Wagoner to leave GM on Obama request

US President Barack Obama asks the head of General Motors to resign as the government readies to announce a plan to save the auto sector.

"The Obama administration asked Rick Wagoner, the chairman and CEO of General Motors, to step down and he agreed," an unnamed White House official said on Sunday. 

GM spokeswoman Katie McBride, however, did not comment on the resignation. 

The request came as President Barack Obama is expected to unveil a plan aimed at averting the collapse of car giants namely GM and Chrysler on Monday. 

President Obama said in a Sunday interview with CBS that the two firms had failed to revitalize the industry. 

"We think we can have a successful US auto industry. But it's got to be one that's realistically designed to weather this storm and to emerge - at the other end - much more lean, mean, and competitive than it currently is." 

Obama's remarks come as General Motors and Chrysler have been seeking another 21.6 billion dollars in government loans to escape bankruptcy and to restructure the industry. 

GM spokesman Tom Wilkinson said in a statement that 'additional support' would help the firm accelerate efforts to 'reinvent' GM. 

However, Treasury Secretary Timothy Geithner told ABC on Sunday that the government was prepared to help that process if it believed "it's going to provide the basis for a stronger industry in the future that's not going to rely on government support". 

The auto industry, which has been crippled by the global slowdown, is a key part of the US economy.

Read more...

Daimler sells €2B stake to Abu Dhabi

Daimler, the German maker of Mercedes-Benz cars, will sell about €1.95 billion worth of shares to an Abu Dhabi state investment fund.

Aabar Investments will buy a 9.1% ($2.7 billion) stake from Daimler to become the biggest shareholder of the Emirate at a time of severe economic crisis in the global auto industry. 

The move came after Daimler reported a net loss of 1.53 billion euros ($1.93 billion) for the fourth quarter of 2008, after an unexpected fall in Mercedes-Benz sales. 

The car industry worldwide has been suffering the worst slump in decades. 

Daimler and Aabar Investments said in a statement that the planned injection of cash would "further strengthen Daimler's sound capital base and offer additional flexibility to invest in new automotive technologies". 

They plan to establish cooperation with the aim of developing low-carbon-emission electric vehicles and new materials for auto production as well as setting up an auto industry training center for young people in Abu Dhabi. 

"We are delighted to welcome Aabar as a new major shareholder that is supportive of our corporate strategy," said Daimler chairman Dieter Zetsche.

Read more...

World's cheapest car hits Mumbai streets

Indian automaker Tata Motors is set to launch its long-awaited 'Nano' model, the world's cheapest car, at the Mumbai finance centre.

The manufacturer hopes that strong demand for low-cost travel among India's large population will boost sales of the vehicle it has designed for the 'common man'. 

The company plans to roll out the Nano at a price of 100,000 rupees equivalent to just a little under 2000 US dollars. 

The Monday launching ceremony will include details on the booking process and other necessary information about the Nano, but order books will open next month. 

"The car will be on display at Tata Motors dealerships from the first week of April 2009. Bookings will commence in the second week of April," Tata Motors said. 

Dealers predicts that if the company keeps its promise of an ex-factory price of 100,000 rupees, then the standard model would cost somewhere around 120,000 rupees with taxes, insurance and registration fees included. 

Standard, deluxe and luxury versions of the 624-cc jellybean car will be available to costumers. The standard model will have no air-conditioning. 

The small and affordable car is expected to prove popular with the Indian middle-class, which is eager to trade in the two-wheeler for a safer vehicle.

Read more...

Iran vehicle production at record high

Iran Khodro Company says its production stands at a record high of 600,000 as global car industry continues to suffer from weak demand.

Iran Khodro Company, the Middle East's largest automaker, announced Sunday that the company produced 58,000 more vehicles during the past Iranian year (ended March 20) compared to the same period of the previous year. 

Iran Khodro Company --IKCO -- currently produces 10 vehicles under 52 brand names. The company also manufactures various vehicle models in seven countries across the globe. 

IKCO plans to increase its production to one million vehicles a year by January of 2009. It is anticipated that 800,000 will be produced at domestic plants and the remaining will be produced at sites outside Iran. 

New products of IKCO such as the private passenger Samand, the wheelchair-accessible Samand, the R90, a second generation LNG-powered 7-seat van, and the new dual-fuel Peugeot sedan 470 were inaugurated at the country's largest international auto exhibition in Mashhad and will soon be available to consumers. 

Chief of IKCO Manouchehr Manteqi said IKCO's sales reached about 9 billion dollars in 2007; there are plans to increase sales to 20 billion dollars in 2010. 

Many car manufacturers in the world have been forced to suspend or cut production in the face of falling sales due to the current global economic crisis.

Read more...