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Episode 6 – Chrysler Could Join Nissan-Renault, CNG Cars Catch On, Sirius/XM Will Turn Profit

October 21st, 2008 at 12:00pm

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Chrysler Could End Up with Nissan-Renault but Cerberus wants cash, not an alliance. Natural gas cars are really catching on in Thailand and other developing countries. And Sirius/XM radio says it’s going to make a profit thanks to cost savings from the merger. All that and more, plus a closer look at the recently-unveiled Chrysler electric vehicles.

Transcript and Story Links after the jump . . .


Here are today’s top headlines. Chrysler Could End Up with Nissan-Renault.
Natural gas cars are really catching on in Thailand. And Sirius/XM radio says it’s going to make a profit.

Up next, we’ll be back with the news behind the headlines.

This is Autoline Daily for Tuesday, October 21, 2008. And now, the news.

In the on-going saga of who will take over Chrysler, the Wall Street Journal reports it could end up with Nissan-Renault. Everyone knows Carlos Ghosn, who runs those companies, would love to have an American automaker as part of his alliance. But Cerberus, the company that owns Chrysler, doesn’t want an alliance. They want cash, and lots of it. So the more likely scenario is what we’ve been reporting for days now. GM is probably going to get Chrysler so it can chop it to pieces all in the belief that this is what could finally put GM back on its feet again.

Meanwhile, the California Auto Dealer Association warned that GMAC’s policy to restrict car loans to those with the highest credit scores is going to drive many GM dealers out of business and hurt GM’s market share in California. GMAC’s actions wipe out 40 percent of GM customers in California. And as I said yesterday, I believe this is part of Cerberus’ plan for force GM to accept a merger with Chrysler. GM is being bullied by Cerberus and maybe it’s time it got the guts to start fighting back.

Sirius/XM Radio CEO Mel Karmazin says the company will make a profit next year. The company still has not turned a profit even though it has over 18 million subscribers and does nearly 2.5 billion dollars in sales. Karmazin says by combining Sirius with XM the company will finally be able to cut costs enough to become profitable.

Over the Summer, T. Boone Pickens launched a campaign highlighting the benefits of switching to natural gas cars, but developing countries like Thailand are way ahead of him. According to the Wall Street Journal, drivers have converted or purchased more than 40,000 natural gas vehicles in the past six months in Thailand and officials believe that number could rise to more than 300,000 by 2012. Thailand isn’t the only developing country embracing natural gas vehicles, Pakistan, Brazil and Argentina have more than one and a half million on their roads as well.

The New York Times is reporting that insurance companies are starting to close loopholes that allow drivers to participate in motorsports events. Running hot-laps during an open track day may not be covered. This comes as auto racing surges in popularity. Racing on tracks has increased five-fold since 2003. Adding insult to injury, insurance laws differ from state to state. What may be kosher in California may not fly in Florida. If you plan on participating in a track event you’d best check with your insurance company to see if you’re covered. Heaven forbid you put your Yenko Camaro into the wall and you get stuck footing the bill.

As we reported last week, Toyota is developing a minicar called the iQ. But now our friends at Autoblog are reporting that the company is also working on a roadster version of the tiny two door. German car magazine Auto Motor und Sport expects the iQ roadster to bow at the 2009 Tokyo motor show. Beyond the runt-sized roadster there are also rumors that other body styles are in the works, like a mini, minivan and a hybrid.

In our feature story today we take a look at another of the electric vehicles that Chrysler showed us recently. That’s coming up next, right after this.

With gas continuing to eat into all our budgets, every OEM is looking for an alternative fuel option. Chrysler recently unveiled three vehicles from its ENVI organization and here’s its president Lou Rhodes to tell us what makes these vehicles different.

Surprisingly Chrysler isn’t as far behind in the electric vehicle game as everyone thought. But if Chrysler gets bought by General Motors I’ve got to believe all this effort is going to get thrown in the wastebasket.

And that’s it for today’s top news in the global automotive industry, but don’t forget you can get podcasts, transcripts and a whole lot more on our website, AutolineDaily.TV. Thanks for watching, we’ll see you tomorrow.

8 Comments to “Episode 6 – Chrysler Could Join Nissan-Renault, CNG Cars Catch On, Sirius/XM Will Turn Profit”

  1. john Says:

    Please ask John to give some idea on the range of the cng cars and pick up’s sometime soon in one of his pod cast!

    I think the range is no greater than 200 miles for pick ups and less for passenger cars!

    Regards,

    John T. Featherstone

  2. The Car insurance blog » Blog Archive » Episode 6 - Chrysler Could Join Nissan-Renault, CNG Cars Catch On … Says:

    [...] admin wrote an interesting post today onHere’s a quick excerptAdding insult to injury, insurance laws differ from state to state. What may be kosher in California may not fly in Florida. If you plan on participating in a track event you’d best check with your insurance company to see if you’re … [...]

  3. JIm Thykeson Says:

    John: If GM picks up Chrysler I would hope they develop the ‘Firepower’ concept car. CNG is the way to clean up the Earth’s atmosphere plus allowing the GM, Ford, and Chryslers to still use the internal-combustion engine. We won’t have to throw away the pick-ups or SUVs either, and the stuff is half the price of gas. It seems like this is a ‘win-win’ situation!

  4. Julius Lambert Says:

    I wrote a couple of weeks back that WAGONER better watch his backside ,because CERBERUS has a CROSS HAIR on it.Being a competitor with your BANKER is NOT WISE.How much CASH do they want for their 80%?What is DAIMLERs position in them owning 20%?

  5. John Says:

    T.Boone Pickens has a petition for everybody to sign at http://www.pickensplan.com .

    The goal is to get the presidental canidates to create their own U.S.Energy plan NOW or support the Pickens Plan.

    WE NEED A PLAN! ANY LOGICAL PLAN Will DO.

    Jim Cramer from CNBC Mad Money wants to have a Pickens Plan march on Washington D.C. .

    Thanks for the Pickens Plan coverage…Great show.

  6. Julius Lambert Says:

    As far as CNG vehicles go.It depends on weight,configurationand the size of the TANK.This fuel is just the opposite of diesel.Diesel is 30% more efficient than gasoline and CNG is 30%LESS efficient than gasoline.Light vehicles OK,otherwise diesel-gas.You do not have to change oil very oftenwith CNG.

  7. John Says:

    CNG has its biggest impact on heavy OTR trucking by displacing large amounts of Diesel fuel(LNG).

    The goal is to keep the money from leaving our economy, keeping U.S. transportation fuel money IN the U.S. economy.

    For those preoccupied with rearranging the deck chairs on the Titanic (the U.S. Economy) , you may want to pay some attention to the 700 BILLION DOLLAR hole in the hull.

    CNG and LNG are part of the plan to buy us TIME to patch the hole in the hull before the ship goes down.

    Are there better long term solutions to the U.S. transportion needs? Yes.

    Are the ready today? NO!

    Will the better long term solutions be ready to provide the middle class (70% of the U.S. Economy) a economical way to do their 40 miles a day to get to work before the ship goes down?

    NO AGAIN!

    CNG is part of a bridge from a failed energy policy to a energy plan to build a real economy on.

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