Dec 19, 2008 -
News From AutoObserver.com
Hi,
Here are some highlights from Edmunds’ AutoObserver.com this week. As always, there is more available directly on
www.autoobserver.com:
GM, Chrysler Receive $13.4 Billion in Immediate Federal Loans
The Bush Administration announced Friday morning that it will provide $13.4 billion in short-term loans to General Motors and Chrysler; the automakers will receive another $4 billion in February. President George Bush admitted reluctance about providing government loans to the Detroit automakers but noted the beleaguered U.S. economy would suffer a harsh blow if one or more of Detroit's automakers collapsed into a "disorderly bankruptcy" at this time. "These are not ordinary circumstances," Bush said. "In the midst of a financial crisis and a recession, allowing the U.S. auto industry to collapse is not a responsible course of action." The money will come from the $700 billion Troubled Asset Relief Program (TARP). Automakers will get $13.4 billion immediately and another $4 billion from the fund in February to keep them operating through March. For more information on the loans, visit http://www.autoobserver.com/2008/12/gm-chrysler-receive-134-billion-in-immediate-federal-loans.html
Toyota Tracking To Post First-Ever Annual Loss
Japan's financial sector is buzzing with the prospect Toyota Motor Corp., one of the nation's most successful and powerful corporate entities, is likely to record its first-ever full-year operating loss, reports Japan's Nikkei English-language business newspaper. Toyota has not recorded an annual operating loss since it began publicly reporting its earnings in 1940, and the Nikkei says fallout from World War II led to Toyota's only pre-tax loss -- in 1949
For more information on Toyota’s situation, visit http://www.autoobserver.com/2008/12/toyota-tracking-to-post-first-ever-annual-loss.html
December Sales Rate Will Be Year's Lowest, Edmunds.com Forecasts
The deteriorating economy, the precarious employment situation and the lack of available credit will push the annual sales rate in December for U.S. car sales to their lowest level of the year below 10 million units, Edmunds.com forecasts. December sales (retail and fleet) are expected to total 852,000 units, a 38.4 percent decrease from December 2007 but a 14.6 percent increase from November, Edmunds.com predicts. Typically, December sales are about 18 percent higher than November's. For more information about Edmunds’ December sales forecast, visit http://www.autoobserver.com/2008/12/december-sales-rate-will-be-years-lowest-edmundscom-forecasts.html
Finalists Announced for 2009 North American Car and Truck of the Year Awards
Finalists for the 2009 North American Car and Truck of the Year awards were announced Thursday at the Detroit Economic Club's annual auto show luncheon. The finalists for the 2009 North American Car of the Year honors are the Ford Flex, Hyundai Genesis and Volkswagen Jetta TDI. Finalists for the 2009 North American Truck of the Year award are the Dodge Ram, Ford F-150 and the Mercedes-Benz ML320 BlueTEC. For more information on this story, visit http://www.autoobserver.com/2008/12/finalists-announced-for-2009-north-american-car-and-truck-of-the-year-awards.html
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