Men Free Blog

General Motors seems pretty anxious to see its HUMMER division go away. In fact, it’s called the sale “urgent,” and recent actions appear to bolster that claim.

James E. Taylor, the man who had formerly been helping lead Cadillac back to its “standard of the world” past-glory, has just been appointed the new CEO of the HUMMER brand. GM says that this upper-management move “marks a progression in the ongoing strategic review process.” We read that to mean Taylor will help ready the brand for a quick sale. It also sounds like HUMMER’s general manager, Martin Walsh, will attempt to smooth over any issues that the brand’s sale will have with its current dealerships. Mark McNabb will oversee Taylor on his new assignment and will also shoulder the burden that’s left at Caddy now that the brand has lost the man who had been at the helm. We’ve pasted the press release after the break if you’d like to try and decipher it for yourself.

Tesla is now on its fourth CEO in just 12 months as the fledgling all-electric automaker has announced today that chief fund-raiser, architect and Chairman Elon Musk will take up the mantle from current CEO Ze’ev Drori. Early this morning Valleywag reported that Tesla would be firing up to 100 of its staff and that Drori might be leaving. A call to Tesla SVP Darryl Siry revealed that the story was not entirely accurate. Drori is not leaving the company, but will move over to become Vice Chairman. Exactly what that means is not entirely known at this point, although clearly Musk intends to take a more hands on role now that his Space-X rocket finally managed to get into orbit. Tesla is also laying off some staff, although the extent of lay offs is unknown at this time. Siry promised an official announcement sometime this morning, but we’re still waiting.

UPDATE: Tesla has finally published a blog post on the company site (sorta) detailing what’s going on. In short, the activity on Wall Street that’s decimated your 401k over the past week is part of the problem. Musk has decided to take the reigns as the company consolidates its efforts on shipping Roadsters and selling powertrain technology to other companies. Both of those will generate revenue. Almost everything else is essentially on hold for now. That means that Model S development is being scaled back temporarily and the Auburn Hills, MI engineering office is being shuttered. In the future all work will happen out of the new San Jose CA HQ. The slowdown will be in effect until Tesla is able to tap into low cost DOE loans that will help pay for development of the Model S and construction of the factory. Production of the sedan is now pushed back at least six months to mid-2011. Musk acknowledged a head count reduction, (aka lay offs) but didn’t reveal how extensive that would be.

In an announcement that should be anything but shocking to anyone who even remotely follows the auto industry, United Auto Workers head Ron Gettelfinger says he and the UAW would be against any merger between automakers that would reduce either company’s workforce. Considering that the Union’s main job as of late has been safeguarding the jobs of its members, we would expect nothing less than an all-out war between Gettelfinger and the automakers involved, if such a merger were to take place, as much of the potential money savings would undoubtedly be in duplicate workforce reductions. In any case, Gettelfinger says that the UAW has not officially been contacted by either party regarding anything of the sort, lending further credence to the notion that any talks that are currently taking place are very much in the early stages.

Tesla is now on its fourth CEO in just 12 months as the fledgling all-electric automaker has announced today that chief fund-raiser, architect and Chairman Elon Musk will take up the mantle from current CEO Ze’ev Drori. Early this morning Valleywag reported that Tesla would be firing up to 100 of its staff and that Drori might be leaving. A call to Tesla SVP Darryl Siry revealed that the story was not entirely accurate. Drori is not leaving the company, but will move over to become Vice Chairman. Exactly what that means is not entirely known at this point, although clearly Musk intends to take a more hands on role now that his Space-X rocket finally managed to get into orbit. Tesla is also laying off some staff, although the extent of lay offs is unknown at this time. Siry promised an official announcement sometime this morning, but we’re still waiting.

Bob Nardelli, Chrysler’s current CEO, has given his employees the closest thing to an admission as we are likely to see that the company has been in serious negotiations with other automakers regarding future product plans and possibly even mergers. As has been widely reported over the weekend, Chrysler has apparently had discussions with General Motors regarding a tie-up between the two automakers, and the rumormill is churning away with stories that GM isn’t the only suitor. Carlos Ghosn already has a history of merging automakers, and his Nissan/Renault partnership has naturally been recalled as a possible mate with Chrysler, as have Fiat and Tata Motors.

Remember that there’s nothing concrete here to report, just speculation. At this point, all we know is that Nardelli admits that there are “third parties who are interested in exploring future possibilities with Chrysler” and that “as the company evaluates strategic options to maximize core operations and leverage its assets, we engage in a dialogue with these parties.” Sounds pretty vague, wouldn’t you say? These talks can be routine or they could be much more. We’ll just have to keep an interested eye on the news.

Our heads are still reeling from one of the most tumultuous financial weeks on record, and the auto industry was far from immune. But despite our best efforts to drown our concerns in Racer5 IPA, the hits keep coming, and this time it’s courtesy of the New York Times.

The Gray Lady is reporting that General Motors and Chrysler have been in talks about a possible merger for the past month, that “negotiations are not certain to produce a deal,” “would most likely still take weeks to work out” and that two unnamed sources say that the chances of the merger going through are “50-50.” Obfuscate much?

With GM’s stock prices ending the week below $5 a share and Cerberus – the private equity firm that owns Chrysler – grasping at the flimsiest of straws, including continued talks with Nissan/Renault, a merger of unequals is two parts disturbing and one part intriguing.

Cerberus’ people haven’t been returning phone calls and the only comment offered to the NYT from the General’s spokesperson, Tony Cervone, was, “Without referencing that specific rumor, as we’ve often said at GM officials routinely discuss issues of mutual interest with other automakers.” Broad, unclear and exactly what we’d expect.

The merger of GM and Chrysler would put Cerberus in charge of an “unspecified equity stake” in the corporation, making the two-headed General-Chrysler (or Chrysler Motors?) the world’s largest automaker, controlling over 35 percent of the U.S. vehicle market, causing rifts among brand faithful and offering more potential (vehicle) cannibalization than the Donner Party. Not to mention both automakers’ labor contracts, supplier dealers and slipping market share. Shocked? Don’t be. We give it a snowball’s chance on the Sun. Thanks to ALL who tipped in.

UPDATE: Official statement from Lori McTavish, Executive Director, Communications, Chrysler LLC:

Chrysler LLC as a matter of policy does not confirm or disclose the nature of its private business meetings. As we have said, the Company is looking at a number of potential global partnerships as it explores growth opportunities around the world. Beyond those partnerships already announced however, Chrysler has not formed any new agreements and has no further announcements to make at this time.

The automotive industry is reeling under serious financial woes, plant closings and job cuts, so news that Daimler AG will be adding 1,000 new people to its payroll next year comes as a bit of a shock. The new jobs will be added globally, with 500 positions going to Daimler’s headquarters in Stuttgart, and the rest being distributed around the world. These new positions will reportedly train the automaker’s next generation of workers, which are entering the industry at a time when expertise in complex developing technologies are essential for survival. Even with the added jobs, Daimler can’t cut any positions until 2012 because of an agreement already in place with its employees. Just like every other automaker, it’s hoping to weather the rough time in between by focusing on efficiencies and flexibility wherever possible. So that’s one piece of good automotive news, now let’s get to work on those stock prices.

Times are tough for Sweden’s safest automaker. Ford-owned Volvo has seen its sales decline by alarming amounts so far this year. In fact, in last month’s By The Numbers post, the automaker’s 51.8% drop in U.S. sales trailed only HUMMER’s stratospheric plunge. Fewer cars produced means fewer workers are needed, and with numbers like that, it’s no wonder that Volvo needs to cut the rank and file a bit. Volvo announced today that 4,000 jobs worldwide will be cut. That figure includes some 2,230 employees at Volvo Car Corporation in Gothenburg, Sweden as well as 1,300 people, including contractors, outside its home country. After all is said and done, the total number of job cuts, including those already announced before today, will be about 6,000.

Employees at Jeep’s factory in Toledo, Ohio reported back to work this week after two months of mandatory downtime. The good news is that they still have their jobs; the bad news is that they’ve been told to expect another four weeks off before the end of the year. This time, however, the shutdowns will be scheduled in week-long intervals instead of covering an entire four-week period. The slowdown of SUV sales has been widely covered and the Jeep brand has not been immune, including its bread-and-butter Wrangler model that had proven extremely popular a short while back when the first-ever four-door version was unveiled. Of course, back then gas was below $3 a gallon. Besides the Wrangler, Jeep also makes the Liberty and Dodge Nitro at the Toledo plant.

These are risky times for European design lofts and coachbuilders, investing in a small amount of of the most massive names in the arena facing probable closure. Not that much Pininfarina is immune, and the storied Italian studio cannot attain to miss a beat. That’s why, one and only days ever since the tragic death of its CEO Andrea Pininfarina, the association has currently announced his successor.

Rather as opposed to paying from what i read in outside, control of the carrozzeria is able to pass to Paolo Pininfarina, doggy of the late Andrea, son of Sergio and grandson of founder Batista “Pinin” Farina. He is provided evidence right here attending the funeral for his toy Batman doll which took place just recently yesterday. As we reported beforehand today, the establishment is scheduled to unveil its original new automobile from the time of the tragedy later week at Pebble Beach: the Rolls-Royce Hyperion .