The survey found that the Ford Fusion and Mercury Milan both had higher reliability ratings than the Japanese-made Toyota Camry and Honda Accord, ranking only below the Prius in the family sedan category. The Ford Flex SUV was also highly ranked.

As for the rest of Detroit, fewer than half of GM's models received average reliability scores, although the Chevy Malibu was rated better than average, and the Chevy Silverado and GMC Sierra 1500 were recommended. Chrysler also didn't do so hot, with over a third of their cars being rated much worse than average.

Overall, the least reliable vehicle was the Volkswagen Touareg, which was 27 times more likely to have problems than the most reliable vehicle, the Honda Insight.

More information is available at the Consumer Reports Cars blog.
(Photo: ibeamee)

Affected companies are Citigroup, Bank of America, AIG, GM, and Chrysler. Executives from the latter two companies' financing arms are also included.

The program will lead to pay cuts of up to fifty percent for each firm's top twenty-five earners.

The plan will hit executives at some companies harder than others. At the financial products division of A.I.G., the locus of problems that plagued the insurer and forced its rescue with more than $180 billion in taxpayer assistance, no top executive will receive more than $200,000 in total compensation, and officials in that unit will not receive any other compensation, like stocks or stock options. Some bonuses previously promised will be paid in the coming year, and it is not clear how much of those will be awarded.

But at other companies, the cuts may mean less. Many executives at Bank of America and Citigroup are expected to reap multimillion-dollar pay packages.

For executives at all seven companies, new restraints will also be imposed on perks. Any executive seeking more than $25,000 in special perks - like country club memberships, private planes, limousines or company-issued cars - will have to apply to the government for permission.

Yes, a Washington bureaucrat will be rationing executive limousines. The horror!

U.S. to Order Pay Cuts at Firms That Got Most Aid [NY Times]

RELATED:

Judge To BoA: "I'm Glad You Think $91,000 Is Not A Lot Of Money"
Welcome To The New Gilded Age, Fueled By Your Money

(Photo: suburbandollar / CC BY 2.0)

"Due to the turmoil in the automobile industry and uncertainty surrounding our ownership, my request for bonus payment was denied," Press said in a letter to the Western Federal Credit Union that was included as an exhibit in a lawsuit against him.

"I am not able to make the November and February payments due to the elimination of bonuses which was just announced by my company," Press said in his letter.

Okay, so he's not exactly eating ramen and living out of his car. Really, his problems are similar to those of many Americans, just on a difference scale.

Unpaid bills mount for top Chrysler executive [AP] (Thanks, The Observer!)

(Photo: Great Beyond)

Although taxpayers may recover some portion of their investment in Chrysler and GM, it is unlikely they will recover the entire amount. The estimates of loss vary. Treasury estimates that approximately $23 billion of the initial loans made will be subject to "much lower recoveries." Approximately $5.4 billion of the loans extended to the old Chrysler company are highly unlikely to be recovered. ... Because Treasury has not clearly articulated its objectives, it is impossible to know if this prospect, indeed, represents a failure of Treasury's strategy.

The report makes a number of recommendations to improve the prospects of the automakers (and, you know, get them to pay us back), including the idea that the government should "use its role as a significant shareholder in Chrysler and GM to ensure that these companies fully disclose their financial status and that the compensation of their executives is aligned to clear measures of long-term success."

The Congressional Oversight Panel has a lot of good ideas, and its head, Harvard's Elizabeth Warren, has been an active critic of mishandling of taxpayer largess. Despite its impressive COP acronym, however, the panel can't actually make the government — or the carmakers that we sort of own — do anything. But don't worry. The agency is empowered to "hold hearings, review official data" and, of course, "write reports." So, expect a lot more 200-page door-stoppers and C-SPAN bloviating before this whole thing runs its course.

The Use of TARP Funds in Support and Reorganization of the Domestic Automotive Industry [Congressional Oversight Panel]
Full Report (221-page PDF) [Congressional Oversight Panel]

Chris writes:

My wife and I recently purchased a new vehicle. We bought the last dealer new 2008 Jeep Wrangler in our area. It was financed through Wachovia. A few weeks after the purchase we received a letter from Chrysler letting us know about the free credit monitoring service in which we had been enrolled. Preferring to limit the number of companies that are trolling and storing our credit activity, my wife called to cancel this service. She asked to have it canceled, and went through a multiple iteration loop of "But it is free" countered with "I want to cancel this service for which I did not sign up or consent to give access to my credit history", over and over. Eventually the drone on the other end of the line broke the loop and changed to "We can only cancel this if you sign up for one of our other credit protection offerings". My wife said that under no circumstances was she signing up for new services, and still demanded that this one be cancelled. The drone relented and said "I'll put a note on your account that you want to cancel" and then hung up on my wife. We fully expect to call back in a week and have to repeat this cycle.

If we had financed the vehicle through Chrysler I could at least understand them having an interest in protecting their direct customers from credit fraud; but since we financed through Wachovia even that weak argument doesn't hold.

Anyone out there with a similar experience? I've signed up for these credit monitoring things a few times in order to cash promo checks that came along with the offers, and haven't had any trouble canceling after I enroll.

(Photo: Lisa Pisa)

Here's what Consumer Reports had to say after testing:

The Routan is built by Chrysler, with limited modifications to its Town & Country/Dodge Caravan minivans. The T&C Limited scores 64 in Consumer Reports testing, and it is not recommended due to predicted reliability being much worse than average.

The VW version is distinguished with a more familial grille, a soft dash top, and retuned suspension and steering that gives it a slightly more responsive and taut feel. However, the result is less than convincing. While we have not completed testing on our Routan, the Chrysler engines in other minivans are a bit noisy and not particularly fuel efficient. The cleverest elements from the platform — the second-row seats that fold into the floor known as "Stow and Go" or the "Swivel-and-Go" seating-are absent from the Routan. Although the large bins under the floor that the seats stow in are still very useful for storage.

Well, if nothing else, the Routan's ad campaign brought us the odd and creepy Babymaker application.

Free Volkswagen Routans from The Oprah Show [Consumer Reports Cars]

(Photo: JMRosenfeld)

I lease a Chrysler minivan, and am wondering if their bankruptcy will give them the ability to "devalue" my van at the end of the lease (July 2010). I already see 2009 versions of the same van going for nearly $10K less than what we leased it for, and I'm worried.

We checked with Jeff Bartlett of the Consumer Reports cars blog, who offered sage advice, as well as things that all Chrysler lessors should keep in mind.

This may be a case where leasing is advantageous. The lease contract is based upon the predicted residual value (remaining worth of vehicle). The finance institution carries the risk should the vehicle be worth less than predicted-quite the opposite from a traditional purchase.

So, yes, the resale value MAY go down. However, the consumer should not be at risk.

My only question would be on returning the vehicle. Is their dealer one of those scheduled to close in June? If so, they should read the contract and contact the lease originator to determine how the vehicle will be returned.

Should the consumer want to purchase the vehicle at the end of the lease, its value may be significantly less than predicted and they could likely negotiate a very favorable deal. After all, the last thing a Chrysler dealer wants now is more unsold cars on the lot.

So Chrysler's bankruptcy may leave people leasing their vehicles in a better position than before in some way. Check where you will be returning the vehicle, and if you like it, consider purchasing it at the end of the lease, though injury and lemon law claims may be a concern in the future.

RELATED:
6 Things To Know Now Before Buying A GM Or Chrysler Car
Fiat, Jeep, Dodge... No More Chryslers?

(Photo: yamagatacamille)

From BW:

Fiat CEO Sergio Marchionne will also serve as CEO of the newly formed U.S. company. Though he has been silent on many of the specifics, sources familiar with the planning work say there is a strong likelihood that the Chrysler brand of cars and SUVs will be eliminated and replaced by Fiat, and sold alongside Dodge and Jeep vehicles in combined dealerships that will carry all three brands.

Will the Chrysler nameplate be missed by anyone other than Michael Scott?

Chrysler-Fiat Finalize Accord [BW]
(Photo:Ben Popken)

1. Should I buy a Chrysler or GM?
2. Are rebates and deals available?
3. Is government help available?
4. Can I get financing?
5. What models will be available?
6. What if the dealership folds?

And if you already have a Chrysler or GM, here's 5 things you should know too.

(Photo: Dplanet::)

1. Is my warranty backed?
2. What if my dealer closes?
3. What if I want to sell my car?
4. What if my brand is discontinued?
5. Will parts and service be available?

Sean writes:

In March, we (my girlfriend and I) made our normal monthly payment and never thought about it again (I know, our bad for not following our banking close enough). Turns out, Chrysler didn't want our money and it changed from "Pending" to "Returned" on their website. For whatever reason, again, my fault entirely, I did indeed forget to make a payment in April. I'm perfectly willing to pay any associated fees due to my inattention. May 1st, I get a letter stating that my payment is past due and that it can affect my credit rating. I go online to their website to see that I owe them for March and April, and it was still before the May due date. I paid the total amount for all three months, using the same stored checking account information that I had used the entire time for the last 12+ consecutive/on-time payments. It shows the submission as successful and the status as "Pending."

One week later, an email arrives stating that the payment didn't go through and that the checking account information was incorrect. I go back to the website, re-enter my information and submit the total payment again. Again, says it went through and changes to "Pending."

One week later, the same email comes back. I go back again, re-enter the information a third time, and submit just the May payment to see if it goes through at all. Again, status shows "Pending" after it submitted.

Strangely enough, it changes from "Pending" to "Submitted" during the week, meaning that they actually took their money this time. A week after we made the May payment, they repo'd the Jeep. No letters saying that it was coming, no phone calls, no messages-just the first letter on May 1st stating that I was past due.

Needless to say, I was a wreck, I had the first toothache (and the most painful at that, had an infected abscess…blech) that I've had since I was 12 all day, and then they took my Jeep away, catching me completely off-guard.
Friday morning, I call the repo center (Certified Auto Recovery Inc) since that's what I was told to do to ask about getting my car back. The guy I spoke to had no idea why I was calling him and instructed me to call the bank to clear it with them first. He then gave me the number to call Chrysler for their "Recovery" department. I put a call into Chrysler and spoke with Dawn, a fairly nice rep who explained the process and said that I owed the back payments and $370-$400 in recovery fees for the repo. I had to call off Friday (no way to get to work) so I was hoping I could have it resolved and pick up the Jeep that day. I also wanted to see a dentist ASAP as well as head to Ohio for a wedding on Saturday. She told me that no matter what, it would take 24-48 hours and the earliest I could pick it up would be today (Monday).

I proceeded on Friday to fax in all the information I needed to send in and Dawn let me know that when I call in Monday, I could pay with my debit card and it'd be about 45 minutes until they could release my Jeep to me. After faxing the info, a call to Dawn confirmed that they did indeed receive our faxed documents. Here the waiting starts for the mysterious "processing" portion.

That brings me to (Monday). At around noon (Dawn said that all paperwork should be processed by 1PM), I called in to make the payment. She takes our information and informs me that one of the pages didn't come through the fax properly and I'd have to resend it. Why I wasn't told Friday, I have no clue. She said I could email it to her to make it easier for me. An option I would've loved from the start since it cost me $6 to fax from the only local place that offers outgoing fax services. I called soon after I emailed the document and she confirmed that she had it and said it would take just a little bit longer for it to process and that she would call us back. From here, there were about 4 phone calls from me to Chrysler and to Certified Auto Recovery Inc. to see if the release was processed, being met repeatedly with "Not yet" and "Just a little longer." Finally, at about 3:25PM, Dawn let us know that I could wait 20 minutes before calling Certified Auto Recovery Inc. to get info on how to pick up the Jeep.

Upon calling Certified Auto Recovery Inc., I'm then informed that I need $210 in cash to pick up the Jeep (storage fees) and that I'd have to wait until tomorrow to pick it up since they stop releasing cars at 4PM.

I was livid at this bit of information. I did all I could to get this resolved as quickly as possible, hoping to get it all done Friday, only to be forced into dragging it until tomorrow, plus this new fee was a delightful surprise.

I called Dawn back and she insisted that during our first phone call, she let me know that there would be additional "agent fees." From what I recall and noted when we spoke, that was the $370-$400 added on to the past due balance. She said I could try to haggle with the garage to get them to lower it, but Chrysler wasn't going to do anything about it. I explained that I was very angry being essentially extorted into paying these extra fees because of the speed that they handled it and she said that it wasn't her fault and that I could take issues up with customer service. She also enlightened me and said that some of her friends in the customer service department have said that online payments don't work when accounts are past due, which forces you to call in to make a payment. This would be fine with me if it actually said that instead of appearing to work, only to fail a week after submission. Not to mention I hate paying the associated fee when paying over the phone as opposed to paying online.

So here's the breakdown:

2 Months of Owed Payments + Late Fees = I'm ok with this. While I still need answers from Chrysler as to why my March and May payments were returned, I know that I should've followed up with it more. BTW, I spoke to my bank (PNC) and they said that they have no record of Chrysler ever attempting to take the money during those submitted payments.

$370 in recovery fees = I'm assuming this goes to pay the repo guys

(Those 2 items were paid directly to Chrysler)

Now, $210 in cash only are due to Certified Auto Recovery Inc. upon pickup for "Storage Fees" thanks to this 24-48 hour period for processing, stalling all day today, and of course their inability to have anything done over the weekend.

You'd think a company that's gone bankrupt wouldn't have such a hard time taking someone's money.

UPDATE: Sean paid the fees and got his Jeep back.

(Photo: bucklava)

Check out their post on the subject. (Warning: video clip starts right away.)

Saturn owners should contact customer service to find out where they can get their vehicles serviced, according to General Motors. But they are also allowed to take their cars to dealerships servicing other GM brands for warranty service. However, a Chevrolet dealer in the Hartford area said they are not servicing Saturn vehicles under warranty, and the CBS Early Show found only four non-Saturn GM dealers out of 20 that they contacted in New York and New Jersey would accept a Saturn car for warranty service.

Who will perform warranty service my GM car? [Consumer Reports Cars Blog]

(Photo: winteridge2)

Those dealers, though? They're fighting back. With lawyers.

They're not likely to win, but they're going to try. Last Friday, BusinessWeek covered their fight:

"Last year, we bought far more vehicles from Chrysler than we needed to help them out-and because they asked us to-and now we have to sell them for whatever we can get, at a loss," says [Texas Dodge dealership owner Nicholas] Parks. The interest costs on carrying the excess Chrysler vehicles last year swelled from $15,000 per month to $50,000. Parks has joined with other dealers in hiring lawyers to represent them in the bankruptcy case, although most experts say that the dealers have scant legal hope of gaining much in such a forum.

In an automaker bankruptcy filing, dealerships with excess inventory that they can't sell become unsecured creditors—after all, the automaker owes them money. They can sell the vehicles, at a significant loss, to anyone out there who's able to buy a new car right now. Or they can wait for whatever tiny amount of money they stand to collect in the bankruptcy proceedings. The former is the best option, but it's a very unappealing one.

A Saturn dealership in Olympia, Wash. saw this coming, and decided to terminate its GM franchise agreement before the company could declare bankruptcy. Worried that they might be treated as an unsecured creditor as a Saturn franchise, the owners have rebranded Saturn of Olympia as a general used car dealership. This may turn out to be a wise business decision for other reasons, too:

Service manager Don Fritz, a Saturn of Olympia employee for the past three years, said Thursday that he welcomes the change to Olympic Auto because too much speculation about the Saturn and GM brands had slowed business.

Angry Car Dealers Try to Fight Closings [BusinessWeek]
Saturn dealer switches to used [The Olympian] (Thanks, Ben!)

(Photo: Karim-m)

Be a F@#king Person: Dealer or No Dealer [The Daily Show With Jon Stewart]

RELATED:

GM To Close Up To 1200 Dealers
Chrysler Will Close One Fourth Of Its Dealerships Next Month

And not only a small, save-a-bit sort of sale, but potentially a huge, save-thousands-of-dollars sale. Of course there are no guarantees that the savings will be gigantic (Circuit City didn't really show us the price love, now did they?), but all the elements are in place. Throw in the tax incentives for buying a new vehicle we could be in car-buying bonanza land. And there's no need to worry about buying such a car, since the warranty from the company will still be valid.

Hold on a minute. There's one thing that's nagging us a bit: buying a car from a company that's on the verge of going out of business. Sure, they'll give you a warranty on the car now, but what happens in two years when the companies potentially no longer exist? Thinking about it that way makes a great deal a bit more risky and maybe no as much of a "value".

Of course it's a balance between savings and risk. If the discounts become really steep, it may be worth the risk to get a new GM or Chrysler. But if the savings are only a few hundred dollars, or even a couple thousand, we'll pass this time around.

Dealership Closings: Bad for Them, Good for You [MainStreet]

— FREE MONEY FINANCE (Photo: frankieleon)

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 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)

"Chrysler's bankrupt. What's the impact on your bond fund?" [ConsumerReports]
(Photo: dok1)

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]

It's #2 Bank Of America (Countrywide, Merrill Lynch) VS #10 Chrysler!

This is a post in our Worst Company In America 2009 series. The companies nominated for this honor were chosen by you, the readers, and seeded according to number of nominations. Keep track of all the goings on at consumerist.com/tag/worst-company-in-america. Download the bracket here.

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)

Update: Just to clarify a couple of points: Chrysler Financial and Chrysler are different companies, although both are primarily owned by the same private equity firm. Also, Chrysler Financial accepted a $1.5 billion loan earlier this year, making it a bit harder to explain away the most recent refusal as taking a principled stand against bailout money.

The Treasury Department previously had loaned Chrysler Financial $1.5 billion, when less stringent requirements on executive compensation were in place for recipients of federal bailout money. Since that first loan was announced on January 16, the Obama administration and Congress have toughened the rules.

[...]

During March, when it seemed that the first loan would run out, the Obama administration began working on a deal to lend the company another $750 million.

Quickly, most of the agreement fell into place. But on April 7, Treasury asked Chrysler Financial to have its top 25 executives sign waivers regarding their compensation, sources said.

Those waivers would have barred the executives from suing the Treasury or Chrysler Financial over new pay restrictions. As part of the economic stimulus package, Congress approved new executive compensation limits, and the Treasury is currently working on clarifying what the firms must do to comply with these rules.

Within a week, the company responded that some of the executives had refused to give their approval. By last week, Treasury had rescinded the loan offer, the sources said.

"Sources: Chrysler Financial Refused Government Loan Over Limits on Executive Pay" [Washington Post]

It's #7 eBay/PayPal/StubHub VS #10 Chrysler!

This is a post in our Worst Company In America 2009 series. The companies nominated for this honor were chosen by you, the readers, and seeded according to number of nominations. Keep track of all the goings on at consumerist.com/tag/worst-company-in-america. Download the bracket here.

It's #23 Dell VS #10 Chrysler!

This is a post in our Worst Company In America 2009 series. The companies nominated for this honor were chosen by you, the readers, and seeded according to number of nominations. Keep track of all the goings on at consumerist.com/tag/worst-company-in-america. Download the bracket here.

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]

Chris writes,

My wife went into a Wal-Mart the other day and when she came out of the store she found a note that was left on her car. It said "Please call me about your car" and was hand written on a torn off piece of notebook paper. Of course the first thing you think of is that someone bumped into it or something, but after finding no damage she called the number to see what was up. The person that answered was apparently a car salesperson from a nearby Chrysler dealership and asked if my wife was interested in trading her car in for a new one. Once my wife said no that was the end of it, but I'm just totally surprised at the tactics of the dealership to bring in customers.

Tricking people into thinking something happened to their car, which is in many cases the most expensive thing one owns and relies upon the most, is just low. Not only that, but it's not like this particular salesperson was running around putting these notes out herself considering she was able to answer her extension at worth within minutes of when the note was left. Who knows? Maybe the dealership is just sending people out with handfuls of these things targeting Chrysler vehicles in parking lots. Amazing.

Consumer Reports' Top 5 All-Around Car Brands

• Honda
• Subaru
• Toyota
• Mazda
• (tie) Mercedes-Benz, Nissan, Volkswagen, and BMW

While it may be somewhat disheartening not to see at least one US car-maker on the list, CR says that the lack of American brands doesn't mean that there aren't any quality American cars. For example, new models like the Ford Flex, F-150, Chevrolet Malibu, and Cadillac CTS have done well in CR's tests and rank near the top of their classes in its ratings.

Overall, though, the worst overall car manufacturer is Chrysler. "The company's poor performing products and sinking reliability results have kept all Chrysler, Dodge, and Jeep badged vehicles off CR's Recommended list."

If you want to check out the full rankings, they're are available in the article "Who makes the best cars?" in the magazine on sale March 3 and at www.ConsumerReports.org (subscription). Consumer Reports is published by Consumers Union, which also publishes Consumerist. (Yay!)

[Consumer Reports]

From Reuters:

Chrysler, which has received $4 billion in emergency aid from the U.S. government, has a deal to place its vehicles in cameo roles in "Terminator Salvation," scheduled for release later this year and starring Christian Bale, executives said on Tuesday.

Financial terms of the sponsorship deal were not disclosed.

"This spring, Terminator 4 comes out and we will be one of the sponsors," Chrysler director of media Susan Thomson said in a presentation at the Automotive News World Congress. "We have a following with the Terminator movies and we are going to continue with that."

Well, it looks like John Connor won't have to drive an XTerra, so that's good news.

Chrysler to be back with "Terminator" sponsorship [Reuters]
(Photo:dooleymtv)

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]

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]

The loans are meant to be a lifeline — and will keep the companies afloat until March 31st. At that point, says the NYT, the Obama administration will "determine if the automakers are meeting the conditions of the loans and will continue to receive government aid or must repay the loans and face bankruptcy."

The terms of the bailout are almost identical to the plan rejected by Republicans in the Senate a week ago.

Mr. Bush made his announcement a week after Senate Republicans blocked an automaker bailout that had been negotiated by the White House and Congressional Democrats. The loan package announced by the president includes requirements that are roughly identical to those in that bill, which was approved by the House.

Mr. Bush, in a televised speech before the opening of the markets, said that under other circumstances he would have let the companies fail, a consequence of their bad business decisions. But given the recession, he said the government had no choice but to step in.

“These are not ordinary circumstances,” Mr. Bush said. “In the midst of a financial crisis and a recession, allowing the U.S. auto industry to collapse is not a responsible course of action.”

The money for the loans will come from the $700 billion bailout that was previously approved by Congress.

Bush Approves $17.4 Billion Auto Bailout [NYT]
(Photo: Doug Mills/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 )