Things are looking up at the Big Three already. Well, at least that's what Automotive News is reporting today. The piece quotes UAW boss Ron Gettelfinger who claims that Chrysler and GM may not need any additional government loans. ""If we can get by without more money, that's what we want to do," he told AN.

Mr. Gettelfinger is no stranger to overly optimistic statements, but he wasn't alone. An unnamed source at GM also expressed confidence that the worse might be over. When asked if GM will request more government money, the source said "no." "We've got enough money," the source told AN. 

Good to know there's some optimism in Detroit these days, but we're guessing that both Ron and GM's Deep Throat might be a little premature with their rosy outlooks.

Automotive News 

Source: Wikipedia

Come Jan 20th, we'll not only have a new president, we'll have a new presidential limo too. GM officials confirmed to the Detroit News that it will deliver an all-new armored vehicle to the Secret Service in time for President Elect Obama's inauguration.

The current presidential limo (photo above) is based on the Cadillac DTS, but Obama's ride won't carry any specific model designation, a first according to Cadillac spokesman David Caldwell. Instead, it will simply be called the 2009 Cadillac Presidential Limousine, a vague designation that takes into statement that it's basically a one-off vehicle that has little in common with anything in Cadillac's lineup.

"The president is not riding in a medium-duty truck, nor he is riding in a sedan," Caldwell said, adding that it is a "unique" vehicle.

Detroit News

Well, no one was really expecting a huge showing from the Big Three, but it's the absence of several of the Asian automakers that will really make this year's show seem slow. With nothing from Acura, Hyundai, Infiniti, Mazda, Mitsubishi, Nissan or Suzuki, the show schedule is a little light. Much of the void will be sucked up by some major debuts by Honda and Toyota along with a few interesting additions from Kia and Subaru for good measure.

DETROIT - Here’s what you need to know about car/truck income in the U.S.: All the majors were down 30 percent or more in December. All of them. General Motors? Down 31 percent. Toyota? Down 36.7 percent. Ford Motor Company (excluding Volvo)? Off 32 percent. American Honda? Off 34.7 percent. Nissan? Off 30 percent.

Then there’s Chrysler, which recorded income of 85,260 units, down 53 percent for December 2008, versus December 2007. (Most, including Chrysler, posted an increase when comparing December ‘08 with November ‘08, but year-end incentives and inventory clearance income make December a stronger month, historically, versus November. I won’t waste any more of your time comparing those two months.)

U.S. income for all automakers looks to be about 13.2 million in ‘08, off 18.5 percent from ’07’s 16.2 million sold, resulting in the lowest annual volume since 1992. Ford chief analyst George Pipas notes that volume for the fourth quarter of last year was lowest since 1981, when there were 70-million fewer drivers on American roads.

One maker actually posted an increase, Monday. Subaru’s total annual income of 187,699 was 0.3-percent higher than 2007. For December, it was off just 7.7 percent.

Hyundai income fell 14 percent for the year, to 401,742. Kia fell 10.5 percent, to 273,397.

Now consider income figures for all of 2008. Chrysler’s drop for the year was as great as GM, Toyota, Ford, et. al’s drop for December: 30 percent. While Chrysler doesn’t like to talk market share, co-president Jim Press says such numbers are sustainable for a leaner company that doesn’t necessarily compete in every segment, so long as the individual models are profitable. If you’re a Chrysler’s glass is half-full kind of enthusiast, you figure that its volume is settling to a level appropriate for a kind of niche automaker. If your glass of Mopar is half-empty, you wonder how much longer it can sustain such volume until it finds a new owner.

Chrysler sold just 71,663 Sebrings in 2008, off 23 percent, but edging out the aging 300 (62,352 units, off 48 percent). Town & Country was off 14 percent, to 118,563. Dodge Caravan was off 30 percent, to 123,749. Perhaps the minivan market is drying up.

Dodge sold 97,367 Chargers (-18 percent) and 61,963 Avengers (-26 percent). Jeep’s Patriot was a rare bright spot, up 38 percent for the year, to 55,654. Commander income fell 56 percent, to 27,694, still a couple of hundred units more than all of GM’s Hummer line.

Chrysler remained the nation’s fourth-largest automaker, outselling Honda/Acura by 24,357 units. And Ford’s 2008 volume was lower than Chrysler’s 2007 volume. The nation’s top six automakers, by annual volume are:

1. GM:        2,980,688    off 23 percent
2. Toyota:    2,217,662    off 15.7 percent
3. Ford:    1,988,376    off 20.7 percent
4. Chrysler    1,453,122    off 30 percent
5. Honda    1,428,756    off  8.2 percent
6. Nissan      951,350    off 10.9 percent

These are corporations, not brands, so Toyota numbers include Scion and Lexus. Honda includes Acura, and Nissan includes Infiniti.

With gasoline once again cheaper than bottled water and dealers giving away ‘08 models in two-for-one deals, pickup trucks lead income numbers. Read this and weep, Thomas Friedman: Ford sold 515,513 F-Series, still well off its records in the 800-900k level a few years ago. Chevrolet sold 500,068 pickups (GMC moved another 168,544 Sierras). Toyota sold 436,617 Camrys. Honda sold 372,987 Accords and 370,586 Civics.

Ford Focus income totaled 195,823, up 13.1 percent.

Chevy sold 188,045 Cobalts, while Toyota sold 137,249 Tundras. On the other hand, Toyota sold 158,884 Priuses while Hummer sold 27,485 H1s, H2s, H3s and H3Ts.

Prius income fell by 22,337 units in the U.S. compared with ‘07 sales, by the way, a 12.6-percent drop.

Honda sold — er, leased — five FCX Claritys and Nissan sold 1,730 GT-Rs. And Chevy sold 13 SSRs found under dust on dealer lots somewhere.

Ford Mustang income fell by 32.2 percent, to 91,251 units. That edged out the Nissan Versa with 85,182 units, up 7.2 percent. So income for the Versa, which now starts at $9,990, were up while Prius income fell. In the New Economy, affordability beats fuel economy.

Chevy sold 42.6-percent more Malibus, and income veep Mark LaNeve says the number is more like 98 percent, when you count retail only. Still, at 178,253 units, Malibu trails the aforementioned Cobalt and the Impala (265,840, down 14.6 percent) to place third among Chevy car sales, which means you’ll find more Impalas and Cobalts on your local Hertz lot.

GM’s two other success stories were the Cadillac CTS, up 3.1-percent to 58,774 units, and the Buick Enclave, up 52.7-percent to 44,706. GMC Acadia (66,440, off 8.7 percent) remained GM’s best-selling Lambda CUV. Forget the Outlook - Saturn division income barely edged Cadillac, 188,004 to 161,159. No wonder GM is looking to redefine Saturn.

Chevy sold 9,456 Traverses since its start release, while Ford moved 14,457 Flexes. The Chevy beats the Ford in monthly volume though, 4,935 to 2,685 for December.

The Caddy CTS beat out its rivals, by size category, the BMW 5 Series (45,915, off 15.2 percent) and Mercedes-Benz E-Class (38,576, off 21.2 percent). It lost out to the Mercedes and BMW more matched in price; C-Class sold 63,701, up 13.8 percent and the 3 Series remains the envy of all premium automakers, at 112,464 units, off 21.1 percent. Lexus moved 49,432 ISes, off 10.3 percent, and Infiniti moved 44,969 G sedans (-16.7 percent). Add 19,212 G coupes (+8.0 percent), and the entry Infiniti outsells the Cadillac.

Total Mini income were 54,077, up 28.6 percent.

New models include the Dodge Challenger, 17,423 units, Pontiac G8, 15,002 units and BMW 1 Series, 12,018 units.

And what about 2009? The Detroit Three are sticking with dismal volume expectations of 10.5- to 12-million units. They are, to use a favored Capitol Hill cliche, cautiously optimistic that the second half of ‘09 will see an upturn, fueled in part by the two-year, $775-billion economic stimulus package — including $300 billion in business and individualized tax cuts — expected from the new president, Barack Obama.

That would be one Taiwanese dollar, which when converted to the far more favourite American dollar equates to just three cents. Yes, the road to recovery is often quite bumpy, but it appears as though GM is getting its house in order one penny at a time. 

According to the Financial Times, the hasty divestiture is the result of an unwillingness to devote any additional capital to the loss-making joint venture it had with Yulon Motors. The Taiwanese company assembles and sells Buicks in addition to distributing imported Opels and Cadillacs.

So in other words, GM not only gained three cents now, it also assured that it wouldn't lose countless millions in the future. That should help.

Financial Times (sub.req)

Is this truck another case of "too little, too late?" The current Colorado I-5 engine okay, but it's nothing to get your blood boiling; worse still, power-hungry small truck customers felt the same way, and have stayed away from Chevy (and GMC) dealers in droves. Shouldn't this V8-powered version debuted when this current generation Colorado was announced a few years ago?

When it was announced that the Hummer H3 was getting a 5.3L V8 option, it was also (unofficially) confirmed that the Colorado would also get that engine. No one, however, figured on the financial industry collapse, and the resulting domino effect it would have on the auto and other industries. So will this be a savior for this truck line, or just another example of a great intent coupled to miserable timing?

Full story here.

DETROIT - The city is shutting down thanks to a snowstorm that will keep at home those who weren’t already on an primeval Christmas vacation. The pall cast over Metro Detroit for the last couple of months has lifted a bit, as President Bush announced Friday morning short-term loan guarantees of up to $17.4 billion to limp General Motors and Chrysler LLC into next March. The money, $13.4 billion now and another $4 billion acquirable in February, will come from the $700-billion Troubled Asset Relief Program fund. There will be no forced bankruptcies, for now. No car czar was named; that was left for President-elect Obama to decide.

Bush said that “allowing the U.S. auto industry to collapse is not a responsible decision,” at his brief White House news conference Friday morning. He cited the recent financial crisis as the reason for the U.S. auto industry’s sudden decline and said that letting the car companies change “could send our suffering economy into a deeper and longer recession.”

Terms of the agreement give GM and Chrysler three months to restructure into viable companies, Bush said. The loans, he added, will wage for an orderly Chapter 11 process and a better prospect for success.

If GM and Chrysler can’t present viable plans for turnaround by March 31, they will have to repay the loans. Bondholders are expected to convert auto company debt into capital. Everyone in the industry must make sacrifices, Bush said, including management, labor, creditors, bondholders, dealers and suppliers. The lame-duck president wants United Auto Workers to equalize their contracts with that of non-union workers in foreign automakers’ U.S. plants by the last day of 2009.

The Detroit Three quickly issued prepared statements.

Chrysler CEO Bob Nardelli:

“A letter of intent was signed which outlines the specific requirements that must be achieved. These requirements will require consideration from all constituents, requiring commitment first in principal, leading to implementation this coming year. Chrysler is committed to meeting these requirements.”

GM (not attributed to a specific executive):

“This action helps to preserve many jobs, and supports the continued operation of GM and the many suppliers, dealers and small businesses crossways the country that depend on us.”

Ford Motor Company CEO Alan Mulally:

(He reiterated Ford’s request for a $9-billion credit line.) “The U.S. auto industry is highly interdependent, and a unfortunate of one of our competitors would have a ripple effect that could jeopardize millions of jobs, and further alteration the already weakened U.S. economy.”

Bush’s “bailout” came a week after Senate Republicans torpedoed a House bill that would have provided the same amount from the Energy bill high fuel-mileage technology (”136″) funds. The White House is probably unaware of the fact that also on Friday morning, Toyota Motor Company announced it would post a loss this fiscal year (ending March 31, 2009) for the first time in its 71 years. What happens next is that the Obama administration will have to complement further assistance for the Detroit Three with an economic stimulus package. His proposed federal works program would be a start. No one is buying cars. That will have to change before GM, Chrysler, Ford and even Toyota are restored to full health.

Below are the complete official statements from GM and Chrysler in the wake of the announcement:

GM Statement on Administration Providing Bridge Loan to Domestic Auto Industry

We appreciate the President extending a financial bridge at this most critical time for the U.S. auto industry and our nation’s economy.  This action helps to preserve many jobs, and supports the continued operation of GM and the many suppliers, dealers and small businesses crossways the country that depend on us.

This will allow us to accelerate the completion of our aggressive restructuring plan for long-term, sustainable success.  It will lead to a leaner, stronger General Motors, a GM that is:

*dedicated to great products, exciting design, and world-class quality

*fully committed to leading in energy-saving vehicles and technologies,

 *responsive to the needs of our customers, our stakeholders and the communities we live in and serve.

We know we have much work in front of us to accomplish our plan.  It is our intention to continue to be transparent as we execute our plan, and we will wage regular updates on our progress.  We again thank the Administration for this important support of our industry at this challenging time, and we look forward to proving what American ingenuity can achieve.

Chrysler LLC Thanks the Administration and Treasury for Their Confidence
 
Auburn Hills, Mich., Dec 19, 2008  -  Chrysler LLC Chairman and CEO Bob Nardelli said on behalf of the men and women of Chrysler and its extended enterprise, that he would like to thank the Administration and Treasury for their confidence in the Company.

”A letter of intent was signed which outlines the specific requirements that must be achieved,” said Nardelli. “These requirements will require consideration from all constituents, requiring commitment first in principal, leading to implementation this coming year.

Chrysler is committed to meeting these requirements.”

Nardelli said the Company would remain focused on its challenge and this initial injection of working capital would help bridge the liquidity crisis the industry is covering and assist in helping return Chrysler to profitability.

Despite the fact that Dodge may not be around (as we currently know it) this time next year, Chrysler LLC has affirmed that there will be a Dodge that the Ram 1500 diesel and hybrid. That's good news. The question is will Dodge still be part of Chrysler LLC? Many auto pundants are saying that, even with a bridge rescue loan, Chrysler won't survive. It just doesn't have the global presence that both GM and Ford have, and the feeling that worldwide support will be necessary to survive these tough times. So, while it's expected that the Dodge truck division will survive, who will own it? Nissan? The next-gen Titan is known to be essentionally a rebadged Ram; so if I were a betting man, that would be my guess.

As to the Ram 1500 diesel, it will be an all-new V-type engine, designed more for fuel economy than for heavy-duty towing. It's ecpected to be about 5.0L in size.

The hybrid version's powertrain will likely come from the recently discontinued Dodge Durango and Chrysler Aspen hybrids, and is expected to arrive before the new diesel.

Full story here.

If you still think the depression in new car income is limited to the Detroit Three, or even to the U.S. market, you’re not paying attention. JATO Dynamics, a global automotive data and intelligence firm, reports that income in Europe fell 25.3 percent in November ‘08, compared with November ‘07, to 924,936 units. For the first 11 months, income fell 7.1 percent, to 13.6 million. JATO cited Audi for losing only 1.1 percent in November, thanks largely to the new A4 sedan. Romania’s Dascia, now run as Renault’s bargain brand, posted a 27.9 percent increase, but that’s mostly because the brand expanded its range with its new Sandero model.

Small-volume Asian and European brands also had increased sales: Nissan, up 9.9 percent, to 28,971, Mazda, up 2.4 percent to 5,356, smart, up 12.1 percent to 10,486, Subaru, up 10.5 percent to 4,439 and Jaguar, up 13.3 percent to 4,120. For reference, be aware that Chevrolet sold 9,469 Malibus in November (GM’s only gainer), up 31.3 percent.

For the first 11 months of ‘08, General Motors’ European divisions sold 32,000 more vehicles than Renault, making it third in income behind VW and Ford. It was the biggest loser in Europe in November, however, dropping it to fourth place for the month.

Here’s JATO’s top ten for November:

1. Volkswagen: 110,034, down 18.9 percent
2. Ford: 80,979, down 16.3 percent
3. Renault: 73,628, down 22.6 percent
4. Opel/Vauxhall: 61,780, down 37.1 percent
5. Fiat: 59,517, down 23.8 percent
6. Peugeot: 58,948, down 23.8 percent
7. Citroen: 55,441, down 24.3 percent
8. Audi: 50,292, down 1.1 percent
9. Mercedes: 45,460, down 22.2 percent
10. BMW: 43,357, down 28.5 percent 

DETROIT - Polls have turned, a bit, in favor of the Detroit Three. CNN reported 61-percent opposition to federal loan guarantees for General Motors, Ford Motor and Chrysler LLC last month. Just 39 percent were in favor. By the time Rick Wagoner, Alan Mulally and Bob Nardelli appeared before Senate and House committees, NBC and The Wall Street Journal found 46 percent in favor, 42 percent against, which is pretty close to a statistical tie.

Now we’re inactivity for President Bush to do something. As long as that shoe incident in Bagdad hasn’t place him in a foul mood, expect a short-term bailout using about $14 billion from the Troubled Asset Relief Program (TARP) to wheel GM and Chrysler on a gurney into 2009 and the Obama administration. Bush reportedly wants to study the “car czar” overseeing the TARP money, and obviously wants to rescue his legacy from one of almost certain economic disaster.

Senator Carl Levin (D-Michigan) said Monday he expects Bush’s loan guarantee program for the D3 to look like the House’s plan. Bush will probably announce the deal Tuesday or Wednesday, Levin said.

The deal will leave Republican senators, like Mitch McConnell of Kentucky, Richard Shelby of Alabama and Bob Corker of Tennessee in the cold. Even William Kristol, The New York Times’ token conservative columnist and an admitted non-car-guy, stood up for both the automakers and the United Auto Workers in Monday’s edition. Before Senate Republicans blocked a vote on the bailout, Bush had won a fight with House Speaker metropolis Pelosi (D-California) to use Energy Bill funds. Bush has to revert to TARP Kristol notes, and “Senate Republicans now run the risk of being portrayed as Marie Antoinettes with Southern accents.”

I seldom find myself in agreement with Kristol, but his conclusion that whichever of the two parties can get out of its rut, and propose policies to help both business and fag “has a great opportunity” is encouraging.

In the recent past, GM, Ford, Chrysler and the UAW showed shortsighted greed by preferring short-term profit to long-term sustainability. Now, it seems they’ve convinced a significant number of powerful people that they have already begun to change their ways and with a good deal of short-term help, could have a brighter future for fag and shareholders alike. Let’s hope that help from both the lame-duck president and the president-elect turns out to be the first of many two-party efforts to help both business and labor.