Romney Prescribes Tough Love for Detroit - not the correct course

Look Mic, no offense but your stance is not the correct one here. Since your day, things have changed and now that we entered a depression, yes, I said depression, we cannot loose sight in protecting the last American manufacturing no matter the previous past mistakes.

So, to our Congress, ignore Romney and protect the last American home grown manufacturing. If not, then allow the banks and investment houses to fail also. Steve

This Day in Auto History: 11.21.1903 John Wallace Raisbeck of American Motors is born in Coronel, Chile 11.21.1919 The Fox Motor Company is organized in Philadelphia, PA by Ansley H. Fox, inventor of the Fox shotgun 11.21.1937 Howard E. Coffin, Vice President and Chief Engineer of the Hudson Motor Car Company 1909-1930, is killed at age 64 by an accidental gunshot wound in Sea Island Beach, GA 11.21.1951 Racer Carlos Panini is killed near Oaxaca, Mexico during the Pan-American Road Race 11.21.1962 Irving R. Bacon, an artist who was the “court painter” for Henry Ford, dies in El Cajon, CA at age 86

Source: Automobile History Day By Day, by Douglas A. Wick

Dodge EV (Tesla Roadster Clone) Takes On the Dodge Challenger SRT-8

<http://www.studenttechnews.net/2008/11/19/dodge-ev-tesla-roadster-clone-takes-on-the-dodge-challenger-srt-8-2/>
By admin

Though the upcoming Dodge EV may be Lotus-sourced and Tesla Roadster-inspired, it packs quite a punch, as you’ll see in the Dodge Challenger SRT-8 showoff after the break. Click here for first picture in gallery. ...
Student Tech News -

This Day in Auto History: 11.20.1919 The 20,000th Essex, a 2-passenger roadster, is produced 11.20.1935 Harold E. Larsen of the Timken-Detroit Axle Company dies in San Mateo, CA 11.20.1951 The Kaiser-Frzer Corporation and Sears, Roebuck & Company agree to produce and market a variant of the Henry J through Sears as a new marque, the Allstate 11.20.1953 The last 1953 Pontiac is produced - the division officially drops the Sedan Delivery body style 11.20.1959 The British Ford Anglia is introduced to the United States market

Source: Automobile History Day By Day, by Douglas A. Wick

Chrysler credit rating could be cut

BY TIM HIGGINS • FREE PRESS BUSINESS WRITER •

Fitch Ratings cautioned Wednesday that it might lower Chrysler's credit rating to a level that means default is probable, after the revelation that the automaker is quickly running out of money.

Chrysler LLC CEO Bob Nardelli reiterated to a U.S. House committee Wednesday that Chrysler had considered a prepackaged bankruptcy before seeking help from the government.

"Fitch expects that federal financial assistance over the next quarter and the forbearance of trade creditors will be required in order to avoid a default," the credit rating agency said in a statement.

Nardelli has said the company would seek $7 billion in government loans, while General Motors Corp. has said it would seek $10 billion to $12 billion. Ford Motor Co. has said it would like access to $7 billion to $8 billion if it needs it.

A report Wednesday by J.P. Morgan noted that the amount Chrysler is seeking suggests it could compensate for a likely 2009 cash burn.

"Proposed Chrysler assistance is slightly outsized in relation to its market position," a report by lead author Himanshu Patel said. "It was suggested these amounts could compensate for the automakers' likely FY2009 cash burns."

Fitch said that without "material federal assistance in the short term" the agency would review the current rating for potential downgrading to CC -- which "indicates that default is probable" -- from CCC.

"The provision of federal assistance may not preclude a downgrade," the agency added.

During the third quarter, Chrysler burned through about $1 billion a month and ended the period with $6.1 billion in cash on hand, Nardelli has said.

Chrysler has $4 billion to $5 billion in monthly financial obligations.

To change its break-even point, Chrysler has cut $2.2 billion in fixed costs this year.

"Chrysler is dependent on the financial capacity and willingness of its suppliers to continue extending trade credit, as the company does not have sufficient resources to finance ongoing operations in the event that trade credit is curtailed," Fitch said. "Fitch expects that federal aid to Chrysler is probable, either directly or through facilitating a merger, although the amount, timing, structure and term remain uncertain."

Nardelli said Chrysler is not confident it would be successful in emerging from bankruptcy.

On Tuesday, he told a Senate banking committee that Chrysler looked at a prepackaged bankruptcy before coming to Congress for help. On Wednesday, he reiterated: "Bankruptcy would be devastating. I know from Chrysler's standpoint and working with my colleagues we've looked at all of the various options of pre-negotiation, pre-pack, etc."

Nardelli indicated that Chrysler was thinking about what would happen if it had to go through bankruptcy.

"Yes, we have gone through, and have outside advisers to help us think through, the various aspects should our liquidity become an issue," Nardelli said.

This Day in Auto History: 11.19.1904 Automobile engineer and designer Wellington Everett Miller is born in Los Angeles, CA 11.19.1928 Carlos C. Booth, M.D., a surgeon who in 1895 designed the first car in Ohio (his Booth-Crouch was actually built by machinist W. Lee Crouch of New Brighton, PA), dies in Youngstown, OH at age 66 11.19.1951 The last 1951 Pontiac is produced 11.19.1956 The 1957 Pontiacs are introduced 11.19.1986 Antique automobile collector George Hall Waterman Jr., best remembered as the co-owner of the 1866 Dudgeon steam vehicle, dies in Providence, RI

Source: Automobile History Day By Day, by Douglas A. Wick

This Day in Auto History: 11.18.1892 Racer Tazio Giorgio Nuvolari is born in Castel d’Ario, Mantua, Lombardy, Italy 11.18.1907 The Napier Motor Car Company of America, located in Jamaica Plain, MA, is dissolved - the firm would be reorganized in 1909 but production of the American Napier would end in 1912 11.18.1918 Harry W. Ford, President of the Saxon Motor Car Company 1914-1918, dies in New York City from pneumonia at age 38 11.18.1934 Pliny E. Holt, builder in 1896 of the first automobile in California and later an executive with the Caterpillar Tractor Company, dies at age 62 11.18.1949 The 1950 Hudson Pacemakers are introduced as a lower priced, slightly shorter variant of the Super-Six series

Source: Automobile History Day By Day, by Douglas A. Wick

This Day in Auto History: 11.17.1916 The Edward G. Budd Manufacturing Company of Philadelphia, PA produces its 100,000th steel body for Dodge touring cars 11.17.1925 Thomas J. Litle Jr. is named Chief Engineer of Lincoln 11.17.1949 Edward G. Seubert, President of the Standard Oil Company of Indiana 1927-1944, dies in Chicago, IL at age 73 11.17.1955 The 1956 Nashes are introduced, featuring “Speedline” styling 11.17.1970 The Soviet Union lands the first wheeled vehicle on the surface of the Moon, and later in the day the Lunokhod I is driven around Mare Imbrium by remote control from the Earth

Source: Automobile History Day By Day, by Douglas A. Wick

6 myths about the Detroit 3

BY MARK PHELAN • FREE PRESS COLUMNIST

The debate over aid to the Detroit-based automakers is awash with half-truths and misrepresentations that are endlessly repeated by everyone from members of Congress to journalists. Here are six myths about the companies and their vehicles, and the reality in each case.

Myth No. 1

Nobody buys their vehicles.

Reality

General Motors Corp., Ford Motor Co. and Chrysler LLC sold 8.5 million vehicles in the United States last year and millions more around the world. GM outsold Toyota by about 1.2 million vehicles in the United States last year and holds a U.S. lead over Toyota of about 560,000 so far this year. Globally, GM in 2007 remained the world's largest automaker, selling 9,369,524 vehicles worldwide -- about 3,000 more than Toyota.

Ford outsold Honda by about 850,000 and Nissan by more than 1.3 million vehicles in the United States last year.

Chrysler sold more vehicles here than Nissan and Hyundai combined in 2007 and so far this year.

Myth No. 2

They build unreliable junk.

Reality

The creaky, leaky vehicles of the 1980s and '90s are long gone. Consumer Reports recently found that "Ford's reliability is now on par with good Japanese automakers." The independent J.D. Power Initial Quality Study scored Buick, Cadillac, Chevrolet, Ford, GMC, Mercury, Pontiac and Lincoln brands' overall quality as high or higher than that of Acura, Audi, BMW, Honda, Nissan, Scion, Volkswagen and Volvo.

Power rated the Chevrolet Malibu the highest-quality midsize sedan. Both the Malibu and Ford Fusion scored better than the Honda Accord and Toyota Camry.

Myth No. 3

They build gas-guzzlers.

Reality

All of the Detroit Three build midsize sedans the Environmental Protection Agency rates at 29-33 miles per gallon on the highway. The most fuel-efficient Chevrolet Malibu gets 33 m.p.g. on the highway, 2 m.p.g. better than the best Honda Accord. The most fuel-efficient Ford Focus has the same highway fuel economy ratings as the most efficient Toyota Corolla. The most fuel-efficient Chevrolet Cobalt has the same city fuel economy and better highway fuel economy than the most efficient non-hybrid Honda Civic. A recent study by Edmunds.com found that the Chevrolet Aveo subcompact is the least expensive car to buy and operate.

Myth No. 4

They already got a $25-billion bailout.

Reality

None of that money has been lent out and may not be for more than a year. In addition, it can, by law, be used only to invest in future vehicles and technology, so it has no effect on the shortage of operating cash the companies face because of the economic slowdown that's killing them now.

Myth No. 5

GM, Ford and Chrysler are idiots for investing in pickups and SUVs.

Reality

The domestic companies' lineup has been truck-heavy, but Toyota, Nissan, Mercedes-Benz and BMW have all spent billions of dollars on pickups and SUVs because trucks are a large and historically profitable part of the auto industry. The most fuel-efficient full-size pickups from GM, Ford and Chrysler all have higher EPA fuel economy ratings than Toyota and Nissan's full-size pickups.

Myth No. 6

They don't build hybrids.

Reality

The Detroit Three got into the hybrid business late, but Ford and GM each now offers more hybrid models than Honda or Nissan, with several more due to hit the road in early 2009.