General Motors on Sunday continued its seemingly inevitable march into bankruptcy court after clearing a major hurdle by getting many of its bondholders to agreed to a debt exchange that gave them a bigger stake in the new company.
The company is expected to file bankruptcy on Monday, the deadline set by the Obama administration to submit a viable revival plan or seek court protection.
Media reports said Sunday that President Obama would discuss G.M.’s situation at a news conference on Monday morning, much as he did on April 30 when G.M.’s cross-town rival, Chrysler, sought court protection.
As he did with Chrysler, President Obama will most likely try to cast the filing in a positive light, talking about the importance of the auto industry and the need to create a new beginning for G.M.
As for G.M., it has scheduled a news conference with its chief executive, Fritz Henderson, on Monday in New York. G.M.’s board also gathered in New York ahead of Monday’s expected filing.
Over the weekend, G.M. cleared a couple of obstacles to a court reorganization. Late Saturday, a majority of G.M. bondholders agreed to exchange their debt in exchange for an ownership stake as high as 25 percent in G.M.
Holders of about 54 percent of G.M.’s $27.2 billion in bond debt, agreed to support the plan by the Saturday afternoon deadline, according to Elliot Sloane, a spokesman for a committee representing some of G.M.’s largest bondholders, which negotiated the deal with the government. All told, 975 investors expressed support for the plan.
Mr. Sloane said that 20 percent of the support came from the ad hoc bondholders committee, another 15 percent came from bondholders who had backed earlier G.M. offers and 19 percent from investors who got on board between Thursday and Saturday.
But groups representing some of G.M.’s retail bondholders — individual investors who purchased the company’s bonds for as little as $25 a piece — said they still planned to contest the reorganization plan.
“Regardless of the outcome of the General Motors and the government’s ‘offer’ to G.M. bondholders,” the group, G.M. Bondholders Unite, said in a statement that “its members are more committed than ever to stand up for their legal rights.”
It is not known how many of these individual investors there are, but some estimates place their holdings of G.M.’s $27.2 billion in bonds at more than 25 percent.
In a regulatory filing last week, G.M. said the government, which is to provide bankruptcy financing of about $50 billion, initially would hold 72.5 percent of G.M., with the United Automobile Workers union receiving 17.5 percent, and bondholders 10 percent.
But the percentages held by the bondholders and the union could conceivably be larger because each are being offered warrants in the new G.M., which would be created in bankruptcy.
Under the terms of the plan, bondholders would initially receive 10 percent. They could then exercise their warrants for an additional 7.5 percent when the new G.M. rises to about $15 billion in value. The second set of warrants for the final 7.5 percent would be exercisable when new G.M. rises to $30 billion in value.
The union would initially receive a 17.5 percent stake to finance a health care trust for its retirees. It has also received warrants to raise that holding to 20 percent — but those warrants are exercisable only if new G.M.’s value hits $75 billion.
Once the union and bondholders achieve their full stakes, the government’s share would drop to 55 percent.
G.M.’s agreement with bondholders should allow the company to restructure in the courts rather quickly, much like Chrysler has been able to do.
A federal judge is expected to rule on the sale of most of Chrysler to Fiat, the Italian carmaker, sometime on Monday. The judge, Arthur J. Gonzalez, heard arguments and testimony on the proposal during three days of marathon hearings last week.
If approved, Chrysler and the government expect to close on the Fiat deal within days of receiving permission. But the sale is being challenged by several parties, including three Indiana state funds and several groups of dealers that have been designated for removal from Chrysler’s network.
Also on Saturday in Berlin, Chancellor Angela Merke of Germany formally announced a deal to sell G.M.’s European operations to an alliance led by Magna International, a Canadian auto parts maker, and Sberbank of Russia. The operations include Opel of Germany as well as the British auto company Vauxhall.
The deal was brokered in Berlin, with negotiations stretching from Moscow to Washington, Detroit, Ontario and New York, where G.M.’s board gathered.
As part of the deal, the German federal government and four states — Thuringia, Rhineland-Palatinate, Hesse and North Rhine-Westphalia — will split the cost of a 1.5 billion euro, or $2.1 billion, short-term finance package to keep Opel operating after G.M.’s files for bankruptcy. Thuringia and Rhineland-Palatinate backed the deal on Saturday. On Sunday, North Rhine-Westphalia and Hesse promised their backing.
“The time of uncertainty is over,” The Associated Press quoted Gov. Juergen Ruettgers of North Rhine-Westphalia as saying. “The main components of Opel’s future remain in Europe.”
The deal gives Sberbank, which is majority owned by the Russian government, and G.M. each a 35 percent stake in Opel. The car parts maker Magna International will own 20 percent and Opel employees will hold the remaining 10 percent.
Michael J. de la Merced reported from New York and Nick Bunkley from Detroit. David Jolly contributed reporting from Paris and Micheline Maynard from New York.
Sunday, May 31, 2009
Saturday, May 30, 2009
Friday, May 29, 2009
Thursday, May 28, 2009
Opel Challenge for Brussels
General Motors Corp.'s collapse has not just been a nightmare for U.S. politicians. It's proving a major headache for European politicians, too.
GM's decision to cast adrift its sprawling European operations has put several European Union countries at loggerheads as they each try to secure the jobs of their own workers. Unless the European Commission takes a tough line, the deal threatens to make a mockery of Europe's supposed single market.
The problems stem from GM's decision to group all its European operations under its Opel division in Germany. That has given Berlin the whip hand over the future of GM's 50,000 European employees, half of which are based outside Germany, notably in the U.K. and Belgium.
The combined business has a 9% share of the European market but will take a big loss this year. GM is offering to pass the business on debt-free and has painted a rosy picture of the division's future, but Opel will still hemorrhage cash for many years. This has turned the sale process into an auction of bailout promises.
Naturally, the Germans are keen to link their own promises of 1.5 billion euros ($2.09 billion) of initial aid to commitments to preserve German jobs. Even GM admits that Opel has three too many factories and 20% too many staff for a manufacturer confined to supplying the European market. The U.K. and Belgian governments rightly fear this will cause the axe to fall on their own factories. The EU Commission, whose job it is to police state aid rules, has kept a low profile, partly because it has not yet had a definitive package to judge.
But the EU needs to be vigilant. Partly because Berlin -- under pressure ahead of this year's elections -- could use its power over the process to hand Opel on a plate to the bidder most likely to protect German jobs rather than to the best long-term industrial partner. That would point to a sale to Magna, the Canadian auto-parts supplier backed by investors with close links to the Kremlin rather than to rival bidder Fiat.
More importantly, Opel's fate is a further test of the credibility of the European single market -- already under pressure as a result of the recession. Brussels must ensure that the principles of the single market are upheld, not just for the sake of GM's non-German workers, but for the sake of the rest of the European car industry. That means signaling its willingness to block any deal that falls foul of the rules, even if that means forcing Opel to follow its parent into bankruptcy.
GM's decision to cast adrift its sprawling European operations has put several European Union countries at loggerheads as they each try to secure the jobs of their own workers. Unless the European Commission takes a tough line, the deal threatens to make a mockery of Europe's supposed single market.
The problems stem from GM's decision to group all its European operations under its Opel division in Germany. That has given Berlin the whip hand over the future of GM's 50,000 European employees, half of which are based outside Germany, notably in the U.K. and Belgium.
The combined business has a 9% share of the European market but will take a big loss this year. GM is offering to pass the business on debt-free and has painted a rosy picture of the division's future, but Opel will still hemorrhage cash for many years. This has turned the sale process into an auction of bailout promises.
Naturally, the Germans are keen to link their own promises of 1.5 billion euros ($2.09 billion) of initial aid to commitments to preserve German jobs. Even GM admits that Opel has three too many factories and 20% too many staff for a manufacturer confined to supplying the European market. The U.K. and Belgian governments rightly fear this will cause the axe to fall on their own factories. The EU Commission, whose job it is to police state aid rules, has kept a low profile, partly because it has not yet had a definitive package to judge.
But the EU needs to be vigilant. Partly because Berlin -- under pressure ahead of this year's elections -- could use its power over the process to hand Opel on a plate to the bidder most likely to protect German jobs rather than to the best long-term industrial partner. That would point to a sale to Magna, the Canadian auto-parts supplier backed by investors with close links to the Kremlin rather than to rival bidder Fiat.
More importantly, Opel's fate is a further test of the credibility of the European single market -- already under pressure as a result of the recession. Brussels must ensure that the principles of the single market are upheld, not just for the sake of GM's non-German workers, but for the sake of the rest of the European car industry. That means signaling its willingness to block any deal that falls foul of the rules, even if that means forcing Opel to follow its parent into bankruptcy.
Chrysler CEO Nardelli Takes Stand At Bankruptcy Sale Hearing
Chrysler LLC Chief Executive Robert Nardelli took the stand Thursday to give testimony in connection with the auto maker's proposed sale to a group that includes Fiat Spa (FIATY).
Nardelli's testimony could last several hours.
The sale hearing began Wednesday and is expected to go late into Thursday evening. U.S. Bankruptcy Judge Arthur Gonzalez, who is presiding, indicated he was prepared to sit until 10 p.m. or later on Thursday.
Chrysler, which has sought Chapter 11 bankruptcy protection, is hoping to sell the bulk of its assets to a group that includes Fiat, the United Auto Workers union and the U.S. and Canadian governments.
A group of Indiana pension funds is fighting the sale, calling it unconstitutional.
Nardelli's testimony could last several hours.
The sale hearing began Wednesday and is expected to go late into Thursday evening. U.S. Bankruptcy Judge Arthur Gonzalez, who is presiding, indicated he was prepared to sit until 10 p.m. or later on Thursday.
Chrysler, which has sought Chapter 11 bankruptcy protection, is hoping to sell the bulk of its assets to a group that includes Fiat, the United Auto Workers union and the U.S. and Canadian governments.
A group of Indiana pension funds is fighting the sale, calling it unconstitutional.
Tuesday, May 26, 2009
GM's tough road to avoid bankruptcy
It's coming down to the wire for General Motors.
With GM rapidly burning through its cash reserves due to hefty losses amid an historic slump in auto sales, President Obama said the Treasury Department would give the automaker the cash it needs to continue operations on the condition that GM restructure its debt or file for bankruptcy by June 1.
The automaker set a May 26 deadline for its bondholders to reach a restructuring agreement. GM chief executive officer Fritz Henderson has repeatedly said that the difficulty in inking a deal makes a bankruptcy filing for the automaker "probable."
A spokeswoman for GM said Friday the company continues to plan for a bankruptcy, which is the likely next step if no agreement is reached.
A deal with bondholders is one of the last major hurdles for GM (GM, Fortune 500) to clear in order to avoid bankruptcy. GM has reached agreements with the United Auto Workers and Canadian Auto Workers unions that will allow the company to reduce some of its labor and retiree health care costs. The Canadian deal was ratified by union members on Sunday; the UAW vote is expected to be completed later this week.
Rival Chrysler, which has also received billions of dollars from the federal government, filed for bankruptcy last month despite reaching a deal with the UAW, after several bondholders held out of the restructuring agreement.
So if GM cannot work out a deal with bondholders, it could file for bankruptcy as early as some time next week.
Bondholders key to avoiding Chapter 11
Still, bankruptcy is not a done deal.
"In very hostile negotiations, most of the progress is made at the 11th hour," said Edward Neiger, founder of Neiger LLP, a creditors' rights and bankruptcy law firm. "It's very hard to predict what the outcome will be until the 11th hour, when the parties often realize the alternative is worse for both of them."
To avoid bankruptcy, GM would need to convince the bondholders to accept a much reduced stake in the company.
GM's proposal would give bondholders a 10% stake in the automaker, even though they currently own about 40% of the company's debt. The Treasury would get about a 50% stake in GM.
Bondholders have issued a counteroffer that would give them a 58% stake in the company. The Treasury, however, would not receive any stake in GM, and the automaker would remain liable to pay back the money that the government has lent it.
Late Friday GM said it borrowed an additional $4 billion from the U.S. government making a total of $19.4 billion borrowed from the Treasury Department.
Under both plans, the UAW would receive about a 40% stake in the company.
Henderson has suggested that it will be up to the government, not GM, to determine whether bondholders should get a better deal, but the government has not given any sign it will adjust its offer.
The Treasury has indicated it wants to protect the interest of the taxpayers who have given billions to the automaker. A spokeswoman for the Treasury said Friday the government continues to work with all stakeholders to reach an agreement.
But Rep. Jeb Hensarling, R-Texas, wrote in a letter to Treasury Secretary Tim Geithner Friday that more negotiations "must take place soon and at an expedited pace."
"Bondholders must have a seat at the table during negotiations in how the company would be restructured. The company, the government, the union and the bondholders should negotiate details of a reasonable debt-to-equity swap before stepping into court," Hensarling wrote.
Bankruptcy would be bad for investors, suppliers and dealers
Should GM file for bankruptcy, the court will determine just what debts will be paid to various creditors. Bondholders could end up with a better deal than GM's offer, and many appear willing to take that gamble.
GM's stockholders, however, would likely be cleaned out. Although many GM shareholders have essentially been wiped out already. The stock currently trades for about $1.40 a share, more than 90% lower than year-ago levels.
Auto parts suppliers could also take a hit. GM pays its parts makers an average of $2 billion a month. The company would be able to pay some of the money it owes suppliers, but only those whom the court determines to be "critical vendors."
The fate of many GM dealers could also be decided by a bankruptcy court. GM notified 1,100 of the 6,000 dealerships in its network that it would be terminating their contracts next year. Some of those dealers would likely close this year.
Some dealers are hopeful that state franchise laws could protect them from having to be shut down, but many legal experts have said that the dealers will face an uphill battle if GM actually does wind up filing for bankruptcy.
With GM rapidly burning through its cash reserves due to hefty losses amid an historic slump in auto sales, President Obama said the Treasury Department would give the automaker the cash it needs to continue operations on the condition that GM restructure its debt or file for bankruptcy by June 1.
The automaker set a May 26 deadline for its bondholders to reach a restructuring agreement. GM chief executive officer Fritz Henderson has repeatedly said that the difficulty in inking a deal makes a bankruptcy filing for the automaker "probable."
A spokeswoman for GM said Friday the company continues to plan for a bankruptcy, which is the likely next step if no agreement is reached.
A deal with bondholders is one of the last major hurdles for GM (GM, Fortune 500) to clear in order to avoid bankruptcy. GM has reached agreements with the United Auto Workers and Canadian Auto Workers unions that will allow the company to reduce some of its labor and retiree health care costs. The Canadian deal was ratified by union members on Sunday; the UAW vote is expected to be completed later this week.
Rival Chrysler, which has also received billions of dollars from the federal government, filed for bankruptcy last month despite reaching a deal with the UAW, after several bondholders held out of the restructuring agreement.
So if GM cannot work out a deal with bondholders, it could file for bankruptcy as early as some time next week.
Bondholders key to avoiding Chapter 11
Still, bankruptcy is not a done deal.
"In very hostile negotiations, most of the progress is made at the 11th hour," said Edward Neiger, founder of Neiger LLP, a creditors' rights and bankruptcy law firm. "It's very hard to predict what the outcome will be until the 11th hour, when the parties often realize the alternative is worse for both of them."
To avoid bankruptcy, GM would need to convince the bondholders to accept a much reduced stake in the company.
GM's proposal would give bondholders a 10% stake in the automaker, even though they currently own about 40% of the company's debt. The Treasury would get about a 50% stake in GM.
Bondholders have issued a counteroffer that would give them a 58% stake in the company. The Treasury, however, would not receive any stake in GM, and the automaker would remain liable to pay back the money that the government has lent it.
Late Friday GM said it borrowed an additional $4 billion from the U.S. government making a total of $19.4 billion borrowed from the Treasury Department.
Under both plans, the UAW would receive about a 40% stake in the company.
Henderson has suggested that it will be up to the government, not GM, to determine whether bondholders should get a better deal, but the government has not given any sign it will adjust its offer.
The Treasury has indicated it wants to protect the interest of the taxpayers who have given billions to the automaker. A spokeswoman for the Treasury said Friday the government continues to work with all stakeholders to reach an agreement.
But Rep. Jeb Hensarling, R-Texas, wrote in a letter to Treasury Secretary Tim Geithner Friday that more negotiations "must take place soon and at an expedited pace."
"Bondholders must have a seat at the table during negotiations in how the company would be restructured. The company, the government, the union and the bondholders should negotiate details of a reasonable debt-to-equity swap before stepping into court," Hensarling wrote.
Bankruptcy would be bad for investors, suppliers and dealers
Should GM file for bankruptcy, the court will determine just what debts will be paid to various creditors. Bondholders could end up with a better deal than GM's offer, and many appear willing to take that gamble.
GM's stockholders, however, would likely be cleaned out. Although many GM shareholders have essentially been wiped out already. The stock currently trades for about $1.40 a share, more than 90% lower than year-ago levels.
Auto parts suppliers could also take a hit. GM pays its parts makers an average of $2 billion a month. The company would be able to pay some of the money it owes suppliers, but only those whom the court determines to be "critical vendors."
The fate of many GM dealers could also be decided by a bankruptcy court. GM notified 1,100 of the 6,000 dealerships in its network that it would be terminating their contracts next year. Some of those dealers would likely close this year.
Some dealers are hopeful that state franchise laws could protect them from having to be shut down, but many legal experts have said that the dealers will face an uphill battle if GM actually does wind up filing for bankruptcy.
GM's tough road to avoid bankruptcy
It's coming down to the wire for General Motors.
With GM rapidly burning through its cash reserves due to hefty losses amid an historic slump in auto sales, President Obama said the Treasury Department would give the automaker the cash it needs to continue operations on the condition that GM restructure its debt or file for bankruptcy by June 1.
The automaker set a May 26 deadline for its bondholders to reach a restructuring agreement. As Tuesday steadily approaches, GM chief executive officer Fritz Henderson has repeatedly said that the difficulty in inking a deal makes a bankruptcy filing for the automaker "probable."
A spokeswoman for GM said Friday the company continues to plan for a bankruptcy, which is the likely next step if no agreement is reached.
With GM rapidly burning through its cash reserves due to hefty losses amid an historic slump in auto sales, President Obama said the Treasury Department would give the automaker the cash it needs to continue operations on the condition that GM restructure its debt or file for bankruptcy by June 1.
The automaker set a May 26 deadline for its bondholders to reach a restructuring agreement. As Tuesday steadily approaches, GM chief executive officer Fritz Henderson has repeatedly said that the difficulty in inking a deal makes a bankruptcy filing for the automaker "probable."
A spokeswoman for GM said Friday the company continues to plan for a bankruptcy, which is the likely next step if no agreement is reached.
Chrysler Dealer Says He Was Axed for Not Buying Cars (Update1)
Chrysler LLC pressured dealers to buy cars in the months before filing for bankruptcy and a Florida dealer claims it is losing the franchise because it refused, according to court documents.
Jim Boast Dodge Inc. of Bradenton, Florida, asked a New York judge in a May 23 filing to block Chrysler’s attempt to terminate its franchise agreement with the dealership, saying the automaker is breaking Florida law and doesn’t have a reasonable business case for the decision.
Between January and March, Chrysler urged U.S. dealers to buy extra cars to convince the U.S. government of the company’s viability and avoid bankruptcy, Boast said in the filing. On May 14, Chrysler asked the judge to cancel 789 car dealership agreements, including Jim Boast’s, who said the dealership bought four vehicles instead of the 60 it was expected to order.
Chrysler executives threatened dealers who didn’t buy enough cars in a Feb. 13 conference call, saying they would “never forget that those dealers did not help the company when it desperately needed help,” Boast said in the filing.
“It will be worth finding out,” the dealer said in court papers, “how many other dealers who failed to adhere to the debtor’s threats have now found themselves on the chopping block.”
Chrysler won’t comment on specific allegations made by dealers because the issues will be dealt with by the judge, spokesman Fred Spar said in a telephone interview.
Reducing Network
The company rejected contracts with about 25 percent of its dealers, who accounted for about 14 percent of sales, Spar said.
“It’s unfortunate,” he said. Chrysler must reduce its dealers network to win approval of a plan to sell its assets to a new company it will form with Italian automaker Fiat, “or else we would have to liquidate all 3,200 dealerships,” he said.
The automaker filed for Chapter 11 bankruptcy April 30 after a group of 20 secured lenders rejected an offer by the U.S. government that would have paid them $2.25 billion for $6.9 billion of debt, or 33 cents on the dollar. Chrysler’s 22 U.S. factories with about 26,800 hourly workers were idled May 1.
Chrysler, in its April 30 filings, listed assets of $39.3 billion and liabilities of $55.2 billion, making it the fifth- largest bankruptcy in U.S. history, according to data compiled by Bloomberg News.
Family Business
The Boast family has been a Dodge dealer for almost 70 years, James Keedy, president of Jim Boast Dodge, said in a court filing.
“In light of the fact Bob Boast Dodge has been performing at very good sales levels, I do not believe the termination of Bob Boast Dodge is performance based,” Keedy said. The contract was terminated because the dealer would “not succumb to the recent threats and extortionist behavior” of Chrysler executives, he said in the filing. The dealer is also known as Bob Boast Dodge.
A group of 300 Chrysler dealers has also sought to delay the sale of the automaker’s assets, saying they need more time to fight the cancellation of their franchise agreements.
A hearing is scheduled June 3 in New York.
The case is In re Chrysler LLC, 09-50002, U.S. Bankruptcy Court, Southern District of New York (Manhattan)
Jim Boast Dodge Inc. of Bradenton, Florida, asked a New York judge in a May 23 filing to block Chrysler’s attempt to terminate its franchise agreement with the dealership, saying the automaker is breaking Florida law and doesn’t have a reasonable business case for the decision.
Between January and March, Chrysler urged U.S. dealers to buy extra cars to convince the U.S. government of the company’s viability and avoid bankruptcy, Boast said in the filing. On May 14, Chrysler asked the judge to cancel 789 car dealership agreements, including Jim Boast’s, who said the dealership bought four vehicles instead of the 60 it was expected to order.
Chrysler executives threatened dealers who didn’t buy enough cars in a Feb. 13 conference call, saying they would “never forget that those dealers did not help the company when it desperately needed help,” Boast said in the filing.
“It will be worth finding out,” the dealer said in court papers, “how many other dealers who failed to adhere to the debtor’s threats have now found themselves on the chopping block.”
Chrysler won’t comment on specific allegations made by dealers because the issues will be dealt with by the judge, spokesman Fred Spar said in a telephone interview.
Reducing Network
The company rejected contracts with about 25 percent of its dealers, who accounted for about 14 percent of sales, Spar said.
“It’s unfortunate,” he said. Chrysler must reduce its dealers network to win approval of a plan to sell its assets to a new company it will form with Italian automaker Fiat, “or else we would have to liquidate all 3,200 dealerships,” he said.
The automaker filed for Chapter 11 bankruptcy April 30 after a group of 20 secured lenders rejected an offer by the U.S. government that would have paid them $2.25 billion for $6.9 billion of debt, or 33 cents on the dollar. Chrysler’s 22 U.S. factories with about 26,800 hourly workers were idled May 1.
Chrysler, in its April 30 filings, listed assets of $39.3 billion and liabilities of $55.2 billion, making it the fifth- largest bankruptcy in U.S. history, according to data compiled by Bloomberg News.
Family Business
The Boast family has been a Dodge dealer for almost 70 years, James Keedy, president of Jim Boast Dodge, said in a court filing.
“In light of the fact Bob Boast Dodge has been performing at very good sales levels, I do not believe the termination of Bob Boast Dodge is performance based,” Keedy said. The contract was terminated because the dealer would “not succumb to the recent threats and extortionist behavior” of Chrysler executives, he said in the filing. The dealer is also known as Bob Boast Dodge.
A group of 300 Chrysler dealers has also sought to delay the sale of the automaker’s assets, saying they need more time to fight the cancellation of their franchise agreements.
A hearing is scheduled June 3 in New York.
The case is In re Chrysler LLC, 09-50002, U.S. Bankruptcy Court, Southern District of New York (Manhattan)
Volkswagen, BYD May Team Up on Plug-In Cars
Volkswagen AG said it and Chinese battery and auto maker BYD Co. will explore options for teaming up on hybrid and electric vehicles powered by lithium batteries, a move that highlights global auto makers' efforts to secure supplies of batteries for alternative vehicles.
The possibility being explored, say people familiar with the negotiations, is for Shenzhen-based BYD to become a supplier of a type of lithium-ion battery technology it developed for plug-in hybrid and all electric-battery cars.
In addition to Volkswagen, BYD is also talking to Ford Motor Co. and another European auto maker about similar arrangements, those people said. The status of those negotiations, however, was not immediately clear. "We are always in discussions with many suppliers as a standard course of our business, but we have nothing to share at this time," said Whitney Small, a Ford spokeswoman in Bangkok.
Volkswagen would be the first major automotive partner for BYD, which moved into the spotlight last year when a company controlled by investor Warren Buffett invested $230 million in the Chinese car maker, mainly because of BYD's cost-effective technology. In December, BYD -- one of the biggest global producers of cell phone batteries and a fledgling but fast-rising auto maker in China -- caused a stir by launching a plug-in car ahead of more established foreign rivals.
"Hybrids and electric vehicles will play an increasingly important role," Volkswagen's executive board member for technical development, Ulrich Hackenberg, said in a statement. "Particularly for the Chinese market, potential partners such as BYD could support us in quickly expanding our activities."
Concerns over gasoline shortages and climate change have prompted a global race to commercialize affordable electric-battery cars and plug-in hybrids that get most of their power from batteries.
One major obstacle in the race is that there's not enough capacity in the industry to produce lithium-ion batteries -- a factor that is pushing auto makers like Volkswagen to team up with multiple lithium-ion battery suppliers. Aside from BYD, Volkswagen already has signed letters of intent with Japan's Sanyo Electric Co. and Toshiba Corp., another Japanese battery producer.
While lithium-ion batteries are seen as the technology that will ultimately power most plug-in cars, their successful use has been hindered by relatively high price, limited durability and safety concerns. BYD says it has largely resolved those issues by turning to a safer, more cost-effective technology called iron-phosphate-based lithium-ion technology.
Lithium-ion batteries produced in China are generally about half the cost of such batteries made in Japan and the West. Costs may rise later as Chinese auto makers invest to improve their technology.
Volkswagen's premium brand, Audi AG, last year had entered into cooperation with Sanyo on the development of lithium-ion technology, saying at the time the new battery technology should be ready for use in production in 2012.
Volkswagen said a memorandum of understanding with BYD was signed by Chief Executive Martin Winterkorn and BYD Chairman Wang Chuanfu.
In March, Mr. Wang said BYD was in talks to supply batteries to two car makers in Europe and one in the U.S., but he didn't name them.
Last week, Volkswagen's German rival Daimler AG announced that it will buy a 10% stake in Silicon Valley electric-vehicle startup Tesla Motors Inc. for a "a sum in the double-digit millions of euros."
Daimler and Tesla are already cooperating to integrate Tesla's lithium-ion battery packs and charging electronics into the first 1,000 electric versions of Daimler's tiny Smart two-seater. As part of a closer tie-up, Daimler and Tesla will intensify the joint development of battery systems, electric-drive systems and individual vehicle projects.
The possibility being explored, say people familiar with the negotiations, is for Shenzhen-based BYD to become a supplier of a type of lithium-ion battery technology it developed for plug-in hybrid and all electric-battery cars.
In addition to Volkswagen, BYD is also talking to Ford Motor Co. and another European auto maker about similar arrangements, those people said. The status of those negotiations, however, was not immediately clear. "We are always in discussions with many suppliers as a standard course of our business, but we have nothing to share at this time," said Whitney Small, a Ford spokeswoman in Bangkok.
Volkswagen would be the first major automotive partner for BYD, which moved into the spotlight last year when a company controlled by investor Warren Buffett invested $230 million in the Chinese car maker, mainly because of BYD's cost-effective technology. In December, BYD -- one of the biggest global producers of cell phone batteries and a fledgling but fast-rising auto maker in China -- caused a stir by launching a plug-in car ahead of more established foreign rivals.
"Hybrids and electric vehicles will play an increasingly important role," Volkswagen's executive board member for technical development, Ulrich Hackenberg, said in a statement. "Particularly for the Chinese market, potential partners such as BYD could support us in quickly expanding our activities."
Concerns over gasoline shortages and climate change have prompted a global race to commercialize affordable electric-battery cars and plug-in hybrids that get most of their power from batteries.
One major obstacle in the race is that there's not enough capacity in the industry to produce lithium-ion batteries -- a factor that is pushing auto makers like Volkswagen to team up with multiple lithium-ion battery suppliers. Aside from BYD, Volkswagen already has signed letters of intent with Japan's Sanyo Electric Co. and Toshiba Corp., another Japanese battery producer.
While lithium-ion batteries are seen as the technology that will ultimately power most plug-in cars, their successful use has been hindered by relatively high price, limited durability and safety concerns. BYD says it has largely resolved those issues by turning to a safer, more cost-effective technology called iron-phosphate-based lithium-ion technology.
Lithium-ion batteries produced in China are generally about half the cost of such batteries made in Japan and the West. Costs may rise later as Chinese auto makers invest to improve their technology.
Volkswagen's premium brand, Audi AG, last year had entered into cooperation with Sanyo on the development of lithium-ion technology, saying at the time the new battery technology should be ready for use in production in 2012.
Volkswagen said a memorandum of understanding with BYD was signed by Chief Executive Martin Winterkorn and BYD Chairman Wang Chuanfu.
In March, Mr. Wang said BYD was in talks to supply batteries to two car makers in Europe and one in the U.S., but he didn't name them.
Last week, Volkswagen's German rival Daimler AG announced that it will buy a 10% stake in Silicon Valley electric-vehicle startup Tesla Motors Inc. for a "a sum in the double-digit millions of euros."
Daimler and Tesla are already cooperating to integrate Tesla's lithium-ion battery packs and charging electronics into the first 1,000 electric versions of Daimler's tiny Smart two-seater. As part of a closer tie-up, Daimler and Tesla will intensify the joint development of battery systems, electric-drive systems and individual vehicle projects.
Monday, May 25, 2009
Ford Extends Deadline for Worker Buyouts
Ford Motor Co. is extending the deadline by five weeks for its hourly workers to accept a job-buyout package amid heightened speculation over a possible bankruptcy filing by General Motors Corp. as early as next week.
The packages were handed out to almost all of Ford's 42,000 hourly workers starting April 1. The original deadline was Friday. Among those not ...
The packages were handed out to almost all of Ford's 42,000 hourly workers starting April 1. The original deadline was Friday. Among those not ...
GM Gets $4 Billion in New U.S. Funds
General Motors Corp. on Friday said it received $4 billion in U.S. aid, $1.4 billion more than it had originally requested, as part of its plan to pay suppliers and dealers before a June deadline.
The auto maker, already subsisting on $15.4 billion in government loans, previously had asked the Treasury for an additional $2.6 billion before June 1 and $9 billion after that date for working-capital needs.
Separately, GM reached a tentative cost-cutting deal with the Canadian Auto Workers union Friday that, along with a similar agreement from GM's major U.S. union, paves the way for an expected bankruptcy filing as soon as next week.
The union deals, which must be ratified by workers, came amid signs of progress Friday on a sale of the auto maker's European operations. GM is unlikely to consider a Chinese auto maker's interest in its Opel unit because talks with others are well along, said a person familiar with the matter.
The auto maker is eager to wrap up cost cuts that would allow it to execute a quick bankruptcy restructuring. GM, in a statement, said the request reflects "updated timing of when certain expenses would be incurred" and not additional funding.
The company's shares fell 26% in heavy volume Friday to $1.43 in 4 p.m. composite trading on the New York Stock Exchange.
The labor agreements leave unsecured bondholders as the major impediment to any fast exit from bankruptcy. Bondholders have opposed a plan to pay them 10% of GM's equity.
In Friday's deal the CAW agreed to freeze wages, increase employees' share of medical costs and bar pension rises until 2015. Thursday, the United Auto Workers union agreed to similar concessions for GM's U.S. workers.
CAW President Ken Lewenza said Friday that a bankruptcy filing by GM is now "very likely." GM still hopes for an out-of-court restructuring but wouldn't try to void the deal in bankruptcy court, Mr. Lewenza said.
The Canadian government followed President Barack Obama in shooting down an earlier round of concessions and demanding deeper cuts as a condition of its support. Mr. Lewenza said the government agreed to the deal late Thursday. "The consequences of saying no would have been disastrous," Mr. Lewenza said. "Government support comes with a price. And, for us, that price is a growing list of demands."
Workers are expected to vote on the contract Sunday and Monday. Mr. Lewenza said the deal will save GM $8,600 Canadian dollars (US$7,555) per member over the life of the contract.
In another development, Ford Motor Co. said it would extend to June 26 the deadline for its hourly workers to accept buyouts. The deadline was Friday. The extension could be a sign Ford hasn't achieved a desired level of acceptances.
Separately, GM signaled it was unlikely to consider a Chinese auto maker's interest in Opel, according to a person familiar with the matter. A letter expressing interest in the operation was received Thursday. It didn't include a specific offer, that person said. He declined to identify the auto maker.
GM has bids from three parties and considers the process too far along to reopen, the person said. Italy's Fiat SpA submitted a formal offer for Opel and Vauxhall. It plans to integrate GM's European, Latin American and South African operations into a global alliance with its own auto unit and Chrysler.
The auto maker, already subsisting on $15.4 billion in government loans, previously had asked the Treasury for an additional $2.6 billion before June 1 and $9 billion after that date for working-capital needs.
Separately, GM reached a tentative cost-cutting deal with the Canadian Auto Workers union Friday that, along with a similar agreement from GM's major U.S. union, paves the way for an expected bankruptcy filing as soon as next week.
The union deals, which must be ratified by workers, came amid signs of progress Friday on a sale of the auto maker's European operations. GM is unlikely to consider a Chinese auto maker's interest in its Opel unit because talks with others are well along, said a person familiar with the matter.
The auto maker is eager to wrap up cost cuts that would allow it to execute a quick bankruptcy restructuring. GM, in a statement, said the request reflects "updated timing of when certain expenses would be incurred" and not additional funding.
The company's shares fell 26% in heavy volume Friday to $1.43 in 4 p.m. composite trading on the New York Stock Exchange.
The labor agreements leave unsecured bondholders as the major impediment to any fast exit from bankruptcy. Bondholders have opposed a plan to pay them 10% of GM's equity.
In Friday's deal the CAW agreed to freeze wages, increase employees' share of medical costs and bar pension rises until 2015. Thursday, the United Auto Workers union agreed to similar concessions for GM's U.S. workers.
CAW President Ken Lewenza said Friday that a bankruptcy filing by GM is now "very likely." GM still hopes for an out-of-court restructuring but wouldn't try to void the deal in bankruptcy court, Mr. Lewenza said.
The Canadian government followed President Barack Obama in shooting down an earlier round of concessions and demanding deeper cuts as a condition of its support. Mr. Lewenza said the government agreed to the deal late Thursday. "The consequences of saying no would have been disastrous," Mr. Lewenza said. "Government support comes with a price. And, for us, that price is a growing list of demands."
Workers are expected to vote on the contract Sunday and Monday. Mr. Lewenza said the deal will save GM $8,600 Canadian dollars (US$7,555) per member over the life of the contract.
In another development, Ford Motor Co. said it would extend to June 26 the deadline for its hourly workers to accept buyouts. The deadline was Friday. The extension could be a sign Ford hasn't achieved a desired level of acceptances.
Separately, GM signaled it was unlikely to consider a Chinese auto maker's interest in Opel, according to a person familiar with the matter. A letter expressing interest in the operation was received Thursday. It didn't include a specific offer, that person said. He declined to identify the auto maker.
GM has bids from three parties and considers the process too far along to reopen, the person said. Italy's Fiat SpA submitted a formal offer for Opel and Vauxhall. It plans to integrate GM's European, Latin American and South African operations into a global alliance with its own auto unit and Chrysler.
Chrysler Dealers to Face Difficult Battle
The move by Chrysler LLC to eliminate about a quarter of its dealerships through a bankruptcy-court filing is running into opposition from lawmakers and franchise owners, but the objections are unlikely to derail the company's efforts to put dealers out of business in the coming weeks.
A number of members of Congress voiced concern midweek over the closures.
Wednesday, Sen. John D. Rockefeller IV (D., W. Va.), wrote to Chrysler, General Motors Corp. and the Treasury Department, saying the time frame for dealership closures in Chrysler's case is "egregious." Sen. Kay Bailey Hutchinson (R., Texas), introduced a proposal Thursday to give dealers at least 60 days before they shut down, instead of the 30 or so planned by Chrysler.
As part of its reorganization in bankruptcy court, Chrysler last week named 789 dealers that it wants to drop from its network of about 3,200 stores. It told the court it wants those dealers to stop selling its cars and trucks by about June 9.
GM said it plans to get rid of roughly 1,100 dealers, a move that suggests the auto maker is likely to file for bankruptcy-court protection on or after June 1.
So far, two groups representing about 350 dealers have filed objections to Chrysler's move.
A Chrysler executive on Thursday defended the auto maker's decision, arguing that if the company didn't sell most of its assets to Fiat SpA as planned, all of its remaining dealers would go out of business. "The auto industry cannot support the number of dealers in the marketplace," said Steven J. Landry, Chrysler's marketing chief.
Legal experts said Chrysler dealers face an uphill battle because bankruptcy laws generally give courts wide latitude to tear up contracts such as dealer licenses. As a result, many dealers are choosing not to join the battle against Chrysler in bankruptcy court, concluding the legal costs would be high and the chances of winning slim.
"The dealers I've spoken to...don't think it's worth their time," said Scott Silverman of McCarter & English LLP in Boston. Just weeks ago, he said, he expected a handful of dealers to hire him to fight for their survival. "The few dealers that we are working with right now aren't even sure they want to be saved," Mr. Silverman said.
Mr. Silverman and other attorneys working with dealers said many of their clients are focusing on landing other franchises or selling or making some other use of the land where their stores are located.
Bob Archer owns three Chrysler franchises in metropolitan Houston that are supposed to close, and his brother Jim Archer Jr. owns a fourth, which is also on the closures list. But while Bob Archer is among the dealers who are objecting to Chrysler's move, his brother has decided not to fight in court.
Jim Archer said that if the other dealers prevail in bankruptcy court, he would benefit from the ruling even if he isn't actively involved. Jim Archer's dealership once employed 80 people, but now he is down to just four staffers, along with $8 million in vehicles in his inventory.
A number of members of Congress voiced concern midweek over the closures.
Wednesday, Sen. John D. Rockefeller IV (D., W. Va.), wrote to Chrysler, General Motors Corp. and the Treasury Department, saying the time frame for dealership closures in Chrysler's case is "egregious." Sen. Kay Bailey Hutchinson (R., Texas), introduced a proposal Thursday to give dealers at least 60 days before they shut down, instead of the 30 or so planned by Chrysler.
As part of its reorganization in bankruptcy court, Chrysler last week named 789 dealers that it wants to drop from its network of about 3,200 stores. It told the court it wants those dealers to stop selling its cars and trucks by about June 9.
GM said it plans to get rid of roughly 1,100 dealers, a move that suggests the auto maker is likely to file for bankruptcy-court protection on or after June 1.
So far, two groups representing about 350 dealers have filed objections to Chrysler's move.
A Chrysler executive on Thursday defended the auto maker's decision, arguing that if the company didn't sell most of its assets to Fiat SpA as planned, all of its remaining dealers would go out of business. "The auto industry cannot support the number of dealers in the marketplace," said Steven J. Landry, Chrysler's marketing chief.
Legal experts said Chrysler dealers face an uphill battle because bankruptcy laws generally give courts wide latitude to tear up contracts such as dealer licenses. As a result, many dealers are choosing not to join the battle against Chrysler in bankruptcy court, concluding the legal costs would be high and the chances of winning slim.
"The dealers I've spoken to...don't think it's worth their time," said Scott Silverman of McCarter & English LLP in Boston. Just weeks ago, he said, he expected a handful of dealers to hire him to fight for their survival. "The few dealers that we are working with right now aren't even sure they want to be saved," Mr. Silverman said.
Mr. Silverman and other attorneys working with dealers said many of their clients are focusing on landing other franchises or selling or making some other use of the land where their stores are located.
Bob Archer owns three Chrysler franchises in metropolitan Houston that are supposed to close, and his brother Jim Archer Jr. owns a fourth, which is also on the closures list. But while Bob Archer is among the dealers who are objecting to Chrysler's move, his brother has decided not to fight in court.
Jim Archer said that if the other dealers prevail in bankruptcy court, he would benefit from the ruling even if he isn't actively involved. Jim Archer's dealership once employed 80 people, but now he is down to just four staffers, along with $8 million in vehicles in his inventory.
Individual GM Bondholders Face Tough Choice
General Motors Corp. is trying to get bondholders to agree to a debt swap deal. Debra June, a substitute teacher from Stuart, Fla., is an example of why the offer is proving to be a tough sell.
Six years ago Ms. June invested $70,000 in GM bonds, thinking they were a safe bet. But under under the offering GM unveiled two weeks ago, all she would get is some stock worth about $280, according to her own estimate.
“I’m just going to take the bonds and hang them up in my living room. They’re more valuable as wallpaper,” the 52-year-old ...
Six years ago Ms. June invested $70,000 in GM bonds, thinking they were a safe bet. But under under the offering GM unveiled two weeks ago, all she would get is some stock worth about $280, according to her own estimate.
“I’m just going to take the bonds and hang them up in my living room. They’re more valuable as wallpaper,” the 52-year-old ...
Volvo Cars in Talks With Flemish Leader About Loan Guarantee
The head of Volvo Cars, the Swedish unit that owner Ford Motor Co. wants to sell, Monday met with the leader of the Flemish government to discuss state aid for the struggling car maker, a Volvo spokeswoman said.
Volvo Chief Executive Stephen Odell met in Brussels with Flemish Minister-President Kris Peeters to discuss the possibility of his government guaranteeing a loan for Volvo, spokeswoman Maria Bohlin said.
Volvo Chief Executive Stephen Odell met in Brussels with Flemish Minister-President Kris Peeters to discuss the possibility of his government guaranteeing a loan for Volvo, spokeswoman Maria Bohlin said.
Toyota: Not Mulling Providing Hybrid Technology To GM
Toyota Motor Corp. (7203.TO) said Monday that it isn't considering providing its technology for hybrid vehicles to General Motors Corp. (GM), denying a report earlier in the day.
The Yomiuri Shimbun, citing unnamed sources, said Toyota was considering giving GM its patented technology for increasing fuel economy by controlling the movement of the engine and the motor.
"We're not considering it at the moment," a spokesman at the Japanese auto maker said.
Toyota, the leading hybrid car maker, has been in cooperation with Ford Motor Co. and Nissan Motor Co. on the engine-motor power technology, licensing the patent to control the hybrid system to the U.S. car maker and providing the system to Nissan.
The Yomiuri Shimbun, citing unnamed sources, said Toyota was considering giving GM its patented technology for increasing fuel economy by controlling the movement of the engine and the motor.
"We're not considering it at the moment," a spokesman at the Japanese auto maker said.
Toyota, the leading hybrid car maker, has been in cooperation with Ford Motor Co. and Nissan Motor Co. on the engine-motor power technology, licensing the patent to control the hybrid system to the U.S. car maker and providing the system to Nissan.
Honda overtakes Toyota for top spot in auto supplier survey
Honda claimed the top spot in an annual survey of automotive suppliers, knocking off Toyota from having the best rating among suppliers.
Toyota dropped to second in the survey by Planning Perspectives Inc., which has conducted the survey since 2002, and Nissan came in third. Of the Big Three automakers from Detroit, Ford Motor Co. (NYSE: F) came in ahead of the other U.S. giants, followed by General Motors Corp. (NYSE: GM) and Chrysler LLC, which came in last overall in the survey for the second year in a row.
“Research we began in the early 1990s always showed Toyota as having the best relationship with its suppliers, but something seems to be changing,” said John Henke Jr., president of Michigan-based Planning Perspectives. “They’re looking a little more like U.S. automakers.”
Honda Motor Co. Ltd. (NYSE: HMC) reported its sales for April slid 25 percent, and that it would be cutting production as it continues to cope with the economic recession.
Marysville-based Honda of America Manufacturing employs more than 12,000 workers at assembly and engine plants in and around Central Ohio, where they produce Honda Accords, Civics, CR-Vs, Elements and Acura TLs and RDXs.
Toyota Motor Corp. (NYSE: TM) reported its lost $4.4 billion for the most recent fiscal year, as it continues to deal with the global slump in auto sales.
Chrysler recently filed for bankruptcy and GM is expected to file for bankruptcy protection as early as this week. Both automakers have accepted billions of dollars in bailout funds from the U.S. Treasury Department. Ford is the only member of the Big Three not to take federal bailout funds.
Both Chrysler and GM have announced significant cuts in their dealer networks, and are trimming jobs and looking at closing plants. All of those moves have hit suppliers, particularly the smaller auto suppliers, some of which have had to go out of business.
Toyota dropped to second in the survey by Planning Perspectives Inc., which has conducted the survey since 2002, and Nissan came in third. Of the Big Three automakers from Detroit, Ford Motor Co. (NYSE: F) came in ahead of the other U.S. giants, followed by General Motors Corp. (NYSE: GM) and Chrysler LLC, which came in last overall in the survey for the second year in a row.
“Research we began in the early 1990s always showed Toyota as having the best relationship with its suppliers, but something seems to be changing,” said John Henke Jr., president of Michigan-based Planning Perspectives. “They’re looking a little more like U.S. automakers.”
Honda Motor Co. Ltd. (NYSE: HMC) reported its sales for April slid 25 percent, and that it would be cutting production as it continues to cope with the economic recession.
Marysville-based Honda of America Manufacturing employs more than 12,000 workers at assembly and engine plants in and around Central Ohio, where they produce Honda Accords, Civics, CR-Vs, Elements and Acura TLs and RDXs.
Toyota Motor Corp. (NYSE: TM) reported its lost $4.4 billion for the most recent fiscal year, as it continues to deal with the global slump in auto sales.
Chrysler recently filed for bankruptcy and GM is expected to file for bankruptcy protection as early as this week. Both automakers have accepted billions of dollars in bailout funds from the U.S. Treasury Department. Ford is the only member of the Big Three not to take federal bailout funds.
Both Chrysler and GM have announced significant cuts in their dealer networks, and are trimming jobs and looking at closing plants. All of those moves have hit suppliers, particularly the smaller auto suppliers, some of which have had to go out of business.
New Doubts Raised on Opel Rescue Bids
The future of General Motors' (GM) European subsidiaries, including its Vauxhall plants at Ellesmere Port and Luton and Opel factories in Germany, was thrown into confusion when a German minister floated the possibility that none of the bids on the table for the business might succeed.
A week before its American parent company has to either raise cash by selling the European operations or file for bankruptcy, Karl-Theodor zu Guttenberg, the economic affairs minister, told Bild am Sonntag newspaper: "We now have three offers for an Opel takeover, but that doesn't mean one of them will automatically come to fruition.
"We must first have a high degree of certainty that the significant tax money we will have to provide is not lost. None of the three offers so far provides this certainty in a sufficient way." He added: "If these deficits were to remain, an orderly insolvency would clearly be the better solution – it also could open opportunities for the future of Opel."
Bids have been tabled by the Fiat (FIA.MI) group, the Canadian car parts maker Magna International (MGA), in partnership with Russia's Sberbank (SBER.RTS) bank, and the New York-based private equity investor Ripplewood Holdings LLC. But the German government could instead put the Opel unit into a trusteeship if GM files for bankruptcy, and this week organized a €1.5bn bridging finance package to keep Opel running.
Such a solution would be extremely messy, as it would mean separate administration procedures throughout the EU, and supplier agreements in receivership to keep the closely integrated businesses running. GM Europe has major manufacturing operations in Germany, Spain, Britain, Sweden, Belgium, Poland and Hungary.
Mr Guttenberg's remarks come ahead of a crucial meeting on Friday, convened by the German Chancellor Angela Merkel, where regional ministers from the federal government will evaluate the three bids.
Germany's ruling coalition of the Christian Democratic Union (CDU) and the Social Democratic Party (SPD) is divided over which bid to favour, with CDU members such as Mr Guttenberg said to favour the Fiat bid or allowing GM Europe to go onto bankruptcy. But many senior SPD figures, who are traditionally closer to the trades unions, tend to sympathise with Magna International's offer, because it has pledged to keep open all GM plants in Germany.
Frank-Walter Steinmeier, the foreign minister and SPD candidate for the chancellorship in this year's elections, hit back at Mr Guttenberg, yesterday, saying: "I advise everybody finally to stop the talk about an Opel insolvency. We should focus all our energy on saving as many jobs as possible at Opel instead of raising new spectres."
Over the weekend, Fiat chief executive Sergio Marchionne said that "in the worst case, a maximum of 2,000 jobs in Germany would be affected" by the planned integration. The implication there is that the UK operations, especially the Vauxhall van factory at Luton, will bear the brunt of the pain.
GM Europe is a complex operation. Indeed, despite Opel's dominance, GM's Spanish subsidiary makes almost as many vehicles and the UK is GM's strongest market in Europe.
Separate talks about the sale of Saab of Sweden are also proceeding. There is speculation that GM could even keep its Vauxhall arm, integrating it instead with its US and Korean factories, to spearhead a new GM Europe. In any case, disentangling the legal ownership of GM's various patents, brands and facilities could take many months.
A week before its American parent company has to either raise cash by selling the European operations or file for bankruptcy, Karl-Theodor zu Guttenberg, the economic affairs minister, told Bild am Sonntag newspaper: "We now have three offers for an Opel takeover, but that doesn't mean one of them will automatically come to fruition.
"We must first have a high degree of certainty that the significant tax money we will have to provide is not lost. None of the three offers so far provides this certainty in a sufficient way." He added: "If these deficits were to remain, an orderly insolvency would clearly be the better solution – it also could open opportunities for the future of Opel."
Bids have been tabled by the Fiat (FIA.MI) group, the Canadian car parts maker Magna International (MGA), in partnership with Russia's Sberbank (SBER.RTS) bank, and the New York-based private equity investor Ripplewood Holdings LLC. But the German government could instead put the Opel unit into a trusteeship if GM files for bankruptcy, and this week organized a €1.5bn bridging finance package to keep Opel running.
Such a solution would be extremely messy, as it would mean separate administration procedures throughout the EU, and supplier agreements in receivership to keep the closely integrated businesses running. GM Europe has major manufacturing operations in Germany, Spain, Britain, Sweden, Belgium, Poland and Hungary.
Mr Guttenberg's remarks come ahead of a crucial meeting on Friday, convened by the German Chancellor Angela Merkel, where regional ministers from the federal government will evaluate the three bids.
Germany's ruling coalition of the Christian Democratic Union (CDU) and the Social Democratic Party (SPD) is divided over which bid to favour, with CDU members such as Mr Guttenberg said to favour the Fiat bid or allowing GM Europe to go onto bankruptcy. But many senior SPD figures, who are traditionally closer to the trades unions, tend to sympathise with Magna International's offer, because it has pledged to keep open all GM plants in Germany.
Frank-Walter Steinmeier, the foreign minister and SPD candidate for the chancellorship in this year's elections, hit back at Mr Guttenberg, yesterday, saying: "I advise everybody finally to stop the talk about an Opel insolvency. We should focus all our energy on saving as many jobs as possible at Opel instead of raising new spectres."
Over the weekend, Fiat chief executive Sergio Marchionne said that "in the worst case, a maximum of 2,000 jobs in Germany would be affected" by the planned integration. The implication there is that the UK operations, especially the Vauxhall van factory at Luton, will bear the brunt of the pain.
GM Europe is a complex operation. Indeed, despite Opel's dominance, GM's Spanish subsidiary makes almost as many vehicles and the UK is GM's strongest market in Europe.
Separate talks about the sale of Saab of Sweden are also proceeding. There is speculation that GM could even keep its Vauxhall arm, integrating it instead with its US and Korean factories, to spearhead a new GM Europe. In any case, disentangling the legal ownership of GM's various patents, brands and facilities could take many months.
غبور : الفترة القادمة أصعب .. وخفض الأسعار مجرد أوهام!
اعترف المهندس رءوف غبور المدير التنفيذي لشركة "جي بي أوتو" وكيل سيارات هيونداي الكورية الجنوبية في مصر بأن الأزمة المالية الطاحنة التي يمر بها العالم حاليا أصابت سوق السيارات المصري بحالة شلل تام خلال الفترة الماضية.
وقال غبور في كلمته خلال حفل إطلاق "هيونداي سوناتا" الجديدة مساء الأحد الذي أقيم في أحد الفنادق الكبرى في القاهرة ، إنه مع بداية الأزمة كان هناك اعتقاد لدى المستهلك بأن أسعار السيارات ستنخفض بشكل كبير ، بل كان هناك من يتوقع بأن يصل الانخفاض إلى 50%.
وأوضح غبور أن تلك التوقعات ما هي إلا أحلام و أوهام ، وأنه من المستحيل أن تنخفض الأسعار، و لو حدث ذلك سيكون بسبب انخفاض أو ارتفاع العملات الأجنبية مقابل الجنيه أو انخفاض الجمارك وهو ما لم يحدث حتى الآن.
ولفت أحد أهم رجالات تجارة السيارات في مصر إلى أن المستهلك يظن أن هامش ربح السيارات كبير و بالتالي يجب على الوكلاء خفض الأسعار ، إلا أن الواقع عكس ذلك ، فهامش ربح تجارة السيارات يتراوح بين 2 إلى 4% ، وبالتالي فإنه حتى لو تعرضت الشركة للإفلاس فلن تخفض أسعار سياراتها.
وقال غبور إنه لا يجب مقارنة ما يحدث بالخارج من عروض على السيارات تصل إلى حد الحصول على سيارة مجاناً بالسوق المصري ، لأن مصنع السيارات يختلف عن التاجر و الوكيل الذي لا يستطيع أن يقدم مثل تلك العروض لأن خسارته ستكون كبيرة.
وأضاف وكيل "هيونداي" في مصر أن ما حدث خلال الفترة الماضية من حالة ركود كان بسبب الأثر النفسي لدى المستهلكين الذين كانوا يعتقدون أن الأزمة المالية كانت ستترجم إلى هبوط في الأسعار ، إلا أن السوق بعد في استعادة عافيته بداية من شهر مارس الماضي بعدما تأكد المستهلك من عدم انخفاض الأسعار.
وحذر غبور من أن الفترة القادمة ستكون أصعب، حيث ستبدأ أثار الأزمة المالية وأثر الركود خلال الفترة الماضية في الظهور بقوة ، وهو ما سيترجم إلى أرتفاع كبير في معدل التضخم و زيادة الطلب على السيارات.
مشيراً إلى أن المصانع التي خفضت إنتاجها بشكل كبير لن تستطيع العودة بشكل مفاجئ إلى كامل إنتاجها و بالتالي سيكون هناك خفض في الإنتاج مقابل طلب متزايد ، و بالتالي ارتفاع الأسعار ، إضافة إلى خروج بعض المصانع بلا عودة وهو ما سيؤثر سلبياً على كمية الإنتاج.
وذكر غبور بما حدث عام 2005 ، حيث كان المستهلك ينتظر فترة طويلة قبل الحصول على سيارته تصل إلى ستة أشهر ، و يقوم بدفع ثمن سيارته كاملاً لضمان عدم زيادة السعر خلال تلك الفترة.
وقال موجهاً حديثه للموزعين و التجار "ستشعرون بقيمة البضاعة التي كنتم تعتبرونها عبئاً عليكم في الماضي".
وكشف غبور عن أن "جي بي أوتو" استطاعت النجاة من الأزمة المالية الطاحنة من خلال خفض النفقات الزائدة و ترشيد العمالة.
وقال غبور في كلمته خلال حفل إطلاق "هيونداي سوناتا" الجديدة مساء الأحد الذي أقيم في أحد الفنادق الكبرى في القاهرة ، إنه مع بداية الأزمة كان هناك اعتقاد لدى المستهلك بأن أسعار السيارات ستنخفض بشكل كبير ، بل كان هناك من يتوقع بأن يصل الانخفاض إلى 50%.
وأوضح غبور أن تلك التوقعات ما هي إلا أحلام و أوهام ، وأنه من المستحيل أن تنخفض الأسعار، و لو حدث ذلك سيكون بسبب انخفاض أو ارتفاع العملات الأجنبية مقابل الجنيه أو انخفاض الجمارك وهو ما لم يحدث حتى الآن.
ولفت أحد أهم رجالات تجارة السيارات في مصر إلى أن المستهلك يظن أن هامش ربح السيارات كبير و بالتالي يجب على الوكلاء خفض الأسعار ، إلا أن الواقع عكس ذلك ، فهامش ربح تجارة السيارات يتراوح بين 2 إلى 4% ، وبالتالي فإنه حتى لو تعرضت الشركة للإفلاس فلن تخفض أسعار سياراتها.
وقال غبور إنه لا يجب مقارنة ما يحدث بالخارج من عروض على السيارات تصل إلى حد الحصول على سيارة مجاناً بالسوق المصري ، لأن مصنع السيارات يختلف عن التاجر و الوكيل الذي لا يستطيع أن يقدم مثل تلك العروض لأن خسارته ستكون كبيرة.
وأضاف وكيل "هيونداي" في مصر أن ما حدث خلال الفترة الماضية من حالة ركود كان بسبب الأثر النفسي لدى المستهلكين الذين كانوا يعتقدون أن الأزمة المالية كانت ستترجم إلى هبوط في الأسعار ، إلا أن السوق بعد في استعادة عافيته بداية من شهر مارس الماضي بعدما تأكد المستهلك من عدم انخفاض الأسعار.
وحذر غبور من أن الفترة القادمة ستكون أصعب، حيث ستبدأ أثار الأزمة المالية وأثر الركود خلال الفترة الماضية في الظهور بقوة ، وهو ما سيترجم إلى أرتفاع كبير في معدل التضخم و زيادة الطلب على السيارات.
مشيراً إلى أن المصانع التي خفضت إنتاجها بشكل كبير لن تستطيع العودة بشكل مفاجئ إلى كامل إنتاجها و بالتالي سيكون هناك خفض في الإنتاج مقابل طلب متزايد ، و بالتالي ارتفاع الأسعار ، إضافة إلى خروج بعض المصانع بلا عودة وهو ما سيؤثر سلبياً على كمية الإنتاج.
وذكر غبور بما حدث عام 2005 ، حيث كان المستهلك ينتظر فترة طويلة قبل الحصول على سيارته تصل إلى ستة أشهر ، و يقوم بدفع ثمن سيارته كاملاً لضمان عدم زيادة السعر خلال تلك الفترة.
وقال موجهاً حديثه للموزعين و التجار "ستشعرون بقيمة البضاعة التي كنتم تعتبرونها عبئاً عليكم في الماضي".
وكشف غبور عن أن "جي بي أوتو" استطاعت النجاة من الأزمة المالية الطاحنة من خلال خفض النفقات الزائدة و ترشيد العمالة.
Toyota Prius Still Evolving
When environmental concerns took a back seat to economic fears in the United States last year, sales of hybrid-power cars fell sharply.
So severe was the sales slump that Toyota shuttered its nearly completed plant in Mississippi that was designed to produce hybrid Priuses for the American market.
But in April, a hybrid -- the Honda Insight -- became the best-selling car in Japan for the first time in automotive history.
This curious contrast in marketing trends and the fact that the Toyota Prius is already well established in North America makes the debut of the 2010 Prius more auspicious than one might otherwise have expected. Toyota is launching an aggressive campaign for the 2010 model that is going on sale at the end of May.
"The Prius has evolved with our customers over the past 10 years and is now more things to more people," said Bob Carter, group vice president and general manager, Toyota Division. "We believe that its new features will appeal to returning owners, while at the same time attract buyers who are looking for innovative technology with a hybrid powertrain."
Boasting benchmark fuel economy of 51 miles per gallon in the city and 48 mpg on the highway, the 2010 Prius is offered in five trim levels at a base price of $22,750, including destination charge, so low that it cannot leave much profit margin for Toyota. A lower priced version at $21,000 will be available later this year. The top trim level will cost $28,020.
Honda's Insight is base priced at $20,470 with a peak sticker of $23,000. The Insight, which gave way to the Civic Hybrid in recent years, was originally a futuristic-looking model that never gained the traction of the Prius. Apparently, buyers want their hybrid vehicle to look different than conventional models but not that different. The new Insight is similar to the Prius with a hatchback roofline that arches all the way to the tail, making it identifiable without looking goofy.
Insight's fuel economy is impressive, but short of Prius's at 40 mpg in the city and 43 on the highway for a combined 41 mpg.
"With the introduction of the all-new Insight, we're opening up Honda's fun-to-drive, versatile and fuel-efficient hybrid technology to an entirely new group of buyers that previously may not have considered a hybrid because of either image or cost," said John Mendel, executive vice president of American Honda.
To enhance the appeal of the Prius, Toyota added a load of standard features and high-tech options for the third generation.
Designed to be quieter and roomier, the Prius offers four driving modes, steering wheel touch controls that display on the instrument panel, a moonroof with solar panels, and Intelligent Parking Assist that signals when you're in danger of hitting something.
Power comes from Toyota's Hybrid Synergy Drive that allows the cart to be certified as an Advanced Technology Partial Zero Emissions Vehicle, emitting over 70 percent fewer smog-forming emissions than the average new vehicle.
A larger and more powerful yet more efficient 1.8-liter Atkinson-cycle, four-cylinder engine produces 98 horsepower at 5,200 rpm. Together with its electric motor the hybrid system in the new Prius will generate a combined net horsepower of 134, an increase of 24 horsepower over the previous generation.
Standard safety features include Vehicle Stability Control and Traction Control Systems, Anti-lock Brake System with Electronic Brake Force Distribution and Brake Assist. Other standard features include electric power steering and four-wheel disc brakes.
Other standard features include: automatic air conditioning equipped with an electric air compressor; AM/FM/MP3 CD player with six-speakers and satellite radio capability; driver door Smart Key system with Push Button Start and remote illuminated entry; a Multi-Informational Display with an energy monitor and fuel consumption history; six-way adjustable driver seat; power door locks; auto up/down on all windows with window jam protection; cruise control; tilt/telescopic adjustable steering wheel with audio and HVAC controls; color-keyed foldable power heated side mirrors; dual sun visors with vanity mirrors; and tonneau cover.
A $4,500 option package includes a new Dynamic Radar Cruise Control system that uses advanced millimeter wave radar. The system warns the driver when the car is straying out of its lane and automatically retracts seatbelts and applies the brakes when a crash is unavoidable.
Prius will also compete with other hybrids such as the Chevrolet Malibu Hybrid, the Nissan Altima Hybrid and others. But it seems pretty clear that this year's top competitor will be the Honda Insight.
So severe was the sales slump that Toyota shuttered its nearly completed plant in Mississippi that was designed to produce hybrid Priuses for the American market.
But in April, a hybrid -- the Honda Insight -- became the best-selling car in Japan for the first time in automotive history.
This curious contrast in marketing trends and the fact that the Toyota Prius is already well established in North America makes the debut of the 2010 Prius more auspicious than one might otherwise have expected. Toyota is launching an aggressive campaign for the 2010 model that is going on sale at the end of May.
"The Prius has evolved with our customers over the past 10 years and is now more things to more people," said Bob Carter, group vice president and general manager, Toyota Division. "We believe that its new features will appeal to returning owners, while at the same time attract buyers who are looking for innovative technology with a hybrid powertrain."
Boasting benchmark fuel economy of 51 miles per gallon in the city and 48 mpg on the highway, the 2010 Prius is offered in five trim levels at a base price of $22,750, including destination charge, so low that it cannot leave much profit margin for Toyota. A lower priced version at $21,000 will be available later this year. The top trim level will cost $28,020.
Honda's Insight is base priced at $20,470 with a peak sticker of $23,000. The Insight, which gave way to the Civic Hybrid in recent years, was originally a futuristic-looking model that never gained the traction of the Prius. Apparently, buyers want their hybrid vehicle to look different than conventional models but not that different. The new Insight is similar to the Prius with a hatchback roofline that arches all the way to the tail, making it identifiable without looking goofy.
Insight's fuel economy is impressive, but short of Prius's at 40 mpg in the city and 43 on the highway for a combined 41 mpg.
"With the introduction of the all-new Insight, we're opening up Honda's fun-to-drive, versatile and fuel-efficient hybrid technology to an entirely new group of buyers that previously may not have considered a hybrid because of either image or cost," said John Mendel, executive vice president of American Honda.
To enhance the appeal of the Prius, Toyota added a load of standard features and high-tech options for the third generation.
Designed to be quieter and roomier, the Prius offers four driving modes, steering wheel touch controls that display on the instrument panel, a moonroof with solar panels, and Intelligent Parking Assist that signals when you're in danger of hitting something.
Power comes from Toyota's Hybrid Synergy Drive that allows the cart to be certified as an Advanced Technology Partial Zero Emissions Vehicle, emitting over 70 percent fewer smog-forming emissions than the average new vehicle.
A larger and more powerful yet more efficient 1.8-liter Atkinson-cycle, four-cylinder engine produces 98 horsepower at 5,200 rpm. Together with its electric motor the hybrid system in the new Prius will generate a combined net horsepower of 134, an increase of 24 horsepower over the previous generation.
Standard safety features include Vehicle Stability Control and Traction Control Systems, Anti-lock Brake System with Electronic Brake Force Distribution and Brake Assist. Other standard features include electric power steering and four-wheel disc brakes.
Other standard features include: automatic air conditioning equipped with an electric air compressor; AM/FM/MP3 CD player with six-speakers and satellite radio capability; driver door Smart Key system with Push Button Start and remote illuminated entry; a Multi-Informational Display with an energy monitor and fuel consumption history; six-way adjustable driver seat; power door locks; auto up/down on all windows with window jam protection; cruise control; tilt/telescopic adjustable steering wheel with audio and HVAC controls; color-keyed foldable power heated side mirrors; dual sun visors with vanity mirrors; and tonneau cover.
A $4,500 option package includes a new Dynamic Radar Cruise Control system that uses advanced millimeter wave radar. The system warns the driver when the car is straying out of its lane and automatically retracts seatbelts and applies the brakes when a crash is unavoidable.
Prius will also compete with other hybrids such as the Chevrolet Malibu Hybrid, the Nissan Altima Hybrid and others. But it seems pretty clear that this year's top competitor will be the Honda Insight.
Tuesday, May 19, 2009
حمل الان احدث افلام عالم السيارات 3
حمل الان احدث افلام
عالم السيارات 3
Fast and Furious 4
^
^
^
^
^
^
^
تورنت
اضغط هنا
رابيد شير
الجزء الاول
الجزء الثانى
الجزء الثالث
الجزء الرابع
الجزء الخامس
الجزء السادس
الجزء السابع
الجزء الثامن
عالم السيارات 3
Fast and Furious 4
^
^
^
^
^
^
^
تورنت
اضغط هنا
رابيد شير
الجزء الاول
الجزء الثانى
الجزء الثالث
الجزء الرابع
الجزء الخامس
الجزء السادس
الجزء السابع
الجزء الثامن
Get your free car insurance quotes in minutes
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Our site is easy to use and our goal is to show you how much you can save on your car insurance. Not only will you save your money, but you will save your time too. Our online car insurance quote takes a few minutes and then we provide rates from multiple insurance companies.You can finish online through CarInsurance.com or licensed agents in our professional sales center are available to help you purchase your car insurance policy. In some states, you are directed to one of our trusted partners for a rate in your area.
Because we offer multiple company rates and the ability to purchase their auto insurance quote from one place, we are ahead of other online insurance companies. Start your quote to see how companies compete for your business. You could save over 25% on your auto insurance. We are becoming the Internet's most popular comparison insurance website with the most car insurance resources available!
Our goal is to give consumers all the information and resources they need to make informed auto insurance decisions. We are your Online Car Insurance Marketplace
Our site is easy to use and our goal is to show you how much you can save on your car insurance. Not only will you save your money, but you will save your time too. Our online car insurance quote takes a few minutes and then we provide rates from multiple insurance companies.You can finish online through CarInsurance.com or licensed agents in our professional sales center are available to help you purchase your car insurance policy. In some states, you are directed to one of our trusted partners for a rate in your area.
Because we offer multiple company rates and the ability to purchase their auto insurance quote from one place, we are ahead of other online insurance companies. Start your quote to see how companies compete for your business. You could save over 25% on your auto insurance. We are becoming the Internet's most popular comparison insurance website with the most car insurance resources available!
Our goal is to give consumers all the information and resources they need to make informed auto insurance decisions. We are your Online Car Insurance Marketplace
حمل الان احدث افلام عالم السيارات 3
حمل الان احدث افلام
عالم السيارات 3
Fast and Furious 4
^
^
^
^
^
^
^
تورنت
اضغط هنا
رابيد شير
الجزء الاول
الجزء الثانى
الجزء الثالث
الجزء الرابع
الجزء الخامس
الجزء السادس
الجزء السابع
الجزء الثامن
عالم السيارات 3
Fast and Furious 4
^
^
^
^
^
^
^
تورنت
اضغط هنا
رابيد شير
الجزء الاول
الجزء الثانى
الجزء الثالث
الجزء الرابع
الجزء الخامس
الجزء السادس
الجزء السابع
الجزء الثامن
Get your free car insurance quotes in minutes
Simple, one process shopping for car insurance is available when you enter your zip code and start your quote. With CarInsurance.com, it is easy to compare our partner’s rates and buy your auto insurance online. In most states, you can complete the process and have your proof of insurance in 20 minutes or less!
Our site is easy to use and our goal is to show you how much you can save on your car insurance. Not only will you save your money, but you will save your time too. Our online car insurance quote takes a few minutes and then we provide rates from multiple insurance companies.You can finish online through CarInsurance.com or licensed agents in our professional sales center are available to help you purchase your car insurance policy. In some states, you are directed to one of our trusted partners for a rate in your area.
Because we offer multiple company rates and the ability to purchase their auto insurance quote from one place, we are ahead of other online insurance companies. Start your quote to see how companies compete for your business. You could save over 25% on your auto insurance. We are becoming the Internet's most popular comparison insurance website with the most car insurance resources available!
Our goal is to give consumers all the information and resources they need to make informed auto insurance decisions. We are your Online Car Insurance Marketplace
Our site is easy to use and our goal is to show you how much you can save on your car insurance. Not only will you save your money, but you will save your time too. Our online car insurance quote takes a few minutes and then we provide rates from multiple insurance companies.You can finish online through CarInsurance.com or licensed agents in our professional sales center are available to help you purchase your car insurance policy. In some states, you are directed to one of our trusted partners for a rate in your area.
Because we offer multiple company rates and the ability to purchase their auto insurance quote from one place, we are ahead of other online insurance companies. Start your quote to see how companies compete for your business. You could save over 25% on your auto insurance. We are becoming the Internet's most popular comparison insurance website with the most car insurance resources available!
Our goal is to give consumers all the information and resources they need to make informed auto insurance decisions. We are your Online Car Insurance Marketplace
Choose Safety
Buying a car? Make sure you put safety first. It could help save your life, and will definitely help you save on auto insurance when you get a quote from Esurance!
Getting Started
When you’re buying a car, it pays to consider all the information available before making such a sizable investment. You’ll be more likely to save money, and information from a diverse array of sources will help ensure that you get the safest vehicle available. Fortunately, a wide variety of consumer information is available online at Web sites like Yahoo! Autos. You can find all the information you need in minutes!
You can also see available safety features and select other custom features when you get hassle-free new or used car quotes online. Yahoo! Autos makes comparison shopping easy, without any obligation to buy!
Crash Test Performance
The National Highway Traffic Safety Administration (NHTSA) and many other safety authorities run crash tests every year to determine how well vehicles protect occupants in frontal and side collisions. When you're car shopping, ask how well the vehicle you're interested in holds up in frontal and side collision simulations. Good performance in these crash tests is typically a prominent selling feature. If the seller doesn't know, or if you want to know more, you can research specific models and years on NHTSA's Web site.
Safety Features that Help You Save on Auto Insurance
* Seat belts— On average, seat belts save more than 10,000 lives each year. (Because of this, you’re typically given an auto insurance discount for certain kinds of automatic seat belts when you buy auto insurance.)
* Air bags— When used with seat belts, air bags increase safety for most adult passengers. Concerned about reports on air bag safety? Learn how to use air bags safely with Esurance’s extensive vehicle information.
* Head injury protection— Head injury protection helps lighten the blow should your head strike the interior roof of the vehicle and has become standard protection in recent model years. Headrests minimize neck trauma in an accident.
Auto insurance discounts for these safety features are typically applied automatically in your auto insurance quote from companies like Esurance.
Tough Traction
There are a lot of safety features that help you better control your vehicle, such as anti-lock brake systems, traction control, and all-wheel drive. See if the car that interests you has any of these features and then get a quote from Esurance to find out auto insurance costs. (Many of these features result in lower auto insurance rates and/or auto insurance discounts.)
Getting Started
When you’re buying a car, it pays to consider all the information available before making such a sizable investment. You’ll be more likely to save money, and information from a diverse array of sources will help ensure that you get the safest vehicle available. Fortunately, a wide variety of consumer information is available online at Web sites like Yahoo! Autos. You can find all the information you need in minutes!
You can also see available safety features and select other custom features when you get hassle-free new or used car quotes online. Yahoo! Autos makes comparison shopping easy, without any obligation to buy!
Crash Test Performance
The National Highway Traffic Safety Administration (NHTSA) and many other safety authorities run crash tests every year to determine how well vehicles protect occupants in frontal and side collisions. When you're car shopping, ask how well the vehicle you're interested in holds up in frontal and side collision simulations. Good performance in these crash tests is typically a prominent selling feature. If the seller doesn't know, or if you want to know more, you can research specific models and years on NHTSA's Web site.
Safety Features that Help You Save on Auto Insurance
* Seat belts— On average, seat belts save more than 10,000 lives each year. (Because of this, you’re typically given an auto insurance discount for certain kinds of automatic seat belts when you buy auto insurance.)
* Air bags— When used with seat belts, air bags increase safety for most adult passengers. Concerned about reports on air bag safety? Learn how to use air bags safely with Esurance’s extensive vehicle information.
* Head injury protection— Head injury protection helps lighten the blow should your head strike the interior roof of the vehicle and has become standard protection in recent model years. Headrests minimize neck trauma in an accident.
Auto insurance discounts for these safety features are typically applied automatically in your auto insurance quote from companies like Esurance.
Tough Traction
There are a lot of safety features that help you better control your vehicle, such as anti-lock brake systems, traction control, and all-wheel drive. See if the car that interests you has any of these features and then get a quote from Esurance to find out auto insurance costs. (Many of these features result in lower auto insurance rates and/or auto insurance discounts.)
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