(Source:  Mint.com via Autoblog)

Ever wondered what’s the state of the american auto industry? Over the past several months we came across several reports of the ailing American autopia, including those with horrific financial reports, Government bailout in billions, mergers and acquisitions that changed the auto industry landscape worldwide, the glorious performance of American automakers during the short lived Cash for Clunkers boost, etc.  Along the way, there were few attempts to depict the ever-changing amoebic state of the auto industry from a 30,000ft level, in an easy to understand format.  But so far (what little I have read), nothing comes close to what the brilliant folks at Mint.com have done.

Image Courtesy: Mint.com - Click the image to see an enlarged version

They say a picture is worth a thousand words, and we’d add that the above graph is tantamount to an engaging novella. It charts the massive brand exodus among the Detroit contingent, which looks like a quadruple reverse drawn up on the telestrator by John Madden. If that isn’t sobering enough, the text below shows just how much Detroit automakers have shrunk since 2006. Overall, attrition at Ford, GM and Chrysler accounts for an astonishing 144,600 workers in only three years. No wonder Michigan has the highest unemployment rate in the nation. The chart also gives a brief look at the up-and-coming members of the US auto industry, including Tesla, BYD, Tata and Smart, along with a quick blurb about the future of each of the automakers represented.

TranspotGooru Musings:    The only glitch that I spotted in the above graph is the introductory line on the blurb about Chinese Automaker BYD – “Recently bought by Warren Buffet….”  Actually, the company is publicly traded, and its major shareholder is Wang Chuan-Fu who started BYD (the letters are the initials of the company’s Chinese name).  Mr. Buffet’s Bekshire Hathaway has invested $232 Million  thus far and is consider to expand its investment further. Berkshire Hathaway first tried to buy 25% of BYD, but Wang turned down the offer. He wanted to be in business with Buffett – to enhance his brand and open doors in the U.S., he says – but he would not let go of more than 10% of BYD’s stock.

(Source: NY Times & BBC)

Violent, fiery clashes between the police and workers at a South Korean auto factory ended on Thursday after the company agreed to keep half the workers at the plant rather than lay them all off in a restructuring, union and company officials said.

After the concession by Ssangyong Motor Company, South Korea’s fifth-largest automaker, the workers agreed to end their 77-day occupation of the plant, which had virtually become war zone. The confrontation was closely monitored by foreign investors as a test of will both for South Korean unions, known for their militant activism, and for President Lee Myung-bak’s government, which has vowed to ensure more “flexibility” for companies to shed workers at times of economic distress.

Picking his way past the ranks of riot police and the barricaded factory gates, it was Ssangyong’s chief financial officer who came out to break the news to the waiting journalists.

“The 77-day strike is over,” he said.

“Are you relieved?” asked the a reporter.

“It may have come a bit late,” he replied, “but we’re glad it has ended peacefully.”

“We are relieved that we have avoided the worst-case scenario,” said Lee Yoo-il, a court-appointed top manager of Ssangyong. “We hope this is the beginning of reviving our company.”

In a series of raids this week on the plant, about 40 miles south of Seoul, police commandos rappelled from helicopters as workers hurled firebombs. Hundreds were injured. By Wednesday, the police had overrun most of the facility and cornered 500 workers in a paint shop filled with flammable liquids.

Outside the plant, sporadic clashes continued even after the deal was signed. Non-union workers and burly men hired by management for security beat at least one journalist and a few union sympathizers while police officers looked on. One man, with blood flowing from his face, was carried away in an ambulance. Some in the crowd cursed the police, saying they were slow to intervene.

It is the smallest of South Korea’s car makers, and it specialises in making gas-guzzling sports-utility vehicles, including a car often cruelly championed by reviewers for its ugliness, the Rodius. Its niche did not make it best-placed to ride out the global recession.  Ssangyong filed for bankruptcy protection in January as sales fell and debt mounted. Some 2,000 workers have since left the company voluntarily. The company announced a restructuring and cost-cutting program in April that called for the layoffs of 36 percent of the company’s remaining work force, including all 970 workers at the plant here. The workers began occupying the plant on May 22.

Earlier this year Ssangyong’s Chinese backer, the Shanghai Automotive Industry Corp, gave up management control and it went into receivership.  The court-appointed managers insisted that for the company to survive they needed to lay off more than 2,500 staff, a third of the total workforce. And that is when the real trouble began.

Many workers did choose temporary redundancy, but 600 of those earmarked for the sack took to the barricades.   “It is bad management and their bad decisions that have caused the problems, but only the workers who are facing the consequences,” said one worker.

The management had attempted to reach a compromise, promising to guarantee 40% of the strikers’ jobs in return for their surrender, but the union stuck to its demand for all jobs to be saved. In the end, the deal they are reported to have accepted does not look all that different to the one on offer earlier.

The compromise between the union and management, which will retain 48 percent of the jobs at the factory, diffused further violence. As the news of the deal spread, workers’ family members and supporters gathered at the factory gates. The workers began to leave the factory on police buses. They were greeted by supporters holding placards and banners and singing labor songs as they stepped off the buses in downtown Pyeongtaek, and workers hugged their tearful wives and children.

Click here or here to read the entire article.

(Source: AP via Yahoo, Forbes & Autoblog)

TransportGooru was one of the earliest portals that notified about the Swedish love affair that originally reported by the Swedish National Television.  Though it was not officially confirmed by the companies involved (GM & Koenigsegg), pretty much everyone knew what is coming.  General Motors made it official this morning, Saab will soon be back in Swedish hands. In many respects, this is the most fitting result for quirky brand. Koenigsegg is an oddball itself, building insanely fast supercars in a Scandinavian country where you can’t legally drive over about 60 mph.

GM said in a memorandum of understanding that the sale would include an expected $600 million funding commitment from theEuropean Investment Bank, guaranteed by the Swedish government. Additional funding for Saab’s operations and investments would be provided by GM and Koenigsegg Group AB, it said.The sale is expected to be completed by the end of the third quarter and is subject to regulatory approvals by authorities.

Image Courtesy: Autoblog

“This is yet another significant step in the reinvention of GM and its European operations,” GM Europe President, Carl-Peter Forster, said in a statement. “Closing this deal represents the best chance for Saab to emerge a stronger company,” he said, adding “Koenigsegg Group’s unique combination of innovation, entrepreneurial spirit and financial strength, combined with Koenigsegg’s proven ability to create world-class Swedish performance cars in a highly efficient manner, made it the right choice for Saab as well as for General Motors.”

The company behind the consortium, Koenigsegg Automotive, was founded in 1994 by Christian von Koenigsegg, a Swedish sports carfanatic and entrepreneur, who remains the chief executive. It makesluxury sports cars at its headquarters, a former air force base near Angelholm, in southern Sweden.

With a full-time staff of 45, Koenigsegg makes around a dozen cars a year, customized for every buyer. The company doesn’t advertise prices for its models, but they are believed to range between 8 million and 18 million kronor ($1 million-$2.3 million) each.  Saab, on the other hand, has more than 4,000 staff worldwide, is represented in some 50 countries, and typically produces more than 100,000 cars a year.

One of the key details about the deal is the now obligatory government backing, this time in the form of a $600 million loan from the European Investment Bank, guaranteed of course by the Swedish government. That explains why minuscule Koenigsegg picked up Saab for free. It’s all about being Swedish.

“‘Saab needs to be left alone to proceed with its strategy,” says Matts Carlsson, an analyst of Goteborg Management Institute, noting that any tampering with its five-year plan to produce premium cars that are not aimed at competing with luxury brands such as BMW or Lexus ‘could destroy it.’

Crucially GM is pledging Koenigsegg its “platform and powertrain technology.” It’s very likely to include the “Epsilon 2” platform — the model (metal frame, geer box, technology) on which the latest GM European cars are based, such as the Opel and Vauxhall Insignias, says Tim Urquhart, an analyst at IHS Global Insight in London. That’s hugely significant for Koenigsegg as research and development of these platforms are a massive expenditure for automakers, he added.

Koeningsegg’s technology could prove valuable to Saab too. Koeningsegg has made a big push into green technology, making low emission, high-efficiency cars such as a flex fuel super car operating on both ethanol and petrol. It’s an area where Saab has been lagging behind its competitors, and could eventually help the company sell more cars.

It should help it increase sales volumes at Saab, which have fallen off sharply in recent years. Having access to GM’s technology will give the Swedish car maker several years to come up with a model for the future.

Koeningsegg also appears to have trumped other suitors, including Italy’s Fiat ( FIATY.PK – news – people ), which was interested in buying Saab after losing out in the race for Opel to Canada’s Magna International ( MGA – news – people ). (See “Fiat Keeps An Eye On Saab.”)

The sale of Saab to Koeningsegg marks a return to Swedish ownership after nine years in GM hands. Last year Saab posted a loss of 3 billion Swedish kronors ($384 million). It says it needs $1 billion to overhaul its business.

(Source: The Jakarta Globe)

Swedish luxury sports car maker Koenigsegg will buy Saab Automobile from US giant General Motors with the backing of Norwegian investors, Swedish television reported on Thursday.

The buyers have signed a letter of intention to buy Saab, SVT said on its website, citing anonymous sources and naming Koenigsegg and added that the negotiations could last for months.

“We are getting close to a deal done, but there are some final steps to be taken,” a source close to the matter told AFP, but would not confirm the identity of the leading bidder.

Both Saab and its parent company GM declined comment. Saab was put up for sale by General Motors, which filed for bankruptcy after being brought to its knees by falling demand amid the world economic downturn.  Saab’s reorganisation process began separately in Swedish courts in February.

Koenigsegg, set up in 1994, produces just 20 of its deluxe sports cars a year and sells each one for more than a million euros (1.4 million dollars).

Saab’s sell-off drew a little closer on Thursday after Stockholm announced it had authorised the Swedish Debt Office, which acts as a public bank to the state, to discuss guaranteeing a 500-million-euro loan made to Saab by the European Investment Bank (EIB).

“We have always said that the debt office could start negotiations on guaranteeing the loan when Saab has a new owner,” state secretary for business Joran Hagglund said in a statement.

Media reports had also said Italy’s Fiat was keen on buying Saab, but observers say such a move is now unlikely because of Fiat’s failure to acquire GM’s other European brand Opel.

Opel and its sister marque, Vauxhall, share a lot of technology with Saab.  The Saab automaker — not to be confused with a Swedish defence company also called Saab — sold 93,000 cars worldwide in 2008, according to its website.

It owes 9.7 billion kronor (1.3 billion dollars, 924 million euros) to GM — its largest individual creditor — as well as 347 million kronor to the Swedish government. Other creditors are owed 647 million kronor.

Saab, the automaker, employs about 3,400 people in Sweden. Including suppliers, some 15,000 jobs in the country are believed to be at risk if the company were to disappear.

Click here to read the entire article.

(Source: Bloomberg)

Edward E. Whitacre Jr. built AT&T Inc. into the biggest U.S. provider of telephone service over a 43-year-career. By his own admission, he becomes chairman of General Motors Corp. knowing nothing about the auto industry.

The 6-foot-4-inch Texan nicknamed “Big Ed” said steering the nation’s largest automaker after bankruptcy is “a public service.” People who know him say he can meet GM’s need for the type of transformation he orchestrated at Dallas-based AT&T.

“I don’t know anything about cars,” Whitacre, 67, said yesterday in an interview after his appointment. “A business is a business, and I think I can learn about cars. I’m not that old, and I think the business principles are the same.”

Whitacre’s selection bucks more than a half-century of tradition at GM, where the only non-executives to lead the board since 1937 were interim ChairmanKent Kresa and John Smale, who held the job from 1992 through 1995. Whitacre will take the post when Detroit-based GM exits Chapter 11, perhaps by Aug. 31.

A bachelor’s degree in industrial engineering and record in shaping a “monolithic” AT&T into a diversified enterprise make Whitacre “a good choice,” said Jim Hall, principal of 2953 Analytics auto-consulting firm in Birmingham, Michigan.

“He was one of the guys who helped create a new AT&T that wasn’t so dependent on land-line phone service,” said Hall, a former GM engineer. “There’s a parallel with General Motors. GM is not now about just making cars. It’s about re-creating itself as a 21st-century car company. They have to have somebody at the top that understands they have to make a new GM.”

“Lots of conversations” followed with Steven Rattner, the Wall Street dealmaker running President Barack Obama’s car task force, said Whitacre, adding that Treasury’s message was: “We need your help. It’s a great company. You could be a lot of assistance to GM.”

(Source:  The Auto Channel)

Edward E. Whitacre, Jr., former chairman and CEO of AT&T Inc., will become chairman of the New GM when the company is launched later this summer, GM’s interim Chairman Kent Kresa announced today. Kresa will continue to serve as interim chairman until the launch.

Whitacre, 67, was chairman and CEO of AT&T Inc. and its predecessor companies from 1990 to 2007. During his tenure, which began with Southwestern Bell, Whitacre led the company through a series of mergers and acquisitions–including that of AT&T in 2005–to create the nation’s largest provider of local, long distance and wireless services. He serves on the boards of ExxonMobil Corporation and the Burlington Northern Santa Fe Corporation and holds a degree in industrial engineering from Texas Technological University.

The six other members of the current board will most likely retire no later than the approval of the sale of GM assets to the new entity. A selection process is currently underway for four more directors to serve on the board of the New GM. In addition, the Canadian government and the new UAW Voluntary Employee Benefit Association (VEBA) will each nominate one director, bringing the total number of New GM directors to 13.

Click  here to read the entire article.

(Source: New York Times & Fox News)

It is not every 31-year-old who, in a first government job, finds himself dismantling General Motors and rewriting the rules of American capitalism.  

Image Courtesy: New York Times

But that, in short, is the job description for Brian Deese, a not-quite graduate of Yale Law School who had never set foot in an automotive assembly plant until he took on his nearly unseen role in remaking the American automotive industry.  

“There was a time between Nov. 4 and mid-February when I was the only full-time member of the auto task force,” Mr. Deese, a special assistant to the president for economic policy, acknowledged recently as he hurried between his desk at the White House and the Treasury building next door. “It was a little scary.”

But now, according to those who joined him in the middle of his crash course about the automakers’ downward spiral, he has emerged as one of the most influential voices in what may become President Obama’s biggest experiment yet in federal economic intervention.  So what does Mr.Deese’s resume look like? It should be impressive, considering he’s managing America’s $458,000 per dayinvoluntary investment.

Deese grew up in a Boston suburb, the son of a political science professor at Boston College. He moved to Vermont and attended Middlebury College, where he studied political science and also took time to host a campus radio show called “Bedknobs and Beatniks,” described in one write-up as “a format of music, news, discussion and banter.”

While far more prominent members of the administration are making the big decisions about Detroit, it is Mr. Deese who is often narrowing their options.

A month ago, when the administration was divided over whether to support Fiat’s bid to take over much of Chrysler, it was Mr. Deese who spoke out strongly against simply letting the company go into liquidation, according to several people who were present for the debate.

“Brian grasps both the economics and the politics about as quickly as I’ve seen anyone do this,” said Lawrence H. Summers, the head of the National Economic Council who is not known for being patient whenever he believes an analysis is sub-par — or disagrees with his own. “And there he was in the Roosevelt Room, speaking up vigorously to make the point that the costs we were going to incur giving Fiat a chance were no greater than some of the hidden costs of liquidation.”

Mr. Deese was not the only one favoring the Fiat deal, but his lengthy memorandum on how liquidation would increase Medicaid costs, unemployment insurance and municipal bankruptcies ended the debate. The administration supported the deal, and it seems likely to become a reality on Monday, if a federal judge handling the high-speed bankruptcy proceeding approves the sale of Chrysler’s best assets to the Italian carmaker.

Click here to read the entire article.

(Source: Autoweek)

Bob Lutz, General Motors’ soon-to-retire product czar, said Thursday that not only does he support and endorse the work of President Barack Obama’s automotive task force, but he’d also like to see the government-industry entity become a permanent fixture.

 “Benevolent oversight and two-way communication between Washington and the auto industry” would be a good thing, Lutz told members of the Automotive Press Association at a luncheon Thursday in Detroit.

“Jeez, it only took 30 years for somebody to finally figure it out,” he said.

Lutz cited–and praised–the new federal fuel-economy regulations as an example of what industry and government can do when they work together. Though the new CAFE requirements mandate 35.5 mpg by 2016, Lutz said many parts of the new rules reflect industry positions on the particulars of the law.

The positions voiced by Lutz seem at odds with the suggestion that the GM product vice chairman is leaving GM at year’s end in part because he doesn’t want to deal with life at “Government Motors,” which GM has been called since taking government loans and accepting task-force oversight.

On the contrary, Lutz said, he began to warm to the task-force members when they visited Detroit and seemed more interested in the 560-hp Cadillac CTS coupe than in GM’s more economical offerings.

“That was sort of the moment that I began to take heart,” Lutz said.

(FYI -You can also listen to an audio commentary by folks @ Autoweek on Mr. Lutz words about GM’s future.)

REPORT: GAZ confirms interest in Opel…GM is said to prefer a single bidder, in the guise of Fiat, while Germany was recently said to prefer Magna’s proposal because of promises to keep production in Germany. If, however, GAZ’s real desire is to increase its Russian production abilities, if it were to take a larger stake in Opel than Magna, there will undoubtedly be conflicts to reso…

…According to GM‘s Britta Gross, future versions of the Chevy Volt are expected to have this capability.There are a few possibilities presented by Gross that GM could use to allow the Volt to communicate with utility companies, including its own OnStar technology and, in the future, embedded chips using the Zigbee protocol that could wirelessly c…

2010 Opel Astra: Cruze, Volt Get A German Brother [New Cars]

Elon Musk, Tesla Motors’ CEO: Once The Electric Charge Dies, The Chevy Volt Is Like A Lawnmower…

GM Hires Search Firm for New Board GM has hired a search firm to help find replacements for at least half of its 12 directors, reflecting Obama’s increasing influence over the auto maker

 

Transportation Headlines for Monday May 11, 2009…GM Stick to Fuel-Cell Plans as Obama Guts Hydrogen FundsBloombergImagine If People Really Drove the Speed LimitLA StreetsBlogI still believe in public transportationOC MetblogsPort proposed expansion expected to draw a crowd to the Long Beach councilPress TelegramSan Jose and LA Use Technology to Ease Downtown Parking CongestionPublic CEOSan Mar..

Experts call GM bankruptcy ‘almost inevitable’ [w/POLL]…GM, Earnings/FinancialsTo stave off bankruptcy, General Motors must rework its union contracts, drastically cut its capacity, workforce and dealer networks – and convince creditors to take 10 cents on the dollar on $27 billion in unsecured debt. In two months. That’s a herculean task for any company, much less for a monolith the size of The Gene…

Review: 2009 Chevrolet Corvette ZR1 goes to Hell and back…just as GM reached the pinnacle of high performance cars, the world economy imploded. The global financial bubble got pierced from multiple sides and sales of cars at every price and performance level vaporized. Fortunately for us, GM is still hanging in there and Chevrolet let us have a few days of quality time with a ZR1 while the opportunity …

GM: Mascoma ethanol process works as promised in laboratory testing…GM: Mascoma ethanol process works as promised in laboratory testing originally appeared on AutoblogGreen on Mon, 11 May 2009 09:49:00 EST. Please see our terms for use of feeds.

2010 Opel Astra Gets “Full Lutz” Skirt-Lift [Spy Photos]…on the GM‘s Delta II architecture, the same as the Chevy Volt. But don’t expect the Astra to come as a plug-in or standard hybrid, at least, not at first. Do expect to see a new 1.4-liter, turbocharged gasoline/petrol engine with various power outputs. Opel will likely be reserving its 2.0-liter engine for an OPC version (or the Astra VRX for Va…

Latest findings says cars more affordable now than they have been since study began in 1979…GMWhile tanking auto sales are bad for automakers, the customers buying cars and trucks are paying less for them than any time in the past 30 years. Comerica Bank’s Auto Affordability Index shows that a vehicle with a $26,000 MSRP takes the average family 21.5 weeks of median income to buy. That’s 1.3 weeks less than in December of 2008, as ince…

 Rumormill: Suzuki to join Marchionne’s Fiat/Chrysler/Opel super-group…forces with Chrysler, Opel, Saab and General Motors Latin America, the Italian auto group is expanding its home base to the United States, Germany, Sweden and South America. So what’s it missing? Japan. The latest rumors out of Automotive News Europe could go a long way towards addressing that omission, as the trade organ is reporting that Fiat …

Fiat’s partnership with Chrysler could bring the Ford Ka to America…partnership with Chrysler could actually allow Ford to bring its small and super efficient Ka city car to the U.S. market. How so?The latest version of Ford’s diminutive Ka shares its basic underpinnings with the Fiat 500, which is one of the first small cars Fiat hopes to sell in the United States through Chrysler‘s under-utilized dealer networ…

Driving the Dodge Circuit, now with video…works for Chrysler‘s ENVI and was project lead on the Dodge Circuit EV, talk about the car. The bumpy roads weren’t quite long and straight enough for our liking, but at least we got to learn a little bit more about Chrysler‘s EV strategy and why the automaker thinks it’s ENVI battery strategy is better than Tesla’s. Having driven both the Circu…

LOOK: The Motorless City…or Chrysler’s; they move instead on Schwinns, BMX’s, and behind some of the 600 horses that pull the town’s quaint Victorian carriages. It’s a place that looks, in some respects, frozen in time. But…

Rumormill: Could the Fiat-Chrysler deal yield a North American Ford Ka?…Chrysler, LLC., Ford, FIAT, Rumormill The 2009 Ford Ka – Click above for a high-res gallery It’s a long shot, but according to The Detroit Free Press, Chrysler‘s deal with Fiat could result in Ford offering the cutesy Ka for sale in North America. As you may recall, Ford co-developed the Ka’s platform with Fiat (it shares its chassis with the 5…

2011 Chrysler 300C Reveals Previously Unseen Clay Rump [Spy Photos]…Chrysler‘s Viability Plan earlier this year revealed the design direction for the 2011 Chrysler 300C. Now, thanks to Chrysler PR, we’ve got a partial view of the new Detroit gangsta-mobile’s rump. Also depicted is a quarter scale clay model just above the head oChrysler‘s Senior VP of Design Ralph Gilles. Seeing as it’s in quarter scale, it doe…

Dodge Pulls Plug On Circuit EV Electric Sports Car? [Over The Back Fence]…month after Chrysler ran a full page ad in our national newspapers and also finalizing a deal with A123 Systems to supply the battery packs, a heavy-handed rumor is coming down the stream that the whole project might be dead in the water causing at least one question to be raised: Was the Dodge Circuit EV ever intended for production or was it j…

Cummins not ready to give up on light duty diesel regardless of Chrysler‘s fate…standing was Chrysler, and even that company pushed back its new Cummins-developed light duty diesel until at least 2011. Mike Levine from PickupTrucks.com spoke with Mark Land, director of public relations at Cummins, about the new light-duty diesel engine. Apparently, the diesel engine maker is very confident that its new engine will get adopt…

Chrysler’s sorry state revealed Bankruptcy court filings reveal the complications the auto business – and just how much trouble Chrysler is in.

GM, Chrysler Polish Dealer Cut List Thousands of GM and Chrysler dealerships could learn their fate within the next few days as auto makers choose which they will cut.

Chrysler Hedges on Dealer Cuts Chrysler has “no active plan” to drop any of its dealers in the U.S., although it is working on “contingencies” to do so as part of its restructuring in bankruptcy court, Vice Chairman Jim Press said.

Nascar Feels Chrysler’s Pain The fall of Chrysler is just the latest setback for Nascar, a once red-hot sports phenomenon.