The Curator » Transportation

Treasury Halts Negotiations With Detroit Automakers

Michelle — Fri, 31 Oct 2008 11:32:06 +0000

The U.S. Treasury is reportedly no longer negotiating with Detroit automakers about a possible capital infusion via its $700 billion Troubled Asset Relief Program, complicating prospects for a tie-up between struggling General Motors and Chrysler. (Detroit Free Press)

GM, Chrysler Merger Could Cost 74,000 Jobs

Michelle — Thu, 30 Oct 2008 21:00:03 +0000

Grant Thornton estimated in a report Thursday that 74,000 employees could lose their jobs if General Motors and Chrysler receive financing approval for a merger. The accounting firm also said half of Chrysler’s plants could be shuttered. (Bloomberg)

Chrysler, GM Explore TARP Aid For Merger

Michelle — Mon, 27 Oct 2008 04:37:21 +0000

U.S. lawmakers are considering using the $700 billion Troubled Asset Relief Program to buy troubled auto loans from General Motors and Chrysler’s financing arms, GMAC and Chrysler Financial, so that Chrysler’s owner Cerberus can redirect capital towards a potential cost-saving merger. (WSJ)

Cerberus Seeks “Meaningful” Control In GM-Chrysler Combo

Michelle — Fri, 24 Oct 2008 12:55:42 +0000

Cerberus is reportedly looking to retain a “meaningful stake” in the company that could potentially emerge from a Chrysler tie-up with General Motors. The private-equity firm, which owns an 80% stake in Chrysler, is also likely to push for a management shake-up at General Motors. (WSJ)

GM Suspends Payments Into 401K Plans

Michelle — Thu, 23 Oct 2008 17:48:49 +0000

General Motors announced Thursday it will suspend matching payments to employee 401K plans effective November 1st as it assesses its cash reserves and staffing needs amid a deep downturn in sales. The Detroit automaker said it could reinstate matching payments if business conditions improve. (Reuters)

GM Seeks Massive Buffett-Style Capital Injection

Michelle — Wed, 22 Oct 2008 12:18:23 +0000

General Motors is reportedly seeking a sizeable capital injection, similar to Warren Buffett’s recent investments in General Electric and Goldman Sachs, as a possible alternative to a merger deal with Chrysler. However, analysts remain unconvinced private equity firms will provide assistance. (FT)

Kerkorian Unloads Portion of Ford Stake

Michelle — Tue, 21 Oct 2008 20:16:22 +0000

Financier Kirk Kerkorian, the largest private investor in Ford Motor, revealed Tuesday he sold 7.3 million shares in the automaker and will consider unwinding his remaining 6% stake. Kerkorian sold the shares for roughly $2.43 a share, nearly a 60% loss. (CNNMoney)

Chrysler Explores Renault-Nissan Merger

Michelle — Tue, 21 Oct 2008 01:06:58 +0000

Cerberus Capital, majority owner of Chrysler, is reportedly in talks to sell a minority stake of the Detroit automaker to Japan’s Nissan as continued credit-market worries complicate its merger discussions with General Motors. (WSJ)

GM, Chrysler Merger Gains Support

Michelle — Thu, 16 Oct 2008 23:12:27 +0000

General Motors and Chrysler are reportedly picking up the pace of their merger discussions as support grows from potential lenders. J.P. Morgan Chase, which owns Chrysler bank debt and is a key lender for General Motors, is helping to drive the deal. (WSJ)

U.S. Retail Sales Signal Recession

Michelle — Wed, 15 Oct 2008 14:53:37 +0000

The U.S. Commerce Department reported September retail sales fell 1.2%, the most in three years, as American consumers reigned in spending on almost everything except health care products and gas. Auto purchases declined a steep 3.8%. (CNNMoney)

Cerberus Explores Chrysler Sale To GM

Michelle — Sat, 11 Oct 2008 14:27:05 +0000

Private equity firm Cerberus Capital Management was in exploratory talks with General Motors about selling its 80% stake in Chrysler to General Motors. (NYT) Cerberus proposed a swap deal to divest Chrysler’s automotive operations in exchange for General Motor’s 49% stake in its finance arm GMAC. (WSJ)

Ford Triples Job Cuts At Volvo

Virginia — Wed, 08 Oct 2008 11:55:10 +0000

Ford Motor is tripling layoffs at Volvo to 6,000 jobs, as the unit predicts a wider than expected second-half loss. Volvo’s CEO termed the downturn in the global car industry “more drastic than expected”. (Bloomberg)

Tata To Build Nano Plant In Gujarat

Virginia — Tue, 07 Oct 2008 15:45:52 +0000

Tata Nano

Tata Motors, which last week had to back off plans to build its ultra-cheap Nano car in West Bengal, has found a new plant site in the northwestern Indian state of Gujarat. (domain-b.com)

Toyota Offers 0% Financing For First Time

Virginia — Tue, 07 Oct 2008 14:11:40 +0000

Toyota Motor is for the first time offering 0% financing after sales fell 32.3% Sales fell 62% for its top-selling, midsize SUV. The 0% credit applies to 11 of its biggest-selling models. (BNET)

Business Jet Inventories Rise

Virginia — Mon, 06 Oct 2008 12:01:38 +0000

Inventories of used business jets in the U.S. are 37% higher than a year ago. Honeywell Aerospace, which supplies executive jet equipment, is warning that flight activity is falling in the U.S. and in Europe. (FT)