DETROIT – The U.S. government will end up owning part of GM and Chrysler in order for the automakers to receive a loan. Jaguar recalls the XF for the second time this month. Chrysler and Chery call off an agreement to develop, manufacture and distribute Chery-made small cars. All that and more, plus a look at Daimler�??s internet-only infotainment system called “myCOMMAND.”
The specifics of a bailout plan for the Big Three are taking shape. GM and Chrysler will get $15 billion, but they’ll also have to give the government warrants for stock, or the equivalent of that. In the case of Chrysler that means the U.S. government will be a co-owner along with Cerberus and Daimler. But this initial loan is only the first step. It will only tide GM and Chrysler over for the first quarter. After that, there will be enormous government pressure to restructure before more money becomes available.
Even so, none of this addresses the health of automotive suppliers. Numerous reports indicate that many supplier companies are in dire financial straits. So even if, and when, the Big Three get a bridge loan, the auto industry could still run into crippling problems. And that could be the next crisis to hit the auto industry.
For more information, click on AutoLineDetroit.TV
a>>
