Autoblog

Chrysler decides to keep third shift at Windsor minivan plant, VW Routan to live on

Sam Abuelsamid — Sat, 11 Jul 2009 17:25:00 EST

Filed under: Minivans/MPVs, Hirings/Firings/Layoffs, Plants/Manufacturing, Chrysler, LLC., Volkswagen

2009 Volkswagen Routan - click above for a high res image gallery

Earlier this spring as Chrysler stumbled toward bankruptcy court, one of the announced cost-cutting decisions was the elimination of the third shift at the Windsor assembly plant. That's the factory that produces the Chrysler Town and Country, Dodge Caravan and Volkswagen Routan minivans. According to Ken Lewenza, president of the Canadian Auto Workers union, the company has reversed course and will keep the third shift operational. Preserving the final shift will prevent 1,200 layoffs at the factory.

The change was made possible by a revised labor deal agreed to this spring, which cut $207 million in annual costs. Earlier this year, the plant "temporarily" ceased building the Routan for Volkswagen due to slow sales. According to VW of America communications director Steve Keyes, the Routan will live on as well. Keyes tells Autoblog "We will be introducing the 2010 MY vehicle this Fall and continue work on future models. Our goal was to capture 5 percent of the segment and we're meeting that target."

Gallery: First Drive: 2009 Volkswagen Routan

[Source: Reuters, Volkswagen]

Chrysler decides to keep third shift at Windsor minivan plant, VW Routan to live on originally appeared on Autoblog on Sat, 11 Jul 2009 17:25:00 EST. Please see our terms for use of feeds.

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Just Kidding! Bob Lutz apparently isn't walking away from GM just yet

Sam Abuelsamid — Fri, 10 Jul 2009 08:00:00 EST

Filed under: Hirings/Firings/Layoffs, GM

As General Motors was stumbling toward insolvency earlier this year and it became clear that the presidential task force was going to require some heads to roll, Bob Lutz announced his retirement at the end of this year. Now that the "New" General Motors has emerged from bankruptcy, it appears Lutz wants to keep his commitment to drive the first production Chevy Volt off the line in 2010.

The first stage of Lutz's retirement involved relinquishing his duties as product development chief last April to Tom Stephens. Lutz was to remain as a special advisor for the rest of this year, however, the Detroit Bureau is reporting Lutz will stick around for an indeterminate amount of time to advise CEO Fritz Henderson. Henderson's background is on the finance side of the business, so perhaps GM wants someone else on the inside advising on future product. This will be particularly important over the next several years as GM pares down its model and brand lineup to determine what to keep and what to toss.

[Source: The Detroit Bureau]

Just Kidding! Bob Lutz apparently isn't walking away from GM just yet originally appeared on Autoblog on Fri, 10 Jul 2009 08:00:00 EST. Please see our terms for use of feeds.

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Ex-Chrysler media man Vines named head of P.R. at... Christian publishing house?

Chris Shunk — Thu, 09 Jul 2009 09:28:00 EST

Filed under: Hirings/Firings/Layoffs, Chrysler, LLC.

Former Chrysler PR chief Jason Vines has had more than his fair share of jobs over the years. He's had automotive gigs at Chrysler, Ford and Nissan, he's worked as a stand-up comedian, he spent time at Compuware and he even spent time at the food rescue program Forgotten Harvest. We've even spotted Vines (seen here at left, with comedian David Spade) regularly hanging with John McElroy on Autoline After Hours.

The likable master of spin has reportedly found yet another calling, as he's been named the Vice President of public relations and communications at Zondervan; a Christian publishing division of HarperCollins out of Grand Rapids, MI. The move is a bit of a surprise, considering the fact that Vines' outspoken personality (some would call him outspoken, others crass) doesn't exactly jibe with the conservative nature of most Christian organizations. Vines' new job shows that really talented people tend to find work even in a down market.

[Source: Automotive News - subs req'd | Image: Bill Pugliano/Getty]

Ex-Chrysler media man Vines named head of P.R. at... Christian publishing house? originally appeared on Autoblog on Thu, 09 Jul 2009 09:28:00 EST. Please see our terms for use of feeds.

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Respect Your Elders: Even Richard Petty stung by Chrysler's bankruptcy?

Jeremy Korzeniewski — Wed, 08 Jul 2009 08:29:00 EST

Filed under: Motorsports, Hirings/Firings/Layoffs, Chrysler, LLC., Earnings/Financials, Celebrities

Richard Petty - quite possibly the best NASCAR racer of all time and the man in charge of Richard Petty Motorsports - says that Chrysler stopped paying his team after filing for bankruptcy last month. No surprise there. The lack of funds prompted RPM to lay off nine workers, although Petty is now saying there is hope that the automaker will soon work out some sort of deal to begin making payments once again now that it's clear of court proceedings.

It isn't clear at this moment if Petty's team, which is in the final year of its current contract with Chrysler, will soldier on using Dodge ~~Chargers~~ Challengers next year. Earlier this month, The King said his team would be willing to talk to any and all manufacturers regarding the 2010 NASCAR season, including Dodge. We'll surely know soon enough, but internet message boards are awash with rumors the team has been in talks with *gasp* Toyota.

[Source: ESPN via MLive.com | Image: Jason Smith/Getty]

Respect Your Elders: Even Richard Petty stung by Chrysler's bankruptcy? originally appeared on Autoblog on Wed, 08 Jul 2009 08:29:00 EST. Please see our terms for use of feeds.

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Comeback Kid? Jacques Villeneuve reportedly wants back into F1

Noah Joseph — Wed, 08 Jul 2009 08:00:00 EST

Filed under: Motorsports, Hirings/Firings/Layoffs

Jacques Villeneuve knows what it's like to win. After emerging victorious in the Indianapolis 500, the CART title, the Formula One World Championship and narrowly missing the chance to score the triple crown with Peugeot at Le Mans this year, the son of legendary racer Gilles Villeneuve finds himself without a ride for next year as the Speedcar Series in which he'd been competing teeters on the verge of bankruptcy. But JV's got a plan. He wants back into Formula One. And he reckons next season will be the perfect time for him to return.

Even with Max Mosley's radical proposals cut back, next season is shaping up to be vastly different from the Formula One of two or three seasons ago. In-season testing is almost entirely eliminated. Fuel stops are being cut out. Slick tires are back and electronic aids are gone. And there are three new teams joining the grid for next season. All these factors, according to Villeneuve, means that there will be an even higher demand for experienced drivers than usual. Will anyone bite? Only time will tell, but he figures it's high time.

[Source: Autosport]

Comeback Kid? Jacques Villeneuve reportedly wants back into F1 originally appeared on Autoblog on Wed, 08 Jul 2009 08:00:00 EST. Please see our terms for use of feeds.

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Rumormill: McLaren planning hybrid supercar

Jeremy Korzeniewski — Thu, 02 Jul 2009 18:27:00 EST

Filed under: Hybrids/Alternative, Green, Hirings/Firings/Layoffs, Supercars, Rumormill

McLaren F1 LM - Click above for high-res image gallery

McLaren has put up a job posting for a Senior Engineer for Powertrain Hybrid Technology on its official website, which may offer a few clues as to where the automaker may be heading in the near future for its road cars. As far as rumors go, this one seems pretty solid. According to an unnamed spokesperson quoted by Autocar:

It (hybrid technology) is something we want as a forward-thinking, technology-driven company. We have been considering it for future projects. All the advert means is that we are looking for a senior engineer in powertrain hybrid technology. Read into it what you will.

One possibility is that McLaren will attempt to adapt the KERS system from its Formula 1 race cars for street use. It's widely agreed upon that McLaren's KERS implementation is the best in F1 and both BMW and Ferrari are also thought to be working on KERS for future road cars.

Within the next few years, McLaren is expected to introduce a couple of new supercars, including a replacement for the current SLR, codenamed P11, and a successor to the famed F1 supercar from the mid '90s that's currently known as the P12.

Gallery: McLaren F1 LM

[Source: McLaren via Autocar]

Rumormill: McLaren planning hybrid supercar originally appeared on Autoblog on Thu, 02 Jul 2009 18:27:00 EST. Please see our terms for use of feeds.

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Musical Chairs: Kimi contests WRC Finland, Rossi considers Ferrari, F1 could grow 3rd car

Noah Joseph — Thu, 02 Jul 2009 08:00:00 EST

Filed under: Motorsports, Hirings/Firings/Layoffs, Ferrari

Valentino Rossi tests a Ferrari F1 car - Click above for high-res image gallery

Typically F1 drivers come up through the formula racing ladder. But for every rule there's an exception, and that exception seems to be creeping up for Ferrari, who are facing a potential change-up in drivers that involves not just numerous racing classes but varied disciplines of motorsports.

First up is Kimi Raikkonen, the team's 2007 world champion who's been trying his hand at rallying. The Finnish driver has contested local-level rallies with limited success, but remains undeterred in entering the World Rally Championship stage in Finland next month. The event will be the first top-level rally for Raikkonen, and also the first professional rally on agravel surface following previous outings on ice, snow and asphalt. Given his level of performance lately in F1, if Kimi finds his footing in rally, he could make the switch.

If Kimi were to jump ship from F1, there's no lack of talent out for Ferrari, but the Scuderia could reach into a different talent pool and bring Valentino Rossi on board. The multiple MotoGP champion has tested for Ferrari on several occasions to considerable effect, and could be ripe for a switch from two wheels to four. But even if Kimi stays in F1, Rossi could find himself with an open door just the same as reports indicate that the terms of the new arrangement between the FIA and FOTA could make way for teams to field a third car in F1 in the near future.

[Source: Autosport and F1-Live]

Musical Chairs: Kimi contests WRC Finland, Rossi considers Ferrari, F1 could grow 3rd car originally appeared on Autoblog on Thu, 02 Jul 2009 08:00:00 EST. Please see our terms for use of feeds.

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BREAKING: Indy chief Tony George reportedly resigns

Noah Joseph — Tue, 30 Jun 2009 18:28:00 EST

Filed under: Motorsports, Hirings/Firings/Layoffs

It's the end of an era for open-wheel racing in America as Indy chief Tony George has stepped down from his post. The long-time president of the Indianapolis Motor Speedway, George was widely seen as the impetus for the 1996 split in Indy racing that created the Indy Racing League (IRL) and the rival Champ Car series (formerly known as CART), but he was also instrumental in fostering the merger of the two championships into the new IndyCar Series over which he's presided.

During his nearly two-decade tenure as the head of the famous race track, George also brought NASCAR, Formula One and MotoGP to the speedway for the first time, vastly expanding the calendar of events at the iconic venue. However, elements within the Hulman-George company that controls the business were concerned with the amount of resources their chief executive put into the reintegrated IndyCar Series and recently asked him to reorganize the company, but Tony evidently decided to step down instead. He'll be focusing his energies on the Vision Racing team which he fields in the series, while the job he vacates will be split into two: CFO Jeffrey G Belskus will take the reins at the speedway, while chief legal counsel W Curtis Brighton will oversee the operation of the series.

[Source: Autosport | Image: Jonathan Ferrey/Getty]

BREAKING: Indy chief Tony George reportedly resigns originally appeared on Autoblog on Tue, 30 Jun 2009 18:28:00 EST. Please see our terms for use of feeds.

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REPORT: Tough times yield more insurance fraud cases

Michael Harley — Tue, 30 Jun 2009 09:01:00 EST

Filed under: Etc., Government/Legal, Hirings/Firings/Layoffs

They're called owner "give-ups," and their rise is a sign of the tough economic times. Despondent over being financially strapped and unable to cover car payments, vehicle owners are ditching, sinking, or torching their vehicles and reporting the loss to collect insurance payoffs. According to authorities, most of the titleholders aren't seasoned criminals. In fact, many of the false claims are filed by first-time offenders -- people who normally wouldn't steal a piece of candy from a store. However, the desperate owners see insurance companies as "rich and fat," says James Quiggle, a spokesman for the Coalition Against Insurance Fraud. Many think the insurance companies won't miss a few dollars.

Well, of course they will. Owner "give-up" cases result in felony charges of insurance fraud, making false statements to police and insurance providers, and arson if the car was burned. A better solution for cash-strapped owners, say experts, is to attempt to renegotiate payments, sell the car, or trade it in for a less expensive model. While you generally won't come out ahead, those transactions are legal and they'll keep you out of the slammer.

[Source: Detroit News | Image Source: Mark Dadswell/Getty]

REPORT: Tough times yield more insurance fraud cases originally appeared on Autoblog on Tue, 30 Jun 2009 09:01:00 EST. Please see our terms for use of feeds.

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REPORT: Pipe and firebomb-wielding strikers injure 70 at Ssangyong plant; 4,000 flee

Michael Harley — Tue, 30 Jun 2009 08:00:00 EST

Filed under: Government/Legal, Hirings/Firings/Layoffs, Plants/Manufacturing, UAW/Unions

After slipping into receivership this past January, Ssangyong Motor Company's problems have only escalated. A court-ordered restructuring of the Korean automaker earlier this year left 976 employees without work. The displaced workers organized an armed sit-in on the Korean automaker on May 21 that has now turned violent.

According to Ward's Auto, Roughly 4,000 non-union workers and management had been back in the company's Pyongtaek, South Korea, SUV plant attempting to get the assembly line back into operation. After less than 36 hours in the facility, more than 900 pipe and firebomb-wielding strikers surrounded the area and demanded they vacate under increasing threats. As the workers left, they were attacked by striking union workers poised outside (many noted that the national police service had withdrawn their riot squad on Saturday night leaving the 4,000 employees unprotected). All told, more than 70 non-union workers were badly hurt and many of those were hospitalized.

Although the company has offered jobs with affiliated companies, or promised future work to dismissed employees, the union immediately rejected the offer and has demanded to negotiate directly with the Korean government. The future doesn't look good. With no plans for the non-union employees to return and a viable restructuring plan unlikely, the Korean courts are scheduled to make a ruling by Sept. 15 whether to allow Ssangyong Motor Co. to keep operating or to liquidate its assets.

[Source: Ward's Auto]

REPORT: Pipe and firebomb-wielding strikers injure 70 at Ssangyong plant; 4,000 flee originally appeared on Autoblog on Tue, 30 Jun 2009 08:00:00 EST. Please see our terms for use of feeds.

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Tata considers more Jaguar/Land Rover cuts after massive loss

Jeremy Korzeniewski — Fri, 26 Jun 2009 15:57:00 EST

Filed under: Hirings/Firings/Layoffs, Jaguar, Land Rover, Earnings/Financials, Tata

2010 Land Rover LR4 - Click above for high-res image gallery

India's Tata Motors has reported a net loss of $520 million (25.05 billion rupees) for the fiscal year ending in March of 2009. Over the same period one year earlier, Tata managed to earn 21.68 billion rupees in profit. What gives? Naturally, the global economic meltdown didn't do the automaker any favors, but the main problem can be sourced back to the poor performance of Jaguar and Land Rover, which the Indian automaker purchased from Ford last year with the help of a $3 billion bridge loan.

The fact that Jaguar Land Rover accounted for $504 million of that $520 million total loss means that more job cuts and plant shutdowns are in store for the ailing British duo. Says Tata Vice Chairman Ravi Kant:

We have sent people on sabbatical, gone for cheaper low-cost country sourcing and tight control in cash flows, and are assisting JLR (Jaguar Land Rover) for a major belt tightening.

Earlier this month, it was reported that Tata was in search of some £1 billion ($1.5B) in cash and underwriting help to pump into the JLR operations.

Gallery: 2010 Land Rover Discovery 4

[Source: Reuters]

Tata considers more Jaguar/Land Rover cuts after massive loss originally appeared on Autoblog on Fri, 26 Jun 2009 15:57:00 EST. Please see our terms for use of feeds.

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Officially Official: GM to build B-segment cars in Lake Orion, MI

John Neff — Fri, 26 Jun 2009 14:28:00 EST

Filed under: Government/Legal, Hirings/Firings/Layoffs, Plants/Manufacturing, GM

2010 Chevy Spark - Click above for high-res image gallery

Following weeks of speculation, General Motors finally made its decision official this afternoon. Its new small cars will be built in Michigan with final assembly taking place at the Lake Orion plant with stampings coming from the nearby Pontiac Metal Center. As a result of the decision, 1,400 jobs will be preserved in hard-hit Michigan.

The Lake Orion factory was due to be idled in September, when production of the Pontiac G6 ends there. Instead it will be re-tooled to build a new small car that has not yet been announced. The plant will be specified as a B/C plant, meaning it will have flexibility to build both B and C segment cars. The first will be a B car, which will replace the Aveo and may be called the Viva. The plant will also be able to build C cars like the new Cruze and possibly a Buick version of the Opel Astra. The Viva would be a B-segment car similar in size to the new Ford Fiesta. Powertrain components will also be sourced from GM's North American operations although no specifics have been announced yet. GM emphasized that this is the first car of this size to be built in the United States from any major automaker.

Gallery: Geneva 2009: Chevy Spark

Gallery: 2010 Chevy Spark

[Source: General Motors]

Continue reading Officially Official: GM to build B-segment cars in Lake Orion, MI

Officially Official: GM to build B-segment cars in Lake Orion, MI originally appeared on Autoblog on Fri, 26 Jun 2009 14:28:00 EST. Please see our terms for use of feeds.

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Max Mosley renegging on promise to step down?

Jeremy Korzeniewski — Fri, 26 Jun 2009 13:33:00 EST

Filed under: Motorsports, Hirings/Firings/Layoffs, Ferrari

Just when you thought it was safe to go back in the Formula One waters, Max Mosley goes and sends a nasty-gram to Formula One Teams Association (FOTA) chairman and Ferrari head honcho Luca di Montezemolo threatening to back out of his promise to step down from his throne as leader of the FIA if he doesn't get a full apology ASAP.

It seems that Mosley is none too pleased by the way that FOTA have portrayed the events leading to the agreement between the teams and the FIA to run the 2010 Formula 1 season as previously scheduled. Says Mosley:

If you wish the agreement we made to have any chance of survival, you and FOTA must immediately rectify your actions. You must correct the false statements which have been made and make no further such statements. You yourself must issue a suitable correction and apology at your press conference this afternoon... [G]iven your and FOTA's deliberate attempt to mislead the media, I now consider my options open. At least until October, I am president of the FIA with the full authority of that office.

There's plenty more where that came from. Click past the break to read Max Mosey's letter to Luca di Montezemolo in its entirety.

[Source: Axis of Oversteer | Photo: makeroadssafe CC 2.0]

Continue reading Max Mosley renegging on promise to step down?

Max Mosley renegging on promise to step down? originally appeared on Autoblog on Fri, 26 Jun 2009 13:33:00 EST. Please see our terms for use of feeds.

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Elon fires back at Eberhard in Tesla lawsuit's latest twist

Jeremy Korzeniewski — Mon, 22 Jun 2009 18:58:00 EST

Filed under: Hybrids/Alternative, Sports/GTs, Government/Legal, Green, Hirings/Firings/Layoffs

Shortly after Tesla Motors co-founder Martin Eberhard filed a lawsuit against Tesla Motors and its Chairman, Product Architect and CEO Elon Musk, the Silicon Valley automaker had this to say:

This lawsuit is a fictionalized, inaccurate account of Tesla's early years -- it's twisted and wrong, and we welcome the opportunity to set the record straight. Incidentally, Tesla will also be filing counterclaims and in the process present an accurate account of the company's history.

The first bit of record-resetting has shown up on the official Tesla blog. Not surprisingly, Elon Musk has lots to say in regards to the early years of the Roadster's development, and he seeks to offer his side of the story, along with a number of emails to back up his claims.

What does Musk say? Well, his initial response is a long, informative and interesting read. Here are some choice lines:

The facts are that when I requested through AC Propulsion to meet Eberhard, he had no technology of his own, he did not have a prototype car and he owned no intellectual property relating to electric cars.
At the time [early 2004], "Tesla Motors, Inc." consisted of Eberhard, Tarpenning and Wright, plus an unfunded business plan and they were looking for an initial round of funding to create a more advanced prototype than the AC Propulsion Tzero. While there was a basic corporation in place, Tesla hadn't even registered or obtained the trademark to its name and had no formal offices or assets.

Make the jump for more.

Gallery: Martin Eberhard's Founders Series Tesla Roadster

[Source: Elon Musk / Tesla Motors]

Continue reading Elon fires back at Eberhard in Tesla lawsuit's latest twist

Elon fires back at Eberhard in Tesla lawsuit's latest twist originally appeared on Autoblog on Mon, 22 Jun 2009 18:58:00 EST. Please see our terms for use of feeds.

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Stephen Girsky snags UAW-VEBA seat on new GM board

Dan Roth — Fri, 19 Jun 2009 17:31:00 EST

Filed under: Etc., Hirings/Firings/Layoffs, GM

Now that Saturn is tentatively going to Roger Penske, Stephen Girsky has got some free time on his hands. Girsky, who was one of Rick Wagoner's advisors for a brief time and recently helped GM select Penske as a buyer for Saturn, has been around the automotive block analyzing the industry for Morgan Stanley as well as working at Centerbridge Partners in recent years. His tenure with Centerbridge Partners was during the time that this equity concern was trying to snatch Chrysler from the clutches of Daimler.

It has been announced that Girsky will get a seat on the board of the new General Motors to represent the UAW, whom Girsky helped with the dead-end GM/Chrysler deal last fall. Having at least one person upstairs at the RenCen who actually keeps an eye on the car business is a good thing, even if Girsky has professed his admiration for the way Ford does things in the past. OEM Supplier Dana Corporation also pays Girsky over $100,000 per year to sit on that company's board. The GM board seat comes in exchange for the concessions that retirees have made in an attempt to keep the wounded, lumbering mammoth that is General Motors from fossilization.

[Source: Automotive News - sub. req'd]

Stephen Girsky snags UAW-VEBA seat on new GM board originally appeared on Autoblog on Fri, 19 Jun 2009 17:31:00 EST. Please see our terms for use of feeds.

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REPORT: Ex-GM VP Bo Andersson to run Russia's GAZ

Jonathon Ramsey — Tue, 16 Jun 2009 09:00:00 EST

Filed under: Euro, Hirings/Firings/Layoffs, GM

Bo Andersson was General Motors' global purchasing group vice president up until last Friday, when he suddenly resigned without warning. Now, we appear to know why he left - Automotive News is reporting that Andersson will become CEO of GAZ, the Russian consumer and military vehicle maker.

As you may recall, GAZ is involved by proxy in the purchase of Opel, since Russian bank Sberbank is GAZ's largest investor and Magna's partner in the pending deal for Opel. With Andersson at the helm, GAZ would have a European automotive industry insider (he also spent time at Saab) and a known cost-cutter and dealmaker. As a result, AN speculates that Andersson could end up playing a key role in the revival of Opel's fortunes.

Andersson's installation as CEO is not a done deal just yet - he still must still be formally voted in by the GAZ board.

[Source: Automotive News, sub req'd]

REPORT: Ex-GM VP Bo Andersson to run Russia's GAZ originally appeared on Autoblog on Tue, 16 Jun 2009 09:00:00 EST. Please see our terms for use of feeds.

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Ed Welburn defends GM design from HuffPo attack

Frank Filipponio — Wed, 10 Jun 2009 14:27:00 EST

Filed under: Hirings/Firings/Layoffs, GM, Opinion/Editorial

So what do you do if you happen to be Global Vice President of General Motors Design and a blogger calls your company out for lacking a modern sense of design? Well, if your name happens to be Ed Welburn, you respond with an open letter of your own.

After Huffington Post writer Gerald Sindell wrote an open letter to new GM CEO Fritz Henderson suggesting that a new design direction should be Job 1 for the reinvention of GM, Welburn felt compelled to respond. As you might imagine, the response is a rather passionate one. So what did Welburn have to say to Sindell? You can read the rest of the story after the jump.

[Sources: GM Fastlane and Huffington Post]

Continue reading Ed Welburn defends GM design from HuffPo attack

Ed Welburn defends GM design from HuffPo attack originally appeared on Autoblog on Wed, 10 Jun 2009 14:27:00 EST. Please see our terms for use of feeds.

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Officially Official: Chrysler exiting bankruptcy, Fiat steps in and makes changes immediately

Frank Filipponio — Wed, 10 Jun 2009 13:28:00 EST

Filed under: Government/Legal, Hirings/Firings/Layoffs, Chrysler, LLC., Earnings/Financials, FIAT

Fiat now owns a big chunk of Chrysler. Officially. Soon after the Supreme Court gave it the go-ahead, the sale of Chrysler to Fiat was complete. Altogether, the deal took just 42 days. With a couple of signatures and a wire transfer Wednesday morning, the sale was official. Fiat gets most of Chrysler's assets and $6.6 billion in "exit financing" from the federal government.

This can be seen as a victory of sorts for the Obama Administration, which had hoped to get Chrysler reorganized quickly and efficiently. Supporters say that the new Chrysler Group LLC has a good chance of being more competitive out of the box, having shed much of its legacy labor costs and debt, and Fiat's expertise with small cars shouldn't hurt either.

Official statements by current Chrysler CEO Bob Nardelli and Fiat's Sergio Marchionne are pasted in after the jump. Nardelli congratulates employees on being a part of "a leaner, healthier and more robust company," and says goodbye at the same time. He will return to a position with Cerberus. Marchionne introduces himself as the new CEO, former Toyota exec Jim Press as Deputy CEO, and Robert Kidder as board chairman. He also promises that the world's sixth largest automaker will begin to show signs of improvement immediately.

In related news, the Obama Administration has announced the appointment of a new 'Compensation Czar' to oversee the salaries and benefits packages awarded to 175 major executives at seven of America's biggest companies that receive federal aid. According to the New York Times, Washington attorney Kenneth R. Feinberg will have "broad discretion" in determining what compensation packages executives are awarded, including the top 25 decision makers at General Motors, GMAC, Chrysler, and Chrysler Finance.

For its part, as it emerges from bankruptcy, Chrysler's union retiree trust (VEBA) will own 55% of the company, with Fiat getting a 20% share that can grow to a max of 35%. The U.S. and Canadian governments split the rest. If the Fiat-Chrysler deal is any indication, General Motors may see a quick exit from bankruptcy as well, even without a Fiat of its own to step in and help. Now they just need to get people into showrooms with cash in hand.

[Sources: Chrysler, The New York Times | Photo by Sean Gallup/Getty]

Continue reading Officially Official: Chrysler exiting bankruptcy, Fiat steps in and makes changes immediately

Officially Official: Chrysler exiting bankruptcy, Fiat steps in and makes changes immediately originally appeared on Autoblog on Wed, 10 Jun 2009 13:28:00 EST. Please see our terms for use of feeds.

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New GM Chairman Whitacre admits: "I don't know anything about cars."

Frank Filipponio — Wed, 10 Jun 2009 12:57:00 EST

Filed under: Government/Legal, Hirings/Firings/Layoffs, GM

Newly tapped General Motors Chairman Edward E. Whitacre, Jr. may have built AT&T into a telecommunications powerhouse, but it's fair to question whether he can help do the same for GM. You see, he isn't particularly savvy on the whole auto business thing. In his own words: "I don't know anything about cars." While he admits that cars are a new consideration for him, Whitacre doesn't see it as a much of a problem: "A business is a business, and I think I can learn about cars. I'm not that old, and I think the business principles are the same."

The 67-year-old Whitacre has until Aug. 31 - the date GM is set to exit Chapter 11 - to bone up. Maybe we shouldn't be too critical. After all, former GM engineer and current 2953 Analytics principal, Jim Hall, thinks Whitacre is "a good choice" based on his experience and in the similarities he sees between AT&T and GM:

"He was one of the guys who helped create a new AT&T that wasn't so dependent on land-line phone service. There's a parallel with General Motors. GM is not now about just making cars. It's about re-creating itself as a 21st-century car company. They have to have somebody at the top that understands they have to make a new GM."

Whitacre says he was enticed out of retirement by the Treasury Department and Steven Rattner, President Barack Obama's auto task force dealmaker. He added that the Treasury basically told him, "We need your help. It's a great company. You could be a lot of assistance to GM." Big Ed says that he is helping GM out of bankruptcy as "a public service." We hope he is a quick study.

[Source: Bloomberg | Image: Mark Wilson/Getty]

New GM Chairman Whitacre admits: "I don't know anything about cars." originally appeared on Autoblog on Wed, 10 Jun 2009 12:57:00 EST. Please see our terms for use of feeds.

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F1-crashing Mohammed bin Sulayem appointed FIA race steward

Noah Joseph — Wed, 10 Jun 2009 08:28:00 EST

Filed under: Motorsports, Hirings/Firings/Layoffs

If you were appointing a steward to supervise the safe and fair running of a major auto race, you'd probably appoint someone with unimpeachable credentials, right? Someone who wouldn't have, say, totaled an F1 car in a publicity stunt for the gathered press? Well, if you needed any further indication that the FIA is a bit backwards, here it is: Mohammed Bin Sulayem (pictured above, at left) was appointed official race steward for this past weekend's Turkish Grand Prix.

Some may remember Sulayem as the UAE automobile club president and FIA vice-president who crashed a Renault R28 F1 car while drag-racing a Ford GT just this past April at the Dubai Autodrome. The former Emirates rally champion was named as one of three stewards for the Turkish GP, and will be back on duty at the upcoming Hungarian Grand Prix next month.

[Source: F1-Live | Image: Haider Shah/AFP/Getty]

F1-crashing Mohammed bin Sulayem appointed FIA race steward originally appeared on Autoblog on Wed, 10 Jun 2009 08:28:00 EST. Please see our terms for use of feeds.

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