chrysler

Obama: U.S. auto industry must lead on 'clean cars'

President Barack Obama on Monday said U.S. automakers General Motors and Chrysler will require further restructuring to receive additional government aid.

In a press conference at the White House, Obama, flanked by members of his Cabinet, detailed the measures the administration is imposing on the struggling companies following the evaluation of his auto industry task force.

The U.S. government will give GM working capital for 60 days but has demanded additional concessions from GM bondholders, union workers, and management. Rick Wagoner was asked to step aside as CEO and will be replaced by Frederick "Fritz" Henderson.

In its evaluation, the U.S. government found Chrysler less financially viable. An additional $6 billion loan is contingent on Chrysler striking a partnership with Fiat or another automaker in the next 30 days.

In his comments, Obama made clear that the administration considers fuel-efficient vehicles integral to revitalizing U.S. automakers.

"I am absolutely committed to working with Congress and the auto companies to meet one goal: the United States of America will lead the world in building the next generation of clean cars," Obama said. He noted that many American-made car companies, including GM, have made significant advances in producing fuel-efficient cars.

The administration determined that bankruptcy is one possible way to restructure GM quickly, although Obama said he opposes a drawn-out legal proceeding or dismantling the company. "What I am talking about is using our existing legal structure as a tool that, with the backing of the U.S. government, can make it easier for General Motors and Chrysler to quickly clear away old debts that are weighing them down," he said. … Read more

Auto bailout demands 'tech leadership' from GM

Updated at 12:20 p.m. PDT with information from president's auto industry task force report on GM.

Following a review of the ailing U.S. automakers, the Obama administration has ousted General Motors CEO Rick Wagoner and has withheld more loans to Chrysler, according to reports.

On Monday, General Motors put out a statement that Wagoner was asked to "step aside" as CEO of GM. Chief Operating Officer Frederick "Fritz" Henderson is now CEO, and changes to GM's board of directors are expected.

The restructuring plan for GM has four elements: sustainable profit, … Read more

The plan: 7 Fiat vehicles for U.S.

Chrysler LLC and Fiat S.p.A. will bring seven new vehicles to North America under their alliance--four with Chrysler brands and three as Fiats or Alfa Romeos.

The vehicles will be built at Chrysler plants in North America and sold through select Chrysler, Dodge and Jeep dealerships, according to sources who have seen the product-sharing agreement.

The plan includes vehicles on four Fiat platforms--in the microcar, or A, through the mid-sized, or D, segments. The two companies have not decided on timing or volumes. Teams at both companies are hammering out details of a plan they hope to make final by April 30.

The two companies said last week that Fiat would take a 35 percent stake in Chrysler. Under terms of their tentative agreement, Chrysler will make the Fiat 500 at Chrysler's Toluca, Mexico, plant for sale in North America, according to sources familiar with the plans.

Chrysler will retool the Toluca factory, where it currently makes the Dodge Journey crossover and Chrysler PT Cruiser. Chrysler announced last week that it would quit making the PT Cruiser this summer and put the line up for sale, making room for another vehicle.

Speaking with reporters at the Automotive News World Congress on Wednesday, Jan. 21, Frank Klegon, Chrysler executive vice president for product development, said teams from both companies were working on a plan.

Referring to Chrysler's current lineup, Klegon said, "We don't have an A-segment vehicle, and we don't have a B-segment vehicle, and our C-segment vehicle [Dodge Caliber] is in the next stage of renewal. That creates some opportunities for us." … Read more

102: Chrysler picks up an Italian accent!

Chrysler picks up an Italian accent, Ford does a dual-clutch gearbox for the U.S., the EDAG Light concept may steal the Geneva auto show, and a ride in the Hyundai's game changer.

Listen now: Download today's podcast SHOW NOTES

• Hyundai Genesis V8 review

• EDAG Light concept car

• Audi Q5 hybrid on the way to the U.S.

• What does the Chrysler + Fiat deal mean for us?

• Hacking electronic road signs

What does the Chrysler-Fiat deal mean for us?

Chrysler LLC and Fiat S.p.A. recently announced that they've entered into a strategic alliance that Chrysler believes "provides significant strategic benefits that support our viability and long-term competitiveness." Translation: When the ink dries in April, Fiat will have bought a 35-percent stake in Chrysler.

The partnership will benefit both companies through platform and technology sharing. Fiat gets a boost from Chrysler in gaining a foothold in North America, and Chrysler gets a healthy infusion of cash. But the actual ramifications of the deal are unclear and subject to speculation.

Here's a taste of what … Read more

Fiat takes a chunk of Chrysler

Today, Chrysler announced it gave Fiat a 35 percent stake in its company, initiating a partnership that gives both companies access to new markets and technologies. Chrysler has suffered over the past few years because of its model line-up of trucks and SUVs, which haven't been selling well, and its lack of presence in international markets. Fiat wants to reenter the U.S. market, and could benefit from Chrysler's dealer network. We might soon see Dodge Challengers ripping across Europe, and Chrysler Dodge Jeep dealerships in the U.S. adding Fiat and Alfa Romeo to their signs.

The … Read more

The Detroit auto show goes electric (photos)

The green momentum in the automotive industry is undeniable, with every automaker developing towards the electrification of the car. A surprising number of electric concepts were on display at the 2009 Detroit auto show, including cars from GM, Chrysler, Mercedes-Benz, Mini, and Smart. Some of these concepts are far-flung, but some are currently on the road, being tested for eventual mass production.

See the new breed of electric cars from the 2009 Detroit Auto Show.

More 2009 Detroit auto show coverage.

Army going electric for light-use vehicles

The Big 3 of Detroit aren't the only ones singing the praises of electric vehicles this week.

The U.S. Army on Monday announced an initiative to potentially replace up to 28,000 gas-powered vehicles at more than 155 Army installations with Neighborhood Electric Vehicles (NEVs) in the coming years.

NEVs are not highway-legal electric vehicles, but rather light-use electric vehicles with a maximum speed of 25 mph. The Army intends to use them for nontactical things like on-base transportation for visitors, or maintenance personal and their equipment, according to Paul Bollinger, deputy assistant secretary of the Army for … Read more

Big 3 U.S. auto giants plug electric cars

Rather than focus solely on muscle cars, embattled U.S. automakers General Motors, Ford, and Chrysler touted a coming generation of electric vehicles at this year's North American International Auto Show in Detroit.

Ford on Sunday detailed a multi-prong electric car strategy, saying it will have an all-electric commercial van by 2010, an all-electric passenger car by 2011, and plug-in hybrid vehicles in 2012.

The firm, which is healthier financially than GM or Chrysler, partnered with Magna International to develop an electric passenger car that can go 100 miles on a charge from lithium-ion batteries. Ford will add hybrid … Read more