Thursday, April 22, 2010

Fw: Fiat Investor Day coverage


----- Forwarded by Calvin R Thudium/CARZ/DCC/DCX on 04/22/2010 01:36 PM -----
scoop@chrysler.com

04/22/2010 11:44 AM

To
Chrysler Employees and Contractors
cc
Subject
Fiat Investor Day coverage




Media interest has been high for the Chrysler Group LLC financial reports and product plans discussed during the Fiat Investor Day on Wednesday, April 21.  

In one story, analysts, like the following, voiced approval for stonger-than-exepected results:

"Chrysler posted revenues of $9.7 billion, meaningfully ahead of our $6.1 billion estimate. In addition, Chrysler generated $143 million of operating profit versus our estimate of a $72 million loss." (Brian Johnson of Barclays Capital)

"Fiat-Chrysler deserves a lot of credit for the progress made so far. It was questionable whether they'd survive 2010, but now the company seems to be on track."  (Michelle Krebs of Edmunds.com)

"The first-quarter figures -- not the 2009 results -- are what's important. To say they were in transition is an understatement. What matters is their market share and the timeline for new products and if they are making money now."  (Van Conway, of  turnaround specialist Conway MacKenzie Inc)

Another story outlines Fiat SpA's plans to spin off its industrial holdings from its automotive operations, in a bold move that relies heavily on its partnership with Chrysler Group LLC to succeed. According to the story, that bodes well for Chrysler's future and may silence skeptics convinced that Fiat is not in the partnership for the long haul. "People at Chrysler should be very excited," Aleks Miziolek, director of the auto industry group of Dykema PLLC told the Detroit News, calling it a serious play by Fiat to grow its Chrysler partnership into a global company.

Other coverage from Wednesday's meeting can be found in the special "Fiat Investor Day" section of The Scoop found on the right-hand side of the home page.  

Fw: Chrysler Group 2009 and Q1 2010 Financial Results


----- Forwarded by Calvin R Thudium/CARZ/DCC/DCX on 04/22/2010 11:19 AM -----
Chrysler Comm

04/21/2010 04:42 AM

To
Chrysler Employees and Contractors
cc
Subject
Chrysler Group 2009 and Q1 2010 Financial Results




Dear Colleagues,

Chrysler Group LLC today published financial results for the first time since beginning operations last June and I would like to share some highlights with you.  The most encouraging news is that Chrysler ended the first quarter of 2010 with a positive operating profit of $143 million – tangible evidence that we are achieving the targets that we set for ourselves and announced publicly last November – and liquidity of $9.8 billion.

The operating profit marked an improvement of $410 million compared to the fourth quarter of 2009.  Major factors included continued price discipline on all products and some improvement in sales mix, the result of the launch of the all-new Ram Heavy Duty pickup, the Motor Trend “Truck of the Year.”  Our efforts to reduce costs also are taking hold, thanks to improvements on the cost side from the World Class Manufacturing implementation, a more stable supplier environment and strict control of discretionary spending.  The company’s net loss in the first quarter was reduced to $197 million.  

Our first-quarter results show we are generating the cash needed to build our brands and invest in products, such as the 16 all-new or refreshed vehicles that will be introduced by the end of this year, representing 75 percent of our product line.  Modified Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) were $787 million, compared to $398 million in last year’s fourth quarter.  Our cash position strengthened to nearly $7.4 billion as a result of a strong cash flow of about $1.5 billion in the first quarter, as noted bringing our total available liquidity to $9.8 billion.

Worldwide vehicle sales were 334,000 units for Q1 2010, compared to 318,000 in Q4 2009.  This resulted in market share gains from 8.1 percent to 9.1 percent in the U.S., and from 11.6 percent to 13.7 percent in Canada, on a quarter-to-quarter basis.

For the June 10 – December 31, 2009 period, net revenues were $17.7 billion, including $9.4 billion in the fourth quarter.  Operating loss for the period was $895 million.  Modified EBITDA was $538 million and cash at the end of 2009 was $5.9 billion, with both results exceeding our targets announced last November.  For the 2009 reporting period, net loss was approximately $3.8 billion, reduced to $1.7 billion excluding a non-recurring, non-cash charge of $2.1 billion relating to the UAW Retiree Medical Benefits Trust (VEBA).

While we still have a long way to go to rebuild our business, it is important to note that we are on track to achieve our 2010 targets. Today’s announcements are important milestones and a credit to the efforts of the entire organization.  

I want to thank you personally for your efforts and dedication to Chrysler.  We shall not fail as long as we remain focused and committed to our goals.

Best regards
Sergio Marchionne


http://scoop.chrysler.com/2010/04/21/chrysler-group-reports-2009-financial-results/

http://scoop.chrysler.com/2010/04/21/chrysler-group-reports-results-for-2010-first-quarter/
 

Wednesday, April 21, 2010

Fw: Early Clips for 04/21/2010


----- Forwarded by Calvin R Thudium/CARZ/DCC/DCX on 04/21/2010 07:13 AM -----
Alex Eliopoulos/CARZ/DCC/DCX

04/21/2010 06:53 AM

To
Calvin R Thudium/CARZ/DCC/DCX@wk-America, Syl D Kucher/CARZ/DCC/DCX@wk-America, Maurice A Labelle/CARZ/DCC/DCX@wk-America
cc
Colin D Marshall/CARZ/DCC/DCX@wk-America, Kelsey Knutson/CARZ/DCC/DCX@wk-America, Rick Traynor/CARZ/DCC/DCX@wk-America
Subject
Fw: Early Clips for 04/21/2010






Thanks,

Alex Eliopoulos
Red Deer Parts Distribution Center
6777 Edgar Industrial Drive
Red Deer, Alberta T4P - 3R2
(403) 343. 5714 Fax: 5744

----- Forwarded by Alex Eliopoulos/CARZ/DCC/DCX on 04/21/2010 06:51 AM -----
Bridget L Crane/HR/DCC/DCX

04/21/2010 05:48 AM

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Fw: Early Clips for 04/21/2010












Chrysler Early Clips Headlines (12)

--  Chrysler posts 1Q operating profit after 2009 bankruptcy  (Automotive News, Bloomberg)
--  Fiat CEO Says Chrysler "Earned A Profit In The Quarter From Selling Cars"  (Dow Jones Newswires)
--  Chrysler reports $197M 1Q loss, cash balance grows  (Associated Press, The New York Times)
--  Fiat on track to end full year in profit  (Financial Times)
--  Fiat Reports First-Quarter Loss, Confirms Forecasts (Update1)  (Bloomberg)
--  Agnelli family’s young scion takes the wheel at Fiat  (Financial Times)
--  Chrysler’s Old Carco Assets in Bankruptcy Can Be Liquidated  (Bloomberg, Automotive News)
--  Whitacre Says GM Repaid U.S., Canada ‘With Interest’  (Bloomberg)
--  Investors criticise Daimler on guidance  (Financial Times)
--  Manufacturers starved of key components  (Financial Times)
--  Feds stay firm on auto dealer oversight  (The Detroit News)
--  Recovering Toyota on GM’s heels in sales, Aggressive incentives prove to outweigh quality concerns  (Detroit Free Press)

*Refer to © Notice Below
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Automotive News, Bloomberg ( 04/21/2010 )


 Chrysler posts 1Q operating profit after 2009 bankruptcy

DETROIT -- Chrysler Group said it posted a $143 million operating profit in the first three months of the year after cutting costs and introducing a big pickup.

Revenue rose to $9.69 billion in the first quarter, up 2.7 percent from the final three months of 2009, the automaker said in a statement. Chrysler reported a net loss of $197 million in the first quarter, compared with a net loss of $2.69 billion in the final three months of last year.

After emerging from bankruptcy June 10 through the end of 2009, Chrysler said it lost $3.8 billion on revenue of $17.7 billion. Fiat S.p.A. obtained a 20 percent stake in Chrysler after the company reorganized in Chapter 11 with $15 billion in government support.

“This positive operating result in the first quarter is a concrete indication to our customers, dealers and suppliers that the 2010 targets we have set for ourselves are achievable,” Sergio Marchionne, CEO of Chrysler, said in the statement. “We are also generating cash to finance the investments being made in our product portfolio and brand repositioning.”

Marchionne is also CEO of Fiat, which lost 25 million euros, down from 410 million euros a year earlier.

Chrysler said its cash rose to $7.37 billion on March 31, from $5.88 billion at the end of last year. It can still draw on $2.4 billion in funding from U.S. and Canadian taxpayers, giving the automaker total available liquidity of $9.8 billion. The company reported total financial liabilities of $13 billion.

Chrysler said its worldwide vehicle sales rose to 334,000 cars and trucks in the first quarter, from 318,000 in the fourth quarter of last year. Revenue was boosted by the introduction of the Dodge Ram Heavy Duty pickup truck and “continued price discipline,” Chrysler said.

Sales of Chrysler Group vehicles in the U.S. fell 5.3 percent in the first quarter while industry deliveries rose 16 percent as Marchionne slashed discounts to consumers, according to researcher Autodata Corp.

Marchionne has said he opposes incentives to prop up market share at the expense of profits. He pared average discounts for Chrysler, Dodge and Jeep brand vehicles by $1,122 in the first quarter, more than quadrupling General Motors Co.'s $230 cut and Ford Motor Co.'s $214 reduction, according to Autodata.

“We are confident that Chrysler sales will continue to increase as we launch new products in the second quarter, beginning with the all-new 2011 Jeep Grand Cherokee,” Marchionne said.

The company said it would meet its previously stated goal to break even or earn as much as $200 million on an operating basis this year. It projected 2010 revenue of $40 billion to $45 billion. Chrysler forecast 2010 earnings of $2.5 billion to $2.7 billion before taking into account interest, taxes, depreciation and amortization.

Making Chrysler profitable will help Marchionne offer shares to the public and ultimately spin off Fiat's automotive operations from the divisions that make trucks and tractors.

Marchionne has said he expects to increase Fiat's stake in Chrysler by 5 percent this year when it meets a target to introduce its 500 small car in the U.S. The Italian company agreed to share technology, systems and management with Chrysler in exchange for the initial stake, for which Fiat paid no cash.

Fiat can obtain as much as 35 percent of Chrysler. The U.S. has about 9.9 percent, Canada owns 2.5 percent and a UAW trust for retirees' medical care holds 67.7 percent, according to bankruptcy court documents.

Read more: http://www.autonews.com/article/20100421/OEM/100429968/1192#ixzz0ljZhBZa3



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Dow Jones Newswires ( 04/21/2010 )
by Jennifer Clark

 Fiat CEO Says Chrysler "Earned A Profit In The Quarter From Selling Cars"

TURIN, Italy -- Fiat SpA Chief Executive Sergio Marchionne said Chrysler Group LLC "earned a profit in the quarter from selling cars" and added Chrysler's targets for 2010 were achievable. He was speaking at a presentation of Fiat's 2010-2014 business plan. Chrysler reported an operating profit of $143 million for the first quarter, compared with a $895 million loss for the June through December period in 2009. The company credited cost-cutting and the introduction of the new Ram Heavy Duty pickup truck for the positive results.

This is the first time Marchionne has disclosed Chrysler's financial figures since taking over as CEO in June after the majority of Chrysler's assets were merged with Italian auto maker Fiat in an effort to save the struggling U.S. auto maker, which received a U.S. federal aid. Marchionne still serves as Fiat's CEO.

Marchionne said he will illustrate Chrysler's results to the financial community on May 10.



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Associated Press, The New York Times ( 04/21/2010 )


 Chrysler reports $197M 1Q loss, cash balance grows

DETROIT (AP) -- Chrysler Group LLC lost a staggering $3.8 billion from the time it left bankruptcy protection June 10 through the end of last year, but the automaker says its fortunes improved dramatically in the first quarter.

The struggling company, now run by Italy's Fiat Group SpA, cut its net loss to $197 million from January through March and said it posted an operating profit from selling cars and trucks, before interest and taxes.

Moreover, Chrysler said it generated $1.5 billion in cash during the quarter, raising its reserves to $7.4 billion and reducing the likelihood that it will need more government aid. And the company predicted its operations would break even or be slightly profitable this year.

The Auburn Hills, Mich., automaker said Wednesday that it made an operating profit of $143 million in the first quarter, excluding taxes and interest.

''This positive operating result in the first quarter is a concrete indication to our customers, dealers and suppliers that the 2010 targets we have set for ourselves are achievable,'' CEO Sergio Marchionne, who also heads Fiat, said in a statement. ''We are also generating cash to finance the investments being made in our product portfolio and brand repositioning.''

First-quarter revenue was $9.7 billion, up 3 percent from the fourth quarter, the company said. Revenue for the post-bankruptcy period of last year was $17.7 billion.

Chrysler said its operating loss for the last half of 2009 was $895 million.

The company also said the huge net loss for the second half of the year included a noncash charge of $2 billion as the company moved blue-collar retiree health care liabilities off its books to a trust fund run by the United Auto Workers union.

Chrysler last reported earnings in August 2007, just after it became a private company when it was sold by Daimler AG to private-equity firm Cerberus Capital Management. At that time, it reported a second-quarter profit of $549 million, although it said it would have lost money without a $946 million gain because it didn't book scheduled depreciation and amortization that quarter.

Cerberus didn't invest the cash needed to weather the worst auto sales decline in more than 25 years, and as a result, Chrysler came close to running out of money at the end of 2008. The U.S. government stepped in, authorizing $15.5 billion in aid and appointing Marchionne to run the company after it emerged from Chapter 11. Chrysler said it has not drawn $2.4 billion of U.S. and Canadian government aid.

Marchionne said the improved performance came from discipline in pricing its vehicles, a larger proportion of its sales coming from the profitable Ram pickup, and cost efficiency mainly from adopting Fiat's manufacturing system.

The company said its U.S. market share grew from 8.1 percent at the end of last year to 9.1 percent in the first quarter. Sales worldwide grew 5 percent over the fourth quarter of 2009 to 334,000 vehicles.

But there were also were signs that Chrysler could have a rough go in the future, especially in the U.S., its key home market. The company's U.S. sales grew 5 percent for the quarter, but lagged behind other automakers as the whole market grew 15.5 percent. About 40 percent of Chrysler's sales for the period were to rental car companies and other fleet buyers, which generally yield lower profits than retail sales to individuals.

Dealers also reported slow sales due to an aging product lineup. But Chrysler said that by the end of the year it plans to redo the slow-selling Chrysler Sebring midsize sedan and the Dodge Charger muscle car, as well as unveil a new Jeep Grand Cherokee sport utility vehicle and a new Chrysler 300 large car. Also coming in December is the Fiat 500 minicar.

Some industry analysts were skeptical of Chrysler's performance gains.

Max Warburton, an industry analyst with Sanford C. Bernstein in England, wrote in a note to investors last week that he thinks Chrysler's accounting profits are ''almost irrelevant'' and not comparable to other automakers.

''Positive cash flow is being driven by dealer restocking and stretching payables,'' he wrote in anticipation of Chrysler's earnings release. ''We remain unconvinced Chrysler will survive in its current form despite Marchionne's blood, sweat and tears.''

While Marchionne's cost cuts have been impressive, Warburton wrote that the company's capital investments have been minimal, and it has been arguing with parts suppliers about payments for machinery to build future products.

But Marchionne, during a presentation on Fiat's five-year financial plans in Turin, Italy, took a swipe at analyst reports that have taken a dim view of Chrysler's operating profits. He compared the writings to the ''Boulevard press,'' meaning tabloid journalism.

''As we all know, in business it is ultimately only facts that prevail,'' Marchionne said.

Chrysler's last full-year profit was in 2005, when it made $1.8 billion. The last time Chrysler reported a quarterly profit was in the second quarter of 2006, when it earned $65 million.

Fiat on Wednesday reported a $34 million first-quarter loss and forecast that its auto business will be hurt this year by the elimination of cash-for-clunker programs in Europe.



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Financial Times ( 04/21/2010 )
by John Reed

 Fiat on track to end full year in profit

Fiat reported roughly break-even earnings in the first quarter and confirmed it was still on track to end the full year with a trading profit of at least €1.1bn ($1.47bn) and net debt of above €5bn.

Italy’s largest industrial company reported a net loss of €21m, or €0.02 per share, compared with a net loss of €411m in the first quarter of 2009.

Fiat’s group revenues were €12.9bn for the quarter, 14.7 per cent higher than a year ago.

The earnings release came ahead of a presentation of Fiat’s five-year business plan by Sergio Marchionne, the group’s chief executive, later on Wednesday in Turin.

Fiat said its net industrial debt totalled €4.7bn at the end of the quarter, higher than the €4.4bn of debt it had at end-2009. The company attributed this to a seasonal rise in working capital as it aligned production and inventory levels to demand.

Fiat’s core mass-market cars division reported a 22 per cent rise in revenues to €6.8bn in the quarter. The company said the unit’s performance was helped by scrapping incentives that boosted sales of its small cars, and its market-leading position in Brazil.

Fiat Auto reported a trading profit of €127m, compared with its €49m profit in the first quarter of 2009.

Case New Holland, Fiat’s farm- and construction-equipment division, reported revenues of €2.6bn, a 5.2 per cent rise in US dollar terms. Iveco, Fiat’s truck and commercial vehicles division, reported an 11.2 per cent rise in revenues at €1.7bn, reflecting “initial signs of a recovery in demand” on extremely low levels in 2009.

Sergio Marchionne, Fiat’s chief executive, is expected to lay out plans to spin off Fiat’s cars business from the group’s other divisions at its business presentation, which begins at 12pm central European time.

The presentation will also include strategic plans for all of Fiat’s business units, and details on how Fiat Auto plans to co-operate in future with Chrysler, the US carmaker it 20 per cent owns.

(C) The Financial Times Limited 2007.
© 2007 Dow Jones Reuters Business Interactive LLC (trading as Factiva). All rights reserved.



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Bloomberg ( 04/21/2010 )
by Sara Gay Forden and Marco Bertacche

 Fiat Reports First-Quarter Loss, Confirms Forecasts (Update1)

Fiat SpA, the Italian carmaker that acquired a 20 percent stake in Chrysler Group LLC last year, reported a surprise first-quarter loss and said its auto business won’t improve this year.

The net loss narrowed to 25 million euros ($33.6 million) from 410 million euros a year earlier, Turin, Italy-based Fiat said today. Analysts had projected net income of 51.6 million euros. Fiat returned to a profit on the basis of earnings before interest, taxes and one-time gains or costs. Sales climbed 15 percent to 12.9 billion euros.

Chief Executive Officer Sergio Marchionne, who is also CEO of Chrysler, is scheduled to announce a five-year business strategy today at an investor presentation in Turin. Fiat, which also manufactures trucks and equipment for the farming and construction industries, is reviving a plan to separate the car unit, people familiar with the matter said yesterday.

“Everyone is waiting to get any single word on the possible spinoff, results today are not so important,” said Alessandro Frigerio, a fund manager at RMJ Sgr in Milan. “The past is not brilliant, guidance is in line but numbers are not fabulous, that’s why people are selling.”

Fiat fell as much as 41 cents, or 3.9 percent, to 10.01 euros and traded at 10.07 euros as of 12:09 p.m. in Milan. The shares surged 9.1 percent yesterday as investors deem a separation of the car-making operations would make Fiat more valuable and facilitate further car alliances after the Chrysler deal.

Full-Year Forecast

“Investors are selling after yesterday’s rally too,” said GianMaria Bergantino, who helps manage 200 million euros at Bank Insinger de Beaufort in Rome.

First-quarter earnings before interest, taxes and one-time items, or trading profit, reached 352 million euros. That compares with the 345 million-euro median estimate of 23 analysts distributed by Fiat. Trading profit will be in a range of 1.1 billion euros to 1.2 billion euros for the full year, Fiat said today, reiterating an earlier prediction.

The confirmation “was unsurprising, but not the positive catalyst many may have hoped,” said David Arnold, an analyst at Credit Suisse in London. Results in line with forecast “are not good enough these days.”

Vice Chairman John Elkann, an heir to the Agnelli family, will succeed Luca Cordero di Montezemolo as chairman, Fiat said yesterday. Elkann, the grandson of former Chairman Giovanni Agnelli, is currently Fiat vice chairman and head of the family’s holding company.

“The group expects all of its sectors to improve performance over the prior year, with the exception of the automobiles business.” Fiat said the auto unit “will be impacted in the last three quarters of the year by the reduction or elimination of eco-incentives programs which underpin demand in Western Europe.”

Brazil Growth

Marchionne said on March 26 he expects all of Fiat’s businesses to improve this year except for the carmaking unit after European governments decided not to renew incentives. European auto sales still benefited from the last effects in the first quarter, while sales in Brazil rose more than expected.

Marchionne has said 2010 will be a “year of transition” as the auto industry emerges from its worst crisis in decades. The CEO predicts car demand in Europe, where Fiat sells almost half of its autos, will drop about 15 percent this year to its lowest level since 1994.

Fiat, which this year is equipping more of its cars with reduced-emission Multi Air engines, rolling out a 500-model subcompact with a new 2-cylinder engine and beginning sales of the Alfa Romeo-brand Giulietta hatchback, is detailing production plans and savings from its alliance with Chrysler, the third-largest U.S.-based carmaker, in an investor presentation later today.

Giulietta Compact

Marchionne has said he plans to invest more than 8 billion euros in factory equipment and vehicle development in the next two years, with the introduction of 17 models and upgrades of 13 cars now in its lineup. Two-thirds of the spending will be in Italy, where Fiat aims to raise production to 800,000 to 1 million cars from 650,000 vehicles currently.

Cooperation with Auburn Hills, Michigan-based Chrysler is slated to include both companies’ use of the Giulietta Compact platform as the basis for new models. Chrysler will provide its Italian partner with a sport-utility vehicle this year as well as five more vehicles for Fiat or its Lancia division in 2011.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aQc4cHA0rz.E

©2007 Bloomberg L.P.



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Financial Times ( 04/20/2010 )
by Paul Betts

 Agnelli family’s young scion takes the wheel at Fiat

The move on Tuesday by John Elkann, grandson of the late Gianni Agnelli, into the chairman' seat at Fiat marks the return of an Agnelli family member to the top job in Italy’s leading industrial company. But it is just as much a confirmation of change that could prove to be the making of a new Fiat and also of the Agnelli family’s future fortunes. Mr Elkann may still be only 34, but he is in his 14th year as a Fiat board member and has always been destined for the chairman’s role. However, from his position as chairman of Exor, the Agnelli family’s listed investment company, he has already started to transform both Fiat and the family’s extensive business holdings. One of his first moves in 2008 on becoming Exor’s chairman was to streamline the family holding company structure. He also stated that there were circumstances under which the Agnelli family would contemplate moving to a non-controlling minority position in Fiat Auto, its recovering but still underpowered car business. Unthinkable for previous generations and still apparently inconceivable for other European car-owning dynasties such as the Peugeots or BMW’s Quandts, the significance of Mr Elkann’s decision was only properly understood when a few months later Fiat chief executive Sergio Marchionne made a double pitch to acquire Chrysler in the US and GM Europe. Taking advantage of the global crisis, his quest was opportunistically designed to beef up Fiat to the 6m car unit output he believes is needed for survival in an industry desperately needing consolidation. Mr Marchionne’s surprise move catapulted the Italian company from perceived prey to a position as predator. And had he bagged both assets, the Agnellis would indeed have been diluted well below a controlling stake. Thanks to Mr Elkann, Mr Marchionne had the room for manoeuvre he needed. In the end Mr Marchionne pulled back from GM Europe, unimpressed by the sale terms. But having pocketed a large stake in Chrysler, Fiat Auto now has a shot at long-term competitiveness. Mr Marchionne will on Wednesday present his much anticipated plan for the Fiat Group. He is almost sure to announce the separation of Fiat Auto from the rest of Fiat’s industrial interests, including the CNH agricultural machinery business and Iveco trucks. While no surprise, this move clearly makes sense. Greater visibility for the non-auto businesses should allow investors to value them better. Meanwhile, a clearly defined Fiat Auto would be ready to combine with another carmaker when the time is right. That could eventually mean a merger with Chrysler – perhaps in 24 months if all goes to plan – but might also see a deal with another partner. Speculation will no doubt be rife. What is clear is that none of this would have been possible without Mr Elkann’s new approach at Exor. And while Fiat Auto is likely to remain one of Exor’s key investments, Mr Elkann’s logical objective must be to grow Exor’s other investments so they are no longer dwarfed in value terms even by a fitter Fiat. So while the naming of this young Agnelli as chairman of Fiat might seem to be a return to the past, it is more likely to be a case of everything staying the same in order that everything else can change. It is Italy, yes, but quite not as we have known it up to now.

Luca’s temptation
Luca Cordero di Montezemolo, Ferrari’s swashbuckling and suave chairman and long a close friend and confidant of the Agnelli family, was parachuted into the Fiat chairmanship six years ago just as he became president of Italy’s Confindustria industrial confederation. Umberto Agnelli, the chairman and brother of Gianni Agnelli, had just died, Fiat was in a mess, and the family needed someone they trusted to help to stabilise what looked at the time to be a sinking ship. Mr Montezemolo, who over the years revived Ferrari both on the Formula One circuit and as a profitable manufacturer of supercars, did just that. He clearly felt it was time to hand over the baton to Mr Elkann, freeing him for his multiple other business pursuits – not least with Ferrari. He has built up a separate small luxury venture called Charm and even more ambitiously is taking on the Italian state railways with a rival private high-speed train venture. In recent years, there has also been increasing speculation that the 62-year-old and extremely popular Ferrari chairman has been thinking of entering politics and even setting up his own party. So far, he has denied these rumours, but now, free of his Fiat charge, temptation to launch into a political career may get the better of him.



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Bloomberg, Automotive News ( 04/21/2010 )
by Tiffany Kary

 Chrysler’s Old Carco Assets in Bankruptcy Can Be Liquidated

Chrysler LLC, the 85-year-old carmaker still partially in bankruptcy as Old Carco LLC, won approval to liquidate under a plan that may repay the U.S. almost nothing for its bailout and lets unsecured creditors keep any proceeds from a pending lawsuit against Daimler AG.

U.S. Bankruptcy Judge Arthur Gonzalez in Manhattan yesterday approved Old Carco’s Chapter 11 liquidation, which resolves all remaining objections in the case that began on April 30, 2009. The day it filed, Chrysler agreed that Fiat SpA would pay $2 billion for a stake in the company while Chrysler kept the remnants, including $27 billion of debt, in bankruptcy.

A federal appeals court in Manhattan upheld the sale.

“The relevant confirmation standards have been satisfied, therefore the court confirms the plan,” Gonzalez said.

About 98 percent of creditors had voted in favor of the plan, and 19 outstanding objections were resolved or overruled during a hearing yesterday that lasted almost four hours. The company’s wind-down plan will become effective April 30.

“In 10 days it will be the anniversary of the filing,” Jeffrey Ellman, a Chrysler attorney, told Gonzalez, saying it was difficult to reach consensus on a wind-down plan for such a large company. He also spoke of the “extraordinary circumstances in which the bankruptcy was filed, for the company, the economy, and the country.”

Liquidation Plan

“Extensive amounts of time have been spent to develop funding for the liquidation plan,” he added.

Ellman said at a Jan. 21 hearing that a key issue was whether the company would have enough money to liquidate its remaining assets, given the U.S. had allotted only $260 million for wind-down costs.

The plan approved yesterday was updated to include a $15 million “environmental reserve” to cover cleanup costs for hazardous waste at properties that Chrysler may not be able to sell, Ellman told Gonzalez. He said that of 21 properties that remained in bankruptcy, 10 had been sold, and six are in contract to be sold. The $15 million came out of the $260 million that the U.S. had already set aside, he said.

Objections resolved during the hearing included one from the Wisconsin Department of Natural Resources, which was given permission to sue a trust, called the “environmental reserve,” if Chrysler doesn’t comply with environmental orders at a site of its old facility in Kenosha, Wisconsin.

Michigan’s Natural Resources Department, which had objected based on the lack of funds to clean up potentially hazardous materials at one old manufacturing facility, at 6700 Lynch Road in Detroit, withdrew its objection. Under an agreement, Chrysler will create a trust funded with $500,000 for the property, according to court documents.

Wind Down

Under an outline already approved by Gonzalez Jan. 21, the remainder of the company will wind down, giving the U.S. no predicted recovery on its $5 billion loan under the Troubled Asset Relief Program. The U.S. and Canadian governments may receive a small recovery from liquidated assets such as the sale of Chrysler’s employee cars.

A $4 billion loan prior to the bankruptcy was increased to $5 billion, and the U.S. can make a credit bid on any assets that are to be sold, according to the wind-down plan. Creditors with “other secured claims” are estimated to get all of the $20.6 million they are owed. The recovery for unsecured claims is “undetermined.”

Net Investment

U.S. taxpayers are likely to lose $30.4 billion of their total $81.1 billion investment in Chrysler, General Motors and auto-supply companies, according to a December report from the Government Accountability Office. At the time, taxpayers’ net investment in Chrysler was $14.3 billion, according to the GAO.

Investors who had challenged the bankruptcy sale, including the Indiana State Police Pension Trust, had argued that Treasury Secretary Timothy Geithner violated the Constitution by using TARP money to finance the sale, and had their arguments overruled in the appeals court.

Recovery for unsecured creditors will come from any proceeds of litigation with Daimler. According to court documents, the suit on behalf of Old Carco names individual defendants for breach of fiduciary duty, and Daimler for aiding and abetting a breach of fiduciary duty.

Chrysler’s creditors sued Daimler in August, seeking unspecified “billions” that Daimler allegedly stripped from the automaker in 2007, just before selling it to Cerberus Capital Management LP. Daimler knew in 2006 that Chrysler was a failure, burdened with debt and declining sales, creditors alleged. They seek a jury trial to determine damages.

Chrysler Group LLC, a new company that bought some assets of Chrysler LLC, was created on June 10 and is 20 percent-owned by Fiat.

The case is In re Chrysler LLC, 09-50002, U.S. Bankruptcy Court, Southern District of New York (Manhattan).


http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aSeToHvqeNVo

©2007 Bloomberg L.P.



************************

Bloomberg ( 04/21/2010 )
by Katie Merx

 Whitacre Says GM Repaid U.S., Canada ‘With Interest’

General Motors Co. Chief Executive Officer Ed Whitacre said GM has repaid $5.8 billion in loans to the U.S. and Canada in an opinion piece published on the Wall Street Journal's Web site.

“We’re paying back -- in full, with interest, years ahead of schedule -- loans made to fund the new GM,” Whitacre wrote.

Whitacre is scheduled to speak at GM’s Fairfax, Kansas, assembly plant today. The company owed $4.7 billion in principal to the U.S. and $1.1 billion to the governments of Ontario and Canada, said Tom Wilkinson, a GM spokesman.

Wilkinson said that the article from Whitacre was intended for publication in Wednesday’s journal.

“It shows that GM is reviving and that its business strategy seems to be going in the right direction,” said Koji Endo, managing director of Tokyo-based Advanced Research Japan.

By paying back the debt, Whitacre is taking a step toward the public sale of stock in Detroit-based GM, a goal that would allow the automaker to regain its independence. The U.S. owns a 61 percent stake after GM received about $50 billion in aid for its 2009 bankruptcy.

GM received $8.4 billion in loans as part of its government assistance, with the rest in equity. Whitacre, 68, said in December he was starting to pay down the loans and said he would complete the task by the end of June.

©2007 Bloomberg L.P.



************************

Financial Times ( 04/21/2010 )
by Daniel Schäfer

 Investors criticise Daimler on guidance

Investors and analysts sharply criticised Daimler’s management on Tuesday for its “erratic communication” after the premium carmaker stunned markets with a sudden doubling of its full-year guidance.

The news of the profit forecast and a first-quarter profit of €1.2bn ($1.6bn) – released earlier than expected on Monday night and twice as much as analysts’ average expectation – lifted the German carmaker’s share price by 7 per cent.

Daimler essentially doubled the 2010 operating profit forecast at its Mercedes car unit to €2.5bn-€3bn from its ongoing business.

The positive news pushed the share prices of several other European carmakers higher, as it underscored the sharp demand rebound in the luxury car sector.

Daimler’s strong performance was overshadowed by irritation among analysts and investors.

“Everybody in the market has a better track record in predicting their results than Daimler itself. They have been very erratic in their guidance,” said Philippe Houchois, analyst at UBS. “Investors are assigning a lower price-earnings ratio to such companies.” A manager of one of Germany’s largest institutional investors said: “We are not amused.

“When the profit forecast is being lifted by 100 per cent within several weeks, this is difficult to explain.”

The announcement follows other surprises from Daimler in recent years.

In February, an abrupt decision to axe its dividend caught investors off-guard and spurred criticism that management had failed to prepare markets.

Daimler’s management had to spend a lot of time last month talking to investors and scrambling to explain the decision.

A month ago, Bodo Uebber, Daimler’s chief financial officer, dismissed talk that the forecast was too conservative. In an interview with the Financial Times, he said investors had become too optimistic.

“There are a few market participants who have surged ahead too far from what is happening in the economy,” he said. He also vowed to step up communication with the markets.

Max Warburton, analyst at Sanford Bernstein, noted: “The big issue . . . is whether key information gets to the board and whether divisional management have an accurate handle on weekly and monthly developments in their operations.”

Mr Houchois said the strong operative performance in the first quarter would override all criticism.

(C) The Financial Times Limited 2007.
© 2007 Dow Jones Reuters Business Interactive LLC (trading as Factiva). All rights reserved.



************************

Financial Times ( 04/21/2010 )
by John Reed

 Manufacturers starved of key components

Car production lines worldwide look set to grind to a halt as the flight ban over much of Europe begins to starve manufacturing of key electronic components.

Other industries are stockpiling goods in key locations, such as Dubai, to give themselves maximum flexibility amid uncertainty about when flights will resume.

The problems highlight industry’s dependence on complex, worldwide supply chains that need multiple modes of transport to deliver goods and components just in time to where they are needed.

Bruno Sidler, chief operating officer of Netherlands-based Ceva Logistics, said many customers are still failing to recognise how long the disruption might persist even once flights resume.

“It’s one thing to have the airspace open again,” he said. “The airlines will have to bring in the planes. Everything will be out of rotation. I think the whole thing will be out of whack for two to three weeks.”

Air freight accounts for a tiny amount of world trade by weight – about 0.5 per cent for the UK. But the disruption has highlighted how it plays a vital role in supplying key, high-value components to many manufacturers. In spite of its tiny volume, it accounts for 25 per cent of UK trade by value.

Among the carmakers, BMW and Nissan said they plan to suspend some production this week because of disruption to supplies. Audi said it might have to cancel shifts in coming days because of missing parts.

Their predicament is likely to be reflected in many other industries in coming days, according to logistics experts. Even for those that find new ways to move crucial goods such as microchips, there is likely to be a gap in supply before consignments arrive by other, slower modes.

Mr Sidler said many of his company’s customers had flown substantial supplies to Dubai, where the big freight airport is next to one of the world’s largest container terminals. From there, the goods can be flown to European airports, shipped to Europe or trucked to the port of Salalah in Oman, from where transit times to Europe are quicker.

Although all three mainly use suppliers based near their factories and use road and sea for most deliveries, they depend on air freight for a small number of high-value electronic components. Nissan, for example, said it might have to halt production of its Cube, Murano SUV and Rogue crossover models because it lacked supplies of a critical sensor made in Ireland.

Some of the goods held in Dubai have already been flown to Amsterdam and other northern European airports during openings in the ash cloud.

“If you had a scenario where this thing is moving back over land, this thing is getting to a level where people will be out of stock,” said Mr Sidler. “Then, putting it on a ship is a solution. But it will create a gap of two to three weeks before they will be restocked again.”

Remo Eigenmann, head of air freight for Damco, the logistics arm of Denmark’s AP Møller-Maersk, said the situation had been exacerbated by a fall since the economic downturn in prices to use air cargo. That had made customers who would previously have used other modes or a mixture of air freight and sea freight switch entirely to air freight.

They were now looking to revert to a mixture of air and sea, moving goods from aircraft in Dubai on to ships to prevent goods piling up in one place.

“The biggest concern for our customers at the moment is that there’s no real information available,” said Mr Sidler.

The question remains the extent to which the past week’s disruption will make companies re-examine their arrangements for sourcing goods.

Companies have become more vulnerable to disruption since moving to just-in-time production methods, where hardly any stock of products is held, said Emma Scott, representation manager for the Chartered Institute of Purchasing & Supply in the UK.

However, it would make little sense to carry large quantities of excess stock for the slim likelihood that further severe disruption of the current kind. “That in itself is a cost,” said Ms Scott.

Instead, companies should set up supply chains that reduced their reliance on a single mode and could be adapted to meet different circumstances.

“It’s a case of taking a sensible approach and having a flexible approach to your supply chain,” Ms Scott added.

(C) The Financial Times Limited 2007.
© 2007 Dow Jones Reuters Business Interactive LLC (trading as Factiva). All rights reserved.



************************

The Detroit News ( 04/21/2010 )
by David Shepardson

 Feds stay firm on auto dealer oversight

Washington — The White House said Tuesday it opposes efforts by auto dealers to be exempted from the oversight of a proposed consumer watchdog agency.

Diana Farrell, deputy director of the White House National Economic Council, said loans made by auto dealers should be covered by the agency that is part of a proposed Senate overhaul of the financial sector.

The bill is expected to come up for a vote in the coming week. “Why should a bank be treated differently than an auto dealer in providing you money?” Farrell asked. “If (auto dealers) are offering good, transparent, fair financing products to their customers, they have nothing to worry about.”

She said including auto dealers in the oversight will prevent “a race to the bottom” among lenders.

A House version approved in December exempted auto dealers from the scrutiny of a new agency. About 100 auto dealers plan to visit Capitol Hill on Monday to lobby against the new version that would subject them to the additional oversight.

Auto dealers note they already are covered by federal and state laws that bar fraudulent loan practices.

“Adding another layer of regulation will reduce availability of credit and increase costs to consumers,” said Ed Tonkin, chairman of the National Automobile Dealers Association.

“Wall Street caused the financial meltdown — not local auto dealers on Main Street.”

The Senate bill creates a Bureau of Consumer Financial Protection to oversee dealer-assisted financing.

Sen. Sam Brownback, R-Kan., is sponsoring an amendment that seeks to exempt auto dealers.

Last month, the Pentagon said it supported legislation to prevent members of the armed services from being preyed upon by “unscrupulous” auto dealers.

Clifford L. Stanley, the Defense Department’s undersecretary for personnel and readiness, supported efforts to create a Consumer Financial Protection Agency that would oversee automobile sales and financing.

“The Department of Defense fully believes that personal financial readiness of our troops equates to mission readiness,” Stanley said.

Separately, General Motors Co. said it has upped the number of dealers that it has offered to reinstate by five, to 666, from the 661 it had announced previously.

(c) Copyright 2007, The Detroit News. All Rights Reserved.
© 2007 Dow Jones Reuters Business Interactive LLC (trading as Factiva). All rights reserved.



************************

Detroit Free Press ( 04/21/2010 )
by GREG GARDNER

 Recovering Toyota on GM’s heels in sales, Aggressive incentives prove to outweigh quality concerns

Despite six months of recalls, congressional inquiries and serving as the butt of late-night jokes, Toyota is recovering so well that it is situated to overtake General Motors as the No. 1 automaker in the U.S. in April.

While GM remains the leader for the first three months of the year, Toyota’s offer of no-interest loans and discounted leases is overshadowing consumers’ worries about quality issues — and it’s forcing other automakers to discount heavily, too. “Toyota is making life difficult for everyone, and if you don’t respond, you’re going to get run over,” said John Wolkonowicz, an analyst with IHS Global Insight.

In March, when Toyota launched its aggressive incentives and saw its sales surge 41%, the Japanese automaker came within 1,148 vehicles of outselling GM.

But nearly three of every four of those sales was financed with the expensive nointerest loans that erode profits, according to the consumer automotive Web site Edmunds.com. As other automakers tried to keep pace, a record 22% of all U.S. vehicle sales last month were transacted with no-interest financing.

The deals have continued into April, and Toyota, armed with about $23 billion in cash, could offer them indefinitely.

While expensive, the big deals could be a winning strategy for Toyota. Studies show that Toyota’s image is already beginning to bounce back.

(c) Copyright 2007, Detroit Free Press. All Rights Reserved.
© 2007 Dow Jones Reuters Business Interactive LLC (trading as Factiva). All rights reserved.


     

Tuesday, April 20, 2010

Fw: Toyota to recall 870,000 Sienna minivans / Toyota verifies flaw in Lexus SUV / Toyota Seeks Fix for Lexus SUV, Faces New Congressional Hearing


----- Forwarded by Calvin R Thudium/CARZ/DCC/DCX on 04/20/2010 02:50 PM -----
"Gord Gray" <ggray@mnsi.net>

04/17/2010 12:41 PM

To
<Undisclosed-Recipient:, >
cc
Subject
Toyota to recall 870,000 Sienna minivans / Toyota verifies flaw in Lexus SUV / Toyota Seeks Fix for Lexus SUV, Faces New Congressional Hearing





Another blow to Toyota .  Bake Pedeals or what ever they want to call it,  Carpets, Run Away Cars,  SUV Roll Overs now this. Rusty Spare-Tire Cables. Like I said it's the "The Deception Game" to obtain the percetion of quality products.   What Toyota will find out in time is that a "Half Truth Is A Whole Lie Which Will Come Back 360 Degrees And Bite You "
 
 
 
 

Toyota to recall 870,000 Sienna minivans for rusty spare-tire cables
http://www.autonews.com/apps/pbcs.dll/article?AID=/20100416/RETAIL05/100419906/1147
Automotive News
--
UPDATED: 4/16/2010 7:45 p.m. ET
 Letter to the Editor
(Reuters) -- Toyota Motor Corp said it would recall 870,000 Sienna minivans sold in the United States and Canada since the 1998 model year because of a risk that the spare tire could drop onto the road.

The recalls cover minivans sold in 20 cold-weather U.S. states and Canada due to potential corrosion from long-term exposure to road salt that could in the worst case cause the spare tire to separate from the vehicle, Toyota said.

All told, the recalls cover some 600,000 two-wheel-drive Sienna minivans from the 1998 to 2010 model years sold or registered in the United States and 270,000 of the same vehicles in Canada.

Friday's action pushes the number of Toyota vehicles recalled since late last year to more than 9.3 million. Most address the risk of unintended acceleration tied to faulty gas pedals and floor mats that can interfere with pedals. The Prius and other hybrids have also been recalled for brake problems.

On Tuesday, Toyota halted sales of its
Lexus GX 460 SUV after Consumer Reports said its handling in certain curves posed a "safety risk."

The automaker has not yet decided whether it would have to recall the GX 460, but has said its engineers duplicated the results of Consumer Reports' tests.

For the Sienna recall, Toyota said prolonged exposure to high use of road salt could cause excessive corrosion in the cable. Owners will receive a letter urging them to bring their minivans to a dealership for inspection while Toyota develops a remedy.

The recall covers vehicles sold or registered in the District of Columbia as well as Connecticut, Delaware, Illinois, Indiana, Kentucky, Massachusetts, Maryland, Maine, Michigan, Minnesota, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Virginia, Vermont, Wisconsin and West Virginia.

Owners in other states also can choose to have their vehicles inspected, Toyota said.

latimes.com
AUTOS  - Toyota verifies flaw in Lexus SUV
The carmaker says it's looking for a fix to the SUV rollover issue in the GX 460. Separately, it will recall 600,000 Sienna minivans over potential corrosion in the cable securing the spare tire.

By Jerry Hirsch, April 17, 2010     http://www.latimes.com/business/la-fi-lexus17-2010apr17,0,70001.story

Toyota Motor Corp. said Friday that its engineers had confirmed a flaw in a Lexus SUV model that Consumer Reports had warned consumers not to buy because of a rollover threat.

The automaker said it was looking for a fix but did not say whether it planned to issue a formal recall for the 2010 model year Lexus GX 460. It has stopped selling the SUV and has temporarily idled the vehicle's Japanese production line.

Federal regulations give an automaker five days, after finding that one of its vehicles is not in compliance with safety standards or has a defect, to make a report to the U.S. Transportation Department. A spokeswoman for the National Highway Traffic Safety Administration said the agency was aware of Toyota's test results and was waiting for the automaker's formal report.

This week, NHTSA issued an advisory asking motorists to use caution when driving the vehicle.

Separately, Toyota said Friday that it would launch a voluntary recall involving about 600,000 Sienna minivans sold in the U.S. to address potential corrosion in the spare-tire carrier cable.

The automaker said the condition affects some 1998 through 2010 Siennas that have been operated in cold-climate areas with high use of road salt. This could let the spare tire fall from the van, creating a danger for vehicles following it.

Toyota said it was working on a fix, but for now it wants owners to bring the vans to a dealership for an inspection. Once it has a remedy, owners will get a second notice advising them of the solution.

In its report on the GX SUV on Tuesday, influential buyers guide Consumer Reports said that "when pushed to its limits on a handling course" on the magazine's test track, the rear of the Lexus GX "slid out until the vehicle was almost sideways" before the vehicle's electronic stability-control system was able to regain control.

Lexus spokesman Bill Kwong said Friday that engineers started testing the Lexus SUV on a track in Japan on Wednesday, using conditions similar to the Consumer Reports test, and replicated the sliding under certain conditions.

Toyota engineers "are currently evaluating current remedies or fixes. It is too early to speculate what the remedy will be and the timing of the release," Kwong said.

"It is too early to tell if we are going to recall the vehicles. We have to figure out why it is doing it. We have to take it one step at a time," he said.

Consumer Reports and others have said they expected Toyota to modify the software that manages the GX's electronic stability-control system, but Toyota executives said they were evaluating a variety of factors that might cause the vehicle to slide under certain conditions and have not settled on a solution.

The GX, which sells for about $52,000, has been on the market for about three months. About 5,000 vehicles have been sold.

Owners worried about the safety of the vehicle should take it to their dealership, where they will be provided with a loaner "until the issue is resolved," Kwong said.

Morris Grossblatt, 81, a retired auto repairman in Tarzana, said his new GX 460 has been for the most part "an absolute delight."

But the news that Toyota has confirmed rollover concerns has him worried -- but not for his safety.

"I'm always concerned if there could be an accident, but I don't drive in an extreme way and the car has just behaved beautifully," he said. "But I don't like this going on because even though I plan on keeping it for many years . . . my $70,000 car won't be worth much as a trade-in."

He also worried that his insurance company might increase his premium.

The vehicle's sales suspension comes as Toyota is using aggressive financing and lease incentives to entice customers back to showrooms after a series of large recalls and federal probes into safety defects.

The Japanese carmaker has issued nearly 10 million recall notices worldwide in recent months for problems related to sudden acceleration that it blames on sticky gas pedals and faulty floor mat design, as well as braking problems in some hybrid models.

The latest safety issue "is a huge problem, but the real question is how much longer is this going to go on?" said Jeremy Anwyl, chief executive of Santa Monica-based Edmunds.com. "If three months from now we haven't heard anything else, Toyota can start to regroup and move on."

Toyota's brisk sales last month have continued into April, demonstrating that despite the ongoing controversies, the automaker has a "decades-old reservoir of good will" that is helping it through the crisis, Anwyl said. "One could argue that with all this news, why would anyone buy a Toyota?"

Toyota has until Monday to decide whether to contest a $16.4-million fine levied by the U.S. Transportation Department -- the largest ever sought by the agency from an automaker. The government accused Toyota of delaying before issuing the recalls.

 

Toyota Seeks Fix for Lexus SUV, Faces New Congressional Hearing

By Alan Ohnsman, Jeff Plungis and Angela Greiling Keane

April 17 (Bloomberg) -- Toyota Motor Corp. said it’s seeking a fix for a Lexus model identified as a “safety risk” by Consumer Reports as a U.S. congressional committee set a new hearing to examine unintended acceleration in Toyota vehicles.

The world’s largest automaker said yesterday its engineers reproduced the same “slide” Consumer Reports magazine found in its tests of the 2010 GX 460 sport-utility vehicle. Separately, House Energy and Commerce Committee Chairman Henry Waxman asked Toyota for documents on unintended acceleration for a hearing his panel will hold on potential electronic causes on May 6.

“We’re going to work on a countermeasure” to eliminate the handling issue on the GX, said Bill Kwong, a U.S. spokesman for Toyota’s luxury unit. “It’s too early to say exactly what that will be.”

The combination of Consumer Reports issuing a “don’t buy” assessment on the Lexus GX and renewed congressional scrutiny underscores the challenge Toyota faces regaining its reputation after global recalls of more than 8 million autos for problems including unintended acceleration. Compounding those issues, Toyota yesterday recalled 870,000 Sienna minivans in the U.S. and Canada for corrosion in a cable that holds the spare tire.

“Big obstacles remain before Toyota can regain customer trust and its strong quality reputation, especially in the case of non-Toyota owners,” said industry researcher Robert Cole, professor emeritus at the Haas School of Business at the University of California, Berkeley. “The public now associates problems of unintended acceleration with Toyota.”

Toyota’s American depositary receipts fell 69 cents, or 0.9 percent, to $79.37 yesterday in New York Stock Exchange composite trading.

GX Test

The assessment by Consumer Reports, a non-profit magazine published by Yonkers, New York-based Consumers Union, was the first of its type for the magazine in nine years and led Toyota to halt sales and production of the $52,000 SUV.

Consumer Reports researchers found the GX’s rear end “slid out until the vehicle was almost sideways before the electronic stability control system was able to regain control” at a Connecticut test track, the magazine said. “In real-world driving, that situation could lead to a rollover accident, which could cause serious injury or death.”

The Toyota City, Japan-based company said GX assembly at its Tahara, Japan, plant would stop from April 16 through April 28. Toyota suspended sales of the luxury SUV in North America, Russia and the Middle East. Toyota has said it’s conducting Consumer Reports’ driving test on all Toyota and Lexus SUVs.

“With the GX, this isn’t necessarily a problem related to carrying out an avoidance maneuver, but one that comes up when drivers are traveling at a high rate of speed,” said Dan Edmunds, director of vehicle testing for Edmunds.com, a Santa Monica, California-based automotive data and pricing service.

“The fix could be something as simple as reprogramming the software for the electronic stability control system,” Edmunds said.

House Hearing

Toyota executives were called before House and Senate committees in February and March to explain the causes of its recalls for problems linked to sudden acceleration.

Waxman, a California Democrat, said yesterday in a letter to Toyota U.S. sales chief Jim Lentz that his committee wants to know more about Toyota’s work with engineering and research firm Exponent Inc. Waxman asked Lentz to testify at next month’s hearing.

The panel asked for all contracts and correspondence between Toyota and Exponent relating to unintended acceleration and electronic throttle-control systems.

Exponent executives helped Toyota rebut the assertions of a Southern Illinois University professor about flaws in its electronic controls at a March 8 news conference. David Gilbert, a professor of automotive technology, had been featured in an ABC News broadcast and testified at a House Energy and Commerce subcommittee hearing Feb. 23.

New Recalls

Toyota said yesterday that the spare tire on Siennas can be dislodged if the cable deteriorates. The company is voluntarily recalling 1998 through 2010 vans sold in parts of the U.S. and Canada where salt is most likely to be used on roads.

“Toyota is listening to its customers attentively, and we want to make sure their voices are heard,” Steve St. Angelo, the Japanese automaker’s chief quality officer for North America, said in a statement. “We are also working diligently to develop a remedy as soon as possible.”

New York and New Jersey are among 20 states and the District of Columbia that are covered by the recall. Toyota is working on a fix for the defect and will inspect affected vehicles in the meantime, the company said.

The automaker said it will provide free inspections of spare-tire cables in all states, including those not in the recall, to customers who want them.

Toyota also said yesterday it’s recalling 4,774 units of “tray-type” floor mats in Canada on some 2007 through 2010 Tundra pickups and 2008 through 2010 Highlander and Highlander Hybrid SUVS. Like floor mats recalled last year, these can shift out of position and potentially cause the accelerator pedal to stick, Toyota’s Canadian unit said in a statement.  

Fw: Windsor's Chris Vander Doelen: Fiat plots Chrysler's future


----- Forwarded by Calvin R Thudium/CARZ/DCC/DCX on 04/20/2010 02:49 PM -----
"Gord Gray" <ggray@local444.caw.ca>

04/20/2010 08:33 AM

To
"Gord Gray" <ggray@local444.caw.ca>
cc
Subject
Windsor's Chris Vander Doelen: Fiat plots Chrysler's future





 
Windsor's Chris Vander Doelen: Fiat plots Chrysler's future
 
Marchionne to deliver strategic plan, new product decisions Wednesday
 
 
By Chris Vander Doelen, The Windsor Star    April 20, 2010 8:42 AM
 
 
In this file photo, Fiat and Chrysler CEO Sergio Marchionne gives members of the media a tour of the Chrysler and fiat display Monday morning at the first ay of the North American Internation Auto show.
 
In this file photo, Fiat and Chrysler CEO Sergio Marchionne gives members of the media a tour of the Chrysler and fiat display Monday morning at the first ay of the North American Internation Auto show.
Photograph by: Dan Janisse, The Windsor Star
Wednesday is the long-awaited day of reckoning for Canadian Chrysler workers and suppliers -- the day we find out what new role has been chosen for them by their new Italian masters.
Fiat/Chrysler CEO Sergio Marchionne will deliver his latest strategic plan during another of his trademark, all-day briefings in Turin. This time it's for Fiat.
Every surviving Chrysler plant in North America is expected to get new product as Marchionne lays out what will be built where for the next five years. The futures of WAP and BAP, as Chrysler employees call Windsor Assembly and Brampton Assembly, are almost completely in Marchionne's hands.
Knowledgeable observers always say they are more nervous about Brampton's future than Windsor's because Marchionne often refers in semi-glowing terms to WAP.
But tomorrow Fiat is expected to announce that BAP will assemble a new Alfa Romeo product based on the Chrysler 300 chassis. Production is at least 12 months away, local sources tell me, because no tooling has been tendered yet.
And then we find out whether Windsor remains a one-product minivan plant with a rapidly approaching Best Before Date -- or whether it gets to build something completely different.
The betting money says WAP will be assigned a combination of those two potential outcomes. Windsor will continue to build minivans on three shifts per day, despite a market segment that is now disappearing at a frightening rate.
But WAP will also start building two new vehicles which may be publicly identified for the first time Wednesday.
Sources (outside the company) suggest that one of the vehicles is almost certainly a light duty "lifestyle" pickup truck to replace the current Dodge Dakota.
U.S. online sources say it will probably resemble the Dodge Rampage concept shown in 2006. It will offer a marked improvement in fuel economy over the outgoing Dakota, a notorious gas pig.
Plans call for it to be built on a modified minivan platform -- which would make it only the second pickup truck on the market in North America without a true frame, the other being the Honda Ridgeline.
Allpar.com, an all-Chrysler nerd site, reported the Dakota rumour last month. Engineers who have talked to Chrysler about the new WAP programs tell me two new body codes are definitely slated to be built in Windsor -- and both of them may be trucks.
One of the programs has the body code BU, which is a carry-over platform but a completely new program. Hiring was taking place a month ago for both programs, which means they are either closely linked or on similar platforms.
Fiat intends to expand the RAM brand. But it also says any new commercial van it builds will be Fiat-based.
Based on that, they could build a new Fiat-based commercial cargo van in Windsor badged as a RAM, or a minivan-based RAM. The plant can do it -- it's capable of building up to five versions of two different platforms.
The Volkswagen Routan is toast, local business sources say, and won't be produced in Windsor for much longer.
Whatever Marchionne announces is going to be exceptionally welcome news for Windsor's biggest auto employer. More than a few staff have long prayed for an escape from the minivan prison they've been locked into for more than a quarter of a century.
It's been a golden prison for most of those years.
But the bottom dropped out of the minivan segment a decade ago and there's been no end in sight.
"It's been dropping like a lead balloon and there's no telling where it will stop," says business professor and industry expert Tony Faria, co-chair of the University of Windsor's automotive research group.
Minivan sales peaked at 1.5 million in 2000, when Chrysler built almost half of them. But sales slid to one million total minivans in 2007 and have plunged by another 450,000 in the last three years alone, he says.
"With the way sales are trending this year we're looking at a minivan segment in North America of less than 500,000 -- less than a third of what it was 10 years ago," Faria said Monday. "So anything they bring here would be really good news."
We know one thing: Fiat didn't reverse its decision to kill WAP's third shift last fall to build more minivans. So good news for Windsor is guaranteed.
cvanderdoelen@thestar.canwest.com or 519-255-6852
© Copyright (c) The Windsor Star
 


 
 
Gord Gray
Local 444  Public Relations / Communications
Managing Editor of The Guardian of Windsor Inc. & 444 News
1855 Turner Road, Windsor, Ontario, N8W 3K2
Phone : 519-258-6400 (Ext. 427)
Fax: (519) 258-0424
ggray@local444.caw.ca

 
   

Fw: CAW Bursary Application for 2010


----- Forwarded by Calvin R Thudium/CARZ/DCC/DCX on 04/20/2010 02:35 PM -----
"Todd Romanow" <Todd.Romanow@caw.ca>

04/20/2010 12:52 PM

To
undisclosed-recipients:;
cc
Subject
FW: CAW Bursary Application for 2010





 
 
Please find attached the application for the
CAW 2010 George Brown - Merl Rodocker Bursary Award.
 
The award is for $500.00 for university assistance for children of CAW members.
 
(You can't win if you don't apply. Deadline is September 15th.)
 
In Solidarity,
 
 
Gayle Gorman
Support Staff, Edmonton
CAW/TCA
alberta@caw.ca