Auto Trends

Originally uploaded by r e t o r i

GM and Chrysler have both been eagerly awaiting news on their proposal given to Obama for how to get their companies out of the red. If accepted, they were to receive more bailout money to keep them above water for at least a few more months.

Upon reading them over, Obama told them both to go fish, stating that neither plan was green enough to be economically viable over the long haul. What is the administration looking for? They have laid out the main points in what they are calling the “Path to Viability”.

New Path to Viability for GM & Chrysler:

“Industry financial analysts and industry experts are nearly unanimous in their views that, to be competitive in the decades to come, auto companies will need to transform their processes and products to improve efficiency, reduce costs, and offer higher quality, more fuel efficient fleet.”

In particular to GM, the administration is looking for them to take a technology leadership role and focus its efforts on designing low cost, efficient, durable, safe, and practical vehicles. Does this mean that the 2010 Camaro is going to have to go? Maybe…

Report on GM:

“The new GM will have a significant focus on developing high fuel-efficiency cars that have broad consumer appeal because they are cost-effective, have good performance, and are reliable, durable, and safe.”

In addition, the administration is calling for some big changes as far as the big wigs running the company are concerned. This means goodbye, CEO Rick Wagoner, goodbye to a big chunk of the board of directors, goodbye unions, and hello… uh, we don’t know. That’s the question now isn’t it. We aren’t real sure what these changes will bring for GM.

Chrysler on the other hand has been given a slightly different set of instructions. They are to partner with Fiat in order to help provide them with the proper leadership to focus their attention on cost effective, reliable, durable… yada, yada, yada, vehicles.

Report on Chrysler:

“Chrysler has also proposed a partnership with Fiat, which has the potential to address some of these problems and provide Chrysler with a path to viability. A Chrysler/Fiat alliance could lead to Chrysler manufacturing fuel-efficient vehicles using Fiat’s technology while benefiting from the managerial expertise of the Fiat senior leadership that successfully lead a turnaround in Fiat over the last five years.”

Fiat has expressed its interest in creating fuel efficient vehicles, so in return they will gain partial control over Chrysler in hopes of rebuilding their fleet to these much higher standards. If the companies unite, the administration has already earmarked another $6 billion to go towards helping them build a greener future. If they don’t Chrysler will be cut off from the taxpayers t** and forced to liquidate.

Chrysler has been given 30 days to make the necessary alterations to their plan, while GM has a full 60 days.

…And the plot thickens!