July 28th, 2009 at 1:07pm
German automakers get CO2 exemptions from the U.S. government that American automakers can not get. Nissan says that its EV program is going to be profitable thanks to all the government subsidies it’s getting. The Cash for Clunkers program got underway in the U.S. market yesterday and dealers reported a big jump in showroom traffic. All that and more, plus a closer look at the interior of the redesigned 2010 Ford Taurus.
Transcript and Story Links after the jump . . .
Here are today’s top headlines. German automakers get CO2 exemptions from the American government that American automakers can not get. Nissan says its EV program will be profitable. And Cash for Clunkers generates a lot of showroom traffic.
Up next, we’ll be back with the news behind the headlines.
This is Autoline Daily for Tuesday, July 28, 2009. And now, the news.
A couple of days ago we reported that automakers would no longer be able to pay a fine if they did not meet US fuel economy standards. Well, it looks like the American government changed its mind. The Wall Street Journal says companies like Mercedes, BMW, Porsche and others can keep selling cars that emit more greenhouse gasses than the law allows. But of course the American government would never grant an exemption like that to American automakers. They call it the “German Provision” and both the federal government and the state of California allow exemptions for cars like the Mercedes S600 that’s rated at 13 miles per gallon, or 18 liters per 100 kilometers.
Nissan says that its electric car program is going to be profitable thanks to all the government subsidies it’s getting. Bloomberg reports that Nissan is getting help from governments around the world, including $1.6 billion from the US. Nissan is putting the capacity in place in the US, Europe and Japan to build 350,000 EV’s a year. It will start production in Japan next year.
The Cash for Clunkers program got underway in the American market yesterday and dealers reported a big jump in showroom traffic. While most buyers do not qualify for the incentive, the Wall Street Journal reports that many dealers have seen their sales triple. But other experts warn this is just pulling sales forward and they’ll drop off again when the money runs out.
Ron Bloom, the newly appointed head of the auto task force, says the government plans to sell its stake in GM and Chrysler as soon as possible. According to the AP, Bloom expects an initial public offering for GM next year but the government won’t sell all its shares at once. The U.S. government owns 61 percent of the new General Motors and eight percent of Chrysler.
Delphi may finally exit from bankruptcy soon, but not with Platinum Equity as the new owners. According to the Detroit News, Delphi’s lenders won an auction for the supplier’s assets. During Delphi’s bankruptcy the lenders gave the company $3.5 billion in loans and threatened to foreclose the company if it went ahead with Platinum’s offer. General Motors said it supports the new bid and that it will be a better deal for GM than Platinum’s offer. The new agreement still includes selling off four of Delphi’s U.S. plants and its global steering business to GM.
Magna has improved its bid for Opel. According to Reuters, the Canadian supplier is now offering 350 million euros of its own capital, up from 100 million. The German government favors a Magna takeover and now Opel’s workers are saying the same thing. According to the Detroit Free Press, Opel’s workers prefer Magna and won’t help rescue the automaker if they don’t get a say in who the company ends up with. Workers are being asked to provide up to 1.5 billion euros in concessions which is more than any investor intends to commit.
Coming up next, a closer look at the interior of the redesigned 2010 Ford Taurus, we’ll be back right after this.
Yesterday we looked at the exterior of the new Ford Taurus and today we’re getting inside for an up-close look at what the company’s done to revamp the interior.
And that’s it for today’s news. But don’t forget to tune in for Autoline After Hours on Thursday night at 7 p.m. Eastern, when our guest will be Jim Hall from 2953 Analytics. He always has great insight. On another note, we’re working on a story all about hypemiling and would like to know your driving tricks to get the best fuel economy possible. Give us a call at 1 – 620 -AUTOLIN, that’s Autoline without the “E,” or the full number is 1-620-288-6546.
And that’s it for today’s program, thanks for watching we’ll see you tomorrow.