Challenger safe (for now, at least)
02-17-2009, 03:11 PM
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Challenger safe (for now, at least)
From the Associated Press:
By TOM KRISHER and KEN THOMAS
Associated Press Writers
DETROIT (AP) — The U.S. auto industry needs even more help from the government to survive than originally thought.
General Motors on Tuesday said it could need up to $30 billion from the Treasury Department to keep operating. Included in that amount is $13.4 billion the company has already received. Previously, GM had said it could need as much as $18 billion.
General Motors Corp. and Chrysler LLC said Tuesday they’ll need billions more in government loans than they predicted just two months ago. The two automakers also plan further job cuts and additional curtailment of auto production.
Both companies plan to reduce the number of models they offer to car buyers over the next few years.
Meanwhile, the United Auto Workers said it has reached a tentative agreement with Chrysler, GM and Ford Motor Co. on modifications to existing labor contracts.
Acknowledging that industry conditions are worse than expected when it made the case in December for a government bailout, GM said it could run out of money by March without new funds from the government. The latest request includes $9.1 billion in new loans and a $7.5 billion credit line.
Chrysler requested an additional $5 billion from Treasury. It originally said it would need $3 billion more. The company had already received $4 billion.
GM’s survival plan also calls for the cutting of a total of 47,000 jobs and the closing of five more U.S. factories. Chrysler said it will cut 3,000 more jobs and stop producing three vehicle models.
Auburn Hills, Mich.-based Chrysler said the economy and the market for new cars has deteriorated significantly since its initial request. Chrysler said it now projects that automakers will sell 10.1 million vehicles in the U.S. this year, the lowest level in four decades.
Chrysler Vice Chairman and President Jim Press said in a conference call with reporters that the company will eliminate the Dodge Aspen, Durango and Chrysler PT Cruiser. Ford, which borrowed billions from private sources before credit markets tightened, has said it can make it through 2009 without government help.
The plans still have to be vetted by Treasury and the new autos task force announced by the Obama administration Sunday night. Details were unveiled on a day when President Barack Obama signed into law a massive economic recovery plan. Signs that the recession is deepening were more immediate for investors, however, and they dumped stocks and pushed oil prices sharply lower.
The UAW said discussions are continuing regarding the -run trust fund that will take on retiree health care expenses starting next year. Under terms of the government loans, both Chrysler and GM are required to reach concessions with the UAW and debt holders.
“The changes will help these companies face the extraordinarily difficult economic climate in which they operate,” UAW President Ron Gettelfinger said in a statement released by the .
GM has previously outlined reductions to both its hourly and salaried work force and has said it plans to cut back to four vehicle brands from eight.
President Obama’s top spokesman told reporters aboard Air Force One on Tuesday that he wouldn’t rule out bankruptcy for the Detroit automakers. Robert Gibbs said the administration looks forward to reviewing General Motors and Chrysler’s restructuring plans.
House Speaker Nancy Pelosi, D-Calif., said she was hopeful the plans would help lead to the “transformation of our domestic automobile industry into a viable, technologically advanced, and globally competitive manufacturing force.”
She said “Congress looks forward to working with the Obama Administration” to make the domestic auto sector competitive “while ensuring accountability to the taxpayers.”
By TOM KRISHER and KEN THOMAS
Associated Press Writers
DETROIT (AP) — The U.S. auto industry needs even more help from the government to survive than originally thought.
General Motors on Tuesday said it could need up to $30 billion from the Treasury Department to keep operating. Included in that amount is $13.4 billion the company has already received. Previously, GM had said it could need as much as $18 billion.
General Motors Corp. and Chrysler LLC said Tuesday they’ll need billions more in government loans than they predicted just two months ago. The two automakers also plan further job cuts and additional curtailment of auto production.
Both companies plan to reduce the number of models they offer to car buyers over the next few years.
Meanwhile, the United Auto Workers said it has reached a tentative agreement with Chrysler, GM and Ford Motor Co. on modifications to existing labor contracts.
Acknowledging that industry conditions are worse than expected when it made the case in December for a government bailout, GM said it could run out of money by March without new funds from the government. The latest request includes $9.1 billion in new loans and a $7.5 billion credit line.
Chrysler requested an additional $5 billion from Treasury. It originally said it would need $3 billion more. The company had already received $4 billion.
GM’s survival plan also calls for the cutting of a total of 47,000 jobs and the closing of five more U.S. factories. Chrysler said it will cut 3,000 more jobs and stop producing three vehicle models.
Auburn Hills, Mich.-based Chrysler said the economy and the market for new cars has deteriorated significantly since its initial request. Chrysler said it now projects that automakers will sell 10.1 million vehicles in the U.S. this year, the lowest level in four decades.
Chrysler Vice Chairman and President Jim Press said in a conference call with reporters that the company will eliminate the Dodge Aspen, Durango and Chrysler PT Cruiser. Ford, which borrowed billions from private sources before credit markets tightened, has said it can make it through 2009 without government help.
The plans still have to be vetted by Treasury and the new autos task force announced by the Obama administration Sunday night. Details were unveiled on a day when President Barack Obama signed into law a massive economic recovery plan. Signs that the recession is deepening were more immediate for investors, however, and they dumped stocks and pushed oil prices sharply lower.
The UAW said discussions are continuing regarding the -run trust fund that will take on retiree health care expenses starting next year. Under terms of the government loans, both Chrysler and GM are required to reach concessions with the UAW and debt holders.
“The changes will help these companies face the extraordinarily difficult economic climate in which they operate,” UAW President Ron Gettelfinger said in a statement released by the .
GM has previously outlined reductions to both its hourly and salaried work force and has said it plans to cut back to four vehicle brands from eight.
President Obama’s top spokesman told reporters aboard Air Force One on Tuesday that he wouldn’t rule out bankruptcy for the Detroit automakers. Robert Gibbs said the administration looks forward to reviewing General Motors and Chrysler’s restructuring plans.
House Speaker Nancy Pelosi, D-Calif., said she was hopeful the plans would help lead to the “transformation of our domestic automobile industry into a viable, technologically advanced, and globally competitive manufacturing force.”
She said “Congress looks forward to working with the Obama Administration” to make the domestic auto sector competitive “while ensuring accountability to the taxpayers.”
02-18-2009, 01:11 AM
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RE: Challenger safe (for now, at least)
Ironic that the "government" gave far more of OUR money to the Banks - which were ALREADY under "government oversight" (FannieMae and FreddieMac) and STILL screwing up - WITHOUT restructuring plans. In fact, many of the CEO's, COO's, CFO's, etc. got thier promised bonuses - despite pitiful performances - which were in some cases funded by the "government bailout money"!
Did anyone go before the people to explain why AIG shoud be bailed out BEFORE our money was handed over to them?
Did anyone happen to volunteer the info that AIG handles the Congressional Retirement Fund?
Ms Pelosi? Any comments?
Hmmm...........
[:@]
Did anyone go before the people to explain why AIG shoud be bailed out BEFORE our money was handed over to them?
Did anyone happen to volunteer the info that AIG handles the Congressional Retirement Fund?
Ms Pelosi? Any comments?
Hmmm...........
[:@]
02-18-2009, 06:29 AM
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RE: Challenger safe (for now, at least)
Bottomline...give money to someone without oversight....you get what you get...
Everyone needs to ask...why did the "stimulus package" have to be passed "right now" without even reading the entire document?
Answer is that it had nothing to do with helping the economy and everything to do with a major power grab by the Gov't....
When the car companies take the money they will be giving up their right to build the kind of cars they want to build. They will have to get in line with whatever the Gov't wants them to build...not sure were the Challenger "fits" into the Gov't plans for greener cars...
(To bad the Gov't didn't use some oversight on the banks..BEFORE giving them money...)
Everyone needs to ask...why did the "stimulus package" have to be passed "right now" without even reading the entire document?
Answer is that it had nothing to do with helping the economy and everything to do with a major power grab by the Gov't....
When the car companies take the money they will be giving up their right to build the kind of cars they want to build. They will have to get in line with whatever the Gov't wants them to build...not sure were the Challenger "fits" into the Gov't plans for greener cars...
(To bad the Gov't didn't use some oversight on the banks..BEFORE giving them money...)
02-18-2009, 10:33 AM
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RE: Challenger safe (for now, at least)
As a side note:
I just read Chrysler's Viability Plan, and there is no mention of the Dodge Challenger. There was mention of the Chrysler 300, the Jeep and even a "new" Dodge Charger, and of course eletric cars....but no Challenger....not saying they are not going to continue production...just thought I would point that out....
I just read Chrysler's Viability Plan, and there is no mention of the Dodge Challenger. There was mention of the Chrysler 300, the Jeep and even a "new" Dodge Charger, and of course eletric cars....but no Challenger....not saying they are not going to continue production...just thought I would point that out....
02-18-2009, 10:37 AM
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RE: Challenger safe (for now, at least)
You hear that sound Joe? That's me with a HUGH GRIN on my face. 
The number 0904 sounds better then ever. Think I'll go home early today and spend some quality time with CRUSH.
The number 0904 sounds better then ever. Think I'll go home early today and spend some quality time with CRUSH.
ORIGINAL: BLK 6050
As a side note:
I just read Chrysler's Viability Plan, and there is no mention of the Dodge Challenger. There was mention of the Chrysler 300, the Jeep and even a "new" Dodge Charger, and of course eletric cars....but no Challenger....not saying they are not going to continue production...just thought I would point that out....
As a side note:
I just read Chrysler's Viability Plan, and there is no mention of the Dodge Challenger. There was mention of the Chrysler 300, the Jeep and even a "new" Dodge Charger, and of course eletric cars....but no Challenger....not saying they are not going to continue production...just thought I would point that out....
02-18-2009, 11:35 AM
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RE: Challenger safe (for now, at least)
Interesting that Ms. Pelosi talks about "accountability to the taxpayers" given her spending habits with tax dollars (flying back and forth to California every week on a private government-supplied jet). Hmmm and we're to trust these people overseeing bailout dollars... [:@]
02-18-2009, 12:13 PM
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RE: Challenger safe (for now, at least)
Trying not to be too political... but I don't see too much stimulous in the stimulous package. Seems to be payback for special interest. If you read it, it will make you sick to your stomach. Man I feel for my kids and grandkids. They will still be paying for it when I'm dead and decayed. But the Challengers will still be around my 71 and my 09. Uncertain times for sure.
my 71 and my 09. Uncertain times for sure.
02-18-2009, 12:16 PM
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RE: Challenger safe (for now, at least)
When the fox is put in charge of watching the hen house......[
]
]
ORIGINAL: mss3dodge
Interesting that Ms. Pelosi talks about "accountability to the taxpayers" given her spending habits with tax dollars (flying back and forth to California every week on a private government-supplied jet). Hmmm and we're to trust these people overseeing bailout dollars... [:@]
Interesting that Ms. Pelosi talks about "accountability to the taxpayers" given her spending habits with tax dollars (flying back and forth to California every week on a private government-supplied jet). Hmmm and we're to trust these people overseeing bailout dollars... [:@]