According to the Free Press report, talks between UAW and GM are heating up and there is hope that the deal between these two will soon be finalized.

The bond exchange from GM is also coming near as 26th of May is a deadline for it, the automaker will have to successfully restructure its debt by June without going into court otherwise it will have to bear bankruptcy.

However, the offer has been criticized by the bondholders.
A source that is aware with the talks between GM and UAW reports that things seem to go in the right direction.

Click here to read more…

With that of the poor economic slump down felt around the world and mainly in United States, the General Motors, a famous automaker has announced that it will drop Pontiac by the end of 2010, a famous automobile brand produced and sold by GM and in turn it has planned to phase out and concentrate on its 4 remaining brands such as Buick, Cadillac, GMC and Chevrolet.

In order to reduce its large number of debts, GM has planned to offer some of its stocks to its debt holders and it prefers not to file for a chapter 11 bankruptcies. GM intended to resolve the demise of Saturn this year, which is sooner than expected. In addition to that of cutting down Pontiac, GM desires to cut down its dealer count in U.S nearly 42% by the year 2010.

Click here to read more…

It has been recently told by Honda that said it will be launching its new Insight hybrid wearing a price tag under $20,000.

The intended sales of the car are in the later part this month in the U.S. Details told by American Honda Motor Co. about the arrival of the car are that it will show up in the showrooms on March 24.

It will be wearing a price tag being suggested by Honda itself as $19,800. The said price will mark the base LX model.

Click here to read more…

Saleen Inc. the world’s renowned specialty automaker is getting clearer about its coming times, as there were reports that a Michigan group had purchased the most part of the company during the last week.

A unit known as MJ Acquisitions that owned many engine and other auto parts companies had purchased the street car program of Saleen, however, the terms have not been revealed yet.

Different models of Saleen supercars like the S5, S7 and its paint-shop Viper operation have not been included in the said deal.

Click here to read more…

The U.S. Treasury has clarified guidelines for its auto industry rescue plan. The treasury says that there is a possibility to invest in debt, warrants or equity that would be determined as troubled assets of some automaker company.

According to the treasury, these guidelines for Auto Industry Financing Program will be applied to all those auto firms that it will reckon important for the industry including Detroit automakers and other auto finance companies.

Under these guidelines, a proper structure has been offered to a $17.4b rescue plan for GM and Chrysler LLC that was rushed into effect by the Bush administration on Dec.19. The plan was supplemented with $6b for finance companies aid later on.

Click here to read more…

Because of declining sales and surging yen, the biggest Japanese automaker Toyota sees its first yearly loss in 71 years.

According to the company, it may suffer 150bn yen annual loss in its operating profits.

Just like many other countries of the world, the current financial year was depressive for Japan and it posted a $2.5bn trade deficit in November.

There were 26.7% down export levels because of the increasing yen, finance ministry of country says.

Toyota posted 2.27 trillion yen profit one year back. Toyota told that it was expecting to have significant net profit for the fiscal year ended in March, however, the company had to decrease its forecast to 50bn Japanese yen that were estimated 550bn previously.

Click here to read more…

Ford Motor Co. reported $129 million loss in the Q3 as the company burned through $7.7 billion in cash.
The automaker announces that it will lay off 2,260 more white-collar jobs in North America as the company is struggling to weather the most intense economic downturn.

The company lost 6 cents per share for the quarter and it was 19 cent per share ($380 million) a year back.
The company has also posted a $2.7 billion pretax loss from continuing operations, but the company shifted retiree health care liabilities to a trust and thus gained a $2 billion gain.

Click here to read more…