2003 Pt Cruiser Gt on 2040-cars

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10 years later, a look back at U.S. auto industry’s near-death experience

The U.S. auto industry this month marks a grim and harrowing milestone: A decade ago, the entire industry was staring into the abyss of total collapse. By 2009, of course, the broader economy was teetering on the brink, with mortgage default rates and foreclosures spiraling and the real estate market in the tank. Both Lehman Brothers and Bear Stearns had collapsed, President George W. Bush had signed the Troubled Asset Relief Program, or TARP, infusing $700 billion of taxpayer money to stabilize Wall Street, and Insurer AIG, stung by huge losses on subprime mortgages, won a federal bailout. Virtually the entire decade had been particularly unkind to the Detroit Three automakers, which were over-reliant on gas-guzzling trucks and SUVs as gasoline prices crept toward the $4 mark, and whose labor costs — especially for health care and retiree pension obligations — were dragging them billions into the red. It was a dreadful, frightening time in Detroit, especially, with reports of plant closures and mass layoffs appearing with alarming regularity. Seeing the federal government's largess with Wall Street, General Motors and Chrysler both went calling for government assistance for themselves. (Ford managed to avoid following suit only by mortgaging all of its assets, including its very brand, years earlier in exchange for billions of dollars in loans.) Yet instead of giving them the "bridge loans" they sought, the incoming Obama administration instead pushed back against GM and Chrysler, eventually guiding them into bankruptcy protection, as the Detroit Free Press recalls in a multimedia story recounting the industry's tumultuous and perilous recent past. The piece uses images of the newspaper's front pages from those days, splashed with what former newsroom colleagues and I would often refer to as "Pearl Harbor font" headlines ("NO DEAL" read the Freep's Dec. 12, 2008, edition). There are also timelines, interactive graphics and snippets of video interviews with two insiders: freshman U.S. Rep. Haley Stevens of Michigan, who served as chief of staff for President Obama's auto task force; and U.S. Rep. Debbie Dingell, the wife of the late longtime U.S. Rep. and industry ally John Dingell, who was then an executive at GM.

Junkyard Gem: 1990 Chrysler LeBaron GT Convertible

When Chrysler sprang back to life under Lee Iacocca and his K-Cars, the flagship of the new front-wheel-drive order was the luxurious new 1982 LeBaron convertible, which shoved aside the drab and antiquated Dodge Diplomat-based 1981 LeBaron. The LeBaron sedan got the axe after 1989, with only sporty coupes and devil-may-care ragtops given LeBaron badges after that. Here's an example of the third-generation LeBaron convertible, found in a Colorado wrecking yard a few months ago. There were four trim levels of LeBaron convertible available for the 1990 model year: Highline, Premium, GT and GTC. Today's Junkyard Gem is a second-from-the-top GT, which had an MSRP of $17,799 (about $43,383 in 2023 dollars). The intake manifold may bear the Chrysler name, but this engine is three liters of pure Mitsubishi 6G72 power. With 141 horsepower and 171 pound-feet, this engine was  standard equipment on the GT convertible (if you bought the GTC Coupe, you got a 175-horse 2.5-liter turbocharged four-cylinder). The idea of a Detroit luxury machine with a manual transmission seems strange today… and it was also somewhat strange 33 years ago. The original buyer of this car almost certainly had the money for the optional automatic ($552, or $1,314 today) but preferred the five-on-the-floor manual. With a curb weight of just 2,775 pounds, this car would have been plenty of fun to drive with a three-pedal setup. The resemblance between this car and its far more expensive first cousin, Chrysler's TC by Maserati, was all too obvious to TC shoppers. Yes, that's genuine Corinthian Leather on the seats. Driver's-side airbags were rare on 1990 US-market cars, but Chrysler was ahead of the competition with this safety feature. This car nearly reached 275,000 miles during its life. Who says a convertible doesn't make a good daily commuter? It looks to have been in good condition at the end, though the driver's door latch mechanism needed to be reattached via welding repairs at some point. The retractable headlight covers are open in these photos. Chrysler ditched the hidden headlights for the 1993 LeBarons; production ended after 1995. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. There is no luxury without engineering. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. In Canada, Celine Dion pitched this generation of LeBaron convertible.

FCA and Peugeot reportedly agree on merger

Citing a Wall Street Journal report, the Detroit Free Press says "Fiat Chrysler and PSA Groupe have agreed to merge." The Journal reported on talks between the two car companies only yesterday. It's said that Peugeot's board met yesterday to approve the deal, FCA's board met today, and an announcement could come as soon as tomorrow, Thursday. Both automakers have released statements, but neither company has released any information beyond admitting to ongoing talks. If the merger happens, the combined entity would become the world's fourth-largest carmaker with a $50 billion valuation, slotting in behind Toyota, the Volkswagen Group, and the Renault Nissan Mitsubishi alliance. Among the merger options possible, "an all-stock merger of equals" is the one analysts and Moody's seem to give the best grade. The reported merger would come about four months after FCA walked away from merger talks with Renault. FCA said the French government scuppered those talks over the role of Nissan in a reformed entity, but there were also brewing issues with French unions, and ongoing turmoil among Renault and Nissan leadership thanks to continuing fallout from ex-CEO Carlos Ghosn's arrest last year. FCA makes most of its revenue in the U.S. and rules Italy, while Peugeot is the second-best-selling automaker in Europe with its own brand in France and Opel in Germany. The two companies already have a partnership in Europe making vans, one that FCA CEO Mike Manley has spoken highly of. Among the list of obvious benefits in a potential merger, FCA would get access to Peugeot's small, modern platforms, $10.2 billion in cash, and electrified and hybrid architecture developments, the latter especially important to FCA as those are fields where it lags. Peugeot would get much easier access to the U.S. market, and the money-printing brands Jeep and Ram. A merged carmaker would have combined sales of nearly 9 million a year, based on 2018 results. By comparison, both Volkswagen and Toyota sell over 10 million cars a year, while the Renault-Nissan-Mitsubishi alliance almost 11 million. Peugeot CEO Carlos Tavares has proved he knows how to do turnarounds and mergers. After leaving a position as Carlos Ghosn's right-hand man in 2012, Tavares took over Peugeot in 2014, navigated a bailout from the French government and China's Dongfeng Motors in 2015, and turned PSA into a regional powerhouse.