Welcome to The Now

  From Reuters : Ford Motor (F.N), opens new tab said on Monday it will take a $19.5 billion writedown and is killing several electric-vehicle models, in the most dramatic example yet of the auto industry's retreat from battery-powered models in response to the Trump administration's policies and weakening EV demand. The Dearborn, Michigan-based company said it will replace the fully electric F-150 Lightning with a new extended-range electric model that uses a gas-powered engine to recharge the battery. The company is also scrapping a next-generation electric truck, codenamed the T3, as well as planned electric commercial vans. “When the market really changed over the last couple of months, that was really the impetus for us to make the call,” Ford CEO Jim Farley told Reuters in an interview. Ford said it will pivot hard into gas and hybrid models, and eventually hire thousands of workers, even though there will be some layoffs at a jointly owned Kentucky battery plant in the n...

 

If you're looking to buy a car, you may want to wait a bit ... Car dealerships across North America have faced major disruptions this week. CDK Global, a company that provides software for thousands of auto dealers in the U.S. and Canada, was hit by back-to-back cyberattacks on Wednesday. That led to an outage that continued to impact many of their operations on Friday. For prospective car buyers, that may mean delays at dealerships or vehicle orders written up by hand, with no immediate end in sight. Here’s what you need to know. CDK Global is a major player in the auto sales industry. The company, based just outside of Chicago in Hoffman Estates, Illinois, provides software technology to dealers that helps with day-today operations — like facilitating vehicle sales, financing, insurance and repairs. CDK serves more than 15,000 retail locations across North America, according to the company. Whether all of these locations were impacted by this week’s cyberattacks was not immediate...

Hopefully this will influence another, more permanent one: Fresh off historic contract victories, the United Auto Workers on Friday became the largest U.S. union to endorse a cease-fire in Gaza as Israel resumed its bombardment of the Palestinian territory following a weeklong pause. “I am proud that the UAW International Union is calling for a cease-fire in Israel and Palestine,” UAW president Shawn Fain wrote in a social media post on Friday. “From opposing fascism in WWII to mobilizing against apartheid South Africa and the Contra war, the UAW has consistently stood for justice across the globe.” The union’s cease-fire endorsement was made public by Brandon Mancilla, director of UAW Region 9A, in remarks outside the White House, labor activist Mindy Isser reported for In These Times. “Mancilla was at a news conference where labor leaders and union members from across the country had journeyed to Washington, D.C. to stand shoulder-to-shoulder with a broad, multiracial coalition of p...

Status Coup covers the fail and flip: Just a reminder that unless you're at least a millionaire, watching financial shows are a waste of time and energy.

 The great-grandson of Henry Ford (who once said that his employees should be able to afford the cars they make) whines about the workers who have made his family crazy rich (h/t Status Coup):

 

 While a lot of people (myself included) were expected a more comprehensive strike, Shawn Fain has opted for something more incremental:

  Good to hear : The United Auto Workers union will strike against the Detroit automakers if the sides don’t reach labor deals by an 11:59 p.m. ET Thursday deadline, UAW President Shawn Fain said Wednesday on CNBC’s “Squawk Box.” Fain’s comments came the morning after he outlined plans to local union leaders about implementing targeted strikes at certain General Motors, Ford Motor and Stellantis plants, if agreements aren’t reached by Thursday. “As it stands right now, all three are most likely to be struck unless we get a deal by Sept. 14 at midnight,” Fain said Wednesday to CNBC’s Phil LeBeau when asked whether Ford  is the less likely to be struck. “All three are expected to deliver for their workers and if they don’t, there will be action.” Targeted strikes refer to work stoppages only at certain plants, related to local contract issues that many, if not most, facilities have. That differs from national strikes where all union members exit plants, which occurred four years...

Good news for them : WASHINGTON (AP) — The Obama administration's investigation into Toyota safety problems found no electronic flaws to account for reports of sudden, unintentional acceleration and other safety problems. Government investigators said Tuesday the only known cause of the problems are mechanical defects that were fixed in previous recalls. The Transportation Department, assisted by engineers with NASA , said its 10-month study of Toyota vehicles concluded there was no electronic cause of unintended high-speed acceleration in Toyotas. The study, which was launched at the request of Congress, responded to consumer complaints that flawed electronics could be the culprit behind Toyota's spate of recalls.

I tried, though : DETROIT (Reuters) – One of the best-known auto industry executives in the world has fallen on hard times. Jim Press, who briefly ran Toyota Motor Corp.'s U.S. operations and spent 37 years with the Japanese automaker before joining Chrysler as one of its three top executives in 2007, is facing claims of more than $1.35 million for unpaid federal taxes and a personal loan. The 62-year-old auto executive, who told the New York Times last year he wore a single string on one wrist as a reminder that material wealth is not the most important thing, may be one of the highest profile victims of Detroit's collapse. Press blamed the elimination of bonuses at Chrysler for his failure to pay back the personal loan. Of course he did.

This is just sad . On Monday we brought you news that the Chrysler bond-holding hedge funds courageously defending the U.S. Constitution by holding out for a bigger payout in bankruptcy court were appealing to have their names sealed after receiving death threats . Blaming a "hostile climate" perpetuated by the Obama administration "publicity campaign," Tom Lauria, the attorney representing the group of twenty hedge fund calling themselves the "Chrysler Non-TARP Lenders," filed a motion to seal claiming the hedge funds "targeted by the president" -- presumably Oppenheimer Funds and Stairway Capital, since those were the only funds associated with the group -- had "received various threats, including dozens of death threats directed to their employees." But today bankruptcy court Judge Arthur Gonzales denied the motion, seeing "no evidence that authorities found the threats bona fide " -- maybe because the only evidence of said...

Two to go . Chrysler, one of the three pillars of the American auto industry, will file for bankruptcy today after last-minute negotiations between the government and the automaker's creditors broke down last night, an Obama administration official said. U.S. officials had offered Chrysler's secured lenders $2.25 billion in cash if they would agree to writedown the $6.9 billion in secured debt that the company owed. But a small group of hedge funds refused the 11th-hour deal, forcing an imminent bankruptcy. An administration official this morning expressed disappointment, saying the holdouts had failed to "do the right thing," but that "their failure to act in either their own economic interest or the national interest does not diminish the accomplishments made by Chrysler, Fiat and its stakeholders, nor will it impede the new opportunity Chrysler now has to restructure and emerge stronger going forward."

David Broder's Bottom Line : I haven't seen executive flexing on this scale since Ronald Reagan. If only Obama could do it more often and in a bigger way (so I can criticize him later). Michael Moore's Bottom Line : Wagoner got off easy compared to the thousands of employees his (ex-)company laid off over the years. But yeah, this is an unprecedented move.

This is how a business is supposed to be run. TOKYO (AP) — Honda Motor Co. named Takanobu Ito, head of core automaking operations, as its new chief executive Monday, in an effort to provide fresh leadership to battle a global crisis in the auto industry. Ito, a 55-year-old research and development expert with U.S. experience, replaces Takeo Fukui, 64, who will remain on the board as adviser, Japan's No. 2 automaker said in a statement. Both Fukui and Ito said the change at the helm is a message of its determination to turn a new leaf and press ahead with technological innovations — its longtime strength — to lift its sagging business, and have the momentum to be prepared to take advantage of a recovery, when it comes. "We are facing hardships that come once in a 100 years," Ito said. Ito said he would continue in Fukui's footsteps in developing ecological and affordable products such as the Insight gas-electric hybrid, which has been a hit since going on sale recentl...

Lee Iacocca says that the Big Three Execs should not be fired as part of any loan/bailout deal : "Having been there, I do not agree with the sentiment now coming out of Congress that the management should be changed as a condition of granting loans to the Detroit automakers," Iacocca said. "You don't change coaches in the middle of a game, especially when things are so volatile." He added that the auto industry has been hit by an unpredictable series of events beyond its control. "The companies may not be perfect but the guys who are running them now are the only ones with the experience and the in-depth knowledge and understanding of how the car business really works," he said. "They're by far the best shot we have for success." While that sounds like the argument for voting Republican since 2006, Iacocca has a point. How about a compromise: the execs leave the company, but become "consultants" to this crisis. They get paid for...

I have a question for those who believe that Church and State should be merged: how much would you contribute to the various bailouts that have been going on and proposed lately? America is in an economic downward spiral. Our housing industry, Wall Street and the auto industry is/has been in shambles. People and businesses alike are going bankrupt or at the very least filing. Corporate America has come to Congress (aka, the State) for financial help. For the most part, they've all gotten something. So it's not far fetched to think that if Church and State were one, that the various religious factions would be asked to fork over some dough as well. So: how much of the Tithes and Offerings would be acceptable to help Corporate America get back on its feet? What about the Building Fund? I'm not just talking about money to help one person who lost their job because of this mess, or even a small community, I'm talking about AIG and Ford Motors. So again, to the proponents of...

After years of providing the latest in automobile technology, they are forced to beg Uncle Sam for cash. I mean, can you imagine the trouble they must go through just to get to Congress? I bet they had to ride coach! Huh? What's that you say ? All three CEOs - Rick Wagoner of GM, Alan Mulally of Ford, and Robert Nardelli of Chrysler - exercised their perks Tuesday by flying in corporate jets to DC. Wagoner flew in GM's $36 million luxury aircraft to tell members of Congress that the company is burning through cash, asking for $10-12 billion for GM alone. Well, then. In that case...

While I'm skeptical on bailing out the Big Three Dinosaurs, at least I'm not hypocritical about it . Yet another reason I'm glad this Reagan-humping, opportunistic jerk didn't stumble his way to 1600.