government

Would GM shed Saab, Saturn and Pontiac to secure gov't aid?

When ants need to cross some dangerous span in order to get to the thing they want, certain ants in the colony will sacrifice themselves to build a bridge that other ants can cross. That's how you get the honey. In GM's case, the honey is a $12 billion government lifeline. The dangerous span is, well, extinction. And the sacrificial ants in this case could be Pontiac, Saturn, and Saab.

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Quoth Mitt Romney in the NYT: "Let Detroit Go Bankrupt"

Mitt Romney, former Massachusetts governor, former entrant in the marathon to win the White House, and current automotive industry expert (who knew?) had a few things to say in the New York Times today on the potential auto industry bailout. The opening paragraph says it all: "IF General Motors, Ford and Chrysler get the bailout that their chief executives asked for yesterday, you can kiss the American automotive industry goodbye. It won't go overnight, but its demise will be virtually guaranteed."

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The Skinny: Automaker aid from the Feds

So here's a breakdown of what's going on in Congress concerning federal aid for U.S. automakers. A Senate bill expected to be voted on this Thursday would expedite funds for Ford, GM and Chrysler so that they could actually get the cash they need within 22 days after the bill becomes law -- should the bill become law. The $25 billion loan, paid back at an initial rate of 5-percent, would come out of the $700 billion bailout fund for financial institutions. The Senate's stipulations would be that the government receives "stock warrants or senior debt instruments to the government," similar to actions taken with banks that accessed the $700 billion. As well, top executives get no big payouts and stockholders get no dividends.

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Governator vetos ban on lap-dogs while driving

California recently banned talking on cellphones, and then followed up by making texting illegal, while driving. For a moment there, it was looking like all you were going to be able to do behind the wheel in California was, you know, drive. But thanks to the dedication of Governor Schwarzenegger, individual freedoms have not been extinguished. Promising to only sign bills that are "the highest priority for California," Arnie vetoed a bill that would ban driving with dogs in your lap.

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FoMoCo sues feds for $445m in overpaid taxes

The idea of having Uncle Sam come after you for back taxes is an unpleasant thought for any American. It's another story altogether when the feds are the ones doling out the Benjamins, though, as Ford is learning. The Blue Oval is officially suing the government for $445 million in overpaid taxes between 1983 and 1989 and again from 1992 to 1994. Ford wasn't overly excited about filing a lawsuit against the IRS, but due to the overwhelming amount of money involved and the fact that Ford can use all the cash it can get its hands on, the company felt it had little choice. The government actually claims to have paid the money in full, but Ford contends that the interest was not fully repaid. Considering that the additional interest was nearly half a billion dollars, we're guessing Ford really overpaid back in the day.

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Production Jeep J8 debuts in Germany


Click above for a photo gallery of the Jeep J8

Unless you're a foreign military, government, or humanitarian organization, you're not getting your hands on the Jeep J8, a vehicle we think a number of Jeepers would be all over in about two seconds if it were to be offered in neighborhood dealerships. Available as a two-door pickup (above) or a four-door (like the civilian Wrangler Unlimited), the J8 goes on sale this month and was officially revealed at Euro Camp Jeep '08 in Germany.

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