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As expected, the so-called auto bailout of 2009 has become a major talking point in the run-up to the 2012 Presidential Election. Somewhat surprisingly, however, both sides of the aisle are taking credit for the success seen by General Motors and Chrysler since the two automakers were pushed through a structured bankruptcy process.

Presumptive Republican nominee Mitt Romney has said he deserves “a lot of credit” for the resuscitation of the auto industry due to his suggestion of a managed bankruptcy of the two automakers. President Obama, on the other hand, points out that Romney was very vocal in his opposition to the auto bailout, frequently citing the editorial he wrote for the New York Times in 2009 titled “Let Detroit Go Bankrupt,” in which he said the auto industry was “virtually guaranteed” to fail if Obama’s bailout proceeded.

Building on previous advertisements highlighting the auto bailout of 2009, the Obama campaign has released two new videos touting the success of the automakers since the dark days of bankruptcy. Scroll down below to watch the videos for yourself.

Continue reading Obama’s latest campaign ads highlight auto recovery

Obama’s latest campaign ads highlight auto recovery

General Motors stock has been languishing for months, failing to climb past $30 per share since July of last year. Trading at around $22 per share today, the optimism that surrounded the company’s emergence from bankruptcy and initial public offering in November 2010 has all but vanished. So it’s no wonder that the United States Treasury has decided to sit on its GM shares, with no plans to sell of its remaining 26 percent stake in the automaker.

According to The Detroit News, the Treasury believes that GM is underpriced given the changes that have happened at the company. Assistant Treasury Secretary Time Massad told the News, “Our perspective is that the company has made real progress, but the market hasn’t given them as much credit for that as it might.”

The government stands to lose $15 billion on the bailout at today’s stock prices, according to the report. Of the $49.5 billion spent on the bailout, the government has already recouped roughly $23 billion in reducing its stake in GM from the 61 percent it once held. GM shares would have to more than double in value to $53 for the Treasury to break even in liquidating the 500 million shares it still owns, according to the report.

Treasury has no plans to sell remaining GM stock quite yet

While the investigation of the Fisker Karma that toasted a Texas garage is not over, pundits have begun to weigh in. Automotive News has found a particularly credible one in Jon Bereisa, CEO of Auto Lectrification and the chief engineer of the General Motors EV1 and systems architect for the Chevrolet Volt. And according to Bereisa, the poor packaging of the Karma’s internal combustion engine is what likely caused the fire.

“The engine is shoehorned into that bay, because they had to use a larger engine, because it was too heavy a car,” Bereisa told AN. “As a result, there’s no room for exhaust routing and heat shielding to route the heat away.”

The Karma uses a turbocharged, 2.0-liter four-cylinder engine sourced from GM. In the Karma, however, the Ecotec does not drive the wheels, but acts as a generator to supplement and recharge the batteries. The report says that a fluid leak, combined with tight engine compartment confines and the resultant high heat from the gasoline engine’s exhaust and the would have been enough to cause the fire.

Fisker is maintaining that it is not the car’s battery pack that is at fault, and has pointed to other potential sources of the blaze, according to the report, telling AN that, “There are myriad combustible materials that could be in the garage, in the wheel arch, or picked up on the roadside.”

Engine packaging to blame for Fisker Karma garage fire?

Now that the title of world’s largest maker has become a clear and eager battle, we can expect more regular updates on the progress of the combatants. Bloomberg reports that Toyota snagged the #1 crown in Q1, taking it away from General Motors with 2.49 million units sold across its five brands compared to 2.28 million for GM. Volkswagen was just another tenth down at 2.19 million units sold.

What all three might appreciate even more than the crown – except for VW, who is monomaniacal about the No. 1 tag – is that sales volumes and profitability are up, at least in America. Toyota’s sales rebound from the catastrophes of last year (and indeed, the last few years) is being underlined by its performance here, where the Prius Plug-In is the third-best seller against a background of the nation’s best car sales market in five years. Even with double its usual fleet sales in Q1, Toyota expects this financial year’s profits to double.

The year isn’t over yet and it remains close, but for now it looks like there’ll be good news for everyone. Well, until 2016, when Volkswagen is predicted to vanquish all challengers at the top of the podium, two years ahead of its own ridiculously ambitious schedule.

Toyota takes title of World’s Largest Automaker… again, for now

The Detroit Free Press reports Ford is set to boost production by 40,000 units. The company plans to half its summer shutdown to just one week at 13 plants this July. Ford says that it is already operating most of its facilities at maximum capacity, and adding a week of production is a good way to balance manufacturing with demand. The automaker is also adding extra shifts at three of its production facilities this month. Overall, Ford will increase its production this year by a whopping 400,000 units to three million vehicles by October.

But Ford isn’t the only domestic manufacturer to step up production. Chrysler is also skipping the summer shutdown at four of its plants and idling two more for one week instead of two. General Motors, meanwhile, will continue its summer plant stops as planned.

Ford to boost production by 40,000 units, shorten summer plant shutdown

Tiny city cars are becoming a big business in overseas markets. Mercedes-Benz was a pioneer in the segment with the entire Smart brand, Toyota tackles it with the iQ, Volkswagen recently launched the Up! (along with the Skoda and Seat versions that came along with it), and soon Opel and Vauxhall will, as well.

The new city car, snapped last month undergoing testing at the Nürburgring and released in this latest pair of “official” spy shots, promises to give General Motors a slice of the city-car pie. But its nameplate has left us scratching our heads. The project has at times been referred to as the Junior or the Allegra, but has now been officially confirmed to be called the Adam.

The name is an apparent nod to the company’s founder, Adam Opel, and in its invasion follows the same formula as the Ferrari Enzo – albeit and the complete opposite end of the spectrum. If this emerges as a new naming trend, we should be looking forward to seeing models like the Ford Henry, Chevrolet Louis, Lamborghini Ferruccio and Porsche Ferdinand flooding showrooms in the near future. Before that, though, expect the Opel Adam to debut at the Paris Motor Show in the fall… hopefully without the camouflage.

Opel dubs upcoming city-car “Adam”

Bloomberg reports that if U.S. auto sales continue at their current pace, 2012 will mark the best year for the industry since 2007. The news comes after word that both Ford and Chrysler have slimmed or entirely eliminated the traditional summer shutdown at their manufacturing facilities to keep pace with demand.

All told, sales may reach 14.3 million cars and light trucks, according to analysts, thanks to factors like a gradually improving economy and easier credit. If the pace continues, 2012 will mark the third year of 10-percent gains, which marks only the fourth time that’s happened since the Great Depression.

Car sales stalled in 2008, and 2009 saw manufacturers move just 10.4 million units. As Bloomberg points out, that’s the lowest number since 1982, but buyers took home 11.6 million vehicles in 2010 and 12.8 million in 2011. The industry saw a 10.3-percent increase through the first four months of this year. As a result, General Motors, Ford and Toyota have adjusted their yearly sales forecasts accordingly.

2012 U.S. auto sales on pace to be best in five years

Congratulations are in order: Saabs United has raised enough money to buy the last Saab 9-3, what is likely to be the last Saab of any sort ever produced. The group will be installing the car in the Saab Cars Museum on a permanent loan, as well as donating the additional money it raised during its fund drive.

Forgive us for being just a bit cynical here, but it’s really a shame this particular car is so mundane. It’s a Saab 9-3 Aero Griffin, a run-of-the-mill sedan that’s a direct descendant of the 2003 model year 9-3. Based on the global General Motors Epsilon platform that also spawned the similarly extinct Pontiac G6, the 9-3 is arguably the car that killed Saab – or at least failed to save it – as GM was never able to sell enough of them or derive enough profit from the ones it managed to move in the U.S. to make a go of the brand.

We’re sure all Saab enthusiasts agree that the marque certainly deserved better treatment than it got from Detroit, and when we look back in fond remembrance on Saab, there are any number of models that will come to mind before we think of the final 9-3. Most of them are included in our historical Saab gallery.

Saab fans save the last 9-3

When General Motors put down several of its brands in recent years, it also let loose thousands of brand-loyal customers who will eventually need another car.

R.L. Polk Associates estimates there are more than 18 million cars from 16 discontinued makes on the road today. Those “orphan owners” have sales-hungry competitors seeing dollar signs. GM is offering Saturn owners $1,000 cash toward a Chevy Cruze, Caddillac CTS or a GMC Acadia. Ford is giving its Mercury lease customers a chance to get out of their contracts with no early-termination penalty and offering to waive six remaining payments if they drive off in a Ford or Lincoln.

Edmunds.com research shows the efforts are paying off somewhat for GM, with 39 percent of Pontiac owners, 37 percent of Hummer owners and 31 percent of Saturn owners taking delivery of another GM-branded vehicle. But that leaves as much as 69 percent of owners going elsewhere. Ford, Honda and Toyota seem to be attracting many former GM owners.

As Forbes points out, if you’re driving an orphaned nameplate, you just might be able to use that to your advantage when shopping for a new vehicle.

Automakers tussle over owners of ‘orphan’ makes

Autoblog reader Ed sent us this screen shot from the United States Patent and Trademark Office, showing that General Motors has apparently trademarked the name Riviera for use on automobiles. It’s no secret that the Riviera name resonates well with anyone familiar with Buick’s history, and since the production coupe’s death in 1999, the name Riviera has only been resurrected once for the 2007 concept car you see here.

So, why is GM registering the Riviera name again? Your guess is as good as ours. As GM Inside News points out, it could be nothing – automakers will, from time to time, trademark a host of words or alphanumeric sequences (Ford, for example, has trademarked everything from MKA to MKZ for potential Lincoln use). But then again, this isn’t the first (or second, or third) time that we’ve heard rumors about Buick potentially adding a coupe to its lineup, and the Riviera name would certainly be appropriate.

GM trademarks Riviera name

If you read the owner’s manual of your car you’d begin to realize how much of your own vehicle you didn’t know about. If it’s a car made within the past few years, then the owner’s manual covering the dirty bits will be joined by an even thicker manual that covers just the infotainment system. Cadillac, however, has a better way for buyers to learn the CUE-powered mysteries of the $44,995 XTS: give owners an iPad with the car, loaded with tutorials on how to get the most out of the Cadillac User Experience system.

Yes, when the Hyundai Equus was introduced it came with an iPad installed with a multimedia version of its owner’s manual. Based on Wired’s discussion with Cadillac, however, this is much wider implementation, with each Cadillac dealer required to have two “certified technology experts” on duty, plus a CUE call center for owners, an online media team looks for CUE questions to answer, and a mobile CUE specialist who makes house calls. The point seems to be that this isn’t about getting an iPad with your car, it’s about understanding ever tech thing your car can do. If you still don’t know how to access the full power of your XTS, it will only be because you don’t want to.

Scroll down for General Motors’ official release.

2013 Cadillac XTS to come standard with iPad

Toyota has had some recent setbacks, what with last year’s natural disasters and its lengthy recall problems. But according to Bloomberg, the carmaker is back on track, and is expected to post its largest profit in five years. Toyota reports financial results for its fiscal year tomorrow, and is expected to have a $10 billion net income, which would put Toyota ahead of General Motors in earnings, according to the report.

The Japanese automaker is expected to forecast a 12 percent sales growth for next year, which would make it the largest global carmaker by revenue, though Volkswagen is expected to lead in earnings. Bloomberg reports that Toyota’s 2012 calendar year sales are expected to increase 21 percent, to 9.58 million units, which would be a record for the automaker. Toyota shares on the Tokyo stock exchange are up 22 percent for the year.

Toyota to best GM’s profit

Toyota Supra successor, Nissan Juke-R, Cadillac ATS pricing, GM Europe restructuring, Prius PHEV sales

Episode #281 of the Autoblog Podcast is here, and this week, Chris, Dan, and Zach chat about the fresh rumors of a new Toyota Supra, the Nissan Juke-R heading for (very) limited production, Cadillac ATS pricing, GM Europe headed for another restructuring, and sales of the Toyota Prius PHEV. Your questions and comments power the end of the ‘cast, and for those of you who hung with us live on our UStream channel, thanks for taking the time. We’ve embedded our Q&A module after the jump for you to scroll through and follow along, too. Thanks for listening!

Autoblog Podcast #281:

Topics:

• Toyota Supra successor rumors
• Nissan Juke-R headed for limited production
• General Motors Europe restructuring… again
• Toyota Prius über-alles

In the Autoblog Garage:
2013 Ford Flex SEL
2012 Buick Enclave

Hosts: Dan Roth, Chris Shunk, Zach Bowman

Feedback
Email: Podcast at Autoblog dot com

Review the show in iTunes

Continue reading Autoblog Podcast #281

Autoblog Podcast #281

If you’re a blue-blooded American capitalist, there’s nothing better than leading your company to the top of the Fortune 500 – except for making billions of dollars in profits, that is. But thankfully those two objectives tend to go hand-in-hand, as proven by these two men.

Indeed, General Motors CEO Dan Akerson and Ford CEO Alan Mulally have plenty to smile about when looking at the 2012 Fortune 500 list, as their respective companies are pegged at fifth and ninth. While Ford’s profit last year dwarfed GM’s, according to the Fortune list, GM’s revenue was greater than all but four other corporations: Exxon Mobil, Wal-Mart, Chevron, and ConocoPhillips.

The only other automotive firm to hit the top 100 was supplier Johnson Controls at 67, though plenty of other suppliers made the list, including Goodyear at 126 and Ford spin-off Visteon at 321.

GM, Ford place in top 10 on 2012 Fortune 500 list

The Detroit News reports presidential hopeful Mitt Romney believes he deserves credit for the auto industry’s recovery, despite the fact that he adamantly opposes the bailout. While speaking with a Cleveland, Ohio television station, Romney said he deserves “a lot of credit” because he supported the idea of managed bankruptcy. But both President George W. Bush and President Barack Obama believed General Motors and Chrysler couldn’t survive the process without backing from the United States Treasury.

Meanwhile, in a 2008 opinion article for The New York Times, Romney warned the bailout would mean the end of the American automotive industry, saying “It won’t go overnight, but its demise will be virtually guaranteed.”

Through the lens of hindsight, we know that statement was a bit exaggerated. Both Chrysler and GM are on the right path, with the companies posting profits in North America. The Detroit News reports the auto bailout is an important topic in two crucial swing states: Ohio and Michigan.

Romney claims credit for auto industry recovery, still opposes bailout

Most General Motors dealers make their living off selling pickup trucks. (That’s why when it came time to trim the brands and reorganize under bankruptcy, GMC survived and Pontiac didn’t – because Buick dealers needed to have a truck to sell, not a full-size muscle sedan from Australia.) That makes this year a tricky one for dealers, according to Automotive News, as they need to have enough Chevrolet Silverado or GMC Sierra models in stock to get them to the 2013 model year.

What makes this quandary different from most years is that GM is readying all-new pickups, meaning that it will be shutting down production for long stretches to retool. The full-size Chevrolet and GMC trucks date to 2006, making them the oldest in the industry that don’t wear a Nissan Titan badge on their tailgate. Dealers, of course, don’t want to be caught with many 2012 trucks – vehicles that are already difficult enough to sell – but they don’t want inventories to run completely dry and risk turning away customers.

With a combined 29 weeks of downtime scheduled for three truck plans, according to the report, some dealers are stockpiling pickups to avoid running out if the truck production pipeline dries up before the 2013s start shipping. Other dealers are taking the opposite strategy, turning down 2012s and waiting for next year’s models.

Given all that has happened to GM in recent years, we imagine that most dealers know altogether too well that you’re damned if you do, and damned if you don’t.

GM’s next-gen pickup plans force dealers into one of two camps

We’re almost ready to record Episode #281 of the Autoblog Podcast, and you can check out the topics below, add your own to the Q&A and join us live via UStream, as well, and we’ve embedded our UStream player after the jump. Thanks for listening!

Discussion Topics for Autoblog Podcast Episode #281

• Toyota Supra successor rumors
• Nissan Juke-R headed for limited production
• General Motors Europe restructuring… again
• Toyota Prius über-alles

Continue reading Autoblog Podcast #281 goes LIVE at 10PM Eastern

Autoblog Podcast #281 goes LIVE at 10PM Eastern

We record Episode #281 of the Autoblog Podcast tonight, meaning you can drop us your questions via our Q&A module below and chime in to direct our conversation. Subscribe to the Autoblog Podcast in iTunes if you haven’t already done so, and if you want to take it all in live, tune in to our UStream (audio only) channel at 10:00 PM Eastern tonight.

Discussion Topics for Autoblog Podcast Episode #281

• Toyota Supra successor rumors
• Nissan Juke-R headed for limited production
• General Motors Europe restructuring… again
• Toyota Prius über-alles

[iTunes] Subscribe to the Autoblog Podcast in iTunes
[RSS] Add the Autoblog Podcast feed to your RSS aggregator

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Submit your questions for Autoblog Podcast #281 LIVE

Cadillac’s ATS is scheduled to hit dealer showrooms this summer, and General Motors has finally divulged pricing. Its smallest luxury sedan will start at $33,990 including destination(*), but that price will only snag you the entry-level model, powered by a 200-horsepower 2.5-liter four-cylinder paired with a six-speed automatic. Stepping up to the turbocharged, 270-hp 2.0-liter will push the price up to $35,795, and bring all-wheel-drive and manual transmission options into play. The top-of-the-line ATS carries a $42,090 price tag and is powered by a version of the 3.6-liter V6 from the Cadillac CTS, rated at 320-hp and mated to an automatic tranny, with all-wheel-drive available.

While these prices are hard to evaluate without a full breakdown of standard equipment – which Cadillac promises in due time – we can compare them to two benchmarks, the all-new 2012 BMW 3 Series and the slightly larger CTS. While Caddy does undercut the base 3 Series price of $35,795, that entry-level ATS is down some 40 horsepower. The mid-priced ATS, the one with the turbo 2.0-liter, however, trumps the 328i’s 240-hp engine by almost that much. With equivalent starting sticker prices, it only makes the inevitable head-to-head battle all that more interesting.

The CTS, however, starts at $36,810, which makes the top-level ATS seem spendy at first glance. Granted, the CTS is nearing the end of its life cycle, but clearly those looking for a more luxury-oriented, V6-powered sedan are going to have to closely study the standard equipment sheet to determine what justifies the $5,000-plus price premium for the smaller car.

Scroll down for the full press release, and be sure to check out the new images in our gallery.

Continue reading GM announces pricing for 2013 Cadillac ATS, starting at $33,990*

GM announces pricing for 2013 Cadillac ATS, starting at $33,990*

The United States tax code will never be accused of being simple or easy to comprehend. With a tangle of exceptions and loopholes, individuals and corporations can work their way around paying their full income tax rate with ease.

According to The Detroit News, General Motors continues to avoid paying its federal income taxes since the company exited bankruptcy. In 2008, the Treasury Department ruled that the automaker could use $18 billion in losses from “old” GM to offset any profits. That means from a tax perspective, GM still hasn’t earned enough money to overcome its losses. The automaker has raked in more than $13 billion since 2009.

Of course, GM isn’t the only company dodging the federal income tax. Ford, for example, payed $268 million in worldwide income taxes last year, despite claiming an income of $7.8 billion. Likewise, since Chrysler Group, LLC. is a limited-liability partnership, it isn’t required to pay federal income taxes. According to The Detroit News, very few companies pay the full 35 percent federal corporate income tax rate.

But that doesn’t mean GM or other companies get off entirely. GM says it pays considerable state taxes, and the company reports that its global tax rate for 2012 may jump to 12 or 13 percent, up from an earlier estimate of 10 percent.

Legal loophole allows GM to avoid paying federal taxes… still