1st September 2008

Obama court Detroit’s auto industry

Barack Obama will renew his sales pitch to voters for the 2009 model Obama administration and Detroit automakers are among those, in his fourth visit to Michigan. Obama used Detroit’s foibles as a rallying cry for reform during the Democratic primary, making his critique a standard part of his stump speech. Obama has launched a charm crusade toward the industry that powers a key swing state, since clinching the nomination.

Obama’s visited assembly plants, meet with chief executives of General Motors and Ford and talked up the companies’ new technology. Obama was ready when automakers and suppliers began seeking funding for up to $50 billion in government loans in July. Michigan’s Democratic lawmakers, including Rep. John Dingell meet with Obama to give him their advice and while the UAW threw its support behind Obama touting his record on trade and health care.

Obama had proposed a similar program last year as part of his fuel economy program and sided with automakers while McCain rejected the idea. The idea appeals to Michigan voters and helps Obama to a 46% to 39% lead in the Detroit Free Press/Local 4 Michigan Poll conducted last month. The campaign touts the loans in a Michigan specific TV ad, following Obama’s pledge Thursday to “help our auto companies retool so that the fuel-efficient cars of the future are built right here in America.” The automakers’ three top executives General Motors Chairman Richard Wagoner, Ford Chief Executive Alan Mulally and Chrysler Chairman Bob Nardelli have not contributed to the election.

posted in Auto marketing, Autoloans | 2 Comments

1st September 2008

Fuel efficient carmakers

Automakers were “deserving” of as much as $50 billion in government-backed loans so that they can build more fuel-efficient cars, said a top General Motors executive. Robert A Lutz vice-chairman of General Motors said the car companies need money to retool their plants but probably cannot raise enough capital on their own because of the tight credit markets. Lutz also said the automakers have already made considerable progress in transforming themselves and that the government should help them proceed faster.

Lutz told reporters at an event near Chicago where General Motor showed off it 2009 line up that “The American auto industry is deserving of government loan guarantee,” “We have done a whole bunch of things that people said, ‘Why aren’t you doing this?’” Automakers and along with the United Automobile Workers union and lawmakers are urging Congress to appropriate $3.75 billion to back the $25 billion in loans authorized last year.

Detroit carmakers have announced plans to revamp numerous truck plants so that they can build the smaller cars and crossover vehicles. Costs of each conversion are ranging from $75 million at a Ford plant. Sales of pickups and SUVs plummeted this year as gasoline prices climbed above $4 a gallon in much of the United States. Automakers have been offering substantial discount on some models and shutting down plants that make them to keep inventories from growing larger. July, large SUV sales were down to 42% and full size pickup trucks sales declined to 28%.

posted in Auto marketing, Autoloans, Compare Loan Rates | 0 Comments

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