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Friday, April 3, 2009

General Motors (GM) and Chrysler will receive bridge loans from the government of Canada and the provincial government of Ontario, however no more will be forthcoming from either Canadian or US governments unless the companies can reinvent themselves.

“This is a regrettable but necessary step to protect the Canadian economy. We are doing this on the assumption that we obviously cannot afford either in the United States or Canada a catastrophic short-term collapse.” said Stephen Harper, Prime Minister of Canada.

“We cannot, we must not, and we will not let our auto industry simply vanish. This industry is, like no other, an emblem of the American spirit; a once and future symbol of America’s success,” said Barack Obama, President of the United States. “These companies – and this industry – must ultimately stand on their own, not as wards of the state.”File:Sinsheim quer.jpg

Chrysler will receive CA$1 billion and may in fact be eligible for as much as CA$4 billion. If Chrysler succeeds in the next 30 days with a restructuring plan it would be eligible for a US$6 billion loan. A part of Chrysler’s restructuring plan must include a partnership with Fiat within 30 days to appease the US administration. Fiat is a supplier of smaller fuel-efficient vehicles, and the merger will help Chrysler to be viable in the North American market. A Chrysler court bankruptcy would inevitably lead to it being sold off.

As a part of Chrysler’s restructuring plans, Tom LaSorda, the president of Chrysler announced that Canadian operations would fold if it does not receive both the US commitment of $2.3 billion of aid and a new Canadian Auto Workers CAW contract to reduce all-in costs by CA$19 per hour. As a result of this announcement Chrysler’s auto sales volume in Canada dropped 23% compared to March of 2008.

GM has until the end of May to restructure its company to receive up to CA$7.5 billion. As part of the companies restructuring, General Motor’s chief executive Rick Wagoner was replaced Sunday with Fritz Henderson, the current chief operating officer. Henderson spoke out on Tuesday that GM has submitted a restructuring plan which would close five plants, and this may be increased to meet the requirements for financial aid. He is in full compliance with Obama’s auto task force to seek bankruptcy if GM cannot negotiate with their unions, bondholders and others.

GM recently brought forward the “GM Total Confidence” program providing consumer purchase protection for customers who lose their job for economic reasons within the first two years from purchase. As a result of Chrysler’s restructuring announcement in Canada, GM’s Canadian vehicle sales volume fell only 17.3% compared to 2008, an increase from the previous month.

GM must reduce some of its legacy costs which include its pensions and union health care costs. A part of GM’s ailments arose from investing in supplying truck and SUVs during an economy of high gas prices when consumers were demanding fuel efficient vehicles.

Tony Clement, Canada’s Minister of Industry, is hoping that the CAW will support the restructuring process and re-negotiate their agreement. Whereas a United Auto Workers negotiator has said, “I don’t see how the UAW will do anything until they see what the bondholders will give up.”

The Obama administration is looking toward bankruptcy proceedings for the automakers, “as a mechanism to help them restructure quickly and emerge stronger. [It will] quickly clear away old debts that are weighing them down. What we are asking is difficult. It will require hard choices by companies. It will require unions and workers who have already made painful concessions to make even more. It will require creditors to recognise that they cannot hold out for the prospect of endless government bailouts.” said Obama.

The auto parts suppliers and IT software exporters in India have already been affected by the declining auto sales. GM and Chrysler software contracts provide US$300 to 350 million a year to vendors in India. As well these two major automakers usually award US$1 billion contracts to auto parts suppliers. “We are worried and closely watching the developments in the US to gauge the impact. The decline in auto sales in the US has already hit the order books of Indian suppliers,” said a Delhi auto parts supplier.

“Going forward, the industry will undoubtedly be smaller, but if our efforts are successful it will be viable and it will support good jobs for Canadians,” said Clements.

Betty Sutton, Ohio’s Congresswoman put forward the CARS act which provides a US$3,000 to 5,000 incentive for those who trade in their vehicle for a fuel-efficient car. “It clearly stimulates the economy, and it gets the consumer into the showroom and gets them buying again. But importantly — and this is what I particularly like about it — it really helps the environment quite a bit in two respects.” said William Clay Ford Jr., executive chairman of Ford Motor Co.

Ford Motor Company has not come forward with requests for assistance.

Since December GM and Chrysler have received US$17.4 billion government loans.

Thursday, May 7, 2009

Penske Automotive Group, Inc., an Ohio-based investment group and Telesto Ventures have indicated separately that they are interested in purchasing the Saturn auto brand from General Motors (GM).

According to The Wall Street Journal, Nissan-Renault is interested in purchasing Saturn. Bloomberg, however, indicated that Nissan-Renault may be a partner of Penske’s potential bid. If Penske acquired the brand, they would distribute Saturn vehicles and outsource the assembly.

GM revealed that the Saturn brand along with Saab and Hummer were up for sale when unveiling their restructuring plans to Congress for governmental loans. While the Pontiac brand was originally to be a niche brand, GM had changed their plans recently and decided to eliminate the brand.

Telesto Ventures is an investment group that includes private equity firm Black Oak Partners LLC of Oklahoma City and several Saturn dealerships. Initially, Telesto will purchase Saturn branded cars from GM then act as a general retailer for foreign brands. Telesto is in talks with several foreign manufacturers.

The Ohio group includes many former senior auto company managers plus private financial backers, chemists and engineers who live in Michigan, Ohio, Indiana and Florida. This group plans to initially purchase cars from GM then purchase existing but closed plants due to automaker restructuring. Additionally, one of the partners indicated a willingness to accept some “legacy” cost in relation to the United Auto Workers. The Ohio group is also pursuing possible loans or other support from national and state governments.

GM is reviewing several offers for Saturn. GM has contracted with S.J. Girsky & Co. to advise them on the sale.

Friday, March 18, 2005

The White House announced the selection of Paul Wolfowitz to head the World Bank, replacing John Wolfensohn who retires as acting president after 10 years. The switch is expected to occur sometime in June.

The choice of Wolfowitz is raising controversy in Europe and developing nations. Known as hawkish and outspoken, Wolfowitz was a pro-Iraqi war neo-conservative in his role as deputy Secretary of Defense, and a chief architect in the build up to war with Iraq. Some question whether Wolfowitz, who was criticized for brushing aside European and NATO calls for caution before the Iraq war, would use the International Monetary Fund (IMF) as tool to extend U.S. foreign policy interests.

Historically, it has been the White House’s prerogative to name the candidate because the U.S. holds a majority on the 24 member board, but board members from nations other than the U.S. are seeking their own interviews to qualify the candidate before a change is made. “The executive directors have agreed to conduct informal meetings over the coming days with the US nominee as part of the consultative process.” the IMF said in a statement. “Thereafter, the executive directors will meet in a formal session to select the president at which time an official announcement of the outcome will be made,” it said. The vote is set for March 31, the same day Wolfensohn retires.

Rob Nichols, the US Treasury spokesperson, said Wolfowitz has begun scheduling meetings with board members and that, “Our nominee… looks forward to meeting with and listening to members of the World Bank board.” Reuters reported. In the meantime, Wolfowitz has worked to assure those with concerns of him, saying he would come with an open mind and no political program.

Tuesday, July 12, 2005Bobby Abreu, welcome to the spotlight.

The Philadelphia Phillies star, now 31 and a two-time All-Star, has produced well for the Phillies over the last half a decade without the glamour of other top players. However, last night there was no denying that he was the star of the show.

And what a show it was. The first batter in the 2005 Home Run Derby, Abreu proceeded to shatter the previous record of 15 home runs in a round, belting 24, including a 517-foot moonshot that exited the stadium in right field, going through two bats in the process. This rampage came immediately after ESPN announcers Chris Berman and Joe Morgan described Comerica Park, the site of the Derby, as a difficult park to hit home runs in.

In the second round, Abreu edged past Boston’s David Ortiz (who himself hit an astounding 17 homeruns in the first round) and Milwaukee’s Carlos Lee to earn a spot in the finals alongside Detroit star Ivan Rodriguez. Rodriguez, who snuck into the second round with 7 dingers, swatted the most in the second round, but his home-field advantage deserted him in the finals as Abreu smashed 11 over the fences to win the Derby for his native Venezuela.

Abreu’s three-round total of 41 homers broke Miguel Tejada‘s record of 27, set last year in Houston’s Minute Maid Park.

Friday, June 17, 2011

R.J. Harris, a potential candidate for the U.S. Libertarian Party’s presidential nomination, took some time to speak with Accredited Wikinews Reporter William Saturn about his campaign and issues positions.

Harris is an officer in the United States Army National Guard, currently serving in Afghanistan. He is also in his third year as a law student at the University of Oklahoma College of Law. Harris previously worked as an Air Traffic Controller and small business owner. He plans to enter the race in September after completing his tour in Afghanistan.

Others seeking the nomination include Libertarian activist R. Lee Wrights, radio host Jim Duensing, former Nevada Libertarian Party chair Jim Burns, marketing executive Roger Gary and attorney Carl Person. 2008 Vice presidential nominee Wayne Allyn Root is also expected to make a run.

Friday, October 9, 2015

Three top FIFA (International Federation of Association Football) officials have been suspended from their jobs yesterday for a period of ninety days pending an internal inquiry into alleged corruption. The three are FIFA President Sepp Blatter, Vice President Michel Platini and Secretary General Jérôme Valcke. They aren’t allowed to participate in football-related activities during their suspensions.

Blatter was going to serve as president until February 2016, although he was elected to a five year term on May 29 this year.

The suspensions have been issued by FIFA’s Independent Ethics Committee, in the wake of the decision of Swiss authorities to investigate possible criminal charges against Blatter. The authorities are looking into an “unfavourable” contract signed by Blatter and a “disloyal payment” involving Platini. Valcke was already suspended from his job, allegedly involved in a controversy about FIFA World Cup tickets. These followed a US investigation in May 2015, which implicated fourteen FIFA employees in bribery and racketeering, and a Swiss inquiry about the conduct of the 2018 and 2022 FIFA World Cup bidding process.

The ethics committee has the power to increase the length of the suspensions by a further forty five days if it deems this necessary. The suspensions would then end just days before FIFA holds elections for a new president, for which Platini is a possible candidate. However, there have been calls for the reform of FIFA, by major sponsors and the International Olympic Committee, whose president, Thomas Bach, said “enough is enough”.