Archived Auto News and Events for January 2009

Honda 3Q Losses Cut Profit Forecast
In the wake of a 63 percent third quarter profit drop due to dismal sales in North America and Europe, Honda Motor Co. has dropped its forecast for the fiscal year ending March 31 to $1.46 billion, down from $1.88 billion.

Ford 4th Quarter Consumes $5.5 Billion
While continuing to operate without the benefit of government loans, the Ford Motor Co. reported a fourth quarter cash burn of $5.5 billion, finishing the year with $13.4 billion in reserve while seeking to immediately tap $10.1 billion from its credit lines due to the uncertain economy.

Japan Sees Decline in Domestic Auto Sales
In the most recent figures released for domestic sales in Japan, the auto industry as a whole saw a decline of 4.8 percent in 2008 with only Honda and Suzuki polling increased numbers.

Obama Administration Turns Attention to Fuel Standards
President Barak Obama issued two executive orders on Monday, January 26 that taken together will hold embattled automakers to higher fuel standards and the construction of environmentally friendly models sooner than later.

Nardelli Announces New Durango, Clarifies Fiat Deal
On Friday, January 23, Bob Nardelli, chairman of Chrysler LLC said his company is at work on a new generation of the Dodge Durango SUV , a model whose fate has been in question since December 2008 when Chrysler closed its Newark, Delaware plant where the Durango was built.

Hybrid Sales Fell in 2008 on Lower Gas Prices
In 2008 sales of gasoline-electric hybrids in the United States fell 9.9 percent as gasoline receded from a summer high of more than $4 and the auto market collapsed at year's end.

Gettelfinger Does Not Anticipate UAW Wage Cuts
Speaking at the Automotive News World Congress on Wednesday, January 21, United Auto Workers President Ron Gettelfinger said the union would make concessions to help General Motors meet the requirements of its federal bailout, but he did not anticipate that wage cuts would be part of that effort.

Toyota Topples GM As World's Largest
On news that General Motor's sales were down 10.8 percent for 2008, the American automaker sees the end of its 77-year reign as the largest carmaker in the world, surpassed by its closest rival Toyota Motor Corp.

Fiat and Chrysler Talk Partnership
Chrysler LLC and the Fiat Group are in negotiations to form a strategic partnership that could result in Fiat's mini, small, and mid-sized car platforms being made available to the ailing American carmaker as part of its efforts to strengthen operations and restructure after a federal bailout.

Chrysler Unveils New Incentives on Heels of Federal Loan
In anticipation of receiving $1.5 billion in federal aid, Chrysler LLC has unveiled a range of financing packages geared toward luring consumers to part with their hard-earned cash including zero financing with a term of as much as 60 months on select 2008 and 2009 models.

Suppliers to Seek Their Own Bailout
In a report by David Barkholz and Robert Sherefkin for Automotive News , the president of the Original Equipment Suppliers Association, Neil De Koker, said early in the Obama administration suppliers would seek federal bailout guarantees of their own in order to be able to approach banks for loans of working capital.

Detroit Big Three Decide Not to Go to Tokyo
The Detroit Big Three, in a further move to get operating costs in hand and to keep their federal overseers happy, have opted not to participate in the Tokyo auto show this year.

Dodge Introduces a Retro Challenger in Detroit
At a time when fuel efficiency and green design are the bywords of automotive design, Dodge offered a suprise at the Detroit auto show with a special edition car evoking the classic muscle cars of the 1970s.

Hyundai Genesis, Ford F-150 Named Car and Truck of the Year
At the auto show in Detroit on Sunday, January 11, the Hyundai Genesis , was named the North American Car of the Year while the Ford F-150 took the top honors as Truck of the Year.

Ford to Offer Line of Plug-In Electrics
On Sunday, January 11, the Ford Motor Co. announced the introduction of a line of all-electric vehicles to be debuted for the model years from 2010 to 2012.

Ford's Cash Position Potentially Weaker than Indicated
Currently the Ford Motor Co. is the only U.S. automaker operating without the benefit of federal bailout money, but the company's cash on hand has now dropped below $15 billion.

GM, UAW Set to Bargain Wage Concessions
In order to meet the terms of the $13.4 billion federal bailout package, General Motors must win concessions from the United Auto Workers Union, a requirement Rick Wagoner, CEO of General Motors believes can be accomplished.

Incentives on New Car Purchases at the Highest Level in Six Years
According to data compiled by Edmunds.com, incentives on vehicle purchases averaged $2,902 in December 2008, the highest level in six years and up 18 percent from one year earlier.

More Bailout Bucks for GM and GMAC
GM is once again the lead in the news, and yes, it's all about the bailout.

First, it was announced that General Motors will receive the second installment of its loan from the government on January 16th, according to an announcement from the United States Treasury made late Monday afternoon.

Rental Companies Reduce Car Purchases
Rental car companies are feeling the effects of the credit crunch and reductions in consumer and business travel, cutting their annual vehicle purchases from 1.9 million units in 2007 to 1.5 million in 2008.

GMAC Announces Debt Swap
On the last business day of the year, the General Motors financing affiliate GMAC announced a swap of $21.2 billion in debt for $15.7 billion of new securities and cash, easing the company's debt burden, but requiring investors to take less than face value for their holdings.