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Treasury says auto bailout tally drops to $20.3 billion

In December, the US Treasury announced that it was going to sell all of its shares in General Motors within 12 to 15 months. The first tranche of the 500-million total shares was purchased by GM, which took 200 million of them at $27.50 per share. That price represents an eight-percent premium over the market price at the time. The remaining 300 million shares will be sold "through various means in an orderly fashion."
Of the $418 billion disbursed through the Troubled Asset Relief Program (TARP), a report in Automotive News indicates that "about 93 percent" has been paid back, and the latest figures put Treasury's loss from the program overall at $55.58 billion. That's a $4.1 billion improvement on the last figure, when the expected red ink added up to $59.68 billion. The auto industry's portion of that loss is estimated to be $20.3 billion, a 16-percent drop from the earlier estimate of $24.3 billion.
The Treasury now owns 19 percent of GM, but if all goes well, there will be no more cause for anyone to utter "Government Motors" by the end of Q1 next year. A loss of some kind is still expected, however. Although GM's stock price is close to $29 at the time of this writing, that's still $4 below its IPO price and well below the $72 share price necessary for the government to come out even on its GM investment. On second thought, maybe the ribbing will continue.

Jeep will build old Wranglers next to new ones in Toledo

Jeep made a lot of people happy when it confirmed that the next-generation Wrangler would continue to be built in Toledo, OH. Now, news is breaking about the lengths the automaker will go to in updating its northern Ohio factory. There's good news for Jeep dealers (more Wranglers to sell!), Jeep fans (more JKs to buy!), and Jeep itself (more money to be made!). According to a report from Automotive News, capacity at the factory will be increased to 350,000 units per year. That's around a 50 percent increase over what the Toledo complex can currently manage and is, according to Jeep boss Mike Manley, part of a move to keep production "at the right place" so "supply [stays] just behind demand." The other big news revealed by the AN report focuses on the future of the current Wrangler. Yes, the current JK has a future. It'll continue to be built at the Toledo factory up to six months after it successor arrives in showrooms, a move that's partially down to the way Jeep is shuffling production about. Toledo currently builds the Cherokee on a unibody production line – it'll continue to do so until March of 2017, when production will move to Belvidere, IL. The unibody line in Toledo will then be converted for body-on-frame production, which should take about six months. But during that time, the current JK (likely rebadged as a "Wrangler Classic") will continue to be built alongside another line of next-generation Wranglers, keeping dealers supplied with the today's Wrangler through March of 2018. The two Wranglers will overlap for about six months. This is all very good news if you've been waiting to pull the trigger on today's Wrangler. But move quickly – the clock is officially ticking. Related Video: News Source: Automotive News - sub. req.Image Credit: Bill Pugliano/Getty Images Plants/Manufacturing Chrysler Fiat Jeep FCA toledo Mike Manley

NHTSA preparing to wallop FCA, automaker 'failed to do its job'

As embattled the National Highway Traffic Safety Administration may be, but that certainly doesn't mean it isn't willing or able to put the smack down on automakers that violate its recall procedures. Following a public hearing on Thursday, the government safety arm is preparing what will likely be some very serious punishments for Fiat Chrysler Automobiles. FCA stands accused of mishandling 23 individual recalls covering some 11 million vehicles since 2013, with NHTSA claiming the Italian-American automaker kept it "in the dark," failing to notify the government of safety defects. Uncle Sam also alleges that FCA failed to notify consumers of important safety notices and didn't provide a steady supply of replacement parts. For these charges, the automaker could be fined up to $35 million per recall, which could mean a maximum of $805 million in fines. FCA could also be forced to buy back the unrepaired vehicles. "We have serious concerns with Fiat Chrysler notifications to owners and to NHTSA about its recalls. In every one of the 23 recalls, we have identified ways in which Fiat Chrysler failed to do its job," Jennifer Timian, the head of the Office of Defects Investigation, said during the FCA hearing, The Detroit News reports. The company also "repeatedly failed to provide NHTSA with other critical information about its recalls, including changes to the vehicles impacted by the recalls and its plans for remedying those vehicles." Fiat Chrysler, for its part, didn't really fight back during its hearing, although Scott Kunselman (shown above during the hearing), the senior vice president of vehicle safety and regulatory affairs at FCA, did tell The News that, "We absolutely had no mis-intent." "The plan is to move forward," Kunselman said, adding that the company has "fallen short," and that "some of the things we've done were sloppy." NHTSA administrator Mark Rosekind told The News that the regulator would issue its sanctions by the end of July, adding that he saw no way that FCA could avoid punishment.