General Motors that is a quite well industrial icon and the largest automaker company in the United States has field for bankruptcy in New York yesterday.
Many proceedings of this GM good assets sale is expected to take place quickly that are going to transfer a US Treasury Department owned entity, the bondholders of the UAW and the Government of Canada in the next two or three months, all that is expected to prove quite effective in the emergence of the company as well structured firm. Old assets that include factories, brands, dealership and different legacy costs would remain in the supervision of the court.
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Volkswagen’s indigestible love or hate relationship with Porsche is once again firmly in the love circle.
The two German automakers have formed a working group at VW headquarters in Wolf’s burg to work out the details for a merger. The Volkswagen’s-Porsche functional group is made up of representatives from both automakers, as well as from worker councils.
As the news reported that the talk between them was broke down as VW declared Porsche lacked a legitimate plan for integrating the two companies. Then there was a change of mind in both the companies and stated that they would be working together and make advance the efforts to reach the required goal. Read more…
Barack Obama: increase in CAFE is “one of the historic agreements in order to help America to break from its addiction to oil”
Apart from the “Daimler-Tesla” announcement, one of the biggest car news for the May 19 issue is the increase in the standards of CAFE that has been made by the president Obama a short while ago and this agreement joined by Governors Deval Patrick (MA), Jennifer Granholm (MI), Arnold Schwarzenegger (CA), Ron Gettelfinger (UAW), congressmen an many others. During the agreements Obama said that “it was one of the historic agreements in order to help America to break from its addiction to oil”.
At present, DOT is the authority that manages fuel economy, EPA is the authority that deals with emissions and CA will be able to use Clean Air Act so that it comes up with even more strict rules. If this is done, then the car manufacturers have to deal with three agencies. This new rule is one of the national standards so that CA supports and EPA and DOT both will adopt. The standards of CAFE will be increased by 5 percent each year and it will be building on the standards of 2011 until we get into 2016. All these means, that an industry standard upto 35.5 mpg by 2016, this is an average increase upto 8 mpg per vehicle. Read more…
