November 26th, 2008 at 12:00pm
Michigan Congressman Thaddeus McCotter gives us an insider’s look on next week’s bailout testimony. Porsche postpones its takeover of VW due to low cash flow and the high price of VW stock. BMW could outsell Lexus to become the top luxury brand in the American market. All that and more, plus John answers viewers questions in the “You Said It!” segment.
Transcript and Story Links after the jump . . .
Here are today’s top headlines the day before Thanksgiving. Congressman McCotter gives us an insider’s look on next week’s bailout testimony. Porsche postpones its takeover of VW. And BMW could outsell Lexus.
Up next, we’ll be back with the news behind the headlines.
This is Autoline Daily for Wednesday, November 26, 2008. And now, the news.
Are the Big Three going to get their bridge loan? For a true insider’s perspective we had Michigan Congressman Thaddeus McCotter in our Autoline studios this morning, and here’s his take on what will happen. You can hear my full interview with Congressman McCotter at www.AutolineDetroit.tv.
On top of all the headcount and spending cuts at Chrysler, CEO Bob Nardelli informed employees, more changes are on the way. The Detroit Free Press says Nardelli also said Chrysler is not in the financial position to participate in a caravan of cars going to Washington DC next week when the CEOs of the Big Three return there to testify for their bridge loan.
In a sign that the automotive slowdown isn’t only hurting Detroit’s automakers, Fitch Ratings lowered Toyota’s credit rating to AA from AAA. And the AP reports that Fitch lowered that rating with a negative outlook, which means it may lower it again next year.
Indeed, showing just how global this downturn is, Taiwan is preparing a bailout package for its struggling auto industry (subscription required), with subsidies and tax cuts. According to Ward’s, new-car sales in Taiwan fell to a 22-year low in October.
The downturn is even hitting the richest car company on the planet. The AFP reports that Porsche’s takeover of Volkswagen will probably not happen this year. That’s due to two things: the extremely high price of VW stock, and the fact that the downturn means Porsche’s cash flow isn’t quite what it was.
For the last 8 years Lexus has been the top luxury brand in the American market. But Wardsauto.com reports that BMW is catching up to Lexus (subscription required). Both marques have seen their numbers decline but Lexus’ sales fell almost 38 percent in October while BMW’s only tumbled eight and a half percent. Only 5,000 sales now separate the brands.
Coming up next it’s time for You Said It!
It’s time for “You Said It” where I answer some of the many questions that have come in from our viewers this week.
Sean Walsh writes in to ask:
“What’s the reaction in Detroit and the auto industry to the replacement of John Dingell with Henry Waxman as a committee chair?”
It’s a double whammy, Sean. Not only did the auto industry lose a great supporter in John Dingell, his replacement Henry Waxman is openly antagonistic to the auto industry.
Philip Sparrow asks:
“If GM files for chapter 11 what happens to Holden?”
I doubt that GM will go Chapter 11, Philip. But Holden is a gem of an operation and in the worst case scenario, some other car company would likely come in and buy it.
Remember; keep sending us your questions and comments. But we’d really like to see you submit a video comment. Just post it to YouTube and send us the link at firstname.lastname@example.org. Include your name, location, and try to keep them to around 30 seconds long. Do this, and you just might be on our next installment of You Said It!
Well, it’s the moment you’ve all been waiting for. If you signed up for our e-mail newsletter in the last week, you’re eligible to win some awesome SWAG. To celebrate Thanksgiving, we’re giving away an extra-special prize, this in-car power inverter. My crack team chose the lucky person at random from our list of new subscribers. Pookie, the envelope please. And the winner of this week’s prize is Darryl Zimmer! Congratulations Darryl Zimmer.
Don’t forget, if you haven’t signed up for our e-mail newsletter yet, it’s not too late! You can still get every episode of Autoline Daily delivered right to your inbox. Just click on the newsletter link on our website, autolinedaily.com, and join now!
Anyway, that’s it for today’s show. Thanks for watching…Pookie, what do you know about this?! Anyway, have a wonderful Thanksgiving and we’ll see you next week.