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Canada bailed out GM, Chrysler without really knowing what they were getting into

The Auditor General of Canada recently issued a report that makes at least one thing clear: it doesn't know how effective Canadian government loans given to General Motors and Chrysler in 2009 were in ensuring the viability of both companies. That year, the Canadian and Ontario governments dished out $10.8 billion CAD ($9.6B US) to GM and $2.9 billion CAD ($2.6B US) to Chrysler, but hadn't yet sorted out precisely how the funds were to be used before disbursing them. This happened in spite of the fact that, according to a piece in Bloomberg, the loans weren't meant to be handed out until authorities were clear on the manufacturers' plans for reorganization. In fact, federal officials hadn't finished establishing the concessions made by all the involved parties, the pension liabilities, nor the long-term soundness of the automakers' financial positions. On top of that, apparently it didn't keep close tabs on the money after loaning it: the report says that $1B CAD should have been applied to GM Canada pension plans but was instead given to GM to use. Chrysler repaid $1.7 billion, while GM handed back $3.8 billion and Bloomberg believes the feds in Ottawa still own 110 million shares of The General, which, at the stock price as of writing, would be good for another $3.9 billion. Those were mad, bad days, though, and we're not sure what point the report serves, other than to say, "Oh, by the way...." News Source: BloombergImage Credit: Bill Pugliano / Getty Images Government/Legal Chrysler GM bailout

Fiat Chrysler exec talks up the future of fuel cells

When it comes to a belief in the viability of electric vehicles, you can put automotive folks like Nissan's Carlos Ghosn and Tesla Motors' Elon Musk on one side of the proverbial wall and Fiat Chrysler Chief Technology Officer Harald Wester on the other. Because while the two former executives are staking much of their companies' respective future on plug-in electric drivetrain technology, Wester sees no such future in it at all, according to an interview in Motor Trend. Oh, sure, the Fiat Chrysler technology chief does give the idea of an electrified powertrain some quarter, saying he sees standard hybrids as a solution for the "intermediate" future in addressing both higher gas prices and need to meet progressively more stringent European greenhouse gas-emissions standards. But Wester, who also oversees Fiat Chrysler's Alfa Romeo and Maserati brands, ultimately views hydrogen fuel-cell technology as the way to go for advanced powertrains and minimal emissions. As for battery-electric vehicles? Wester pretty much shoots them, citing everything from a typical EV battery's weight to the challenge of finding electric recharging stations to the fact that much of the electricity needed for those cars is produced via CO2-emitting sources. He forgot to say anything about the CO2 required to bring gasoline or hydrogen to market. Wester's "bah humbug" is actually pretty consistent with the company's party line. Last year, Fiat Chrysler head honcho Sergio Marchionne, in an interview, famously told the general public not to buy the Fiat 500e electric vehicle. That's because he estimated that the company takes a $14,000 loss on each unit sold of Fiat Chrysler's only production EV. News Source: Motor Trend via Green Car Reports Green Chrysler Fiat Electric Hydrogen Cars harald wester

Chrysler dealers terminated in bankruptcy still stuck in court

Part of the deal for the federal bailouts of Chrysler and General Motors was that both organizations were required to trim their vast array of dealerships. This move did not sit well with the people that would be losing out on franchises, though, and in Chrysler's case, 148 of the shuttered dealers have fought for money they feel they are entitled to.
These dealers believe that they should be compensated by the federal government, as Chrysler wouldn't have trimmed its sales centers had it not been ordered to by Uncle Sam. Now, thanks to the ruling of three judges on the US Court of Appeals for the Federal Circuit, the dealers will get a chance to argue their point.
According to Automotive News, the dealers argue that the mandatory shuttering of dealers was unconstitutional, because the federal government was taking property without compensation. If the dealers are victorious, not only would the government be out millions of dollars, but a precedent could be set that would allow similarly closed GM dealerships to cash in.