U.S. Pushed Fiat Deal on Chrysler
from The Wall Street Journal
 The Obama administration rushed an alliance between Chrysler LLC and Fiat SpA despite Chrysler's worries about Fiat's financial health and its willingness to share technology, according to internal company emails. The emails show Fiat ignoring requests for documents and trying to change contract terms late in the talks. A Chrysler adviser at one point said the deal risked looking as if the U.S. auto maker and the Treasury Department, which helped broker the pact, were "in bed with a shady partner." More 
U.S. Top Court Judge Delays Chrysler Sale For Now
from Reuters
The sale of bankrupt automaker Chrysler LLC to a group led by Italian carmaker Fiat SpA was temporarily blocked by a U.S. Supreme Court justice on Monday, with no indication how long the delay would last. In a one-sentence order, Justice Ruth Bader Ginsburg said the bankruptcy judge's orders allowing the sale "are stayed pending further order" by her or by the Supreme Court. More
Chrysler, GM Should Reimburse Dealers
from The Dayton Business Journal
A Congressional proposal would require Chrysler and General Motors to use any government funds they receive to fully reimburse their rejected dealerships for vehicles and parts while the automakers are in Chapter 11 bankruptcy. U.S. Sen. Bob Corker (R-Chattanooga) introduced the Auto Dealers Assistance Amendment Thursday in the Senate Banking Committee. The amendment would also give dealerships 180 days to wind down their operations. More
Saturn Deal Called a New Business Model
from The Detroit Free Press
Detroit businessman Roger Penske's move to acquire General Motors' troubled Saturn brand and dealer network could be pioneering -- the start of a new strategy for selling cars and trucks in the United States, experts said Friday. GM announced a tentative deal for Penske Automotive Group to purchase Saturn, a transaction that the companies said should be finalized this fall. More
Michigan Representatives to Meet with GM
from The Detroit News
Michigan's congressional delegation, stung by news of new General Motors Corp. plant closings, asked for a meeting with CEO Fritz Henderson amid word that the automaker would delay closing a Massachusetts parts facility in the district of an influential lawmaker. GM said Troy Clarke, its North American president, will brief Michigan's delegation regarding the selection criteria for the plant where a new subcompact GM car will be assembled. More
Government Ownership Gets Thorny Already
from Business Week
It's obvious that government ownership of General Motors and Chrysler is going to bring up all kinds of thorny issues and unwanted pressure on how the companies will be run. But the feds haven’t even acquired their shares yet and already the two companies are getting heat from Washington. At Senate hearings, GM CEO Fritz Henderson and Chrysler President Jim Press had to justify why they plan to cut 1,100 and 789 dealerships, respectively. West Virginia Democrat Jay Rockefeller said, "I don’t believe that companies should be allowed to take taxpayers dollars for a bailout and then leave local dealers and customers to fend for themselves with no real notice and no real help," according to USA Today. More
GM to Sell Hummer to Chinese Company
from AutoWeek
Hummer finally appears to have found a home, and it's with a Chinese industrial-equipment company. General Motors and Sichuan Tengzhong Heavy Industrial Machinery Co. confirmed a potential deal that could close in the third quarter, pending regulatory approvals. The companies are in "advanced talks," according to a joint statement. More
Summer of Automotive Supply Chain Bankruptcies Possible
from Purchasing.com
The bankruptcies of Chrysler and General Motors will trigger a major restructuring and reduction in force of an already fragile supply base, according to an auto parts industry procurement chief who is working to ensure his suppliers stay afloat during the transition. "The bankruptcies have created an enormous distrust among the supply base as companies try to determine if they will remain suppliers to the two bankrupt automakers or have the financial wherewithal to stay in business in a smaller motor vehicle marketplace," says the chief procurement officer, who declined to be identified. More
Toolmakers' New Tack: Advance Wind Turbine Technology
from Crain's Detroit Business
Two Michigan firms are working to launch a new wind-turbine component manufacturing venture that is a high priority for the state and could advance the industry's technology. The venture, spearheaded by Sterling Heights-based MAG Industrial Automation Systems L.L.C. and Dowding Machining Inc. from Eaton Rapids, would have two main functions: design and manufacture state-of-the-art machine tools to make massive wind-turbine components with reduced time and cost, and build a new generation of wind turbine blades out of carbon fiber. More
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