , Ford , Personalities , Rumors | Comments (0) | digg this | del.icio.us
Magna, Private Equity Firm Bid for Chrysler, Analyst's Report
Canadian supplier Magna International Inc. has joined with a private equity group to make an offer to buy the Chrysler Group from DaimlerChrysler, according to Brett Hoselton, an analyst for KeyBanc Capital Markets, as reported by Automotive News.
Magna and its partner have made an offer to buy Chrysler for $4.6 billion to $4.7 billion, Hoselton says in his March 23 report. He cites sources at Magna but does not name the private equity partner.
(Read more...)
Posted by Michelle Krebs at 6:50 AM under Business , Chrysler , Rumors | Comments (0) | digg this | del.icio.us
Wal-Mart vs. Julie Roehm: Battle Grows More Sordid
The Wal-Mart situation involving former Chrysler marketing executive Julie Roehm, dismissed from the giant retailer, gets more sordid by the minute. It makes the controversy surrounding her at Chrysler look tame by comparison.
In court documents filed Monday, Wal-Mart accused Roehm and another top marketing executive (who was fired from the retailer) with having an affair while they were selecting new advertising agencies and seeking jobs from the agency they ultimately recommended to represent Wal-Mart, according to The New York Times.
(Read more...)
Posted by Michelle Krebs at 5:32 AM under Chrysler , News , Personalities , Rumors | Comments (1) | digg this | del.icio.us
Nissan: More Restructuring in the Works?
Further restructuring at Nissan is rumored as a result of the automaker's less than stellar performance of late.
Nissan-Renault CEO Carlos Ghosn is unhappy with Nissan's U.S. sales performance and recent product launches and intends to take action, according to the rumor mill.
Ghosn has made no secret of dissatisfaction publicly.
(Read more...)
Posted by Michelle Krebs at 3:49 AM under Business , Companies , Rumors | Comments (3) | digg this | del.icio.us
Chrysler: As the Rumor Mill Churns
GM? India? Magna? Private equity?
Analysis, speculation and flat-out rumors continue as DaimlerChrysler “explores all options” regarding the future of its Chrysler Group. A potential Chrysler-General Motors link has generated the most interest.
The Financial Times in London reported on Sunday that DaimlerChrysler is considering taking a minority stake in GM as payment for Chrysler if a deal between the two carmakers goes ahead.
Buying part or all of Chrysler’s industrial assets for shares placed with DaimlerChrysler would relieve GM of the need to raise new cash, which GM would find onerous given the current “junk” status of its debt, the paper noted. As a minority shareholder of GM, DaimlerChrysler could benefit from billions of dollars’ worth of synergies and cost savings expected from merging the two companies.
The London newspaper quoted a source identified as a leading shareholder as saying: “They are interested in who takes Chrysler over, and they would be happy to take equity in GM in return.” The paper said such an equity arrangement has the support of at least two of DaimlerChrysler’s institutional shareholders.
Such a plan may be sheer wishful thinking on the part of the quoted shareholder and other European shareholders eager to dump Chrysler. But it represents a shift in GM strategy, which has been moving away from equity arrangements.
(Read more...)
Posted by Michelle Krebs at 5:55 AM under Chrysler , Commentary , Featured , GM , Rumors | Comments (2) | digg this | del.icio.us
Hyundai Is Monday's Chrysler Suitor
If it's Monday, it must be Hyundai.
Friday the frenzied buzz was that General Motors was in talks to buy Chrysler. By Monday, South Korea’s Hyundai was rumored to be interested.
And by the end of the week, even more names are likely to emerge as suitors. One could be from China – maybe Chery or Shanghai Automotive Industries Corp. (SAIC) – or some private equity firms from virtually anywhere.
Of the two automakers rumored to be interested in Chrysler so far, Hyundai makes more sense. Hyundai lacks much of what Chrysler has; GM already has too much of what Chrysler's got.
(Read more...)
Posted by Michelle Krebs at 5:37 AM under Analysis , Commentary , Companies , News , Rumors | Comments (5) | digg this | del.icio.us
Rumors of GM Buying Chrysler Are Just That
Rumors are running rampant since a German Web site reported General Motors is in talks to buy Chrysler, now that DaimlerChrysler has indicated its American arm is for sale.
But they are just that - rumors.
(Read more...)
Posted by Michelle Krebs at 5:39 AM under Companies , Rumors | Comments (0) | digg this | del.icio.us
