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’Fiat poised to take Chrysler stake
Chrysler and Fiat are in talks about creating a joint venture that would give the Italian carmaker a significant stake in Chrysler. Insiders said the companies had signed an MoU on a deal to give Fiat a 35% stake in Chrysler and an option to buy a majority,
Bailout creep: Chrysler Financial has a clever new plan
Is there no end to bailout creep and the many ingenious ways that US car makers and others are hatching fresh ideas to access federal bailout funds, government subsidies, loans and any other kind of public aid?
In the latest brazen attempt to double-dip into public coffers,
Bush to bail out Detroit
Add another $13.4bn to the ever-increasing tally of bailout cash, and Detroit’s Big 2 to the list of companies ‘too (insert adjective here) to fail’.
The US government will provide $13.4bn in emergency loans to prevent the collapse of GM and Chrysler,
Bush weighs ‘orderly bankruptcy’ for automakers
The White House said Thursday it was considering an “orderly” bankruptcy for stricken US automakers GM and Chrysler. A Bush spokesman said the president and Treasury Secretary Hank Paulson were considering the step as part of an overall rescue package for the two carmakers,
GM, Chrysler, re-open merger talks
GM and Chrysler have reopened merger talks, as Chrysler owner Cerberus has signalled its willingness to give away part of its ownership in the auto maker, reports the WSJ. With cash running low at both companies,
Bush feels heat over auto loan while UK ponders similar bailout
US president George W. Bush was on Sunday facing growing pressure from his own party to impose wage cuts and debt write-downs on the US’s troubled auto industry as conditions of the $14bn-$15bn emergency loan Detroit says it needs. Republican Senators last week scuttled legislation to lend Detroit $14bn and in response,
CDS wrap: The week in perspective
This CDS report was written by Markit’s Gavan Nolan
The US municipal bond market is not renowned for its headline-catching abilities. Debt backed by the revenues of US states is viewed generally as a safe,
Auto bailout talks collapse in US Senate
A frantic, last-ditch attempt to forge an emergency-relief package for the Big Three auto makers collapsed in the US Senate, amid a sharp partisan dispute over the wages paid to workers at the troubled manufacturing giants,
Detroit bail-out agreed in principle
The Bush administration and congressional Democrats agreed in principle on Monday on a $15bn emergency loan for US carmakers, but remained at odds over key details as negotiations continued into the night.
Lex on ‘auto bankruptcy options’
In this dangerous game of chicken, Detroit’s carmakers and a divided Congress are hurtling towards one another, warns Lex. GM and Chrysler say they need cash now, not in 46 days when a more sympathetic group will populate Capitol Hill and the White House.
US carmakers ask for $34bn
Detroit’s beleaguered carmakers sought to present themselves as lean, innovative and environmentally aware as they appealed to Congress for up to $34bn in emergency loans on Tuesday. In a second appeal to Washington in a month,
Congress reaches impasse on car bail-out
The US Congress sent car makers away empty handed on Thursday after Democratic leaders said lawmakers were unable to approve a new emergency loan for the troubled auto sector. Auto industry chiefs’ pleas for aid appeared to backfire after two days of hearings on Capitol Hill.
Vroom!
That’s the sound that US equities make when they rally massively because – against the odds – a rescue deal appears to be in the works for Ford, GM and Chrysler.
Per Bloomberg, emphasis FT Alphaville’s:
Hello, Treasury? This is Chrysler calling…
The list of companies making bold-faced requests for a government bailout grows longer by the day.
Forget moral hazard – this has degenerated into a generalised (and disconcerting) sense of entitlement:
Battle intensifies over US auto bailout
Senior Republicans on Capitol Hill on Wednesday made clear they would fight plans to rescue the US carmaking industry, as political wrangling over the proposed $25bn bail-out package for General Motors,
US car sales sink to lowest level for 25 years
Sales of light vehicles in the US sank to their lowest level in a quarter of a century last month, with generous discounts failing to offset evaporating consumer confidence and scarce credit. GM and Chrysler were among the heaviest casualties,
GM may seek deeper cost cuts
General Motors may start a new round of cost cuts because a planned $15bn in asset sales won’t be enough to maintain its liquidity amid falling sales, Bloomberg reports. The deliberations come as GM is in talks on a merger with Chrysler.
Kerkorian sells down his Ford stake
US billionaire Kirk Kerkorian is selling down his stake in Ford Motor because he sees more value in his gambling holdings. The move represents a fresh blow for Ford, the most highly leveraged of Detroit’s three loss-making carmakers.
Chrysler weighs Renault-Nissan alliance
The WSJ says Chrysler LLC may join an existing alliance between Japan’s Nissan Motor Co. and France’s Renault SA, according to people familiar with the matter. However, a sale of the company to General Motors is still its preferred path,
GM, Chrysler, step up merger talks
General Motors and Chrysler are accelerating merger discussions amid strong support from potential lenders that are eager to see a deal done, reports the WSJ. GM is set to report dismal Q3 earnings in coming weeks and is scrambling to find new sources of funding,
Daimler set to sell Chrysler stake to Cerberus
Daimler is preparing to sell its remaining minority stake in ailing US carmaker Chrysler to private equity group Cerberus, in a move that would mark the final act of a 10-year-long combination. The German premium car group on Wednesday confirmed it was in talks with Cerberus,
Chrysler refinancing short by $6bn
Confidence in US vehicle makers remained shakey on Monday as credit markets continued to punish the sector. The latest sign of concern about the financial health of the Detroit Three came from a refinancing by Chrysler’s lending arm.
Chrysler taps $2bn line of credit
Chrysler tapped a $2bn credit line from its owners, Cerberus Capital Management and Daimler, to bolster the auto maker’s liquidity amid a painful downturn in US sales that is stretching its resources, reports the WSJ.
Investors share GMAC and Chrysler woes
The fallout from the troubles at Chrysler and GMAC could extend beyond Cerberus Capital Management as it has emerged that the buy-out firm has sold “significantly” more than half its equity to about 90 investors.
Chrysler, AIB debt deals delayed
The credit crisis deepened on Tuesday as key interbank rates in the US and Europe showed conditions in the money markets had hit all-time lows, while two big debt deals were delayed due to deteriorating investor sentiment.
Banks to launch Chrysler loan offering
In a sign of the gradual recovery of the corporate-loan market, Wall Street investment banks plan to launch on Wednesday an offering of up to $10bn in loans for Chrysler automotive business, reports the WSJ.
Nardelli accepts $1 a year at Chrysler
Bob Nardelli will collect a nominal salary of $1 a year in his new role as chief executive of Chrysler, say sources familar with his pay package. The former head of Home Depot’s compensation package at the US carmaker will be incentive-based.
Chrysler to name Nardelli new chief
Chrysler’s new owner, Cerberus Capital Management, has chosen former Home Depot chief executive officer Robert Nardelli as CEO, succeeding Tom LaSorda, reports Bloomberg, citing people with direct knowledge of the plan.
Debt problems weigh on buy-out boom
Multi-billion dollar financing for the Chrysler and Alliance Boots buy-outs foundered on Wednesday, fuelling fears of a looming credit crunch. Banks failed in their attempts to sell loans to finance the deals – even after offering higher interest rates.
Delphi aided by $2.55bn equity deal
Delphi, North America’s biggest automotive parts maker, moved a step closer to emergence from court protection on Wednesday by agreeing to a $2.55bn equity infusion from a group of hedge funds and other investors,