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November 16th, 2008 — car loan news, toyota
Toyota Motor Corp will offer zero-interest loans on its new cars across Europe to revive sagging sales, the Nikkei business daily reported on Monday.
The world’s No.1 car maker, which launched zero-interst loans in the United States in October, will likely use the scheme in Europe, especially to promote the sales of models to be replaced soon by new products, the paper said.
The newspaper cited Tadashi Arashima, president of Toyota Motor Europe but said he did not reveal further details.
November 4th, 2008 — car loan news
The U.S. auto parts industry asked the Bush administration Monday to set up a loan-guarantee plan for auto suppliers as part of the $700-billion financial bailout plan, as well as to speed $25 billion in loans for retooling.
The request from the Motor & Equipment Manufacturers Association means that the entirety of the U.S. auto industry — automakers, suppliers and dealers — has now asked for government help to survive the economic downturn.
In a letter to President George W. Bush, MEMA Chairman Charles Johnson said suppliers were facing “massive upheaval,” and noted that partsmakers are the largest employers in seven states: Indiana, Michigan, Kentucky, Missouri, Ohio, South Carolina and Tennessee.
MEMA, along with Detroit automakers, has been pressing the U.S. Department of Energy to move quickly on loaning $25 billion to the industry approved by Congress in late September. While Energy officials have said it could take 18 months for the money to reach the industry, industry officials say the administration has sped up the process, and hope to see some loans made early next year.
The association also asked the Treasury Department to set up a loan guarantee program, saying a lack of capital and access to commercial credit had driven layoffs in recent weeks.
October 25th, 2008 — car loan news
Michigan lawmakers asked the government on Thursday to make it easier for car buyers to get loans, in hopes of helping U.S. automakers ride out the financial crisis.
The state’s congressional delegation wants Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke to use their powers under the $700-billion bailout to buy troubled assets quickly from auto finance companies.
U.S. Rep. John Dingell, D-Mich., also said automakers were considering asking the Fed for access to a program that provides low-cost credit.
“We are not ashamed to point out that this crisis that we have on credit did not begin in the auto industry; it began in the financial industry,” Dingell said.
Dingell, a longtime advocate in Congress for automakers, declined comment on whether the financial crisis could lead to a bankruptcy filing by any of the Detroit Three — General Motors Corp., Chrysler LLC or Ford Motor Co.
“The situation is very serious with regard to all three of the manufacturing companies,” Dingell said. The situation is equally serious for auto suppliers and dealerships, he added.
In their letter to Paulson and Bernanke, the lawmakers said the lack of liquidity in credit markets could cripple the auto industry. Many banks and auto finance companies have tightened credit standards because they cannot borrow money to lend or they have been reluctant to lend and risk defaults.
“They need to do for autos what they’re doing for the mortgage industry,” said Sen. Carl Levin, D-Mich.
October 14th, 2008 — car loan news
White House officials should push hard, using emergency measures if needed, to ensure that $25 billion in low-cost loans start flowing to U.S. automakers before the Bush administration leaves office, former Michigan Gov. John Engler said in a speech Monday at the Detroit Economic Club.
Engler, now president of the National Association of Manufacturers, said he was alarmed to hear that the money may not be released until mid-2009 or later.
Delays would be dangerous to the future of the automakers, Engler said, referring to dwindling cash reserves of General Motors and Ford Motor Co., whose stock prices fell sharply last week. The loans, approved by Congress to help automakers retool to build more fuel-efficient vehicles, were signed into law Sept. 30.
“The administration has an obligation to get the money to these companies,” Engler said, suggesting that White House Chief of Staff Joshua Bolten or other high-ranking officials get involved to expedite the process.
“They’re using all kinds of emergency powers at Treasury in the financial crisis,” he said, declaring that the auto loans are critically important, too.
Last week, U.S. Energy Secretary Samuel Bodman said his department would write a rule within 60 days regarding allocation of the auto loans, but said it could take another six to 18 months before the money is actually dispensed.
October 13th, 2008 — car loan news
Top-level White House officials should push hard, using emergency measures if needed, to make sure that $25 billion in low-cost loans start flowing to U.S. automakers before the George W. Bush administration leaves office, former Michigan Gov. John Engler said in a speech today at the Detroit Economic Club.
Engler, now president of the National Association of Manufacturers, said he was alarmed to hear that release of the funds — for retooling to produce more fuel-efficient vehicles — may not take place until mid-2009 or later.
Delays would be dangerous to the future of the automakers, Engler said, referring to dwindling cash reserves of General Motors Corp. and Ford Motor Co. and the sharp drops in their stock prices last week.
October 13th, 2008 — car loan news
GMAC Financial Services said Monday that it tightened its criteria for consumer automotive financing, citing the continued upheaval in the lending industry.
GMAC, the financing arm of General Motors Corp., said the changes include limiting purchases to contracts with a credit score of 700 or above and restricting contracts with higher advance rates and longer terms.
The moves come on the heels of GMAC’s decision last week to increase by 75 basis points the rate it charges dealers for providing non-incentivized consumer auto financing.
GMAC said the current market environment has made it harder and more expensive for it to obtain the funds it needs to make automotive loans. The changes are expected to remain in place until credit markets stabilize and accessibility improves, GMAC said.
GMAC said its wholesale automotive finance business is unaffected by Monday’s changes.
New York-based GMAC is controlled by Cerberus Capital Management, but GM still holds a 49 percent stake in the business.
GMAC, the finance arm of auto maker General Motors Corp. (GM), said it is implementing Monday “a more conservative purchase policy” for consumers. The lending unit will extend auto loans to borrowers with a credit score of 700 or higher. In addition, it will scale back longer-term loans, or those longer than 60 months, and demand higher down payments from borrowers.
The lending unit said it had also increased last week by 0.75 percentage point the standard rate it charges dealers for providing auto loans to consumers. This rate increase doesn’t include lending charges on loans related to special programs, such as 0% financing.
“It’s common to make rate adjustments,” said Gina Proia, a GMAC spokeswoman.
October 10th, 2008 — car loan news
Auto dealers are hungry for customers: Worried consumers are putting off buying big-ticket items, and buyers on the market are finding it harder to get a loan. So if your credit is solid, now is a great time to say, Let’s make a deal.
“What you may not realize is that there’s equal desperation on the other side,” said Phil Reed, consumer advice editor at the automotive Web site Edmunds.com.
With few customers buying, there are deals to be had. And with inventories jamming dealer lots, you may be surprised to find that you can even find super-low interest rates.
“The discounts are almost unprecedented,” said Reed.
Toyota (TM) recently announced a nationwide 0% financing incentive on many of its most popular models. General Motors (GM, Fortune 500) wrapped up its “Employee Pricing” incentive at the end of last month, but it is now offering 0% financing and other incentives on many models.
But unless you’re prepared to pay cash for your car, you need to make sure you qualify for a loan.
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October 9th, 2008 — car loan news, ford
U.S. auto stocks sank to historic lows Wednesday, as investor fears about credit availability and the weakening global economy combined to produce a stunning sell-off of Ford Motor Co., General Motors Corp. and dozens of other auto stocks.
“Everyone is bailing,” Mark Warnsman, an automotive analyst for Calyon Securities and a former Ford executive, told the Free Press. “There is a crisis of confidence out there.”
Ford shares lost 26 cents, or 8.9%, Wednesday to close at $2.66. They had traded as low as $2.15 earlier in the day.
GM shares fell 65 cents, or 8.6%, to close at $6.91.
Just four years ago, Ford shares traded in the mid-teens, GM shares were above $40 — and investors complained about the deflated stock values.
The shares of several auto suppliers also fell, including Detroit-based American Axle & Manufacturing, whose shares closed at a historic low of $3.81.
The breathtaking devaluations by investors bring the market capitalization, or total stock-market value, for Detroit’s two automakers to just under $10 billion — combined. Ford is now worth $6.02 billion, and GM is worth $3.91 billion.
Toyota Motor Corp
., by contrast, is worth almost $106 billion, although its stock value has fallen by more than 40% in the last year.
During the Automotive Hall of Fame induction ceremony Tuesday night, Jason Vines, a former spokesman for Ford and Chrysler, joked about how a share of Ford stock was cheaper than a gallon of gas or a cappuccino at Starbucks.
“Tomorrow, go out and buy some Ford stock, for God’s sake,” Vines, now Compuware’s senior vice president and communications chief, recalled telling the crowd. “You’re going to be rich.”
October 7th, 2008 — car loan news
The U.S. Department of Energy will meet a Congressional deadline for a temporary rule governing $25 billion in loans for the U.S. auto industry, but the money may not flow for some time, Energy Secretary Samuel Bodman said today.
The industry and Michigan lawmakers won the $25 billion in loans to help pay for fuel-efficient vehicles, although Wall Street analysts say the money could keep some of the companies solvent. On Monday, Fitch Ratings cut its view of Ford Motor Co.’s debt, saying the global credit crunch was increasing its cash burn.
Although the bill requires the agency to write a temporary rule within 60 days, the agency has said it could take between six to 18 months before loans could be made – a timeline that Michigan lawmakers have called unacceptable.
September 30th, 2008 — car loan news
President George W. Bush today signed a sprawling, $630-billion-plus stopgap spending bill that will keep the government running for the next 12 months and, among other things, provide automakers with $25 billion in taxpayer-subsidized loans.
The huge bill, approved by the House and the Senate last week, has been overshadowed by the financial crisis gripping the country.
The bill is dominated by a record $488 billion for the Pentagon, $40 billion for the Homeland Security Department and $73 billion for veterans’ programs and military base construction projects. It also lifts a quarter-century ban on oil drilling off the Atlantic and Pacific coasts.
The administration won approval of the military budget while Democrats wrested concessions from the White House on disaster aid, heating subsidies for the poor and smaller spending items.
Source:Freep.com
