President Bush today signed the $700 billion dollar “financial rescue deal” for the nation’s financial system.

He signed the deal just after the House of Representatives voted 263-171 for the measure. The deal was done in order to give an all together new start to the stalled credit markets and estimated to cost more than 700 billion dollars.

”By coming together on this legislation, we have acted boldly to help prevent the crisis on Wall Street from becoming a crisis in communities across our country,” Bush said this in the White House Rose Garden Read the rest of this entry »

Here comes the Orange County Auto Show, the ultimate destination for manufacturers over the globe, as well as passionate consumers. This indoor exhibit of will be held for four days at the Anaheim Convention Center, California, starting October 2. More than 500 new-model vehicles from more than 40 domestic and foreign manufacturers will be on display under one roof. Really, a great place to be in!

The Orange County Auto Show is presented by the Orange County Automobile Dealers Association and the Southern Motor Car Dealers Association. Read the rest of this entry »

The House of Representatives on Wednesday finally approved funding for a $25 billion loan program, to help the auto industry in retooling plants to produce  more fuel-efficient vehicles. The Senate is expected to approve funding for the loans next week and President George Bush is expected to sign the bill into law.

The bill that would continue to fund the federal government in the new fiscal year starts on October 1, including a $7.5 billion to start the loan program. The loan program is an another step of the government into its involvement in auto industry operations, after it had guaranteed loans to Chrysler Corp. in 1979. Read the rest of this entry »

It’s good to know that the Bush administration has finally widened the plan to buy as much as $700 billion worth of bad mortgages and other problem assets, such as debt student loans, home equity loans and credit cards, held by banks, Wall Street firms and other financial institutions.

But, here the question rises, if bad car loans are going to be included in the proposed bailout? However, a financial trade association said “Yes” to its answer. Read the rest of this entry »

Amidst of the declining truck sales, Ford Motor Co. is all set to launch its new F-150 pickup next month. The automaker has also big plan to provide training to its dealerships on coming fall for sale of the pickup. As part of the plan, the automaker plans an advertising blitz in November.

The company officials said that it will provide the training at its 1,000 largest dealerships and some of the smaller dealerships at central locations. According to Mark Grueber, the F-150 marketing manager, the upcoming training is going to be the most comprehensive dealership training, which will run through end of this year.   Read the rest of this entry »

The plunging U.S. sales and slowing global economy have been a cause of worry to the U.S. automakers, said Alan Mulally, CEO of Ford Motor Co. The Ford chief believes that the overall U.S. auto sale would not recover before late 2009 or possibly 2010. However, he is confident in Ford’s current liquidity.

“We know the situation in the United States, and most people are projecting maybe 1.5 percent GDP growth this year, but clearly it’s a slowdown,” said Mulally at the Reuters Autos Summit in Detroit. “We’re seeing a slowdown in Asia Pacific and we’re seeing a slowdown in Europe …. That clearly affects the automobile industry worldwide. It’s a tough business situation for us worldwide.” Read the rest of this entry »

Chrysler LLC is in talks with the German axle maker ZF Friedrichshafen AG to operate the automaker’s new axle plant in Marysville, Michigan. The plant is under construction now and it is expected to be operational in 2010.

According to sources, the $700 million Marysville axle plant would replace Chrysler’s Detroit Axle and would probably use a modified Mercedes axle-making technology, which will generate less internal friction, improving fuel economy. The new plant is part of the $3 billion investment, that Chrysler announced in April 2007 to produce more fuel-efficient V6 engines and other related components. Read the rest of this entry »

Ford Motor Co. said Wednesday that it will cut 500 jobs at its crossover assembly plant in Oakville, Ontario. Ford of Canada spokeswoman Laura More said that the company will eliminate the third shift in the plant’s body and paint work areas. The plant makes Lincoln MKX, Ford Edge and Ford Flex crossovers and employs a total of 3,000 workers presently.

In an attempt to meet the job-cutting goal, Ford is offering retirement incentives to eligible employees at the Oakville assembly plant. The retirement package includes a $75,000 allowance and $35,000 to purchase a new Ford vehicle, said More. Read the rest of this entry »

In November, Ford Motor Co. will drop one of two production shifts at its Chicago assembly plant. The move will result in the loss of jobs of 600 part-time workers. The plant employs a total of 2,175 hourly workers.

The Chicago assembly plant makes the Ford Taurus X crossover, Mercury Sable and Lincoln MKS. Reportedly, the production at the plant fell 15 percent last year to 131,646, which was half of the plant’s capacity for two shifts. The company said, the sales of Ford, Mercury and Lincoln cars dropped almost 9 percent in August from a year ago. Ford’s overall U.S. sales were down 26.5 percent, as compared to last year. Read the rest of this entry »

It seems that the Detroit Big Three are now in great need of government help. The Detroit-based automakers are seeking about $25 billion in federal loans, in an attempt to ride out a steep downturn in the U.S. auto sales.

Recently, at the Democratic National Convention, Ford executives have announced that the company needs low-interest federal loans from the U.S. government. After this, General Motors Vice Chairman Bob Lutz insisted on the government’s approval of the loans to the Detroit Three. “I do think the American automobile business is deserving of government loan guarantees because the financial institutions in the U.S. are so stressed out right now,” said Lutz. Read the rest of this entry »