truth about domestics

Back in the day (which was a Wednesday by the way), DaimlerChrysler was involved in a Global Engine Alliance, designed to put forth world class 4-cylinder engines for Chrysler, Mitsubishi and Hyundai.  Several products (like the Jeep Compass above) featuring this engine are already on the market, but with Chrysler’s new partner Fiat, it looks as though Chrysler might be leaving the Global Engine Alliance.

The reason being that Fiat makes many of its own smaller engines, which would make more sense in Chrysler vehicles to help improve the economies of scale for both automakers.  Automotive news is also reporting that the Ram could get a Fiat diesel, so stay tuned for more news on that front.  For the details, head on over to Autoblog.

(Image source: Chrysler)

2010 Cadillac SRX (GM)

Following in Hyundai’s lead (sort of), GM has announced it’s own protection plan for new customers in the event that they find themselves unemployed.  The details of the plan are as follows:

• Payment protection for first 24 months of ownership… lose your income and we’ll make up to nine payments for up to $500 per month
• Finance a new GM vehicle we’ll help protect its retail value at trade-in time on your next GM vehicle
• Safety and security of one year of OnStar standard
•  Fully backed, 5 year/100,000 mile limited powertrain warranty with roadside assistance and courtesy transportation… provides the best coverage in the industry
• GMconfidence.com website launched with program details

General Motors is hoping that these incentives, on top of heavy dealer rebates, cash back and low financing offers, will be enough to bring traffic into showrooms.  If Hyundai’s results are any indication, GM should have no trouble increasing sales, lets just hope it’s enough to help the General get through these hard times.  For more, head on over to GM.

Ford just introduced a plan to boost consumer confidence for new vehicle purchases. Ford’s plan is similar to Hyundai’s, but it goes even further by offering to pay up to 12 months worth of payments if a Ford, Lincoln, or Mercury customer loses their job.

Ford is working on other initiatives to boost confidence, which includes 0 percent financing and working with dealers on local charity support programs.

Read the full news at here.

GM Ren-Cen

GM executive Mark LeNeve told Automotive News that his company has looked at the Hyundai Assurance program, where Hyundai will take back your car if you lose your job, but they don’t agree with it.  They say the fact that losing your job means you also lose your car is a bit hard to swallow.  In my opinion, losing your job isn’t exactly the end of the world.  Sure it’s hard, but there are things like unemployment to help out for at least the short term.  Oh well, some form of new incentives might be nice if it means GM can pull out of the 53% drop in sales they experienced versus February 2008.  Head on over to Autoblog for the details.

See, this is what they get for having poor management, not cutting their production and making cars nobody wants.  Oh wait, sorry, I was thinking like all the uninformed out there who don’t understand the auto industry.  It appears that the American 3 are not alone in feeling the pain from the terrible economic situation we are all experiencing.  Read more at Autoblog for the details…

Source: Detroit Free Press

So you’re against the automaker “bailout?” But did you know that taxpayers (i.e. you, if you’re a US citizen) have already provided financial support to foreign automakers, right here in the good ol’ USA?

As Stephen Collins states in his editorial Tax Fairness for U.S. Automakers, the U.S. automakers are asking for financial support on the order of $16,000 spread amongst approximately 240,000 employees (for all three automakers). In comparison, the state of Tennessee has offered Volkswagen tax incentives and other subsidies to the tune of $577 million, which equates to $288,000 for every job created.

Similarly, Toyota is getting its share, equaling $300 million for building a plant in Texas, which works out to $150,000 per employee. And in Alabama, Hyundai, Toyota, Honda, and Mercedes are getting incentives equal to $111,000 per employee.

But there is a difference between the financial support that the domestic automakers are asking for and that received by the foreign automakers: the loans provided to the domestics are going to be paid back, whereas the incentives provided to the foreign companies will never be paid back.

If you ask me, I think the financial support is worth it…

-Alex

Source: Tax Fairness for U.S. Automakers