GM, Ford Prepare for Congress

If you have trouble reading this e-mail, go to http://www.businessweek.com/autos/newsletter/index.html

SEARCH SITE Advanced Search

December 02, 2008
Autos Insider Newsletter Your weekly insight into the world of autos

GM, Ford Prepare for Congress Auto Beat: GM, Ford CEOs Will Drive to DC  > >   MORE TOP STORIES Detroit's Next Headache: Dangerous Debt All three U.S. automakers are carrying a huge debt load, but GM's position is the most precarious Auto Beat: Expect Cuts in Executive Pay GM brands on the block The buzz in Detroit this holiday week is that General Motors will carve up its family of brands like a Thanksgiving turkey and cast away a few as dried bones Lexus Red Bow Still Coming Despite Jean Halliday's story in Ad Age this week talking about how car company advertising this holiday season will be more somber, Lexus plans to reprise its annual "red bow" advertising Toyota credit rating cut for the first time in a decade It's not then end of the world, but Fitch Ratings decision today to cut Toyota's AAA credit rating back to AA is yet more bad news for Japan's number one carmaker Advertising | Special Sections | MarketPlace | Knowledge Centers Terms of Use | Privacy Notice | Ethics Code | Contact Us Copyright 2000- 2008 by The McGraw-Hill Companies Inc. All rights reserved. This newsletter is a FREE service provided by BusinessWeek.com. To sign up for other newsletters, cancel delivery, change delivery options or change your e-mail address, please go to our Newsletter Preferences page. If you need other assistance, please contact Customer Service or contact: Wanda Cooper BusinessWeek Customer Rights Communications Data Services 1995 G Avenue Red Oak, IA 51566 Phone: 1-800-635-1200 View our corporate privacy policy here. To learn more about how BusinessWeek.com applies this policy, you can contact our Marketing Department. Copyright 2008, by The McGraw-Hill Companies Inc. All rights reserved. Terms of Use | Privacy Notice

Inside: This Week in Autos It's almost Round 2 in Washington for Detroit and the heads of the Big Three are scrambling to come up with a plan that will convince Congress of their long-term "viability" in order to qualify for a $25 billion government bailout. But that's like putting an elephant on a diet and being told it needs to look like a gazelle or all bets are off. The problem is that the companies are too big, too old and too stuck in their ways. For example, it is easy to argue that Ford should kill Mercury or GM Pontiac, but the problem is that in order to do they would have to pay millions to their dealer networks as compensation. And they just don't have the cash. In a related development, both Ford and GM appear to be mulling a sale of their respective Volvo and Saab units back to the Swedish government—probably for a song, if for nothing at all. That might help to save some jobs in Sweden but in the U.S. the very real prospect of significant layoffs await workers whether the companies go bankrupt or not. Charles DuBow E-MAIL A FRIEND  |  GET RSS  |  NEWSLETTERS Advertisement   Reader Poll: Special Issue Trouble at the office? In surveys, blogs, polls, and social media, BusinessWeek collaborated with readers to identify problems at work. Together we found answers.     IN YOUR FACE: SUBPRIME WOLVES ARE BACK Reader Jason Writes: " Audit loans at random. Those lenders who issue loans that don't meet FHA standards should be heavily fined, possibly stripped of their license and potentially tried for treason. Yes, treason. " Tell Us: How to Guard Against Predatory Loans? >     FEATURED SLIDE SHOWS > > Ten Trades for Better Fuel Economy Best New Cars of 2009   BLOGAUTO BEAT >> Ford Motor Co. got another shot in the arm from Tuesday when the Insurance Institute for Highway Safety reported the automaker had more vehicles than any other manufacturer on its list of safest vehicles sold today. — David Kiley POST YOUR OWN COMMENTS Visit Our Other Blogs Auto Beat Bangalore Tigers Blogspotting Brand New Day Byte of the Apple Economics Unbound European Insight Fine On Media Games, Inc. GreenBiz Hot Property Investing Insights Management IQ New Technology in Asia NEXT: Innovation Tools & Trends NussbaumOnDesign Tech Beat Working Parents   FEATURED AUTO REVIEWS > > BMW 135i: High Performance, Low Price Acura's Tasty TSX   Advertisement   CLASSIC CARS > > Gallic Classic The 1939 Talbot-Lago T150C SS Aerocoupe is a very rare and expensive example of the beauty of pre-war French cars     HYBRIDS > > World's Fastest Production Car to Go Electric SSC is developing the Ultimate Aero EV, a 500 bhp electric sports car that will come to market in late 2009