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Entries Tagged as 'Auto Industry'

Dingells and GM illustrate limits of congressional conflict-of-interest rules

January 11th, 2010 · Auto Industry, Congress, Corruption, Deception, Democrats, Ethics, Federal Spending, Greed, Money Lost, Non-Transparency, Obama's Scheme, Selling Out the US, Tax Dollars, Terrorism from Within

By Kimberly Kindy and Robert E. O’Harrow Jr. Washington Post Staff Writer
Monday, January 11, 2010

They met in the first-class cabin on a bumpy flight between Detroit and Washington, a gruff lion of a lawmaker from Michigan and a young lobbyist for General Motors, granddaughter of one of the company’s pioneer executives.

Rep. John D. Dingell Jr. (D), then 55 and one of the most powerful men in the country, usually did not talk to seatmates. He made an exception for Debbie Insley because she was a white-knuckle flier nervous about the turbulence. Despite their 27-year age difference, they hit it off, and in 1981 she became his second wife.

Their union brought together very divergent interests: the lawmaker’s obligation to craft legislation that serves the public and his wife’s financial dependency on an industry whose fortunes were directly affected by Congress. The Dingells have always been open about their relationship, and the evidence is that they have always complied with the rules. But the mere existence of such a conflict resonates at a time of close ethical scrutiny on Wall Street, in government and elsewhere.

The couple accumulated millions in GM holdings in the early 2000s through Debbie Dingell’s job, by far the largest portion of the family’s personal wealth, public records show. At the same time, John Dingell was Detroit’s staunchest ally, fighting against emissions and fuel-economy standards that could have hurt the short-term profitability of automakers. In the past year, he advocated for five bailouts for GM and Chrysler.

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Grassley seeks accounting of ‘Cash for Clunkers’ costs

January 9th, 2010 · Auto Industry, Corruption, Deception, Democrats, Economy, Ethics, Federal Spending, Greed, Money Lost, Non-Transparency, Obama's Scheme, Selling Out the US, Taxes, Terrorism from Within

By Ed O’Keefe Washington Post Staff Writer
Thursday, January 7, 2010

A top Senate Republican has asked for a full accounting of the “Cash for Clunkers” incentive program as the Department of Transportation puts the finishing touches on last summer’s economic boost to the struggling auto industry.

A report submitted to Congress in late December said the department has spent $77 million on administrative costs to run the Consumer Assistance to Recycle and Save Act, commonly known as CARS or by the Clunkers meme. The popular program provided up to $4,500 to customers trading in older vehicles. Congress added an additional $2 billion to the program last summer amid unexpectedly high demand.

The department anticipates spending no more than $100 million as it ties up the final details, according to agency sources.

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U.S. takes majority stake in GMAC, giving lender $3.8 billion more in aid

December 30th, 2009 · Auto Industry, Banking Industry, Congress, Deception, Democrats, Economy, Ethics, Federal Spending, Government Control, Greed, Money Lost, Non-Transparency, Obama's Scheme, Selling Out the US, Stimulus, Tax Dollars, Taxes, Terrorism from Within

By Binyamin Appelbaum Washington Post Staff Writer
Thursday, December 31, 2009

The federal government said Wednesday that it will take majority control of troubled auto lender GMAC and provide an additional $3.8 billion in aid to the company, which has been unable to raise from private investors the money it needs to staunch its losses.

The Treasury Department has said for months that GMAC would need more federal money, but the decision to increase the government’s ownership stake came as a surprise, cutting against the grain of the Obama administration’s recent efforts to wind down its bailout of large banks.

What initially appeared to be a closing act now looks more like year-end portfolio rebalancing, with companies including Citigroup and Bank of America allowed to repay aid even as the government deepens its involvement in mortgage financiers Fannie Mae and Freddie Mac — and now, GMAC.

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General Motors CEO Fritz Henderson resigns

December 1st, 2009 · Auto Industry, Dissention, Obama's Scheme

By Peter Whoriskey Washington Post Staff Writer
Tuesday, December 1, 2009; 5:27 PM

General Motors chief executive Fritz Henderson is stepping aside from the leadership of the government-owned automaker.

The change comes just months after Henderson’s predecessor, Rick Wagoner, was forced to resign by the Obama administration’s autos task force.

Company chairman Edward E. “Ed” Whitacre, Jr., who was appointed earlier this year, will serve as interim chief executive as a search begins for a permanent replacement.

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GM to start repaying debt to U.S. government next month

November 16th, 2009 · Auto Industry, Repayment

Firm plans to retire $6.7 billion loan years before it is due

By Peter Whoriskey Washington Post Staff Writer
Monday, November 16, 2009

General Motors is expected to announce on Monday that it will begin repaying its debt to the United States next month, years earlier than required.

The nation’s largest automaker plans to pay $1 billion per quarter until the $6.7 billion loan is repaid, according to a source familiar with the matter.

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Senate votes to renew tax credit for first-time home buyers

November 5th, 2009 · Auto Industry, Congress, Federal Spending, IRS, Tax Dollars, Taxes

Provision for $8,000 refund part of bill to extend jobless aid

By Dina ElBoghdady Washington Post Staff Writer
Thursday, November 5, 2009

The Senate voted Wednesday to renew the government’s $8,000 tax credit for first-time home buyers through the first six months of next year as part of a broader bill designed to extend unemployment benefits.

For the first time, the tax credit program would also enable many homeowners who buy a new primary residence to receive a $6,500 refund.

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Economy is kick-started, but can it motor ahead?

October 28th, 2009 · Auto Industry, Banking Industry, Economy, Federal Spending, Government, Government Control, Greed, Healthcare, Housing Industry, Money Matters, Obama's Scheme, Small Business, Tax Dollars

By Neil Irwin Washington Post Staff Writer
Wednesday, October 28, 2009

Over the past year, the U.S. government has thrown almost every tool at its disposal toward making the economy grow again. And it has worked, at least for now.

The trillion-dollar question for the economy now is: What will happen when those government supports are gone? While the government has successfully jump-started the U.S. economy, there are emerging signs that its engine still isn’t running very well, and may even sputter out.

The government has deployed about half of $787 billion in spending and tax cuts that were part of its stimulus package. It has executed the “Cash for Clunkers” program that boosted auto sales over the summer, and it has taken a wide range of steps to support the housing market. The Federal Reserve, besides cutting its target interest rate to nearly zero, has committed $1.75 trillion to unconventional programs meant to reduce interest rates.

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Special Sales Tax Deduction for Car Purchases

October 7th, 2009 · Auto Industry, IRS, Taxes

WASHINGTON — With 2010 models arriving in dealer showrooms, the Internal Revenue Service reminds taxpayers that purchasing a new car, light truck, motor home or motorcycle could qualify them for a special deduction for the state and local sales and excise taxes on their 2009 tax returns.

Purchases made before Jan. 1, 2010, will qualify for this deduction under the American Recovery & Reinvestment Act of 2009 (ARRA).

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New Data Raise Fears of a Post-Stimulus Hangover

October 2nd, 2009 · Auto Industry, Banking Industry, Congress, Federal Spending, Government Control, Greed, Housing Industry, Obama's Scheme, Selling Out the US, Tax Dollars

By Ylan Q. Mui Washington Post Staff Writer
Friday, October 2, 2009

The fragile economic recovery has relied heavily on government stimulus spending, but new data show that as the money runs out, a sustained rebound may be elusive.

The dramatic decline in sales reported Thursday by the Big Three automakers suggested the extent to which the stimulus act has propped up the economy. The government’s wildly popular “Cash for Clunkers” program drove consumer spending to its highest level in eight years in August. But after it ended, so did the growth in auto sales.

General Motors’ sales plunged 36 percent in September compared with August. Ford plummeted 37 percent. Chrysler dove 33 percent.

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GM to Shut Down Saturn After Penske Walks Away

September 30th, 2009 · Auto Industry

By KIMBERLY S. JOHNSON
The Associated Press
Wednesday, September 30, 2009; 5:04 PM

DETROIT — General Motors Co. said Wednesday it would shut down its Saturn brand after an agreement with Penske Automotive Group Inc. to acquire it fell apart.

Penske, citing concerns of whether it could continue to supply vehicles after a manufacturing contract with GM ran out, ended talks with GM Wednesday to acquire the brand.

GM CEO Fritz Henderson said in statement that Saturn and its dealership network will be phased out.

“This is very disappointing news and comes after months of hard work by hundreds of dedicated employees and Saturn retailers who tried to make the new Saturn a reality,” Henderson said in a written statement. “PAG’s announcement explained that their decision was not based on interactions with GM or Saturn retailers.”

In a statement, the Bloomfield Hills, Mich.-based auto retailer says an agreement with another manufacturer to continue producing Saturn vehicles after GM stopped making them fell through, leading Penske to terminate talks with GM.

Penske said it negotiated terms and conditions to make Saturn cars with another manufacturer, but that company’s board of directors rejected the agreement. Penske spokesman Anthony Pordon would not identify the other manufacturer.

“Without that agreement, the company has determined that the risks and uncertainties related to the availability of future products prohibit the company from moving forward with this transaction,” the company said in a statement.

In June, GM and Penske agreed to take over the Saturn brand and related dealerships, although GM would produce the vehicles for a limited period of time.

GM said Saturn vehicle owners can still go to their Saturn dealer for service and would be able to go to a certified GM dealer for service once Saturn dealerships are closed.

It was expected that GM would announce the completion of Saturn’s sale to Penske in the coming days.

Share of Penske fell $1.93 to $17.25 in after hours trading. They rose $1.32, or 7.4 percent to $19.18 in regular trading Wednesday.

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