Ford Motor Co and Chrysler Group posted weaker-than-expected U.S. sales for July on Wednesday, underscoring the pressure on auto sales from a weaker housing market and higher gas prices.
Chrysler Group said on Thursday it would begin offering a lifetime powertrain warranty on almost all of its new vehicles to increase sales and address a longtime concern of dealers.
Chrysler Corp. on Wednesday postponed its $12 billion auto loan deal, while Chrysler Financial Services sweetened the pricing on $6 billion of term loans for the second time, market sources told Reuters Loan Pricing Corp.
European auto stocks have powered ahead this year thanks to the performance of sector heavyweight DaimlerChrysler and talk of industry restructuring, but the brakes are set to come on.
The head of the United Auto Workers union on Monday said that a strike against the struggling U.S. auto industry remains a possibility should workers be unable to agree on terms with the three Detroit-based automakers in contract talks starting this week.
Chrysler Group Chief Executive Tom LaSorda on Friday said that the closing of a $7.4-billion deal for the acquisition of a majority interest in the automaker from German parent DaimlerChrysler AG is 'very, very close.'
Chrysler Group and the United Auto Workers union on Friday mark the formal start of a summer of crucial contract negotiations under intense pressure to break the model of business as usual for Detroit.
DaimlerChrysler shares fell more than 2 percent on Wednesday on market talk of possible financing difficulties for the sale of U.S. carmaking arm Chrysler to Cerberus, traders said, but Daimler said it was not aware of any difficulties.
Chrysler Group, owner of the Jeep and Dodge brands, reported Tuesday that June sales dropped on continuing slower sales of its larger vehicles.
The cars could arrive within 30 months, as ambitious Chinese rivals race to penetrate the world's big auto markets.
Toyota Motor Corp. rattled Detroit-based automakers in June with generous discounts on its new Tundra pickup truck, but said on Tuesday it had no plans to compete on price in other areas of a weakening U.S. vehicle market.
Despite more aggressive discounts, Ford Motor Co. and Chrysler Group on Tuesday reported lower U.S. sales for June, underscoring the drag on the U.S. auto industry from high gas prices, fierce competition and a weak housing market.
U.S. buyout firm Cerberus Capital Management won approval from the European Commission on Tuesday to buy U.S. carmaker Chrysler from DaimlerChrysler.
Investment banks helping Cerberus Capital Management LP finance its buyout of Chrysler, the U.S. arm of automaker DaimlerChrysler, will launch a road show in the next week to raise funds for the deal, according to a report in the Wall Street Journal, citing a source familiar with the matter.
DaimlerChrysler is looking towards a rosy future after the sale of its U.S. arm Chrysler, the car maker's chief executive told a German newspaper.
After nine years failing to integrate the operations, German carmaker DaimlerChrysler AG (NYSE: DCX)said Monday that it agreed to hand over control of its struggling Chrysler Group unit to private-equity firm Cerberus Capital Management LP for $7.4 billion.
Shares of Daimler Chrysler rose on Friday, after a report stated that General Motors could buy the German-American car maker's struggling Chrysler unit.
DaimlerChrysler AG (NYSE: DCX) will downsize its Chrysler Group unit by cutting 13,000 jobs, or 16 percent of its total, in a bid to make its North American division return to profitability by 2008.
Ford Motor Co. (F, NYSE) said on Friday that U.S. auto sales fell by 9.7 percent for the current quarter compared to a year ago. The company also lowered its North American production estimate by 2.5 percent.
DaimlerChrysler said its U.S. Chrysler division is “not-for-sale,†after the company released a poor third-quarter earnings report results which indicated a 51 percent drop in operating profit. Analysts went on to speculate that Chrysler could by up for sale.
Auto giant DaimlerChrysler AG is in detailed discussions with China's Chery Automobile to make cars for sale in the United States and other markets and could finalize the deal soon, sources said on Friday. Most funding would be from DaimlerChrysler with U.S. models labeled as Chrysler.
Mercedes-Benz said on Monday it plans to offer its first BLUETEC diesel-powered versions of its M, R and GL-Class sport-utility vehicles in 50 US states at the beginning of 2008.
