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Bridge Loan to Nowhere
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Wagoner says GM can get 37mpg on average by 2012 for its cars in response to Congressional demand for higher fuel efficiency and energy conservation. Congress is looking for European mandated levels of 50mpg by 2015, which were initially opposed by European automakers also. It becomes the condition for loans. The awfully bad unemployment numbers for November of 533,000 layoffs led to some compromise from Speaker Pelosi, so that $15 billion could come as a bridge loan to the Detroit automakers from the $25 billion allocated for the specific purpose of fuel efficiency technologies. The only way this compromise could be reached is by a complete shift by the auto executives on the issue of fuel efficiency, which is a sore point with Congress especially the way automakers in Detroit have dragged their feet on this issue over 2 decades, contributing to the jump in oil prices in 2007 and early 2008.
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Toyota's strategies in the hybrid, electric, and high fuel efficiency automobile market.
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Toyota's strategy is to license its technology for hybrids, and it has meticulouslp filed patents for moore than 2000 components in the Prius hybrid.
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Will automakers in Detroit take on energy conservation and fuel efficiency as part of federal loan deal?
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With the $15 billion coming out of the fuel efficiency mandated loan of $25 billion, are automakers committing to change their companies focus to achieving gains in fuel efficiency comparable to the European mandate of 50 miles per gallon by 2015?
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Marchionne has kept many of the managers from the previous Chrysler. Jim Press is deputy CEO and adviser. He came from Toyota. Everything else will change. He is flattening the organization structure to improve communication and speed. Smaller car lineup will replace the prior lineup, and Fiat's engine technology will provide help for fuel efficient cars.
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Another misstep by automakers management was the failure to win public support as they missed the changes coming over the country.
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The falling clout of the Detroit automakers as the nation changed and things changed but the automakers dug in their heels into the status quo.
Linked Articles
Clout Has Plunged for Automakers and Union, Too
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