A vehicle-supply project between Nissan and Chrysler was shelved due to varied circumstances. Though it was not said directly, it seems that this had something to do with Chrysler’s tie-up with Fiat with regards to the supply of small vehicles for the global market.

The deal between Nissan and Chrysler started as early as the first quarter of 2008 which called for Nissan to supply small vehicle for the global market in 2010 and a compact sedan for the South American market at the beginning of this year to Chrysler. Nothing really materialized and was further compounded when the Chrysler-Fiat deal started in January of this year.

Also, one other factor is the current global situation. Both Nissan and Chrysler had halted production until they could come up with improved returns from operations. And as we know, Chrysler eventually filed for bankruptcy and later on announced a new alliance with Fiat which all but put the previous alliance of Nissan and Chrysler terminated.

Nissan was scheduled to have supplied Chrysler with an all-new, fuel-efficient small car made in Japan in exchange for a full-size pickup truck made by Chrysler in Mexico. Apparently all of these plans are a thing of the past as Chrysler is now tied up with Fiat for small vehicle distribution.

(Source) Reuters India

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Last year as part of their bankruptcy filing Dodge was rumored to have put the Viper brand up for sale due to slow sales in 2007. This means that the car itself has a grim future with no future Chrysler production models planned.

However, now that Chrysler is under new leadership it was announced that the Dodge Viper SRT 10 will in fact continue production. This will come as great news to supercar fans everywhere as the current rendition of the car features a 8.3L V10 capable of 600HP and 560 pounds of torque.

There are no details on the new model but we will be sure to keep you posted.

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Rough times compounded by retirement has become a concern for most former employees of General Motors who were not part of the United Auto Workers which was responsible for the negotiations prior to the bankruptcy of the famed automotive manufacturer. In fact, not all are covered which only means that more than the ones represented during the talks are likely to be suffering all the more.

Benefits will be slashed severely for these non-members, something that has been able to support them in their daily livelihood. Now, they are left with lesser things to survive on, the only recourse they have of which is to seek Congressional Protection for their losses.

“For people living on a fixed income, the benefit losses proposed by GM are breathtaking,” said Karen DeOrnellas, Director of Communications for GMRA. “These retirees are old. Many are sick or disabled. In almost all cases they cannot make this money back or return to work.”

GM retirees have written GMRA to say the latest proposals for benefit losses will make them choose between paying for prescription drugs and paying for food, electricity, and housing. Many will be unable to replace lost life insurance, jeopardizing the ability of their spouses to remain in their homes.

(Source) Press

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To help in the immediate sale and disposal of their new and pre-owned vehicles, iBidMotors has announced that it will give all GM & Chrysler dealers the ability to advertise their inventory at no charge for 60 days. iBidmotors has been going great guns as of late, hitting $100M in sales online and acquiring Monster Motors. This latest move is bound to further bolster their credibility although their main focus is to aid the many dealers who are going to be cut off soon by the two giant car manufacturers from the US.

“iBidMotors’ commitment to GM and Chrysler during these turbulent times is unprecedented,” said Bob Schiff, iBidMotors Founder and CEO. “Over 8,000 car dealers are affected by this bankruptcy, and by offering to advertise their inventory online for free, iBidMotors will help viable dealerships continue to thrive and contribute to saving jobs in communities across the country,” said Schiff.

iBidMotors has hired additional staff to accommodate the influx of new clients that they expect will take advantage of this extraordinary offer. Dealers have until June 30th to sign up for this program.

(Source) Press

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It was recently made known that the U.S. Supreme Court has given Fiat the go ahead to purchase the bankrupt Chrysler.

This sale is an attempt by the discouraged automaker to reorganize and come back stronger than ever, narrowly dodging a grim future. Apparantly, the Michigan based Chrysler was losing up to $100 million a day which also helped convince the court to let them cancel 789 car dealership agreements.

Let’s just hope that all of this money being spent (Chrysler and GM are asking for about $40 billion more) will help America’s auto industry flourish and come back better than ever.

Read (Bloomberg)

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A lot of General Motors Dealerships have hit rock-bottom with the debacle that has hit the car manufacturing giant and while GM has already announced the slashing of about 42% of dealerships, a call for a special committee to look out for the welfare of these dealerships has been requested.

The proposal came in reaction to auto dealerships being left out of the restructuring. “Unlike many of the major affected players, including the United States government, United Auto Workers, major suppliers, bond holders and multi-million dollar pension funds, these small town dealerships risk having no voice in the General Motors bankruptcy,” Jones wrote.

If you look at it, this move seeks to get some sort of attention since dealerships have been left with nothing but to accept the fact of GM’s fate. Rather than left with nothing, a last ditch effort to allow these dealerships to participate or be given some consideration is being done and hopefully give them some right to air their concerns on the whole GM mess.

(Source) Press

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GM may be in talks with a buyer for their HUMMER brand but up until now there were no known interested buyers for their Saturn brand.

Well, GM exec Ray Young has broken the silence and was quoted to say that there are a full 16 interested buyers for the Saturn brand. Additionally, there are 3 interested buyers for their Saab brand.

But why would anyone want to buy the Saturn brand? Well, Autoblog points to the fact that they have a close knit community of dealerships who all have a flawless record of customer service. Who exactly these 16 interested buyers are, we have no idea, but we will keep you updated as this story unfolds.

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The American operation of Visteon Corporation has filed for Chapter 11 bankruptcy (reorganization). At one time, Visteon was part of the Ford Motor Company, but spun off in 2000 and eventually began working with other automakers including GM, Nissan, Hyundai, and Toyota in addition to maintaining its business relationship with Ford.

Visteon is a large parts supplier to the auto industry supplying car companies with a wide variety of products including lighting, interiors, power train controls, electronics, and engine induction. If Visteon were to file for liquidation instead of reorganization, its loss would severely impact the operations of several automakers but especially Ford. According to a Visteon press release, none of the company’s joint ventures or subsidiaries outside the US are included with the filing.

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The list has been trimmed down to three companies and one of them will be the winning bidder for the investor of Opel which is tagged alongside the debacle that General Motors is in. Many are expecting General Motors to file for bankruptcy soon, something that is beyond the obvious due to the financial situation that seems to have worsened.

The three bidders, Fiat, Magna and RHJ have laid their offers on the table. Magna was the favorite to win the bidding but Fiat sweetened its offer thus making the selection a toss-up between the two.

“A decision must come by early Thursday at the very latest,” one official, who requested anonymity.

(Source) Reuters

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Chrysler’s in quite a slum right now but once they get out of bankruptcy things may be looking a bit better for the automaker — It seems that Robert Nardelli was deemed unfit for the job of CEO as he will step down with C. Robert Kidder filling the spot.

Nardelli comments on the new filling:

We are most fortunate that Bob Kidder will lead the new company through its transformation. My number one priority has been to preserve Chrysler and the livelihoods of thousands of people who depend on its success. With his broad expertise serving on numerous world-class boards and his accomplished business background, Bob will provide the leadership and strategic counsel that will help to create a strong global competitor moving forward.

Some kind words there Mr. Nardelli, especially towards someone who will be taking your job. But this all raises the question, does Kidder have what it says to get Chrysler out of their current state and back up to glory? Let’s just hope they don’t come out with another PT Loser Cruiser.

Press release detailing Kidder’s new position after the break. (more…)

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Chrysler, just like General Motors, is cutting down the numbers and AutoNation has announced that 7 of their dealers will be hit by the dealer closure. As part of the dealer consolidation plan filed by Chrysler today in its bankruptcy, approximately 789 Chrysler dealerships will be closed nationwide.

The AutoNation stores that will be closed by the consolidation plan represented only 1% of AutoNation’s 2008 operating income. AutoNation does not believe that any one-time charges that may be associated with these actions will be material to its continuing operations or debt covenants.

Commenting on the consolidation plan, Mike Jackson, Chairman and Chief Executive Officer, said, “We believe Chrysler’s consolidation plan is a difficult but positive step forward for Chrysler and the automotive retail industry. Dealer consolidation is a necessary measure in today’s automotive industry and will strengthen America’s dealer network and improve dealer profitability over the long term.”

Mr. Jackson commented further, “The consolidation plan is consistent with AutoNation’s long-term strategy that we implemented in 2000 to consolidate domestic dealerships and realign our brand mix more towards import and premium luxury franchises. With our financial and operational strength and diversified brand mix, we are well-positioned to succeed in the rapidly changing automotive retail landscape.”

(Source) Press

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The April car sales numbers continue to show a bright future ahead as they rose to an annual 4.2 percent. Sales of trucks and buses, which track the pace of economic activity, fell 11.3 percent to 29,842 units. This update sheds a bit of bright light in the wake of bankruptcy rumors buzzing around regarding Chrysler and Ford.

Car sales in India rose an annual 4.2 percent in April, an industry body said on Monday, helped by improving financing and demand from rural markets. Companies sold 102,899 cars during the month, compared with 98,752 cars a year ago, data from the Society of Indian Automobile Manufacturers (SIAM) showed.

(Source) Reuters

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Rumors of an impending GM bankruptcy has put the car world in a state of frenzy, circulating fears that purchased cars from GM may no longer provide warranties should such an unfortunate event happen. But thanks to the assurance of the US government, motorists who have or are planning to get a GM car need not worry. General Motors Corp. says the U.S. government is guaranteeing the warranties of its cars and trucks sold in Mexico.

The government announced it would guarantee warranties of vehicles sold in the U.S. starting March 30. The move was designed to stimulate sales by easing fears GM might go into bankruptcy and wouldn’t be able to back its warranties.

GM says it will pay part of the warranty guarantee costs and will borrow the rest from the U.S. government. The guarantees cover GM vehicles sold in the U.S. and Mexico during the company’s restructuring period.

(Source) KESQ

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Toyota Motors continues its nosedive sales reports and is expecting worst thing to come. With dozens of factories unused, the global downturn is making life easier for the Japan-based car manufacturer, comparing profitable years with a large loss of $6.9 billion in the final quarter.

The world’s biggest automaker reported a January-March operating loss of 682.5 billion yen ($6.9 billion), versus a 396.7 billion yen profit a year earlier but in line with a consensus estimate for a loss of 689 billion yen in a survey of 21 analysts polled by Thomson Reuters.

The global economic downturn that has battered demand for cars and pushed U.S. rival Chrysler [CBS.UL] into bankruptcy has hit Toyota badly as it went from rapid expansion to overcapacity almost overnight.

Toyota posted its first-ever consolidated operating loss last year after a record profit the year before.

(Source) Reuters

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Chrysler may have filed for bankruptcy but that doesn’t mean they are leaving thousands of dealers on the air. Chrysler LLC announced new May incentives that appeal to what consumers want, and reflect in the bottom line price of a new vehicle.

“Chrysler LLC is building a new car company, and we are asking consumers to come see what we are building for you as we begin a vibrant new phase of our company,” said Steven Landry, Executive Vice President North American Sales and Marketing, Global Service and Parts – Chrysler LLC. “Consumers are telling us that the net purchase price of the vehicle is the most important factor right now, so we are pleased to introduce incentives that address what the consumer is looking for.”

Beginning May 6, Chrysler LLC will offer up to $4,000 Consumer Cash on 2009 model vehicles, $1,000 Owner Loyalty for current Chrysler LLC vehicle owners that is good towards most 2008 and 2009 Chrysler, Jeep and Dodge vehicles and up to $1,000 Credit Union Bonus Cash for qualified members who finance their new vehicle purchase through a participating Credit Union. These incentives are valid through June 1, 2009.

More than 1,500 credit union, representing 40 million credit union members in all 50 states, are participating in the “Invest in America” program, which offers low-rate financing on new vehicle purchases for approved members, and the additional bonus cash of up to $1,000 mentioned above is available.

(Source) Press

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