How are they doing? Hard to tell, says Marketwatch in an extended car-racing metaphor. GM stock won't be issued until next year, so it's hard to tell what the markets' view might be. Guess we'll have to wait until the new company starts producing actual cars that don't suck.

For details about the new GM, its ownership, and how the change affects current and future GM customers, visit this very thorough guide at Consumer Reports Cars.

What the post-bankruptcy GM means to you [Consumer Reports Cars]
GM back in the race [MarketWatch]

(Photo: Cantoni)

From Reuters:

The source said that GM has been losing 60 to 65 U.S. dealers per month as those retail franchises succumb to the unprecedented industry sales downturn.

U.S. auto sales are near 27-year lows with no signs of immediate recovery in sight.

This news comes on the heels of yesterday's announcement that Chrysler will eliminate over 700 dealerships and 38,000 jobs.

GM to cut up to 1,200 U.S. dealers: source [Reuters]
(Photo:afagen)

The automaker said that bankruptcy wasn't a foregone conclusion, but that it is more probable than in the recent past.

"Today it's more probable that we would need to resort to a bankruptcy process. But there's still a possibility and an opportunity for it to be done outside of a bankruptcy," said Fritz Henderson, the chief executive of General Motors.

42% of GM dealers will close, probably in the next few months, if not longer. There was one bit of bright news — GM has found two bidders for Hummer. There was no mention of the fate of Saturn and Saab.

Only three weeks left before the government deadline! Do you think GM can get its act together and avoid bankruptcy?

Live-Blogging the G.M. Conference Call [NYT]
(Photo:alyates44)

The judge rejected the investors claims that releasing their identities would endanger both their lives and their reputations. Chrysler's lawyer says the so-called "threats" are just commenter rants on the Washington Post's website.

"The only evidence they have provided is a series of four or five anonymous rants on a Washington Post Web site," Hamilton said. "Anyone with a passing familiarity with the hyperbolic rants on such boards on the Internet would not take such comments seriously."

We have more than a passing familiarity, and we'd have to agree.

Chrysler Dissidents Must Reveal Identity, Judge Says (Update2) [Bloomberg]
(Photo:exfordy)

The NYT has the numbers:

A senior White House official said that the case would begin immediately, and that the government would provide debtor-in-possession financing in a range of $3 billion to $3.5 billion, so the company can continue to operate normally.

Once Chrysler restructures, the company would receive $4.5 billion in financing to restart its operations, for total American government support through the bankruptcy process and afterwards of up to $8 billion.

That is $2 billion more than President Obama initially said the company would receive if it successfully reached a deal with Fiat.

Chrysler has already received $4.5 billion from the government, under a bailout plan put into effect by the Bush administration in late December, after Congress rejected legislation that would have provided federal aid.

The Canadian government also is expected to provide $1 for every $3 in American support, the official said, meaning Chrysler could receive another $2.6 billion.

Obama encouraged American consumers to continue to support Chrysler, emphasizing that it would be business as usual during the bankruptcy proceedings — which are expected to be as short as 30 days.

For those consumers concerned about buying a car from a bankrupt automaker, the president promised that Chrysler warranties would be fully backed by US government.

The WSJ says the holdouts, calling themselves "Non-TARP Lenders," claim that their attempts to restructure the company's debt were "flatly rejected or ignored."

Chrysler Bankruptcy Plan Is Announced [NYT]
Lenders: Offer To Restructure Chrysler Debt Has Been Ignored [WSJ]
(Photo:Ralph Krawczyk Jr)

"The agreement from Chrysler's principal banks is an exceptional accomplishment in line with the President's firm commitment that all stakeholders sacrifice to make this deal succeed," a Treasury official told BW.

The whole operation now hinges on a partnership with Fiat. More details should be available on Thursday, the government's deadline for reaching an agreement.

Bankruptcy for Chrysler Likely Averted as Banks Cave on Deb [BW]

GM will also eliminate 21,000 jobs.

From the Washington Post:

By June 1, the Detroit-based automaker, which has already received $15.4 billion in federal loans, must gain significant concessions from stakeholders to continue to receive aid.

Under the outlines announced yesterday, the federal government would take an equity stake of at least 50 percent, the United Auto Workers would take as much as 39 percent, the company's bondholders would get 10 percent and the existing shareholders 1 percent

In addition, the company said that they do not expect to make Hummers, Saabs or Saturns after this year.

GM to Cut 21,000 Jobs, Eliminate Pontiac [WaPo]
(Photo:computermachina)

Yesterday, a report from Bloomberg described the likelihood of liquidation at 95%.

Chrysler LLC has a 95 percent probability of entering bankruptcy as time dwindles before its April 30 deadline to cut debt and complete an alliance with Italy's Fiat SpA, an industry analyst said.

The likeliest outcome of a Chrysler filing for court protection would be the purchase of some factories and brands by automakers including Fiat, said Michael Robinet, head of global forecasting for CSM Worldwide Inc. in Northville, Michigan.

"Nobody has a good idea about what's going to" exist of the third-largest U.S. automaker once it goes into bankruptcy, Robinet said in a speech today in Detroit.

The bleak news came after lenders rejected an offer by the Treasury department that would have reduced Chrysler's debt. Now a new offer is on the table. The latest word on the deal comes from the Wall Street Journal:

The Treasury now proposes that the banks and other lenders accept as payment 22% of the $6.9 billion they are owed plus a 5% equity stake in Chrysler, said several people familiar with the matter.

That's up from an earlier Treasury proposal that the banks and other lenders accept 15% of what Chrysler owes them and receive no Chrysler stock.

Chrysler's lenders, including JP Morgan Chase, and Citigroup, rejected the first offer and proposed that Chrysler pay back 65% of it's debt as well as offer a seat on its board.

Banks Get New Offer for Debt in Chrysler [WSJ]
Chrysler Bankruptcy Now 95% Certain, CSM Analyst Says (Update1) [Bloomberg]
(Photo:Ralph Krawczyk Jr)

From BusinessWeek:

"This is a terrific time to buy a new vehicle," says Jack Nerad, executive market analyst at Kelley Blue Book. The market favors buyers so much that, with financing rates factored in, some new models are less expensive than year-old, used versions of the same car, according to an analysis by car-buying site Edmunds.com. A back-of-the envelope calculation finds that a Chevrolet Malibu with a $25,000 list price could effectively sell for about $10,000 less if all of the proposed incentives are put in place.

That's cheap, but is it cheap enough?

As Auto Deals Add Up, Will Buyers Bite? [BusinessWeek]
(Photo:mike-wise)

In a 6-page PDF, the administration explained that neither company's plan was "sufficient to justify a substantial new investment of taxpayer resources," but that each company would be given a short period of additional time to fix their problems. For Chrysler, the situation is clearly more dire, as the administration's plan includes a required merger with Fiat. The two companies have 30 days to work it out in order to qualify for an additional $6 billion in loans from the government. If they can't — Chrysler is on its own.

The administration says:

General Motors: While GM's current plan is not viable, the Administration is confident that with a more fundamental restructuring, GM will emerge from this process as a stronger more competitive business. This process will include leadership changes at GM and an increased effort by the U.S. Treasury and outside advisors to assist with the company's restructuring effort. Rick Wagoner is stepping aside as Chairman and CEO. In this context, the Administration will provide GM with working capital for 60 days to develop a more aggressive restructuring plan and a credible strategy to implement such a plan. The Administration will stand behind GM's restructuring effort.

Chrysler: After extensive consultation with financial and industry experts, the Administration has reluctantly concluded that Chrysler is not viable as a stand-alone company. However, Chrysler has reached an understanding with Fiat that could be the basis of a path to viability. Fiat is prepared to transfer valuable technology to Chrysler and, after extensive consultation with the Administration, has committed to building new fuel efficient cars and engines in U.S. factories. At the same time, however, there are substantial hurdles to overcome before this deal can become a reality.

Therefore, the Administration will provide Chrysler with working capital for 30 days to conclude a definitive agreement with Fiat and secure the support of necessary stakeholders. If successful, the government will consider investing up to the additional $6 billion requested by Chrysler to help this partnership succeed. If an agreement is not reached, the government will not invest any additional taxpayer funds in Chrysler.

The administration went on to describe the process by which the car companies could be returned to viability — including offering warranty support so that consumers would feel confidant buying a automobile during the restructuring.

Meanwhile, Ousted GM CEO Rick Wagoner is trying to remain positive. "GM is a great company with a storied history. Ignore the doubters because I know it is also a company with a great future," he said in a statement.

Obama Administration New Path to Viability for GM & Chrysler [via CSPAN]

Wagoner says restructuring out of court would accomplish 99 percent of what could be achieved in bankruptcy. But he says it wouldn't have the risk of scaring away customers or the huge expense of Chapter 11.

GM CEO says bankruptcy would cause liquidation [AP]
(Photo:alyates44)

Honda and Mazda would follow Toyota Motor Corp., Japan's biggest carmaker, in seeking loans from the government as the global recession hammers auto demand. U.S. auto sales in February slid to the lowest rate since December 1981, led by a 53 percent plunge for General Motors Corp.

Vehicle sales are down 35-40% worldwide, says the Detroit Free Press, clearly relieved that "despite their frequent depiction as the only dunderheads unable to peddle cars," Detroit is not alone in its misery.

When Toyota is begging, it's bad [Detroit Free Press]
Honda, Mazda May Apply for Japanese Government Loans (Update1) [Bloomberg]
(Photo:blue_j)

Dear [redacted]:

From our very beginning, Saturn has always sought a better way. We pioneered no-hassle, no-haggle shopping, built dent-resistant cars, set a new benchmark for customer service and forged a unique relationship with our retailers, workers and customers. From the beginning, Saturn was launched as a "Different Kind of Car Company."

Well, here we go again.

You may have read that General Motors delivered a plan to the U.S. government that outlined the corporation's plan for long-term viability.In that plan, GM stated that Saturn would work with its retailers to investigate options for the future of the Saturn Brand. We said that all ideas were on the table and we meant it.

Today, we confirmed that Saturn and GM would further investigate one of those options: a spin-off of an independent Saturn Distribution Corporation.

The Saturn Distribution Corporation already exists as an indirect subsidiary of GM. It's the entity with which our retailers currently have their franchise agreement. An independent Saturn would still have its great retailers, and it would continue to source current products from GM through 2011. If successful, SDC at that point would source products from other manufacturers.

The goal-from a product perspective-would be to find future vehicles that match the Saturn Brand: fuel-efficient, safe, reliable and affordable. From a retailing perspective, we would build on our core strength of unmatched customer service. The same hassle-free experience that is a hallmark of the brand could be taken to even higher levels.

While this process proceeds, we will continue to do what we have always done best: sell great vehicles and take care of our customers. We have a fresh portfolio of award-winning, fuel-efficient vehicles and a network of retailers that is second to none. And our new vehicles are still backed by a 100,000-mile/5-year (whichever comes first) Transferable Powertrain Limited Warranty. When you add Roadside Assistance and Courtesy Transportation programs, we believe it is the industry's best overall coverage. It is coverage that GM and Saturn will continue to firmly stand behind, and GM will support the continued availability of Saturn parts and service as needed.

This is an exciting time at the Saturn Brand, and I have to confess, it feels a bit like it did back in the 1980s when the original Saturn project was being developed. As loyal Saturn owners and enthusiasts, I know you support this brand, and you can believe we are working toward a vibrant future. Difficult times sometimes yield the most innovative solutions, and those who are willing to take on the challenge will emerge victorious. Stay tuned.

Sincerely,

Jill Lajdziak
General Manager, Saturn

Pat Farrell, a vice president at Enterprise Rental Car, said the company started trimming its purchases last summer as the slowdown in the economy became evident. The company, which also owns the National and Alamo brands, is the world's largest purchaser of cars — it buys about 800,000 vehicles bought in a typical year.

When Enterprise experienced an even sharper drop in demand in October, it further cut back on its orders, a pullback that took three months to implement and will be felt in its January sales numbers.

Farrell would not disclose how much purchases were cut at the privately-held company, but he said it would be more than 10%. He said the company is holding onto vehicles about two months longer than normal to make up for the reduced purchases.

So, not only are our car companies in trouble — your rental car is going to suck, too.

Car sales: From bad to worse [CNNMoney]

The blog post in question had been gathering comments up until, we can only assume, it was pulled after becoming popular on Digg about 6 hours ago.

Thankfully Google has a cache of the page, so you don't have to miss it.

Here's a sampling of the sentiments people were expressing before Chrysler pulled the page:

• What a total waste of money. That useless ad money could have been put into research and development to make better quality and fuel efficient vehicles. This has got to be the most expensive thank you card ever written, providing better products would be just as sufficient.
  

• Way to blow hundreds of thousands of dollars on a useless ad campaign that will surely only worsen your public image. We weren't buying your cars before because they are all gas guzzling, unreliable, uninteresting cars that look like they were styled by the coleman plastic cooler division, inside and out. So then you steal our money through the government so you can waste more of it on useless ads, and you have the audacity to remind us all about it. Go to hell Chrysler. I was not going to buy one of your vehicles before, and I certainly am never going to do so after this.

• I signed up just to add comments in response to your ad of properly slapping the American public in the face with insensitivity and pride. Money that was "taken" from the American people wasted on advertising thanking the people the money was taken from is audacious. I don't know whether to loathe you for your insensitivity in the matter or praise you for your boldness. Clearly the move this advertising campaign was dreamed up and approved by individuals who has no contact with the average American. The problem with your company and that of many American companies is the ridiculous financial separation of upper management from that of the average middle income American. Your outrageous income and ability to choose to isolate yourselves mentally, financially, and emotionally from the consumer you serve has lead to the financial ruin of your company. However, I'm sure this is of no concern to you or your upper management team because even if your company fail, you will have your golden parachute stitched with the money taken from the pockets of people who are loosing their homes, their jobs, and their ability to provide for their family (some of these people work for your company).

• We were forced to help you. Thank us by acting responsible for a change. This ad is the equivalent to salt poured on an open wound. If you had any common sense, you would be ashamed.

• Depending on placement, full page ads placed in the Wall Street journal can cost over $200,000, not to mention the other publications where this ad was placed. So, at least a quarter of a million dollars of our money was spent on an ad thanking us for our contribution. A contribution that the majority did not want to make. This ad screams "Hey, look what we are doing with your tax dollars, lol." This ad is yet another example of frivolous and clueless spending. Thank us by using OUR money to make your company profitable, not with a meaningless ad. As the old saying goes,"Actions speak louder than words."

• It wasn't enough for you to run Home Depot into the ground, you had to take down a domestic auto manufacturer down too? Nardelli, you're a piece of work, I often wish American culture mirrored Japanese culture in the generational shame brought about by a family member.

• I'm boycotting you. My whole family is boycotting you. My mother and my father, my brothers and sisters, my sons and daughters. Just thought I'd let you know.

• You are NOT WELCOME! What an insult upon injury. Chrysler is morally bankrupt, proven by this ad thanking the very people they've stolen from. There is nothing that could ever tempt me to buy your product and it appears much of America feels the same.
• Dear Chrysler: I don't like to pay for things twice, so since I've already paid to bail you out of your mess, I won't be buying any of your vehicles. Yours Truly, A great great grand nephew of Walter P Chrysler
• You are not welcome, thieves. Your shitty, ugly cars will now sell even less, thanks to your ignorance and hubris. You better hope the government keeps printing money for you, because you aren't getting any of ours anytime soon.

• You are not welcome! Shame on you, Mr. Nardelli! Shame on all the morally bankrupt greedy, overpaid deadbeats at Cerberus! I feel sorry for the employees at Chrysler, but the fact is they do not build products that the public wants to buy. It is certainly not the fault of most of these employees, that most of the public does not want to buy these products, but life is not fair. Chrysler should be put out of its misery and Chrysler employees will have to find other jobs, just like other hardworking Americans do. It isn't easy. But hey, life sucks. Just like Chrysler products.

• If it comes down to Chrysler or walking.......we'll walk. I'll put my kids on a mule before I'll put them in a Chysler. Suck it, you parasites.

• Nardelli screwed up Home Depot. Now his incompetence is at the helm of Chrysler. Is he putting any of his 222 million golden parachute from HD on the line at Chrysler? I just bought an Xterra, made in the USA. Sorry Jeep

• I'm rolling over, but I've had to do that a lot lately. Posted Jan 2, 2009, 9:54 AM by Thomas Jefferson

Chrysler Thanks America, Gets told to "Go to Hell" [Digg]

Under terms of a pact that is being hammered out, Fiat is likely to take a 35% stake in Chrysler by the middle of this year. It would have the option of increasing that to as much as 55%, these people said.

Rather than throw cash into "Big Bob" Nardelii's money pit, Fiat would pay for the retooling of one of Chrysler's plants and begin to sell Fiats in the United States. They would also help Chrysler with the technology to produce smaller, more fuel efficient cars.

Fiat Nears Stake in Chrysler That Could Lead to Takeover [WSJ]

Ford Motor Co., the second-largest U.S. automaker, may have to abandon a plan to forgo federal loans as the weakening economy threatens to drive domestic sales 10 percent lower than the company’s forecast.

Ford predicts that U.S. light-vehicle sales will reach 12.2 million units this year, almost 2 million more than the annualized sales rate over the last 3 months. Chrysler LLC forecasts that sales may reach 11 million, while General Motors Corp. projected a range yesterday of 10 million to 11 million.

“The market will not reach 12.2 million units this year, no way, no how,” said John Wolkonowicz, an IHS Global Insight analyst.

Ford's predictions are based on the assumption that consumers will start buying cars once the stimulus packages start — well— stimulating. If sales continue to decrease, Ford could be in trouble.

Ford May Seek U.S. Help as Economy Imperils Sales (Update3) [Bloomberg]
(Photo:don buciack)

A Consumer Reports study says that the top three reasons people are delaying the purchase of a new car are:

1) The existing vehicle is still in good shape (39 percent)

2) Vehicles have become too expensive (30 percent)

3) General concern for the weak economy (30 percent)

Only 11% said they were concerned about losing their job, and 13% said they couldn't get financing. Among households making over $50,000 a year, financing was even less of an issue — only 8% cited it as the reason they were delaying a purchase.

The survey also found that about half of the country says they're going to delay a new car purchase. So, why aren't you buying a new car? Does this survey match your own experience? Do you even buy "new" cars?

Consumer Reports: Nearly Half of Americans Have Delayed Purchasing a New Car [Consumer Reports]

This year, Toyota is estimating that its auto operations will lose $1.7 billion. The last time the company lost money was 1938, the year it was founded, says the New York Times.

Toyota, which just a few months ago seemed unstoppable after eight years of record profits, said it suffered from plunging vehicle sales not only in North America but also in once-promising markets like India and China, which many had hoped would prove immune to the United States malaise. Toyota’s group includes the automaker Daihatsu and the truck builder Hino.

“The change in the world economy is of a magnitude that comes once every hundred years,” Toyota’s president, Katsuaki Watanabe, told a news conference in Nagoya, Japan, near the company’s Toyota City headquarters. “We are facing an unprecedented emergency.”

Things are so bad that the company has unplugged the electric hand dryers at some of their offices in order to cut energy costs. They are not f&#@ing around, clearly. We wonder if GM still has electric hand dryers. Hmm.

Toyota Expects Its First Loss in 70 Years [NYT]
(Photo: blue_j )

The NYT says:

To gain access to the loans, G.M. and Chrysler must agree to a range of concessions, including limits on executive pay and the elimination of private corporate jets.

Ford, which is not seeking government aid at this time, can carry on business as usual.

The various cuts at the troubled companies are likely to be steep and universal— because under the terms of the deal the automakers have until March 31st to become "financially viable" in the opinion of the Obama administration — or the loans will be called in and the government will be paid before any other creditors when the companies go into bankruptcy.

Bush Approves $17.4 Billion Auto Bailout [NYT]

CNNMoney says that all 30 of the company's plants will shut down and employees will not return until January 19th. Ordinarily, the company shuts down production for about two weeks — from Dec 24 - Jan 5. The employees will not receive their full paychecks.

The company said that there are many willing buyers out there — but no available credit.

"Chrysler dealers confirmed to the company at a recent meeting at its headquarters, that they have many willing buyers for Chrysler, Jeep and Dodge vehicles but are unable to close the deals, due to lack of financing," the carmaker said in an announcement. "The dealers have stated that they have lost an estimated 20% to 25% of their volume because of this credit situation."

Chrysler shuts down all production [CNNMoney]
(Photo: dooleymtv )

The New York Times says that the White House has failed to drum up enough support among Senate Republicans, who have enough power to kill the bill. Also added to the bill is an amendment that would require banks who are participating in TARP to disclose their lending activity.

Senator Richard C. Shelby of Alabama, the senior Republican on the banking committee, called the proposal “a travesty” and said that he would filibuster the bill. “This is an installment on a huge bailout that will come later,” he said.

Bloomberg says that millions of jobs are at stake if even one automaker fails.

Job losses would total 2.5 million to 3.5 million from an automaker failure in 2009, including 1.4 million people in industries not directly tied to manufacturing, according to a Nov. 4 report from the Center for Automotive Research, which conducts studies for government agencies and companies.

House Passes Auto Rescue Plan [NYT]
GM Time Is Short as Senate Debates, Vendors Seek Cash (Update2) [Bloomberg]
(Photo: damageinc86 )

In the letter, GM apologizes for its poor quality and "lackluster" designs.

"While we're still the U.S. sales leader, we acknowledge we have disappointed you," the ad said. "At times we violated your trust by letting our quality fall below industry standards and our designs became lackluster."

"We have proliferated our brands and dealer network to the point where we lost adequate focus on the core U.S. market. We also biased our product mix toward pick-up trucks and SUVs."

Now they want your forgiveness — and hope that that forgiveness will take the form of a huge bailout for their industry. Are you feeling it yet?

GM says it "disappointed" and "betrayed" consumers [Reuters]
(Photo: damageinc86 )

Race attendance is down and its fan base is shrinking, says Ad Age. Now NASCAR President Mike Helton is publicly begging fans to buy sponsor's products.

"And I would ask you, in the times that we're going through right now, that when you... when you are out shopping and you are on a mission to purchase something, consider the sponsors that are involved in the sport, if you would. Because they are here because of you and they also play a huge role in supporting our sport and so if you would at least give them a shot, and consideration when you're out doing your shopping during the holiday season," pleaded Helton.

Ad Age also said that NASCAR's fate lies largely on the shoulders of Congress, due to the fact that the sport is so heavily supported by the Big Three automakers. By bailing out the auto industry, Congress may also be bailing out NASCAR.

Nascar President Pleads With Fans to Support Sponsors [Ad Age]

CBS says that the auto industry has spent $50 million dollars on lobbyists in the first 9 months of 2008, and gave another $15 million in campaign contributions.

CBS also highlights some conflicts of interest among our public servants. Check this out:

Take Sen. Carl Levin, who received $438,304 from the automotive industry. And in the House, Rep. Joe Knollenberg received $879,327. Rep. John Dingell got nearly a million from the industry. All have enjoyed generous support from the auto industry over their careers, with GM and Ford as their two top contributors. All support a bailout.

But nobody's been a bigger advocate for Motor City interests than Dingell. And for him, the stakes aren't just political, they're personal.

"There's an actual conflict," said Ryan Alexander of the nonprofit group Taxpayers for Common Sense. "His personal financial health, you know, the wealth of his family is tied up in the car industry."

Dingell's wife Debbie once worked as a lobbyist for GM.

When she married the congressman, she became a senior GM executive at an undisclosed salary. And we found the couple has extensive GM assets.

Dingell's current financial disclosure filed in May lists GM stock worth up to $350,000, options worth up to $1 million more, and a GM pension fund. In 2000, among the Dingells' GM assets were stock options worth up to $5 million.

And in 1998, the congressman reported selling GM stock options worth up to $1 million dollars.

Dingell wouldn't agree to an interview.

Gee whiz.

Big Three Spending Millions On Lobbying [CBS]
(Photo: morsteen )

Christopher Elliott has a few ideas, here's our favorite. It's the return of the road trip!:

Here come the drivers! The Transportation Department has been complaining about a shortfall in road tax revenue. Wait until next summer, when a lot of pent-up demand to hit the road sees hundreds of thousands of vehicles unleashed on American highways.

See the USA in your Chevrolet... (before they no longer make Chevrolets...)

With oil prices spiraling toward $40 a barrel mark, what does that mean for travelers? [Tripso]
(Photo: improbcat )

70% said the bailout was unfair to taxpayers, and only 15% thought that bankruptcies in the auto industry would affect them immediately.

What do you think?

Poll: 61% oppose auto bailout [CNNMoney]
(Photo: sfxeric )

Consumer Reports gives us the lowdown on what kind of cars the CEOs will be driving:

Mulally is driving a Ford Escape Hybrid, according to Automotive News. We’re currently in the process of testing a similar 2009 Mercury Mariner Hybrid. The 2005 Escape Hybrid we tested got 26 mpg overall in our testing—very good for an SUV. Other options for Mulally’s interstate drive included the Focus sedan with a manual (29 mpg) or automatic transmission (26 mpg). Or the upcoming Fusion Hybrid.

Wagoner is taking a Chevrolet Malibu hybrid (27 mpg), a comfortable road-trip-ready car featured in the family sedan test group in our latest issue. We found the fuel economy gains to be mild for a hybrid. (In the same group, the higher-scoring Hyundai Sonata four-cylinder got 26 mpg overall, and it cost thousands less.) Another option would have been the Chevrolet Aveo; we have tested three and the best overall mpg was 28 on a manual version, notably less than several competitors. As a long-distance cruiser, the Aveo leaves much to be desired, which arguably is a good reason for Wagoner to savor the experience. Shame he couldn’t pilot a Chevrolet Volt prototype to Capitol Hill.

Nardelli has the toughest choice to make. The company recently canceled its only hybrid products, Chrysler Aspen and Dodge Durango, just weeks after production began. Scanning the product line, there isn’t much there that promises good fuel economy or touts leading-edge "green" technologies.

We suggest that they all take the Wagon Queen Family Truckster. Together.

Automakers head to Washington – What should they drive? [Consumer Reports]
(Photo: AdamL212 )

From their press release:

In the U.S., GM will focus its product development and marketing efforts on four core brands – Chevrolet, Cadillac, Buick and GMC. Pontiac will be a specialty brand with reduced product offerings within the Buick-Pontiac-GMC channel. Hummer has recently been put under strategic review, which includes the possible sale of the brand, and GM will immediately undertake a global strategic review of the Saab brand. As part of the plan, the company also will accelerate discussions with the Saturn retailers, consistent with their unique relationship, to explore alternatives for the Saturn brand.

GM Sends Congress Plan Asking For $12 To $18 Billion, "Alternatives" For Saturn Brand [Jalopnik]
(Photo: Computermachina )

Just because your company is on the verge of bankruptcy— well, that's no reason not to arrive in style. Right?

From ABC:

All three CEOs - Rick Wagoner of GM, Alan Mulally of Ford, and Robert Nardelli of Chrysler - exercised their perks Tuesday by flying in corporate jets to DC. Wagoner flew in GM's $36 million luxury aircraft to tell members of Congress that the company is burning through cash, asking for $10-12 billion for GM alone.

"We want to continue the vital role we've played for Americans for the past 100 years, but we can't do it alone," Wagoner told the Senate Banking Committee.

While Wagoner testified, his G4 private jet was parked at Dulles airport. It is one of eight luxury jets in the GM fleet that continues to ferry executives around the world despite the company's dire financial straits.

ABC estimated that the trip cost GM $20,000, as opposed to a first class ticket on Northwest Airlines flight 2364 from Detroit to Washington — which would have cost about $800.

Amazingly, private jets are a luxury that even free-spending AIG is reconsidering.

AIG, despite the $150 billion bailout, still operates a fleet of corporate jets. The company says it has put two out of its seven jets up for sale and is reviewing the use of others. Though there are no such plans by GM or Ford.

Big Three CEOs Flew Private Jets to Plead for Public Funds [ABC]
(Photo: Bonita Sarita )

From Reuters:

Assuming defeat, GM would have to 'run on fumes' until the next Congress and Administration, unless Congress were to reconvene in December to address emergency compromise legislation," [Barclays Capital analyst Brian] Johnson said in a research note.

So, what do you think? Gonna buy a car to get those free shares?

UPDATE 1-GM shares at 66-yr low amid bailout doubt [Reuters]
[Jim Coleman Cadillac] ty(Thanks, Dan!)