Lear Corporation, a leading global supplier of automotive seating systems, electrical distribution systems and electronic products, announced May 13 that it has reached an agreement with its lenders to extend the waiver under its primary credit facility.
Using robots to ram shopping cars and bicycle wheels into car doors, and blasting water cannons to force vehicle into skids, Ford engineers are using extreme tests to fine tune new, industry-leading safety technologies for its vehicles. Used to test technologies like the Collision Warning with Brake Support crash-avoidance system, these tests are part of Ford's efforts to accelerate new collision protection and avoidance technologies. Ford's safety leadership is built on having more Insurance Institute-rated "Top Safety Pick" vehicles than any other automaker and the most U.S. government 5-star test ratings of any brand.
GM plans to tell approximately 1,000 dealerships that they are being dropped for not meeting standards for capitalization and profitability. GM will send letters to these "underperforming" dealers for arrival May 15, reported Automotive News.
Sources close to the bankruptcy are reporting that Chrysler will announce cuts to its dealership base on May 14. Between 800-1000 dealers will no longer be "on the list"
Chrysler filed for bankruptcy on April 30. It will tell up to 1,000 of its 3,189 U.S. dealers it is terminating their franchise agreements. Remaing dealers will work with GMAC, not Chrylsel Financial.
Wes Smith, president of E&E Manufacturing, testified May 13 before the House Small Business Committee at a hearing examining the economic impact of the domestic auto crisis on small suppliers throughout the United States.
Purchase intention for Chrysler vehicles has climbed since it declared bankruptcy on April 30, according to Edmunds.com.
For both Communities and Automakers, Dealers are More Valuable than Ever
As General Motors and Chrysler move forward with their respective restructuring plans, I have noticed a growing and unsettling wave of anti-dealer rhetoric in the news. If you believe what you read and hear, you might think dealers are the root of all the auto industry's problems. It's not unions, poor design, mismanagement, or inconsistent government regulation at fault. Oh, no. It is the dealers who have brought America's domestic auto industry to its knees.
Chrysler LLC today announced that, as a result of the comprehensive restructuring plan agreed to by many of its stakeholders, it has reached an agreement in principle to establish a global strategic alliance with Fiat SpA to form a vibrant new company. It will allow Chrysler and Fiat to fully optimize their respective manufacturing footprints and the global supplier base, while providing each with access to additional markets. Fiat powertrains and components will also be produced at Chrysler manufacturing sites.