Archived Auto News and Events for December 2008

GM Offering Incentives in Wake of GMAC Bailout
Within hours of GMAC receiving $6 billion in government loan monies, General Motors announced zero percent financing through Monday, January 5 on 2008 and 2009 Chevrolet TrailBlazers, GMC Envoys, and Saab 9-7X, 9-3, and 9-5s.

Dealer Groups Downgraded
On December 24, Standard Poors Rating Services downgraded the five top publicly traded dealer groups based on industry wide pressures rather than on individual company performance.

Subaru Sees Improved Sales
Amidst news of GM, Chrysler and Ford idling plants over Christmas, turning off lights, heat, and elevators, and even buying cheaper office supplies, comes one piece of positive auto industry news: Subaru of America, according to executive vice president Tom Doll, expects to post a small sales increase for 2008, and will also set records for three of its vehicles.

GM, Chrysler Receive Aid in Canada
The Canadian branches of General Motors and Chrysler LLC will receive emergency loans from the Canadian government totaling $3.3 billion in U.S currency to keep the companies operating in Canada while restructuring their operations.

Bush White House Agrees to Auto Bailout
After two failed attempts to get emergency bridge loans from Congress, General Motors and Chrysler LLC received good news today when President George W.

Chrysler Idles Plants for a Month
Beginning on Friday, December 19, Chrysler LLC will idle its plants in the United States, Canada, and Mexico that produce the brands Chrysler, Jeep, and Dodge after a devastating sales plunge of 47 percent in November alone.

Detroit Waits as White House Considers Next Move
While Detroit waits, the federal government continues to deliberate how, or if, it should use approximately $14 billion from the Troubled Asset Relief Program to stave off the threatened collapse of General Motors and Chrysler.

Toyota Freezes U.S. Prius Production
With its U.S. sales down 32 percent for November, Toyota , Motor Corp. has frozen its plan to use a facility near Tupelo, Mississippi to build Prius hybrids in the United States.

Automakers Dig Deep to Cut Expenses
In an article by Bill Vlasic for The New York Times the extent of General Motors' efforts to save money are highlighted, including turning off the lights, escalators, and elevators at corporate headquarters every night.

Senate Rejects Auto Bailout Package
Last night the Senate failed to approve the $14 billion emergency loan package designed to stave off the collapse of General Motors and Chrysler LLC, placing the ball squarely in the Bush administration's court.

Aid Packages Passes in Houses, Faces Tougher Senate
In an evening vote on Wednesday, December 10, the House of Representatives approved $14 million in emergency loans to prevent the collapse of General Motors and Chrysler, but the fate of the aid package in the Senate is more uncertain.

Auto Bailout Deal Reached
During the night on Tuesday, December 9, congressional Democrats and the Bush White House achieved an agreement in principle to disperse a $15 billion bailout package to U.S.

Pelosi Hopeful Auto Aid Package Will Pass
Speaking to reporters on Monday, December 8, House Speaker Nancy Pelosi said she was "encouraged" about the ongoing negotiations to craft a $15 billion emergency loan package for General Motors and Chrysler LLC.

Perino Outlines White House Criteria for Auto Bailout
According to a report by Harry Stoffer for Automotive News , the Bush White House is calling for a proposed government overseer charged with ensuring proper restructuring for the long-term viability of the Detroit Big Three to be vested with powers to compel bankruptcy proceedings.

Outlook for Auto Industry Bailout Pessimistic
After hearing testimony from American automotive executives on Thursday, December 4, lawmakers voiced a range of reactions to a potential bailout of the floundering industry.

Wagoner Changes Tone in Second Round of Senate Hearings on Automotive Aid
Speaking today before the Senate Banking Committee General Motors CEO Rick Wagoner, in an apparent act of contrition, said, "We made mistakes," and failed to construct a flexible operation able to quickly transition to the production of small, fuel efficient vehicles.

Humbled Auto Execs Return to Washington
From driving to Washington in hybrid vehicles to selling the corporate jets, canceling executive bonuses, and agreeing to work for $1 a year, the executives of the Detroit Big Three are back in the nation's capital presenting their business plans to lawmakers and hoping to walk away with substantial federal loans for their ailing companies.

Ford Says No Profit Before 2011
The Ford Motor Co. submitted its plan to Congress to qualify for federal aid, saying it does not foresee a possibility of profit before 2011, abandoning any possibility of making money in 2009 as previously pledged.

GM Plans Sale of European Assets
According to a report in the Financial Times quoted by Reuters and Automotive News , General Motors has approached a real estate agent, Jones Lang LaSalle, to help the company raise $257 million through the sale and leaseback of its property assets and offices in Europe.