auto industry

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Mighty Toyota Posts Its First Loss Ever

Even Prius can't overcome flagging demand, soaring yen

(Newser) - Toyota will post a loss for the first time in its history, the victim of plummeting sales and multi-year highs in the value of the yen, the company warned today. The Japanese automaker, which has enjoyed a reputation for profits even in bad times, announced that it would suspend executive...

Bush Loan Could Crush Once-Powerful UAW
Bush Loan Could Crush Once-Powerful UAW
analysis

Bush Loan Could Crush Once-Powerful UAW

Union takes benefits "equal" to nonunion workers

(Newser) - Washington's $17.4 billion loan to Detroit automakers may inflict a death blow to one of America's most powerful unions, the Washington Post reports. The loan requires UAW workers to accept pay and benefits “equal” to those of nonunion workers, a stipulation that undermines the union's purpose, analysts say....

Bailouts a Fling for Nation Married to Free Market

Bailouts not a betrayal of free market ethos, really

(Newser) - Washington's bailout of the auto industry would normally "be a turning point in the history of American Capitalism,” writes Steven Pearlstein of the Washington Post. Now it’s business as usual in “Bailout Nation.” That doesn’t mean the US has abandoned its free market ethos,...

This Ain't Charity: Detroit Must Win Consumers Back

Americans will get back on board if auto giants prove they can make good cars again

(Newser) - With a $17.4 billion bailout in hand, Detroit must now turn toward restructuring and making the cars America needs, Mark Phelan writes in the Detroit Free Press. “To win back American buyers’ respect,” Phelan continues, “the automakers must show the aid package was a sound investment,...

Stocks End Mixed; Dow Up 25
 Stocks End Mixed; Dow Up 25 
MARKETS

Stocks End Mixed; Dow Up 25

Good news from RIM, Oracle help lift tech sector

(Newser) - Stocks ended mixed today as a rally on the news of a White House bailout for the auto industry fizzled over concerns for the larger economy, MarketWatch reports. General Motors led advancing stocks with a 22.7% gain, and the Dow closed up 25.88 at 8,579.11. The...

Auto Rescue Lifts Stocks
Auto Rescue Lifts Stocks 
MARKET Open

Auto Rescue Lifts Stocks

In some ways, these tiny days are a nice change of pace

(Newser) - Stocks started off in the right direction this morning, buoyed by the White House’s rollout of its auto rescue plan. The Dow rose 67 points, while the S&P and Nasdaq added 0.7% and 1.6% respectively, the Wall Street Journal reports. President Bush announced a $17.4...

3 Detroit Finalists Up for Car, Truck of Year

Ford, Chrysler vehicles face off against three foreign competitors

(Newser) - Three Detroit-made vehicles are among six finalists for the 2009 North American Car and Truck of the Year awards, the Detroit News reports. The Ford Flex will compete with the Hyundai Genesis and the Volkswagen Jetta TDI for the year's best car, while the redesigned Ford F-150 and Dodge Ram...

White House Mulls Automaker Bankruptcies

Feds would offer support in giving automakers 'soft landing'

(Newser) - The Bush administration is considering “orderly” bankruptcies as one way to help General Motors and Chrysler, the New York Times reports. The government could support the companies while working on the terms of federal protection, providing what the White House calls a “soft landing.” With the possibility...

GM, Chrysler Revive Merger Talks

Chrysler's private equity owner signals willingness to give up a stake

(Newser) - General Motors and Chrysler are back in merger talks, reports the Wall Street Journal. Negotiations fizzled weeks ago as both companies viewed a merger as impractical and a potential distraction from federal bailout talks. Chrysler owner Cerberus Capital Management took the initiative to restart talks, and has signaled a willingness...

GM Picks Mets Over Yankees for Ad Dollars

Cash-poor automaker wants toehold in NYC but 'can't do both'

(Newser) - General Motors, citing the poor economic climate and its shortage of cash, has declined to renew its sponsorship of the New York Yankees, Bloomberg reports. The struggling car manufacturer will, however, re-up with the New York Mets. “We still want a presence in New York and we can’t...

Why Asian Automakers Don't Want Detroit to Fail
Why Asian Automakers Don't Want Detroit to Fail
ANALYSIS

Why Asian Automakers Don't Want Detroit to Fail

Big Three bankruptcy would disrupt supply chain, further sour US economy

(Newser) - As Detroit’s Big Three await word on the fate of their much-needed bailout, an unlikely group of supporters has assembled in their corner: foreign automakers. A collapse of General Motors, Ford, or Chrysler would devastate overseas manufacturers as well, CNNMoney reports, spreading bankruptcy to suppliers around the globe and...

Toyota Delays US Prius Factory
 Toyota Delays US Prius Factory 

Toyota Delays US Prius Factory

A planned Mississippi plant is on hold as market for autos weakens

(Newser) - It’s not just the Big Three. Toyota has delayed indefinitely the opening of a Prius factory near Tupelo, Miss., the Wall Street Journal reports, in the wake of plummeting demand. The factory was originally intended to build the Highlander sport-utility vehicle; when gas prices hit a high last spring,...

Bush: Auto Bailout 'Not Ready'
 Bush: Auto Bailout
'Not Ready' 

Bush: Auto Bailout 'Not Ready'

Deal seems to be grinding gears

(Newser) - The federal auto industry bailout appeared to be stuck in neutral as President Bush warned today that a deal is not imminent. "We're not quite ready to announce that yet," Bush told reporters on a plane to Afghanistan. Lawmakers expected the administration to quickly reallocate part of the...

Meet the GOP's Auto Bailout Busters

A union-busting, foreign-car loving crew is holding up Detroit's rescue

(Newser) - With Nissan, Toyota, Volkswagen and other foreign factories dotting the I-65 corridor stretching from Kentucky to Alabama, southern Republican senators relished this week's chance to take a swing at Detroit and the UAW simultaneously. The "bailout fell victim to a nasty confluence of home-state economic interests and anti-union sentiment,...

Detroit Failure Could Spark 'Economic Chaos'
Detroit Failure Could Spark
'Economic Chaos' 
ANALYSIS

Detroit Failure Could Spark 'Economic Chaos'

Analysts warn that letting automakers sink will have impact across the economy

(Newser) - Letting one of the Big Three go under could have disastrous effects on many corners of the American economy, McClatchy Newspapers reports. Beyond the jobs lost at the companies and their suppliers—as well as the jobs lost everywhere those workers spend their wages—the repercussions would hit sectors as...

Dow Creeps Up 64
 Dow Creeps Up 64  
MARKETS

Dow Creeps Up 64

(Newser) - Stocks were up modestly today as investors balanced continued uncertainty over a Detroit bailout and a longtime Wall Street hand’s arrest with cautious optimism that the market may finally have stabilized, the Wall Street Journal reports. Money manager Bernard Madoff was accused today of a $50 billion swindle, but...

UAW, Republicans Blame Each Other on Bailout

Gettelfinger says he felt he was being 'set up'

(Newser) - The UAW and opponents of the failed Detroit bailout blamed each other today for the impasse, the New York Times reports. GOP Sen. Bob Corker says the rescue plan could have been salvaged if the UAW had listened to him. "I offered him a solution," he said of...

White House May Divert TARP Funds to Automakers

The President may tap bailout funds once thought off-limits to Detroit

(Newser) - The Bush administration said today it will consider using funds from the $700 billion market-rescue plan to bail out GM and Chrysler, MarketWatch reports. The shift comes after the Senate failed to pass $14 billion in emergency loans last night. The plans aren't final, but the money could help one...

Stocks Plunge on Auto News
 Stocks Plunge on Auto News 
MARKET Open

Stocks Plunge on Auto News

Madoff doesn't help either

(Newser) - Stocks went sky-diving this morning in the wake of the Senate’s scuttling of the auto bailout and the massive fraud case against a former NASDAQ chairman. The Dow dropped 200 points, accompanied by 2.5% and 1.8% drops in the S&P and Nasdaq, respectively. The auto news...

Automakers Look to Bush to Fend Off Bankruptcy

Bankruptcy imminent for GM, Chrysler not far behind

(Newser) - What now for GM and Chrysler? Unless the White House comes up with emergency aid, General Motors could be in bankruptcy within weeks, with Chrysler close behind, Bloomberg reports. GM, in fact, has hired a team of top legal experts to explore that option, which would be one of the...

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