autoMedia Auto News Blog : President Obama

autoMedia CARnival 8/21/09: This week in the auto blogs

Brandy Schaffels — Fri, 21 Aug 2009 12:36:00 GMT

It's the week ending August 21, and we've browsed our favorite automotive blogs all week long to gather a collection of what we feel is the highlight from each. Big news involves the end of the CARS rebates on Monday, as once again the Feds predict the money will run out over the weekend. People: That's nearly $3 billion dollars in rebates and admin costs car shoppers have burned through in barely a month!

U.S. Transportation Secretary Ray LaHood has announced the cash for clunkers program will come to a close on Monday, August 24th at 8 p.m. EDT. According to The Detroit News, the latest round of Car Allowance Rebate System (CARS) rebates has inspired 457,476 sales worth $1.91 billion in rebates. Apparently, dealers have been submitting paperwork for 20,000 vehicles, or about $100 million, a day in recent days, since the program was renewed. And this time, lawmakers have no interest in extending the program. Unfortunately, while sales have been brisk, reimbursements have not, so Chrysler Group and General Motors have announced they will advance funds to dealers who are still awaiting payment from the government for clunkers deals. DetNews reports the administration has paid just $145 million of the $1.9 billion in vouchers submitted -- or less than 10 percent of the funds requested. YIKES!

For more than a year now, says The Detroit Bureau, automotive manufacturers have, done nothing but cut, cut, cut. Thanks to the cash for clunkers sales melee, and inventories so low that some popular models are literally being sold right off the car haulers, automakers are cautiously starting to ramp up production again. Hope they get to lots before the money runs out!

Dealership inventory is quickly thinning many towns, even as factories ramp up overtime to deliver small, fuel-efficient vehicles in before the funds run out. There is a definite race against the clock for all involved to take full advantage of this unique program, and car shoppers shouldn't delay. You can learn about the so-called "cash for clunkers" from our guide, and research year-end clearance models in our new car buyer's guide and reviews here at autoMedia.com

It might appear to be little more than a toyish looking box on wheels, but Trabant has released teaser images of its upcoming all-electric Trabant nT set to debut at the Frankfurt Motor Show. AutoBlog Green has a fun photo gallery of the new electric Trabant nT (new Trabi) which promises a range of about 156 miles from its lithium-ion battery.

With the oldest car yet, cross-dressing maids, and a crash-and-roll finale, people have been talking about this high-performance exhibition for weeks! At last Jalopnik has posted the results of all 95 entries into the Buttonwillow Histrionics 24 Hours Of LeMons. Be sure to check out the gallery of entries - it'll almost be like having attended the event! And to think: Some of these cars could have been worth $up to $4500 as Clunker trade-ins...

She's the modern-day version of a photographic Mata Hari, and LeftLaneNews reports that ABC News spent a day Automotive Spy Photographer Brenda Priddy as she followed various camouflaged vehicles the sun-soaked southwest desert. To read ABC News' report and to watch their video, click here.

Would you spend $129 for a video game if it promised to make you a better driver? AskPatty.com reports on DriveSharp -- computer-based exercises produced by a provider of brain fitness programs -- which has been shown in independent studies to improve reaction time, cut crash risk by up to 50 percent, and increase control in most driving conditions.

Last week, General Motors gave journalists and consumers a sneak peek at several models expected to debut over the next two years. This week, in response to its poor reception, All Cars All The Time reports that Buick has decided to cancel the Saturn-Vue-based electric crossover, but promises the important plug-in hybrid technology will quickly be applied to another vehicle.

So, do you enjoy the broad variety of headlines and automotive websites here in our weekly carnival? If this still doesn't provide a broad enough selection of car content, then you should check out autos.alltop.com: They've got links to more than a hundred automotive websites, and list the five most recent headlines at each. So whether you're looking for the most popular auto items at Digg.com, auto & transportation press releases from PR Newswire, and anything in between, autos.alltop.com is the place to go when you've got too much time on your hands, and an insatiable appetite for car news.

Thanks for joining us for this week's autoMedia.com CARnival! Have you got something of interest you want us to include in a future carnival? Then fill out our online form so we can be notified of your interesting entry to our weekly blog CAR-nival. Check back next week for another installment--until then, have a great weekend!

Brandy Schaffels, Contributing Editor

Cash for Clunkers: Obama Formalizes $2 Billion Extension

admin — Mon, 10 Aug 2009 01:24:00 GMT

President Obama has signed into law H.R. 3435, a bill that extends the Car Allowance Rebate System (CARS) with $2 billion more in funding. This bill doubles the original $1 billion in funding that sparked a new car sales wave. Late Friday, the National Highway Traffic Safety Administration (NHTSA) announced that 245,384 CARS credits had been requested, totaling $1.03 billion. The extension came just in time to continue the offer through the weekend. (See: “Cash for Clunkers: Senate Approves $2 Billion Extension.”)

Obama said, “Now, more American consumers will have the chance to purchase newer, more fuel-efficient cars and the American economy will continue to get a much-needed boost. ‘Cash for clunkers’ has been a proven success: the initial transactions are generating a more than 50 percent increase in fuel economy; they are generating $700 to $1000 in annual savings for consumers in reduced gas costs alone; and they are getting the oldest, dirtiest and most air-polluting trucks and SUVs off the road for good. Businesses across the country – from small auto dealerships and suppliers to large auto manufacturers – are putting people back to work as a result of this program.”

From the initial sales rush, dealer lots have seen the inventory of their most fuel-efficent cars sold down. For those late-comers to the program, there will be fewer choices of year-end models. (Read: "Cash for Clunkers – Top 10 Trade Ins, Purchases.") It is important for shoppers to not only research their selections, but work to get their first-choice model, rather than compromise. After all, it somewhat defeats the purpose if you don’t buy the four-cylinder you wanted and go with the V-6, instead. Remember, dealers can search regional inventory and have a car transported to their shop. Consider using either a car-locator feature on the manufacturer site or cast a wide net in seeking dealer quotes online to ensure you find the car you want.

Still can’t find what you want? In some cases, the 2010 models are coming later this month, such as several Toyota models.

Research new vehicles in the 2009 new car buyer’s guide. Use the free autoMedia dealer quote tool to have dealers compete for your business.

autoMedia CARnival 8/7/09: This week in the auto blogs

Brandy Schaffels — Fri, 07 Aug 2009 17:00:00 GMT

It's the week ending August 7, and we've browsed our favorite automotive blogs all week long to gather a collection of what we feel is the highlight from each. The biggest news this week continues to be discussion of Obama's Car Allowance Rebate System (CARS) program, as websites discussed the outcome of the program's first week, as well as plans for its next installment.

Thanks to AutoBlogGreen for the latest update clarifying the mysterious status of the Car Allowance Rebate System legislation, telling us it looks set to continue for at least another month. Apparently, the Senate confirmed the House's $2 billion funding of the incredibly popular program yesterday in a 60-37 vote, Obama is expected to sign it into law soon, and the money should last through Labor Day. Note: If you're considering making a purchase based on CARS rebates, don't delay, as it's not expected to be extended again.

A report at Edmunds Auto Observer, which was heavily based on information obtained from a Hyundai press release, states that these new purchases could result in a 59-percent fuel economy improvement between the new and old vehicle of the early clunker trades. In fact, according to their report, Hyundai estimates individual fuel consumption will decrease by 275 gallons per year, reducing fuel costs by nearly $680 annually at current gas prices. According to Hyundai's calculations, this first round of trade-ins could potentially decrease annual fuel consumption across the U.S. by 69 million gallons, reducing spending by a total of nearly $170 million on gasoline and cutting CO2 emissions by more than 600,000 metric tons.

A deluge of car shoppers purchased nearly 185,000 vehicles within the first week of activity: Consumer Reports shared data showing what participating consumers were trading in and then buying with their rebate dollars. As expected, the vehicles most often cashed in are popular SUVs and pickup trucks, with small and midsized sedans dominating the new-car purchases. They also include lists of the top vehicles purchased (Toyota Corolla was the number one most purchased car) and the top ten vehicles traded in (Ford Explorer 4WD wins that dubious honor).

With nearly all gas-electric hybrid cars qualifying for the Cash for Clunkers vouchers, hybrid sales in July grew to 3.55 percent of the new car market--its largest market share ever. According to HybrdCars.com, new car dealers sold 35,429 hybrids, with more than half of the sales coming from the Toyota Prius. Hybrid sales jumped by 35 percent in July compared with last month and a year ago--while sales of conventional new vehicles rose 15.4 percent for the month and were down 13 percent from July 2008.

Finally, there's been lots of greenwashing on this subject, but Bill Basore over at AutomotiveTraveler has the courage to explain, in painful detail, all the reasons why the Cash for Clunkers program is bad. While many consumer and industry insiders may quietly agree with him, nobody has written anything that so clearly explains why it's so clearly bad. Plus, all the videos demonstrating how they disable what appear to be perfectly reliable cars are just tragically sad.

Sick of Cash for Clunkers news? Okay, let's move along....
We already know those snarky guys over at Jalopnik love cars. They love movies, too. Would it surprise you to hear they also love movies about cars? Well, we all know there are some really great car flicks out there, as well as some really pathetic car flicks. Click this link to view Jalopnik's list of 12 of the greatest car flicks of all time. Or click this link to view their list of 12 of the worst.

If you're one of those folks who's always on the move, check out this article at The Detroit Bureau explaining a new generation of wireless technology that provides Internet access via cellular data networks for devices in a moving vehicle. With in-car internet service like this, your kids may soon start asking, "Already?" rather than, "Are we there yet."

Automotive journalists drive a lot of cars. And since most of that time is spent sitting in the driver's seat, certain things tend to annoy them more than others. AutoBlog has compiled a slideshow of interior annoyances, gripes, and grievances. Not everyone will agree with all the choices, but some of them are especially problematic. What do you think?

I hate to report it myself, so I'll let the folks at MotorTrend.com say it: The Chevy Camaro got a 4-star crash test rating in front driver and passenger tests. :( Now that the NHTSA put the 2010 Chevrolet Camaro through four crash tests, the Mustang has another minor selling point over its main rival: Compared to the Mustang coupe's five stars all around, the Camaro only received five stars for the side driver and rollover tests. According to the article, the Camaro continues to outsell the Mustang, and in July, 7113 Camaros were sold to 6686 Mustangs.

The 15th Annual Woodward Avenue Dream Cruise is taking place next weekend! Are you going? Whether you'll be there or not, you'll want to check out this collection of billboards that Chevrolet has commissioned to be displayed in the Detroit area as part of the festivities. Happy Cruising!

Thanks for joining us for this week's autoMedia.com CARnival! Have you got something of interest you want us to include in a future carnival? Then fill out our online form so we can be notified of your interesting entry to our weekly blog CAR-nival. Check back next week for another installment--until then, have a great weekend!

Brandy Schaffels, Contributing Editor

Bankruptcy Court Approves Sale of GM Assets to New GM

admin — Tue, 07 Jul 2009 00:51:00 GMT

The General is racing through its bankruptcy proceedings, with victory lane in sight, where the troubled automaker will arrive leaner, meaner, and better positioned for long-term success. A key milestone was reached Sunday when Judge Robert E. Gerber of the U.S. Bankruptcy Court for the Southern District of New York approved the sale of substantially all of General Motors Corporation's assets to the new GM.

Through the 363 asset sale, the new company will carry on with the “best” parts of the old corporation, officially known as Motors Liquidation Company. Among the key assets are just four brands: Buick, Cadillac, Chevrolet, and GMC. Separately, GM has said it will withdraw from the NUMMI cooperative factory venture with Toyota, where the Pontiac Vibe was built in California.

The new GM's common stock will be owned by:

U.S. Department of the Treasury: 60.8 percent
UAW Retiree Medical Benefits Trust: 17.5 percent
Canada and Ontario governments: 11.7 percent
The old GM: 10 percent

The judge's order included a four-day stay before closing of the sale can occur, allowing for appeals to be heard.

autoMedia CARnival June 26, 2009: What's happening this week in the auto blogs?

Brandy Schaffels — Fri, 26 Jun 2009 21:09:00 GMT

It's the week ending June 26, and we've browsed our favorite automotive blogs all week long to gather a collection of what we feel is the highlight from each. The biggest news of the week is death of Michael Jackson, and even the car sites are talking about it. Besides that, we've got high-performance road tests, long-distance road trips, and green news too! And let's not forget about the Cash for Clunkers/CARS legislation signed into Law by Obama this week!

Big News: President Obama signed the Cash for Clunkers legislation into law this week, only it's been renamed the "Car Allowance Rebate System." In case you missed it, we've got a complete description of the new auto sales incentive program here at autoMedia.com Are you ready to go shopping? Do your research first here in our online New Car Buyer's Guide.

Autoblog spent three days in the upcoming 2010 Porsche Panamera assailing the Bavarian Alps, streaking across the German Autobahn at speeds up to 170mph, and meandering through picturesque Alpine towns. What did they think of Porsche's gorgeous four-door sedan? It sounds as if they liked it.

Although the closest thing you can get to an electric car at BMW these days is one with Start & Stop technology, a hybrid (in the near future) or, the Mini E, apparently BMW has had a long history of developing electric cars. AutoBlogGreen shares a photo gallery highlighting BMW's collection of historic electric vehicles from the cute little E1 coupe and the plug-in 3-Series sold in the 1990s, to the all-electric 1602 featured at the 1972 Olympic Games. Over at LeftLaneNews.com, they've got reports that BMW will release a new four-seat electric vehicle, dubbed the "City" to United States treehuggers by 2012. Sizewise, the little carlet will be smaller than the 1-Series and MINI, and about the same as vehicles like the Honda Fit.

The death of Michael Jackson yesterday almost shut down the internet as curious fans sought additional information about the pop star's staus. Knowing that the words "Michael Jackson" are incredibly good for SEO right now, a couple of creative automotive sites found ways to exploit the search term - and who can blame them? Jalopnik has a three-minute clip from Michael Jackson's "Moonwalker" film, in which he transforms himself into a Lancia Stratos Zero and Examiner.com has infor on the Ford ambulance that took the King of Pop on his last ride to the hospital.

Have you been following Ford's Fiesta Agents, as they share their adventures in this highly anticipated sport coupe? Brooklyn Hilary has put more than 13,000 miles on the odometer as she has traversed the country these past couple months. You can read about her experiences over at AutomotiveTraveler.com Hilary, how many gallons of gas have you used as you roam the country? Are you tired of driving yet?

He was the numbers guy, figuring out how to make things work. But the world turned upside-down for Frederick A. "Fritz" Henderson, when the White House drove General Motors Chairman Rick Wagoner into sudden retirement and gave Fritz an unexpected promotion. In this Q&A article, Paul Eisenstein chats with Henderson to get an update on the bankruptcy process and find out more about what's going on behind the scenes with General Motors' bankruptcy proceedings. Read the interview at The Detroit Bureau.

Motor Trend's Editor at Large Arthur St. Antoine pits Chevy's awesome "Blue Devil" -- the Corvette ZR1 -- against its toughest adversary yet: a Blue Angels F/A-18 Hornet fighter jet. This high-def YouTube video is almost 20 minutes long, but worth it: viewers get a seat inside the Corvette, and the jet for high-speed and high-performance maneuvers. Unbelievable!

Thanks for joining us for this week's autoMedia.com CARnival! Have you got something of interest you want us to include in a future carnival? Then fill out our online form so we can be notified of your interesting entry to our weekly blog CAR-nival. Check back next week for another installment--until then, have a great weekend!

Brandy Schaffels, Contributing Editor

Ready to Go Car Shopping? Obama signs Car Allowance Rebate System into Law

Brandy Schaffels — Thu, 25 Jun 2009 12:18:00 GMT

Today President Obama signed into law a new program being called "Car Allowance Rebate System" (CARS); we've previously been referring to it as "Cash for Clunkers." This government program is intended to help consumers purchase a new, more fuel-efficient vehicle when they trade in a less fuel-efficient vehicle. Official information is available here at www.cars.gov.

The new CARS law allows consumers to receive up to a $4,500 credit when trading in their old gas guzzler for a more fuel-efficient new vehicle. Qualifying vehicles are considered passenger cars, mini vans, SUVs and small light-duty trucks that get less than 18 mpg, and large light-duty trucks that get less than 15 mpg city/highway combined. For passenger cars, if the new vehicle is at least four mpg more fuel-efficient than the old vehicle, consumers will receive a $3,500 credit toward a new vehicle. If the new vehicle is at least 10 mpg more fuel-efficient than the old vehicle, the credit is good for $4,500.

If you're not sure whether your car qualifies, you can find out how your car is rated by searching at fueleconomy.gov (I was disappointed to discover that my 1989 Honda Accord does not qualify for a voucher because it is too fuel efficient, though I'm sure my car is relieved that it is neither a gas-guzzler, nor a clunker.) Once you locate your vehicle, the magic "combined fuel economy figure" is displayed in red. This number is based on 45% highway economy plus 55% city economy and DOES reflect the new ratings method the EPA implemented in 2008 to reflect faster driving habits, air conditioner use, and cooler outside temperatures. If you're handy with a calculator, the formula looks like this: (City x .55) + (Hwy x .45) = the magic number.

The National Highway Transportation and Safety Association (NHTSA) is expecting implementation within in 30 days. The law requires dealers to be registered before they can participate in the program, so shoppers may want to contact their local dealer in mid-July to see if they are ready to utilize the program.

Important things you must know:

Even though discussions up to now have discussed vouchers, you do not need a voucher: Dealers will apply a credit at purchase.
Your vehicle must be less than 25 years old on the trade-in date.
The credits only apply toward the purchase or lease of new vehicles and you may trade in or buy a domestic or a foreign vehicle.
The vehicle being traded in must get fewer than 18 MPG (though some very large pick-up trucks and cargo vans have different requirements).
Vehicles being traded in must have been registered and continuously insured for the full year preceding the trade-in, and be in driveable condition.
This is not a retroactive program: if you recently traded in an old car for a new vehicle, you're out of luck.

Ready to go shopping? Do your research first here at our online New Car Buyer's Guide

By Brandy Schaffels, autoMedia.com Contributing Editor

Fuel Economy Targets Raised to 35.5 by 2016

admin — Wed, 20 May 2009 11:00:00 GMT

Making good on his campaign rhetoric, President Obama has announced a national policy to increase fuel-economy standards starting 2012 and ramping up to a combined car-truck 35.5 mpg average in 2016. The move addresses the efforts by California and its 13 emissions-partner states to create their own standard. This move, therefore, simplifies production targets for automakers, while significantly increasing the standard over the current CAFE law that calls for an average fuel economy of 35 mpg in 2020. (Learn about green cars and saving fuel with your current car.)

"In the past, an agreement such as this would have been considered impossible," said President Obama today, flanked by senior executives from BMW, Chrysler, Ford, General Motors, Honda, Mazda, Nissan, Toyota, and Volkswagen. "That is why this announcement is so important, for it represents not only a change in policy in Washington, but the harbinger of a change in the way business is done in Washington. As a result of this agreement, we will save 1.8 billion barrels of oil over the lifetime of the vehicles sold in the next five years.”

Estimates have ranged from $600 to $1,300 for the cost per vehicle of meeting this accelerated standard. However, the Consumer Federation of America estimates that their projected additional monthly cost to purchase a 2016 would be $22 – significantly less than the forecasted $42 a month in fuel cost savings. In other words, consumers will come out ahead financially based on the calculations from this non-profit association, plus the nation benefits from reduced CO2 emissions and fossil-fuel consumption. Although, this doesn’t bode well for the 21st-century muscle cars.

The single fuel-economy requirement will simplify engineering for automakers, though the struggling industry faces significant challenges in hitting these mandates at a time when research and development budgets have been universally slashed. Further, achieving corporate fleet averages depends on people buying the vehicles. No legislation will sell cars in and of itself.

The National Automobile Dealers Association released a statement: "Dealers are also heartened by the President's intent to have the EPA and NHTSA coordinate their regulatory efforts. Implementation of this next step, however, could turn out to be challenging because these agencies have two very different goals under federal law.”

Still, it will be left to the dwindling number of dealers to put these vehicles in driveways. Let’s hope the automakers are able to create innovative, compelling models to inspire purchase, rather than depend on a gasoline tax or other forced inducement to purchase the green machines of tomorrow.

See the top 10 most fuel-efficient cars on the road today.

Chrysler Files for Bankruptcy, Merges with Fiat

admin — Fri, 01 May 2009 01:44:00 GMT

The deadline for Chrysler to deliver a more promising viability plan came due, and with it came dramatic moves that will forever reshape the automaker. Chrysler filed Chapter 11 bankruptcy today, enabling a controlled restructuring that can reduce debt and allow for a rapid rebuilding. The process expected to take just 30 to 60 days. During this time, Chrysler will idle its factories as it puzzles through its near-term strategy and reduces standing inventory, just as General Motors is doing. When the reborn company comes to life, Chrysler Chairman and CEO Bob Nardelli is expected to step aside, taking an advisor role with Cerberus.

A strategic alliance with Fiat was a government condition for continued support, and Chrysler is effectively merging with the Italian automaker, though it has publicly avoided characterizing the partnership as such. Fiat will initially be a 20-percent shareholder, with the potential to take on a larger interest up to 35 percent. The larger piece of the corporate pie will be available only when Chrysler repays its federal loans, ensuring no U.S. taxpayer money is funneled overseas.

Through the merger, uh, partnership, Chrysler will gain access to Fiat technology, platforms, and completed vehicles. As President Obama spelled out in a press conference, this will enable Chrysler to rapidly round out its product portfolio with fuel-efficient models. It is an open question as to how readily Americans will receive quirky Fiat transplants and how long it would be before Chrysler offers co-developed products. In return, Fiat would gain manufacturing capacity in the States, as well as a distribution and dealer networks. (Read "Fiat 500: On Its Way.")

The U.S. and Canadian governments together will have a 10-percent stake in the new company, until all debts are paid back.

The majority shareholder will be the Voluntary Employee Beneficiary Association (VEBA) with 55-percent ownership, making it effectively an employee-owned company. The irony here is that many fingers pointed at the union workers’ wages and benefits package as limiting Chrysler’s ability to compete with foreign automakers.

In another interesting twist, GMAC will be the preferred lender for Chrysler dealer and consumer business, as Chrysler Financial is caught with its own troubles.

Chrysler danced on the edge of oblivion, but now has the potential to reinvent itself in rather exciting ways. With its future more secure, what Chrysler needs now is to regain consumer confidence and sell cars. Remember, as it goes through the restructure, the federal government has pledged to provide a warranty backstop thereby reducing risks to car buyers.

Looks like the lights will stay on. Swing by your local dealer and give him a high five. If you're in the market for a Chrysler product, remember the deals may dwindle comensurate with the dealer inventory.

Research Chrysler, Dodge, and Jeep vehicles in the 2009 new car buyer’s guide.

Read "Government Action to Aid Chrysler, GM" and "Obama Gives Tough Love to Chrysler, GM."

Government Action to Aid Chrysler, GM

admin — Tue, 31 Mar 2009 02:11:00 GMT

President Obama delivered some tough love to Chrysler and General Motors on Monday, providing frank criticism of their latest viability plan and spurring them to do more with extended deadlines. In the meantime, the federal government will provide continued assistance and make several moves to help them along.

Obama outlined the following measures:

First, we will ensure that Recovery Act funds to purchase government cars get out as quickly as possible and work through the budget process to accelerate other federal fleet purchases, as well.

Second, we'll accelerate our efforts through the Treasury Department's Consumer and Business Lending Initiative. And we are working intensively with the auto finance companies to increase the flow of credit to both consumers and dealers.

Third, the IRS is launching a campaign to alert consumers of a new tax benefit for auto purchases made between February 16th and the end of this year -- if you buy a car anytime this year, you may be able to deduct the cost of any sales and excise taxes. And this provision could save families hundreds of dollars and lead to as many as 100,000 new car sales.

Finally, several members of Congress have proposed an even more ambitious incentive program to increase car sales while modernizing our auto fleet. And such fleet modernization programs, which provide a generous credit to consumers who turn in old, less fuel-efficient cars and purchase cleaner cars, have been successful in boosting auto sales in a number of European countries. I want to work with Congress to identify parts of the Recovery Act that could be trimmed to fund such a program, and make it retroactive starting today.

These actions could definitely help, though ultimately, the national economy has to improve and consumer confidence along with it to truly turn around this frightening trend. One other measure, the federal government will provide warranty protection should an American automaker go to bankruptcy, an option that is very much on the table.

Learn more, read: "Obama Gives Tough Love to Chrysler, GM."

What can you do to support the automakers? Buy a car. Seriously.

Research Buick, Cadillac, Chevrolet, GMC, Hummer, Pontiac, and Saab, or Chrysler, Dodge, and Jeep in the 2009 new car buyer's guide.

Obama Gives Tough Love to Chrysler, GM

admin — Tue, 31 Mar 2009 01:52:00 GMT

Chrysler, General Motors, and indeed the entire automotive industry anxiously awaited today’s announcement from President Obama, expecting further aid and assistance. However, in a memorable speech Obama said neither automaker met the requirements to prove viability. Gulp.

The administration has given Chrysler 30 days to further restructure and secure its partnership with Fiat, a move seen by Obama as essential. GM has 60 days to aggressively reshape its business. Both corporations will be provided with enough additional working capital to keep the lights open during that time.

Obama said, “We cannot, and must not, and we will not let our auto industry simply vanish. This industry is like no other -- it's an emblem of the American spirit; a once and future symbol of America’s success.”

The analysis by the auto task force paints grim picture, stating that the Chrysler product portfolio is not competitive, with weakness in quality and fuel efficiency. Further, the automaker lacks the scale to engineer and build vehicles at a profitible volume, with limited overseas sales limiting its global reach.

The task force reported that GM is currently burdened with underperforming brands, nameplates and an excess of dealers. Further, its product mix depends on profit from trucks and SUVs, rather than smaller, fuel-efficient vehicles now in favor. It specifically cited that the Chevrolet Volt is “too expensive to be commercially successful in the short-term.”

On Chrysler, Obama said, “The situation at Chrysler is more challenging. It's with deep reluctance but also a clear-eyed recognition of the facts that we've determined, after careful review, that Chrysler needs a partner to remain viable. Recently, Chrysler reached out and found what could be a potential partner -- the international car company Fiat, where the current management team has executed an impressive turnaround. Fiat is prepared to transfer its cutting-edge technology to Chrysler and, after working closely with my team, has committed to build -- building new fuel-efficient cars and engines right here in the United States. We've also secured an agreement that will ensure that Chrysler repays taxpayers for any new investments that are made before Fiat is allowed to take a majority ownership stake in Chrysler.”

On GM, Obama said, “GM has made a good faith effort to restructure over the past several months -- but the plan that they've put forward is, in its current form, not strong enough. However, after broad consultation with a range of industry experts and financial advisors, I'm absolutely confident that GM can rise again, providing that it undergoes a fundamental restructuring.”

Tough love indeed, though there is a message of hope—an Obama trademark. Both automakers face immeasurable challenges in the weeks ahead.

What can you do to support the automakers? Buy a car. Seriously.

Research Buick, Cadillac, Chevrolet, GMC, Hummer, Pontiac, and Saab, or Chrysler, Dodge, and Jeep in the 2009 new car buyer's guide.

GM’s Wagoner Out; Obama Readies Support

admin — Mon, 30 Mar 2009 00:38:00 GMT

America, and most especially Chrysler and General Motors, anxiously await an Obama Administration statement on the latest auto industry bailout on Monday. However, one early surprise has been released, as reported by the Detroit Free Press and Automotive News: GM Chairman and Chief Executive Officer Rick Wagoner has been asked to end his 31-year career with General Motors.

Reports suggest that his immediate resignation was a condition for continued federal assistance. In making this move, GM signals they are willing to do what is necessary to survive, and the White House shows the reluctant taxpaying populace that it will force dramatic changes to the industry.

As of this posting, neither GM nor the White House has issued a formal statement.

Clearly, this will be a pivotal week for the domestic auto industry. Beyond these developing stories, the March sales figures will be released. Some analysts have predicted that Chrysler and GM sales will be down more than 40 percent for the month. Fasten your seat belt, it is going to be a bumpy ride.

Read: “Fuel Economy Standards Increase for 2011” and “Auto Suppliers to Receive $5 Billion Aid Package.”

Obama Grants $2.4 Billion for EV Development

admin — Fri, 20 Mar 2009 02:06:00 GMT

At the Edison Electric Vehicle Technical Center in Pomona, California, today, President Barack Obama commited $2.4 billion to advance electric vehicle development, including battery technology and plug-in hybrids. The investment promises to create thousands of jobs and help achieve the administration’s goal to put one million plug-in hybrids on America’s roads by 2015. To further aid in achieving that ambitious goal, plug-in hybrid buyers will be able to claim a $7,500 tax credit.

The $2.4 billion breaks down as:

$1.5 billion in grants to U.S. based manufacturers to produce these highly efficient batteries and their components.
$500 million in grants to U.S. based manufacturers to produce other components needed for electric vehicles, such as electric motors.
$400 million to demonstrate and evaluate plug-in hybrids and other electric infrastructure concepts -- like truck stop charging station, electric rail, and training for technicians to build and repair electric vehicles.