Archived Auto News and Events for March 2009

Government Rejects GM, Chrysler Viability Plans
In a move that rattled investors and sent General Motors stock plunging 92 cents, the federal government rejected the company's viability proposal as well as the plan set forth by Chrysler LLC.

Obama Indicates More Expected of GM, Chrysler
In an interview broadcast by the CBS news program "Face the Nation" on Sunday, March 29, President Barak Obama said that U.S. automakers have not yet taken sufficient steps to become "lean, mean and competitive" under federal oversight.

Tesla Introduces Famity Sedan
On Thursday, March 26, Tesla Motors Inc., the California electric start-up well-known for producing its electric Roadster sports car for the rich and famous, unveiled the four-door Model S "family" sedan set to go in production during the third quarter of 2011.

Toyota Expects Flat March Sales at Best
Toyota Motor Corp. expects to report industry-wide sales in the United States for the month of March that will be, at best, flat, and at worst, weaker than those returned in February.

Toyota to Answer Honda Insight with Yaris Hybrid
Toyota , long king of the hybrid heap with the Prius, soon to be released in its third generation, will answer Honda's new inexpensive Insight hybrid, which opens at $20,000, with a Yaris spin-off.

Toxic Asset Program Appears to Calm Some Investor Fears
In response to the announcement of the Treasury Department's plan to eradicate toxic assets from bank ledgers as well as an expansion of efforts to free up the market for asset-backed securities, auto stocks responded favorably and climbed throughout the day on Monday, March 23.

Auto Panel Head Warns GM, Chrysler May Need More
Steven Rattner, co-leader of the task force overseeing federal aid to General Motors and Chrysler, said the companies may need "considerably" more than the requested $21.6 billion to survive.

Obama Administration Extends Aid to Auto Suppliers
On Thursday, March 19, 2009 the U.S. Department of Treasury announced the creation of a $5 billion line of credit for auto parts suppliers directly threatened by the financial condition of General Motors and Chrysler.

Buick, Jaguar Top Reliability Study
After 14 years at the top of the J.D. Power and Associates' Vehicle Dependability Study, Lexus has lost out this year to Buick and Jaguar, brands that now share the top spot on the list.

Foreign Interest in Saturn Spin-Off
Automotive News is reporting that an undisclosed group of automakers, including foreign manufacturers, have approached the group studying a potential spin-off of Saturn from General Motors about selling their products under the Saturn brand.

Suzuki Runs Short Ad Blitz for SX4
For most of the first quarter, American Suzuki Motor Corp. refrained from broadcast advertising, but returned to television on Monday, March 16 with commercials for both the SX4 hatchback and small sedan.

Ford Grants Stock Options to Mulally
On Wednesday, March 11, Ford Motor Co. awarded CEO Alan Mulally 5 million shares in stock options, a benefit that will not show fruition for the executive until company stock substantially improves.

American Axle Warns Potential Failure in 2009
Auditors for American Axle and Manufacturing Holdings Inc. have warned the company that the pressure of the financial concerns of its principle customers, General Motors and Chrysler LLC, may drive the company out of business this year.

BMW Reports First Annual Loss Since 1993
On Thursday, March 12, BMW Reports First Annual the largest maker of premium cars in the world, reported a drop of 78 percent for its group earnings before interest and taxes, news that sent the company's stock down 12 percent.

GM Discontinues Diesel Engine Project for Fall
General Motors has placed production of its innovative Duramax 4.5 liter V8 diesel engine on indefinite hold, a high-efficiency unit that would have been used in the Chevolet Silverado and GMC Sierra light-duty trucks.

GM Officials to Meet with European Leaders
On Friday, March 13, executives from General Motors from both Detroit and Europe will meet with European lawmakers according to Ton van Lierop, a spokesman from the European Commission.

Automakers Cut Output as Sales Continue to Slide
In response to the lowest annualized sales rate in North America in 27 years for February, automakers will cut production to just 4.1 million vehicles for the first half of 2009, a drop of 41 percent from 2008.

Japan's Automakers Seeking Government Aid at Home
Like their American counterparts, Japanese automakers are feeling the effects of falling sales and tight credit, a situation that has caused Nissan , Honda, and Mazda to follow Toyota's lead in asking the Japanese government for emergency loans.

Ford Announces Significant Debt Restructuring
On Wednesday, March 4, the Ford Motor Co. announced the negotiation of a series of successful concessions for its debt holders that, through company stock swamps and cash payouts, will reduce the company's debt by as much as $10.4 billion.

February Auto Sales Numbers Worse Than Analysts Predicted
For the month of February the top six automakers in the United States saw a sales drop of 37 percent making the monthly total the third lowest reported since 1975.

Saab Searches for a Buyer, Need Aid from Swedish Government
According to a story in the Wall Street Journal , General Motor's Swedish Saab unit will accelerate talks with potential buyers in hopes of completing a deal by 2010.

Honda's Domestic Production to Fall Below 1 Million Units
In a move indicating the global scope of the recession, Honda Motor Co. is expected to cut its production levels in Japan by more than 150,000 units in the coming fiscal year, bringing its "at home" output under 1 million vehicles for the first time in 14 years.