Episode 20 – Bailout Moves Closer, GM Cash Going Fast, Hyundai Sales Up in ‘08

November 10th, 2008 at 12:00pm

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GM will likely hit the bare minimum of cash it needs to run the company before this year is out. An industry bailout takes another step closer but the Bush Administration seems reluctant. Hyundai expects sales to go up this year due to high exports from Korea. All that and more, plus we take a look at the all-new 2009 Acura TL.

Transcript and Story Links after the jump . . .

Here are today’s top headlines. GM is running out of cash, fast. An industry bailout takes another step closer. And Hyundai expects sales to go up this year.

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

This is Autoline Daily for Monday, November 10, 2008. And now, the news.

When it comes to cash, General Motors is on its last legs. In the third quarter GM doubled its cash burn rate, and may have tripled that burn rate when sales fell 45% last month in the American market. GM will likely hit the bare minimum levels of cash it needs to run the company before this year is out. And if it can’t pay its bills, that means bankruptcy is right around the corner.

And that’s why the word “bailout” is dominating the automotive headlines today. Democratic leaders in Washington want automakers to get access to some of the $700 billion in aid to the financial industry. But the Bush Administration seems reluctant because opening the purse strings for the automakers could turn into opening it up for every industry in trouble.

Meanwhile, in Europe the AP reports there’s a growing chorus of voices to provide aid to the European industry. But it’s more complicated there to coordinate all 15 governments that are part of the Euro Group, which are the countries that use the euro.

Over the weekend, Honda unveiled the new mini-compact car, the Life, for the Japanese market. It’s all about interior roominess and visibility. It features big windows, slim pillars and headlights mounted up high, so drivers get a good sense of where the front corners of the car are. The new Life also has a backup camera, and hands-off steering for automatic parking. The 660cc engine delivers, as they measure in Japan, 21 kilometers per liter, or over 50 miles to the gallon.

Sirius XM radio is looking to make its first profit next year and here is some news that should help with that. BMW announced it will continue to offer SIRIUS XM radio as an option on all of its vehicles through 2011. The cost of the service is included in the price of the vehicle and comes with a one-year subscription.

Hyundai expects a sales increase for 2008 (subscription required) due to high exports from Korea. According to Ward’s, even though sales are down in North America, Western Europe and Korea, Hyundai off-set this with strong showings in places like Russia and Brazil. Hyundai attributes the high demand to its small cars where demand for those vehicles is the greatest.

Coming up in our feature story today we take a look at the new Acura TL. We’ll be back, right after this.
Acura has totally redesigned its TL for 2009. The new model boasts more power, more features and a big emphasis on technology. But the company is looking to change the product line a little bit. That’s why it’s now offering two different, distinct trim levels.

The top-of-the-line TL comes with Acura’s super-handling all-wheel-drive system. It’s designed to give the car more traction and make it more fun to drive. Going one step further, the company’s even planning on offering a six-speed manual transmission in 2010, probably on a Type-S model

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.

3 Comments to “Episode 20 – Bailout Moves Closer, GM Cash Going Fast, Hyundai Sales Up in ‘08”

  1. adam hartung Says:

    Remember when Circuit City was a favorite in “Good to Great” by Jim Collins? Remember when we thought being big like GM gave you clout with customers and vendors to produce long-term returns (Michael Porter’s 5 Forces Model)? It’s time we recognize that the old approach to management doesn’t work in a rapidly shifting competitive world. There are winners in today’s market, but they follow a different approach. Read more at http://www.ThePhoenixPrinciple.com

  2. chris Says:

    To John McElroy; Referring to the Wall Street Journal Article, what do you think of receivership for the big 3? Could you answer in your daily webcast?

  3. Mark B Says:

    I own a 2004 Acura TL. It’s been a great car – runs well and looks stylish. I’d be in the market to replace this one with the new AWD TL as it performs better in every catagory. Just one thing though — it’s ugly!! The ’09 TL looks like it should be a character in my son’s Thomas The Train video. Being bold and having a distict presence is one thing, being garish is another. My eyes will shift to the AWD Nissan G35 is Acura (Honda) doesn’t restyle soon.