Archive for the ‘Chrysler’ Category

While Obama Announces Oil Conservation Measures, China Surges Ahead To Gobble Up Available Reserves

May 19, 2009

China buys 300,000 barrels of Venezuelan crude every day, and is eager for more from the Latin American country as part of its global quest for a diverse range of energy supplies.

Today, Venezuela said to begin building the first joint Venezuelan-Chinese oil drilling platform in June, according to Energy Minister Rafael Ramirez.

China is buying up oil in Iran, Iraq, Russia, Africa and just about everywhere else.

China also has an extensive deep sea oil exploration effort ongoing which explains some of China’s recent high seas expansion and belligerence.

But not to worry: President Barack Obama will have us out of gas guzzling cars and into all kinds of fuel savers before long.

Obama can do this because he already owns a big chunk of Chrysler, will soon own GM, and may own Ford the way things are going.

The only profitable U.S. car company, Ford, produces the least efficient cars and will have to retool its fleet to meet the Obama standards….

China has a population of 1.3 billion and wants more oil to power its industry.  China now also produces more cars than the USA and wants to put Chinese butts in many new cars during the next ten years.  China is also boosting export of Chinese built cars around the globe and will export to the USA startuing next year….

The U.S. population is only 300 million but those folks will get to pay a lot more for cars that are said to be really clean and efficient…..


Above: Missile Destroyer Haikou 171 of the PLA Navy’s South China Sea Fleet.  She departed with two other Chinese warships on a mission to the Gulf of Aden near Somali on anti-pirate patrol in December.  Many in the West see this as a sign of renewed cooperation between China and other military powers.  Others see this move as practice for more far flung Chinese naval deployments.


China drill at sea

********************************

WASHINGTON – President Barack Obama is asking consumers to put their money — up to $1,300 per new vehicle by 2016 — behind his plan for higher efficiency standards for cars and trucks and tougher rules on their greenhouse gas emissions.

In return, Obama said Tuesday in unveiling the plan, drivers would make up the higher cost of more fuel-efficient, cleaner vehicles by buying less gas at the pump. It would take just three years to pay off the investment and would, over the life of a vehicle, save about $2,800 though better gas mileage, the president said.

While requiring that vehicle carbon dioxide emissions be reduced by about one-third by the target date, the plan also calls for the auto industry to build vehicles that average 35.5 miles per gallon. Government regulations have never before linked emission and fuel standards.

“The fact is, everyone wins,” Obama said during a Rose Garden ceremony attended by representatives of the auto industry and environmental groups as well as state and federal lawmakers.

Read the rest:
http://news.yahoo.com/s/ap/20090519/ap_on_
go_pr_wh/us_obama_autos;_ylt=ArofR.n6Y7
2jtPmODNP6Cl6s0NUE;_ylu=X3oDMTJmMmZ
jb2RtBGFzc2V0A2FwLzIwMDkwNTE5L3Vz
X29iYW1hX2F1dG9zBGNwb3MDMQRwb3M
DMgRzZWMDeW5fdG9wX3N0b3J5BHNsaw
NvYmFtYXRvdXRzcGw

Related:
In Berry’s World Four Years Hence: China Will Be the Only Thriving Superpower
.
China ready to join US as world power
.
China’s Navy Grows and the World Watches Warily
.
Battles over energy may lead to wars, Russian strategists conclude
.
Is China’s Navy Trouble for the U.S.?

Michelle Malkin:
http://michellemalkin.com/2009/05
/19/making-government-motors-official/

Advertisements

New Jobless Claims Rise More Than Expected, as 52,000 Auto Workers Become Unemployed

May 14, 2009

Obama administration: Thanks for the “bailout.”

********************

From the Associated Press

New jobless claims rose more than expected last week due partly to an increase in layoffs by the automobile industry, while the number of people continuing to receive unemployment benefits set a record for the 15th straight week. 

The Labor Department said Thursday the number of new claims rose to a seasonally adjusted 637,000, from a revised 605,000 the previous week. That’s above analysts’ expectations of 610,000. 

The increase comes after initial claims dropped in four of the previous five weeks, which raised hopes that the wave of layoffs announced earlier this year has crested and that the recession was nearing a bottom. 

A department analyst said most of the increase was due to auto layoffs. Economists estimate Chrysler LLC has laid off 27,000 workers in the wake of its April 30 bankruptcy filing. General Motors Corp. has said it will temporarily shut 13 factories beginning later this month through July, potentially affecting 25,000 workers. 

New jobless claims rose more than expected last week due partly to an increase in layoffs by the automobile industry, while the number of people continuing to receive unemployment benefits set a record for the 15th straight week. 

The Labor Department said Thursday the number of new claims rose to a seasonally adjusted 637,000, from a revised 605,000 the previous week. That’s above analysts’ expectations of 610,000. 

The increase comes after initial claims dropped in four of the previous five weeks, which raised hopes that the wave of layoffs announced earlier this year has crested and that the recession was nearing a bottom. 

A department analyst said most of the increase was due to auto layoffs. Economists estimate Chrysler LLC has laid off 27,000 workers in the wake of its April 30 bankruptcy filing. General Motors Corp. has said it will temporarily shut 13 factories beginning later this month through July, potentially affecting 25,000 workers. 

Read the rest:
http://www.foxnews.com/politics/2009/05/
14/new-jobless-claims-rise-expected-aut
o-layoffs-increase/

.
See also Reuters:
http://news.yahoo.com/s/nm/20090514/bs_n
m/us_usa_economy;_ylt=AjX5pfSxzEPIczaoA
xx4xiCs0NUE;_ylu=X3oDMTJnMWZlN3FqBG
Fzc2V0A25tLzIwMDkwNTE0L3VzX3VzYV9
lY29ub215BGNwb3MDNARwb3MDMTEEc2
VjA3luX3RvcF9zdG9yeQRzbGsDYXV0b2x
heW9mZnNs

GM, Chrysler to cut up to 3,000 dealers

May 13, 2009

General Motors Corp and Chrysler aim to drop as many as 3,000 U.S. dealers and are expected to begin sending notifications as early as Thursday, three people briefed on the still developing plans said.

GM, facing a U.S. government-imposed deadline of June 1 to restructure or file for bankruptcy, is expected to send termination notices to up to 2,000 dealers — a third of its roughly 6,000 U.S. dealers, the sources told Reuters.

Chrysler, which filed for bankruptcy on April 30, will also tell up to 1,000 of its 3,189 U.S. dealers that it is terminating their franchise agreements, according to the sources who asked not to be identified because the controversial closure plans have not been yet announced.

The moves to shut down auto dealerships underscores how the economic pain caused by the downward spiral of both automakers — now operating under U.S. government oversight — is spreading beyond their home base in Detroit.

Read the rest from Reuters:
http://news.yahoo.com/s/nm/20090513/bs_
nm/us_autos_dealers;_ylt=ArMSsK0_VWP
XM24VkA7AT_qs0NUE;_ylu=X3oDMTJpYn
JuYmxjBGFzc2V0A25tLzIwMDkwNTEzL3V
zX2F1dG9zX2RlYWxlcnMEY3BvcwM1BHB
vcwMxMgRzZWMDeW5fdG9wX3N0b3J5
BHNsawNnbWNocnlzbGVydG8

Related:
Your “Bailout” Money at Work: GM To Start Selling Cars Made in China in USA
.
Obama Calling All The Shots on U.S. Cars: Cuts Advertising
.
Fiat threatens to walk away from Chrysler deal unless unions agree to concessions
>
GM: Sayonara Detriot? Car Maker Could Move Out

Top Ten Reasons The Republican Party Will Recover

May 13, 2009

Here’s our Peace and Freedom list of the top ten reasons to expect the Republican Party to make gains over the course of the next two to four years:

1)  The economy: Despite the huge spending measures already enacted by the Obama administration, including the stimulus and the many ‘bailouts,” the economy may not even start any really significant recovery until this time next year.  Voters are already tiring of the recession and showing discontent.

Related:
Bank of England: Recovery will be slow, starting next year
.
New Jobless Claims Rise More Than Expected, as 52,000 Auto Workers Become Unemployed

2)  Democratic leaders like Harry Reid, Nancy Pelosi, and John Murtha.  There is already rumbling that our Congressional leaders are disappointing voters.  Most polls rate congress very poorly even though some 60% like Obama.  Scandals, a lack of integrity and broken promises on transparency can add to the woes of Democrats easily over time.

Related:
Pushy Practices of Pelosi, Murtha Back To Haunt Them?
.
Democratic Party a “One Man Show” — After Obama, It’s a “Second-Division Ball Club”
.
Pelosi Vehemently Challenges CIA’s Account of Briefings To Her on Waterboarding; Agency “Lied to Congress”
.
“Democratic Party is Bought and Paid For By The Unions” Lawmaker Says

House Speaker Nancy Pelosi of Calif. gestures during a news ...

3)  National debt, deficit and spending.

Related:
America’s Ability To Borrow More Questioned, At Risk — Too Much Spending “Breaking the bank”?
.
What Did We Get for $180 Billion “Bailout”? AIG Still “Toxic”
.
One Hundred Billion Goes To IMF: Money U.S. Taxpayers Will Likely Never See Again
.
Obama’s Spending, Debt, Taxes Will Lower America’s Standard of Living

4)  Taxes.  Taxes will go up.  There is just no way to support all our current spending let alone the promises of overhauls to health care, education, and the environment without raising more money and that means raising taxes.

Related:
Taxes: People and Business Flee Higher Rates; Why Can’t Obama, Congress Get That?
.
Governors of Texas, South Carolina to Host “Tea Party 2.0″ This Week


Gov. Rick Perry, Texas
.
5)  Unexpected world events.  Just as nobody could have predicted 9/11, there could well be an event as yet unknown that unfolds to change the game for everyone before long.  Just as Joe Biden predicted last year, this president will be tested….

Related:
Battles over energy may lead to wars, Russian strategists conclude

China’s Navy Grows and the World Watches Warily
>
6)  Democratic Infighting.  This is the party that has, for a long time, been unable to get along with itself, for too long, before all hell breaks loose….

7)  Inflation.  With all the borrowing of the federal government, inflation is indeed likely.  Nobody will like that one bit.  Which will hurt incumbents….

8)  Loss of buying power and credit.  Obama’s current campaign to rein in the credit card companies is admirable but it may result in millions of people unable to get the credit they’ve grown used to….Expect retail sales to lag other indicators of recovery…..

Retail sales remain slow in April:
http://finance.yahoo.com/news/Reta
il-sales-drop-apf-15227744.html?.v=3

9)  Broken Promises.  “Green jobs” won’t be as numerous or high paying as once promised and work for good jobs will dry up as GM and Chrysler and others move more jobs overseas….The health care overhaul may actually harm enough people that there could be a backlash that wants to punish lawmakers…

Related:
Latest News On Social Security, Medicare, Debt Show Inability of Government To Make Accurate Financial Predictions
.
Obama, Daschle and Socialized Medicine: Care of GE
.
Fiat threatens to walk away from Chrysler deal unless unions agree to concessions

10) Desire for Change/Hope (The Pendulum): In our American system, the pendulum has been swinging to and fro; from Republicans to Democrats and back again for almost all of time.  People will tire of our current way of doing business and even the euphoria over Obama will wane.

Related:
Republican Party Dead? Hardly. Polls Show Erosion and Doubt in Democratic Advantage

Bonus:

11) Traditional Republican Discipline.  The Republicans in general have traditionally shown much more discipline and togetherness than Democrats.  The current squabbling over Cheney, Powell, Gingrich, Rush et al can be expected to wind down as elections near.

12)  The law of unintended consequences.  President Obama has changed so much, so aggressively, so often, so soon in his presidency that the effort is unprecedented.  But this could mean that there is trouble lurking that has not been foreseen.  And we know how well our government foresees things: like the current recession….

13)  Bad Obama planning and staff work.  Nobody had time to read the stimulus?  This will come back to hurt the president and the Democrats in Congress.  Many other examples of stupidity an ineptitude come to mind…..

14)  The “Tea Parties.”  “The real genesis of the tea party movement was not taxes, but out-of-control spending and the debts we are leaving our children,” wrote Paul Gessing in the Albuquerque Conservative Examiner.  “The tea party movement (at least in Albuquerque) is not simply a bunch of angry Republicans who don’t like Obama and understand their own self-interest. Rather, the tea party here was organized by average citizens who are terrified of what the government is doing to our economy. The fact is that America can’t live on borrowed money forever.”  The fact that people are taking to the streets — people who are both Democrats and republicans — is unprecedented.John E. Carey
Peace and Freedom
In this photograph released by the White House, Air Force One ...

 

Related:
Republicans Determined to Lose?
.
Obama Backs Off Promise to Release Abuse Photos
.
If you had told me some of these Obama stories three months ago I would have said “impossible!”
.
Obama’s Dumb Moves Getting More Difficult to Ignore? On Friday Mainstream Media Realizes Monday’s Cabinet Meeting Was Laughable, Really

Conservatives Need To Recommit to Conservative Values

Michelle Malkin:
http://michellemalkin.com/2009/05/1
3/big-labors-investment-in-obama-pays-off/

http://hotair.com/archives/2009/05/13/
stupid-rnc-to-pass-resolution-rebrand
ing-democrats-the-democrat-socialist-party/

Your “Bailout” Money at Work: GM To Start Selling Cars Made in China in USA

May 13, 2009

The latest twist in Detroit’s do-over has General Motors becoming the first automaker to import Chinese-built cars into the United States, according to Automotive News.

Citing a leaked document shown to lawmakers who are overseeing the restructuring of the auto giant, the newspaper reports that GM is planning to market made in China cars to American consumers as early as 2011, the same year the company’s heralded Chevrolet Volt electric car goes on sale.

Read the rest from Fox News:
http://www.foxnews.com/story/0,2933
,519974,00.html

Obama Calling All The Shots on U.S. Cars: Cuts Advertising

May 12, 2009

Chrysler wanted to spend $134 million in advertising over the nine weeks it’s expected to be in bankruptcy — the U.S. Treasury’s auto-industry task force gave it half that.

So if GM, which is wrestling with the possibility of a Chapter 11 filing itself, is wondering how much influence the task force will have over marketing, the answer is: plenty. However, transcripts from the U.S. Bankruptcy Court for Southern District of New York, where the Chrysler case is being heard, proved for the first time that the task force at least understands that advertising is a necessary expense — even if it doesn’t think Chrysler needs $134 million for nine weeks of car ads.

Chrysler wanted to spend $134 million in advertising over the nine weeks it’s expected to be in bankruptcy — the U.S. Treasury’s auto-industry task force gave it half that.

So if GM, which is wrestling with the possibility of a Chapter 11 filing itself, is wondering how much influence the task force will have over marketing, the answer is: plenty. However, transcripts from the U.S. Bankruptcy Court for Southern District of New York, where the Chrysler case is being heard, proved for the first time that the task force at least understands that advertising is a necessary expense — even if it doesn’t think Chrysler needs $134 million for nine weeks of car ads.

Read the rest from Advertising Age:
http://adage.com/article?article_id=136552

Fiat threatens to walk away from Chrysler deal unless unions agree to concessions

May 12, 2009

With just 15 days left before the U.S. government pulls the plug on Chrysler, the only man who appears able to save the struggling automaker is casting doubt on whether a deal can be worked out. Fiat CEO Sergio Marchionne, in an interview published Wednesday, said the Italian automaker will walk away from a nonbinding agreement to take a 20 percent stake in Chrysler and share its small-car technology unless the U.S. automaker’s unions agree to major cost cuts.

A Fiat spokesman confirmed Marchionne’s statements.

Chrysler, which is living on $4 billion in loans from the U.S. government, has to take on a partner and gain concessions from unions and debtholders by April 30, or the Obama administration will stop lending it money. No other suitors have emerged, and it’s likely that no bankruptcy financing will be available, so Chrysler would have little choice but to be auctioned off in pieces.

Marchionne’s comments, made in an interview with the Toronto Globe and Mail, could be designed to pressure unions to give further concessions.

The United Auto Workers union already has agreed to cost reductions, but the Obama administration has said it must agree to further cuts to make Chrysler more competitive with foreign automakers.

The Canadian Auto Workers union reached a deal with General Motors, but Chrysler says the pact doesn’t go far enough, and the company has threatened to pull out of Canada without further cuts from

With just 15 days left before the U.S. government pulls the plug on Chrysler, the only man who appears able to save the struggling automaker is casting doubt on whether a deal can be worked out. Fiat CEO Sergio Marchionne, in an interview published Wednesday, said the Italian automaker will walk away from a nonbinding agreement to take a 20 percent stake in Chrysler and share its small-car technology unless the U.S. automaker’s unions agree to major cost cuts.

A Fiat spokesman confirmed Marchionne’s statements.

Chrysler, which is living on $4 billion in loans from the U.S. government, has to take on a partner and gain concessions from unions and debtholders by April 30, or the Obama administration will stop lending it money. No other suitors have emerged, and it’s likely that no bankruptcy financing will be available, so Chrysler would have little choice but to be auctioned off in pieces.

Marchionne’s comments, made in an interview with the Toronto Globe and Mail, could be designed to pressure unions to give further concessions.

The United Auto Workers union already has agreed to cost reductions, but the Obama administration has said it must agree to further cuts to make Chrysler more competitive with foreign automakers.

The Canadian Auto Workers union reached a deal with General Motors, but Chrysler says the pact doesn’t go far enough, and the company has threatened to pull out of Canada without further cuts from

Read the rest from the Associated Press:
http://www.twincities.com/sports/ci_12148105?source=rss

U.S. Is Treating Auto Creditors Unfairly; Unions Have Big Advanatage Over Lenders

May 12, 2009

Chrysler LLC and General Motors Corp. debt holders are receiving unfair treatment from the U.S. government, according to Edward Altman, creator of the Z-Score formula that calculates a company’s probability for bankruptcy.

Chrysler, in a U.S.-negotiated deal, is paying its creditors 29 cents on the dollar in a sale of most of its assets through bankruptcy to a company controlled by Fiat SpA. GM debt holders will be treated similarly in an “inevitable” bankruptcy, Altman said today in an interview with Bloomberg Television.

From Bloomberg
.

“They’re taking a hard line with respect to the creditors and they’re forcing them to take, in their eyes, a very poor deal,” said the 67-year-old finance professor at New York University’s Leonard N. Stern School of Business. “I’m not saying it’s illegal, but it does seem to be unfair.”

Chrysler LLC and General Motors Corp. debt holders are receiving unfair treatment from the U.S. government, according to Edward Altman, creator of the Z-Score formula that calculates a company’s probability for bankruptcy.

Chrysler, in a U.S.-negotiated deal, is paying its creditors 29 cents on the dollar in a sale of most of its assets through bankruptcy to a company controlled by Fiat SpA. GM debt holders will be treated similarly in an “inevitable” bankruptcy, Altman said today in an interview with Bloomberg Television.

“They’re taking a hard line with respect to the creditors and they’re forcing them to take, in their eyes, a very poor deal,” said the 67-year-old finance professor at New York University’s Leonard N. Stern School of Business. “I’m not saying it’s illegal, but it does seem to be unfair.”

Read the rest:
http://www.bloomberg.com/apps/ne
ws?pid=20601009&sid=aODY6TuurzGY

The unions were given preferetial treatment over the lenders but may have to make concessions to satisfy Fiat….

Related:
Fiat threatens to walk away from Chrysler deal unless unions agree to concessions

Obama’s on the Road To Ruin with American Car Companies

May 10, 2009

“I don’t want to run auto companies,” President Obama said last week. “I’m not an auto engineer. I don’t know how to create an affordable, well-designed plug-in hybrid.”

To those of us who still quaintly believe in the power of private enterprise and free markets, that was a reassuring answer from the leader of a country heading toward owning 8% of Chrysler and 50% of General Motors. It suggested the president understands that, even with their lousy track records, business professionals are better equipped than government bureaucrats to decide what cars to make, what prices to set and how many people to employ.

By Eva Rodriguez
New York Post

Seconds after that promising, if relatively vague, opening, though, Obama took much of it back. He couldn’t help himself. “But I know that, if the Japanese can design an affordable, well-designed hybrid, then, doggone it, the American people should be able to do the same,” he said. “So my job is to ask the auto industry: Why is it you guys can’t do this?”

So much for hands-off. George W. Bush may have been this country’s first MBA president, but Obama is on the brink of becoming its first CEO in chief — and that would not bode well for Chrysler, GM or taxpayers.

There’s nothing wrong with Chrysler and GM building fuel-efficient green cars — if they can make money. I’d have no problem whatsoever if one of them manufactured a pink, snout-grilled mini-car that ran on manure — as long as it proved profitable. (I wouldn’t buy one, mind you, but I’d smile and wave as you drove by.)

My goal as a taxpayer is to see that these companies earn enough so that they return my tax dollars as soon as possible. And what if green cars aren’t the way to go? What if market research and consumer surveys show that as long as gas costs only $2 a gallon, US drivers will stick with the true road hogs, our SUVs? And what if CEO Obama doesn’t like these answers because they don’t jibe with his goal of reducing greenhouse gases?

Read the rest:
http://www.nypost.com/seven/05102009/postopin
ion/opedcolumnists/os_road_to_ruin_168446.htm

************************

From George Will

Proponents of today’s world-turned-upside-down economic policies say the policies might seem wrong but really are boldly modern in their rejection of markets in favor of pervasive government intervention in economic life. Hence New York, which until eight months ago was the financial capital of the world, is no longer even the financial capital of the United States. Washington is.

So says Ian Bremmer in “State Capitalism Comes of Age: The End of the Free Market?” in the current issue of Foreign Affairs. It should be read by Americans who are dismayed by the blurring of the line between public and private sectors.

Most Americans assume — and are encouraged to do so by those doing the blurring — that the government is doing this reluctantly and is eager to find an “exit strategy” to “unwind” its interventions. Bremmer, president of the consulting firm Eurasia Group, believes that although the governments of many developing nations have made “a strategic rejection of free-market doctrine,” governments of developed countries do not intend to “manage” their economies “indefinitely.” About the former, he is correct. About the latter, his wish may be the father of his thought.

Read the rest:
http://www.nypost.com/seven/05102009
/postopinion/opedcolumnists/the_end_
of_free_markets_168445.htm

Related:
Obama “Bailed Out” Auto Makers, Now “Takes Over” — In China, Vouchers Electrified Sales
.
Obama-Fiat-Chrysler-Union Plan Includes U.S. Made Luxury Alfa Romeo; Sub-Compact Made in China, Mexico, Korea

American Auto Industry: Unsustainable Losses

Obama “Bailed Out” Auto Makers, Now “Takes Over” — In China, Vouchers Electrified Sales

May 9, 2009

Despite massive government “bailouts,” GM says the bulk of its future cars will likely be made in China, Mexico and South Korea….

GM could still face bankruptcy: it owes a report to the Obama administration by June 1st.

And Chrysler’s fate is unknown.  It is in bankruptcy court now with a deal on the table to include Fiat and others….

*****************

From The Associated Press:

Vehicle sales in China jumped 25 percent in April from the year before to a record monthly high of 1.15 million units, according to industry figures. Passenger car sales surged 37 percent over a year earlier, to 831,000, outpacing sales in the United States, where 820,000 units were sold in April. After slowing late last year as the impact from the global financial crisis deepened, China’s auto sales have risen for five consecutive months.

Related:
Obama-Fiat-Chrysler-Union Plan Includes U.S. Made Luxury Alfa Romeo; Sub-Compact Made in China, Mexico, Korea
.
Under Restructuring, GM To Build More Cars Overseas

A sheet of one dollar bills. The dollar rose as investors waited ...