That’s the question motivating an alternative plan for the government’s “investment” in GM drafted by Sen. Lamar Alexander. Under Alexander’s plan, the Treasury secretary would be required to distribute the government’s GM and Chrysler stock to the 120m or so Americans who submitted tax returns for 2008. “This is the fastest way to get the stock out of the hands of Washington and back into the hands of the American people who paid for it,” said Alexander. The proposal, which Alexander plans on attaching to the current tobacco regulation bill would:
• Prohibit the Treasury from using any more TARP funds to bailout GM or Chrysler.
• So long as the government holds stock in these companies, require that the Secretary of the Treasury and his designee have a fiduciary responsibility to the American taxpayer to maximize the return on that investment.
• Not later than one year after each company emerges from bankruptcy, require that the Treasury distribute its common stock holdings in that company evenly to every American who paid taxes on April 15.
The Original Equipment Suppliers Association is requesting an additional $8-$10 billion in TARP money, reports Automotive News [sub]. Because the first round worked so well. But two factors nearly guarantee that the request will be approved: first, the recent announcement that ten banks will be able to pay back some $68 billion in TARP money and second, the forthcoming resumption of production at GM and Chrysler when they emerge from bankruptcy. Oh yeah, and the fact that practically no TARP requests have been denied so far.
Automotive News [sub] reports that the National Auto Dealers Association has given its (unofficial) stamp of approval to GM’s revised dealer agreement. The document, under which GM’s remaining dealers will operate, has not been made public, although we encourage dealers to share their information at our contact form. GM’s previous agreement had drawn heavy criticism at last week’s congressional hearing on GM and Chrysler’s dealer culling plans. “I especially commend GM for its flexibility and its willingness to make substantive clarifications and modifications to address dealer concerns,” NADA Chairman John McEleney said in the statement. “We believe GM has made a very good-faith effort, given the unprecedented circumstances facing GM and the industry.”
Sergio Marchionne’s statement that “we would never walk away” from the Chrysler deal may not be having quite the effect he wanted. After all, the entire justification for the Government cramdown of bondholders and “auction with one bidder” sale to Fiat is that Chrysler will unravel if the the sale isn’t implemented post-haste. In a new filing to Supreme Court (PDF via SCOTUSBLOG), the Indiana funds argue that:
The Debtors (and the United States) have advanced the position throughout this case, including in its papers filed with this Court, that the section 363 Sale at issue here had to close before June 15 or Fiat would exercise its right to withdraw and the entire transaction would collapse. The courts below relied on such arguments and testimony in moving this case forward at an unprecedented pace . . . Whether or not these arguments and testimony were ever true, the Indiana Pensioners respectfully submit that the risk of termination by Fiat if the transaction does not close by June 15 no longer provides a basis for driving the timing of these proceedings.
Automotive News [sub] is reporting that former chairman and CEO of AT&T, Edward Whitacre Jr., has been selected as the chairman of the “New GM.” Whitacre is an industrial engineer by training and previously served on the boards of ExxonMobil and Burlington Northern Santa Fe. Whitacre and interim chairman Kent Kresa will serve on GM’s board along with current members Philip Laskawy, Kathryn Marinello, Errol Davis Jr., E. Neville Isdell and CEO Fritz Henderson. Six other current GM board members will retire by the time GM’s asset sale is approved, four of whom will be replaced by a selection process now underway. Two more directors will be selected by the Canadian government and the UAW VEBA trust. The reconstituted GM board will seat 13 directors.
China’s BAIC is not giving up on its aspirations to buy a foreign brand, if Gasgoo is not mistaken. Beijing Automotive Industry Corp (BAIC), already a joint venture partner of Germany’s Daimler in China, may bid for General Motors’ Saab unit. Saab piqued their interest, as BAIC’s attempt to acquire Opel looks unlikely to succeed—at least for now. Read More >
What Car? magazine’s award for the year’s greenest car goes to the Volvo S40 DRIVe. The British magazine picked the diesel because its CO2 emissions are basically the same as a second generation Prius, but it’s considerably more fun to drive. The car is not available in the States, and the Honda Insight and 3-gen Prius were not available across the pond in time for eligibility. Still, it makes one wonder: Is the hybrid really the way to save the planet. I’ve driven both the S40 (regular gas) and the Insight, and, well, it’s like comparing apples and ice cream. If I could get all my vitamins in a scoop of Ben & Jerry’s, I’d never hear a crunch again, know what I mean?
The Volvo puts out 104 grams of CO2 per kilometer. Toyota is claiming the 2010 Prius puts out 100 grams of CO2 per kilometer. For comparison sake, that’s half of what an Audi A8 emits.
Thanks to my free market-based, anti-bailout stance, some of TTAC’s Best and Brightest view me as an autoblogospherical arch-conservative. Which often leads to comparisons to or, at least, invocations of Rush Limbaugh. This despite the fact that I’ve pointed out that the liberal’s largest (in all senses of the word) bogeyman has been sucking on GM’s adver-teat for years, artfully slipping references to “wonderful GM products” and “this great American company” into his rants. Until, that is, Ralph Nader filed a complaint with the FCC. At which point Rush continued to accept GM payola for his personal imprimatur, only with a disclaimer. During this “transition,” I’ve highlighted Limbaugh’s (and Hannity’s) resulting philosophical discomfort (i.e., hypocrisy) on the Motown meltdown. Blame it on unions, congress, anyone but the people signing their paychecks. OK, so, the Detroit News reports that el-Rushbo is now calling for a GM boycott. Ish.
Bloomberg asked Fiat CEO Sergio Marchionne whether Fiat would pull out of the Chrysler deal (money for nothing and your Fiats for free) if it’s not completed by the automaker’s June 15 deadline: “We would never walk away,” Marchionne said. “Never.”
You’re a ZipCar customer.
You have an iPhone in your pocket, and would like to know where the nearest available car is.
You open the ZipCar application.
The map shows you a wide selection of cars. You specify the type, the selection shows those.
You touch the screen and reserve a car.
As you get to where it’s parked, you press a button, which makes the car honk, helping you find it.
And then you open the car, enter and drive off.
Owning cars just changed—a lot.
Candidate Barack Obama made few concrete statements on the subject of transportation during the 2008 campaign. Now that his cabinet has been sworn into office, President Obama has turned his attention to filling the lower-level positions that are frequently responsible for making major policy decisions. At the US Department of Transportation, these new appointees all share a love for speed cameras and toll roads—especially Transportation Secretary Ray LaHood’s new number two man. “With great pleasure I want to bid a hearty welcome aboard to our new Deputy Secretary, John Porcari,” LaHood wrote yesterday. “And, though he’s been on duty less than a week, he already has done some heavy lifting for us.”
Enthusiasts consider this idea every once in a blue moon. “If you could have just one car for the rest of your life, what would it be?” Last-gen BMW M5? Porsche 911? Corvette? Pontiac G8? Lotus Elise (just kidding). But how about folks who don’t care about cars? What should they get? The Camrolla and Civords would likely be at the top of the lists for the frugal and apathetic. But maybe a Grand Marquis or Crown Vic Interceptor would do fine. Then you have pre-Daimler Jeep Cherokees, RWD Volvo wagons, Subarus of certain stripes, and old Benzes that may now require German translations and Indian parts. The 10+ year old used car world has several winners for the tightwad crowd. But what about new and late model cars?
I have an S2000 with just over 50,000 miles on the clock. The first thing I did when I bought it three years ago was to change the oil to Mobil 1 10w30 and install the OEM filter. I’ve put about 4,000 highway miles and a few autocrosses on the oil since then, with two or three minor top-offs. I’m planning on changing the brake fluid and coolant this summer (did the transmission and differential last summer). Should I change the oil too, even though it’s still that happy golden color? How about the filter?
Recent Comments