THE HOUSE OF REPRESENTATIVES has passed the Rudd Government’s proposed Automotive Transformation Scheme Bill, which aims to inject an estimated $3.4 billion into the  local car industry.

The Bill aims to stimulate innovation and investment in Australian new car design, with a particular emphasis on environmentally-friendly technology.

The money is intended to be spent between 2011 and [...]

• 
• Comment
• Read More

While GM and Chrysler are no doubt pleased at the US Government’s approval of further short-term financial aid (think of it more as a stay-of-execution than anything else), Wall Street is reportedly hurting bigtime.

Concerns about the future of the US auto industry has driven share prices downward, with the Dow Jones Industrial Average dropping 199.92 [...]

• 
• Comment
• Read More

With whispers of General Motors’ possible bankruptcy growing louder each day, auditors to the firm have released a report claiming there is “substantial doubt” surrounding the car maker’s ability to continue operations.

GM has struggled to generate cash flow in the worst automotive market for 27 years. Poor product planning, slow moving development of new models and [...]

• 
• Comment
• Read More

It seems that if GM is to survive, it’s not going to be given an easy run. Especially in Europe where the UK, Swedish and German governments have all reacted cautiously to requests for £4.2 billion (AUD $9 billion) in government aid.

The UK government is considering a loan upon presentation of a plan for the [...]

• 
• Comment
• Read More

GM US’s restructuring plan, posted on the US Treasury website, will make unpalatable reading for the US Administration and long-suffering US tax-payers (those still in jobs and paying tax that is).

In it, GM outlines plans to cut costs and to reduce its global workforce by 47,000, including yet more cuts to its US workforce with [...]

• 
• Comment
• Read More

Recent speculation about a collaboration between Chrysler and Fiat has been confirmed. The two companies have announced plans for a global strategic alliance. Under the deal Fiat will receive a 35 percent stake in Chrysler. In return Chrysler will gain access to Fiat’s range of fuel efficient technologies.

The ability to use Fiat’s existing technology should equate [...]

• 
• Comment
• Read More

General Motors has officially announced their plans to keep operations afloat in North America. After much speculation about the future direction of the company and its brands GM’s North American president, Troy Clarke, has said in an interview with Automotive News that General Motors will be keeping its promise to congress to drastically cut costs.

Clarke [...]

• 
• Comment
• Read More

A corporate reshuffle and worker lay-offs evidently hasn’t been enough to reverse Tesla Motors’ woeful financial fortunes, and the electric car manufacturer now reports that the future of its much-anticipated Model S sports sedan may be under threat because of it.

Tesla says that without a $400 million USD slice of the US government’s $25 billion [...]

• 
• Comment
• Read More