Ford is selling Volvo to Geely for $1.8 billion, less than one-third of what it paid for the [...]]]> FROM BLOOMBERG:  Ford Motor Co. plans to complete its sale of Volvo Cars to China’s Zhejiang Geely Holding Co. next week, finishing the U.S. automaker’s exit from European luxury brands, according to two people familiar with the plans.

Ford is selling Volvo to Geely for $1.8 billion, less than one-third of what it paid for the Swedish automaker in 1999. Ford and Geely executives are aiming to close the sale next week, pending final regulatory approvals and financing, said the people, who asked not to be identified revealing internal plans.

Unloading Volvo would complete Chief Executive Officer Alan Mulally’s strategy of exiting European luxury lines to focus on Ford’s namesake brand. Since arriving from Boeing Co. in 2006, Mulally has sold Aston Martin, Land Rover and Jaguar, which Ford acquired in 1989 as the first of a stable of premium nameplates that failed to generate the profits the automaker expected. MORE»

That Saab has survived at all while other, better known GM brands — Hummer, Pontiac, and Saturn — collapsed during the GM bankruptcy is a testimony [...]]]> FROM CNN MONEY:  The latest chapter in the all-but-quixotic effort to revive Saab cars by its new owners played out this week with the media launch of the Saab 9-5 Aero.

That Saab has survived at all while other, better known GM brands — Hummer, Pontiac, and Saturn — collapsed during the GM bankruptcy is a testimony to either dumb luck or sheer stubbornness.

Now the automaker faces the equally daunting task of reestablishing itself as a legitimate competitor in the luxury space after halting production and advertising for months — and thus nearly vanishing from the consciousness of potential customers. MORE»

“This is a slower recovery from the previous recessions,” Mulally said in an interview on NBC’s “Today” show. “We have sized ourselves to the current demand and we’re [...]]]> FROM REUTERS:  Ford Motor Co chief executive Alan Mulally said on Monday the company was “cautiously optimistic” that it would continue to grow as the U.S. economy recovers.

“This is a slower recovery from the previous recessions,” Mulally said in an interview on NBC’s “Today” show. “We have sized ourselves to the current demand and we’re cautiously optimistic that we’re going to continue to grow here.”

Asked if he thought the United States was likely to experience a “double dip” recession, Mulally said:

“We do not. I think with the monetary and the fiscal policy, and everybody’s attention on growing the economy … I think that we’re going to have good, steady growth here.” MORE»

The trailers feature a pop-up tent, storage compartment [...]]]> FROM THE OC REGISTER:  Consider this another bit of fresh breath for the storied Jeep brand: Chrysler has announced that it will be the first original equipment maker to build and sell a camper trailer that’s as off-road capable as the vehicles it makes to tow the things.

The trailers feature a pop-up tent, storage compartment and plenty of ground clearance via its pair of all-terrain tires. The units are made to sleep four adults and feature a queen-size bed, sofa, stowable table and 110-volt power supply.

Two versions of the trailers will be offered when they go on sale in August. The Jeep Trail Edition will cost $9,995 and features 12 inches of ground clearance and 32-inch BF Goodrich Mud Terrain Tires.  MORE»

General Motors is announcing it is again expanding OnStar’s latest features today, the ability [...]]]> FROM USA TODAY:  That alley cat smudging your shiny new Chevrolet Camaro again with his annoying little paw prints? Even from inside your house, now you’ll be able to honk the car’s horn to send kitty fleeing — from your mobile phone.

General Motors is announcing it is again expanding OnStar’s latest features today, the ability to operate key functions of cars remotely from smart phones. Owners of new Chevrolet, Cadillac, Buick and GMC vehicles who subscribe to the service will be able to do things like start their car remotely, honk the horn or turn on the lights and unlock the doors from their own mobile devices, not just the car’s key fob. Previously, these kinds of functions were only announced as coming to a single new vehicle, Chevy’s extended-range electric Volt, due in December.  MORE»

Fiat announced that its board approved the plan to separate its industrial-vehicle and auto businesses into [...]]]> FROM THE DENVR POST:  Italian automaker Fiat, which controls Chrysler, on Wednesday pushed ahead with plans to split into two companies as it reported a return to profit in the second quarter on improved sales of farm equipment and trucks.

Fiat announced that its board approved the plan to separate its industrial-vehicle and auto businesses into two companies to create a global auto company that will eventually incorporate Chrysler Group LLC. The plan was announced in April.  MORE»

“Ford and Volvo are, to this day, still [...]]]> FROM REUTERS: One of the toughest struggles in the negotiations was just how interwoven Volvo had become with the wider Ford Motor Group including safety and in-car-entertainment equipment. Volvo shared engine platforms and parts with Ford brands, while it relied on hardware and electronic-architecture work done at Ford.

“Ford and Volvo are, to this day, still very intermeshed,” says Cox at Rothschild.

Leaks in October highlighted disagreements over patents and intellectual property rights that threatened to kill the deal. In the end, the takeover terms gave Geely some of the technology. Ford got to keep other bits, but has to license some of it to Geely for use in its own operations. That should allow Geely to improve the quality of its own cars, and grow sales.  MORE»

A Free Press analysis suggests that taxpayers could get back about $74 billion of the $86 billion the government made available in 2008 and 2009 to save General Motors, Chrysler and Ally Financial, the former GMAC.

So far, [...]]]> FROM DETROIT FREE PRESS:  Saving Detroit’s auto industry may be a better deal for U.S. taxpayers than anyone expected.

A Free Press analysis suggests that taxpayers could get back about $74 billion of the $86 billion the government made available in 2008 and 2009 to save General Motors, Chrysler and Ally Financial, the former GMAC.

So far, the industry has paid the government $18.3 billion in debt, interest and dividends, and the prospects for payback have improved thanks to a rebound in vehicle sales and profits at the three companies. That includes the $1.5 billion Chrysler Financial has paid off and a $5-billion aid plan for suppliers that turned a profit. MORE»

The CEO hasn’t named a permanent successor to U.S. chief Stefan Jacoby almost a month after [...]]]> FROM BUSINESSWEEK:  Volkswagen AG Chief Executive Officer Martin Winterkorn will explain today how he plans to return the U.S. unit to profit as it heads for an eighth annual loss. He’ll do so without a leader to oversee the turnaround.

The CEO hasn’t named a permanent successor to U.S. chief Stefan Jacoby almost a month after the VW veteran of 25 years stepped down. Jacoby’s exit coincides with the final phase of introducing a new Jetta compact, VW’s best-selling American model, and as VW prepares to open a factory in Tennessee and present the first car built for the U.S. market.  MORE»