General Motors has an early New Years Resolution: to be more fiscally responsible when it comes to corporate travel. With six short, direct sentences (see official press release after the jump), GM has declared that its Corporate Aviation Operations are to be shuttered. It might not seem like a big deal on the surface, but there are apparently numerous contractual agreements that need to be reworked to make this a reality. First, the jets themselves need to be returned, sold or transferred to another operator. Next, after January 1st when The General pulls out, the leased facility and grounds at Detroit Metro Airport will be emptied and GM will work with airport officials to find another tenant.
Although GM suggests that the termination of its Aviation Operations is because its travel volume no longer requires its own dedicated corporate service, we're pretty sure that the ribbing Wagoner and his peers took at the hands of Congress over private jet flight had plenty to do with the decision. Expect the announcement to be part of GM's Congress-bound business plan when it's officially announced this week.
While it won't get him there as quickly (or as luxuriously) as a Gulfstream corporate jet, GM CEO Rick Wagoner will drive to Washington this week in a Chevrolet Malibu hybrid to ask for taxpayer-funded bridge loans. Last month, Wagoner, Ford CEO Alan Mulally and Chrysler LLC CEO Robert Nardelli, all received some serious flak from both lawmakers and the public when they arrived in Washington via three separate private jets while begging for $25 billion in federal money. All are expected to take alternate forms of transportation this time around, with Mulally already announcing plans to drive a Ford Escape Hybrid. Simple math says Wagoner's Malibu hybrid should only burn about 15 gallons of fuel during the 520-mile trek from Detroit to Capitol Hill, costing the automaker about $30 in gasoline (compare that to the estimated $10,000 cost of the jet one-way). It should be quite the road-trip.
Chrysler CEO Bob Nardelli was the only auto exec who readily offered to work for a buck if it meant securing federal aid from Congress in the form of bridge loans. Ford CEO Alan Mulally famously told the politicians sitting before him, "I think I'm OK where I am." We would be OK too with the tens of millions of dollars that Mulally has received as compensation so far from Ford. GM CEO Rick Wagoner was described as being "demur" when asked about lowering his salary to a $1.
Now it seems that the boy from Boeing and the Ricker are reconsidering their previous reluctance to take a pay cut. The Detroit Free Press is reporting that both CEOs are prepared to tell Congress on Thursday that they would be willing to work for $1 if it meant getting the approval of Congress for federal loans.
Congress had previously demanded the each of the Detroit 3 automakers submit a detailed plan to Congress outlining how they would use the federal loans to return to profitability and ensure the long term viability of their companies. Ford is the first to turn their homework in, which reveals the Blue Oval expects to be making money again in 2011 and will have an all-electric sedan on sale by then. All it's asking in return is a $9 billion slice of the $25 billion federal aid package that would only be used if necessary. Ford already has enough credit to survive through 2010 and only envisions needing the fed's money if something happens to either GM or Chrysler.
In just a few short days, Ford and its two cross-town rivals will be required to lay down a plan before Congress that points a clear path towards profitability and global competitiveness. These days, any automaker's future will involve plenty of greenery, and as the first of the three automakers to submit its comprehensive business plan to the lawmakers in DC, Ford's plan includes electric vehicles slated for launch starting in 2010. First up will be a new electric van for commercial use, followed in 2011 by a new electric sedan. Other highlights include U.S. versions of the European-designed automobiles that are currently making their way across the pond, the sale of all its private jets, further plant closings and continued negotiations with the UAW.
So, what kind of money are we talking? The Blue Oval's plan calls for a bridge loan of $9 billion to be made available, though it hopes it doesn't need it. You may remember that Ford bet Henry's farm already when Mulally first took office at the automaker, so it's already got a load of financed cash on hand to weather the current stormy climate through 2010. What's more, Ford hopes to get $5B of loans under the already-promised $25B for fuel efficient cars. On the negative side, the plan suggests that a bankruptcy of either General Motors or Chrysler would be enough to cripple Ford's operations. Barring that, even with a forecast of flat sales of 12.5 million units per year for the next three years for the U.S. auto industry, Ford believes it's on its way back to profitability as early as 2011.
The executive churn at Tesla Motors continues today as SVP of Marketing and Sales, Darryl Siry has resigned. In a posting on his personal blog, Siry cited "disagreements in strategy" as his reason for leaving. When AutoblogGreen contacted Siry, he declined to elaborate on the reasons, but a successor has already been recruited and Siry stayed on these last several weeks to facilitate the transition. In mid-October, Tesla Chairman Elon Musk stepped in to replace former CEO Ze'ev Drori in that position, a move that coincided with the lay-offs of 20 percent of the company's staff and delays to the Model S sedan.
Among his duties at Tesla, Siry has been the primary spokesman for the EV start-up. He has not announced any new plans but does intend to comment more on the alternative fuel vehicle industry on his blog.
For all the problems it faces, Chrysler has to be happy with this: the Dodge Challenger rollout has gone about as well as anyone could have hoped. Everyone wanted this car to happen from the moment it appeared as a concept back in 2006. Back then, the S197 Mustang was still new and demonstrating that retro done right can be a very good thing. Flash forward to today and following a brief, SRT8-only 2008 model year run, the Dodge Challenger is now available in three distinct trim levels. We've already reviewed the stylish and value-priced, six-cylinder SE model, and we'll soon give you our take on the top-tier knuckle-dragger, the SRT8. That leaves the mainstream muscle – the R/T. We recently welcomed a silver example equipped with the hotly-anticipated six-speed manual gearbox into the Autoblog Garage. But is it something you'll want to welcome into your garage?
Just one short year after Fisker debuted its plug-in hybrid Karma show car at the Detroit Auto Show, the house that Henrik built will be returning to the Motor City to debut the production version of its ambitious project. Fisker says the production model, which is shown above in this just-released official pic, will only vary slightly in design from the show car, including a different upper grille that's a bit larger towards the outer edges and a larger lower air intake. The exhaust pipe from the internal combustion engine will also exit from an odd place: behind the front wheels. We'll also get our first view of the Karma's production interior in Detroit next month.
Fisker announced last month that it had chosen General Motors' turbocharged, direct-inject 2.0L four-cylinder as its ICE of choice, and after sampling that engine in the Chevy Cobalt SS Turbo, we're very eager to see what it will do in a hybrid set-up designed to make one very large luxury saloon move like the wind. Combined with the hybrid system's 22.6 kWh electric motor, the drivetrain as a whole is said to produce 408 horsepower and propel the car to 60 mph in 5.8 seconds and onto to a top speed of 125 mph.
