Ron Gettelfinger, the president of United Auto Workers said that an association to give Italy’s Fiat 35-percent of Chrysler LLC was the best deal the U.S. automaker could strike to preserve jobs.

Gettelfinger also said “I think we all knew Chrysler needed to partner with somebody. It was a matter of whom and what would do the least harm to people,” and added “Do we want to see Chrysler go away? I don’t think that’s a good idea.” He also suggested that despite all the options, it was the best option.

Gettelfinger was recently speaking at the Automotive News World Congress and he said that he was positive the union could work with the new Congress and the Obama administration. While the big automakers companies in the U.S. are under the pressurethe Bush administration approved $17.4 billion in loans for GM and Chrysler in late December. Chrysler got $4 billion of loans from the administration and says it needs $3 billion more. The terms of the government funding authorized that GM and Chrysler seek deep refreshment stands from bondholders and the UAW and prove that they can be possible by end March.

The union offered its backing for Chrysler’s group-up with Fiat as soon as it was announced earlier this week. Both Fiat and Chrysler’s owner Cerberus Capital Management revealed the terms of a proposed alliance under which the Italian automaker would take a chance in Chrysler’s auto operations in exchange for access to technology and help selling vehicles outside the United States. The deal, however does not involve cash, is dependent on Chrysler securing the additional $3 billion from the U.S. government.

However, the analysts have commented that the deal would strengthen Chrysler’s truck-heavy vehicle line-up. Some also have questioned whether the automaker can find the cash to make the deal work if the U.S. auto market remains down in the dumps. Now, it is matter of time that we will find out how Chrysler’s and Fiat doing together and the result of it.

This is the era of the nightmare for the automakers, and another name came on the list of annual lost, Nissan. Nissan Motor Co Ltd, Japans third largest automaker will post their annual operating loss instead of a before calculating their profit. The company’s source said that this is caused by the down sales of the product and a high price of the yen. The shares of Nissan are also down as 4.9 percent in early morning trade, which Nissan spokeswoman Masako Aoyama refused to comment on the report.

Tatsuya Mizuno, analyst at Fitch Ratings said “The yen is climbing, the U.S. economy is worsening at an unprecedented pitch, and structural changes in the car industry mean the pie will grow smaller and smaller for some time,” and also added that “I would not be surprised to see Nissan fall into the red.”

The auto industry downturn has made Nissan’s vehicle to drop 31 percent in the United State last month. It is also forcing the company to maintain a four-day work week until further notice for its two U.S. auto assembly plants. In last October, Nissan more than halved its operating profit forecast for the year to March 31 to 270 billion yen from 550 billion yen.

The International Petroleum Investment Company (IPIC), an Abu Dhabi state-owned business, has recently agreed to buy a controlling 70% shares in MAN Ferrostaal. The agreement with the Munich-based MAN AG Group (founded in 1920) is worth around 490 million euros and will be paid in cash. According to deal IPIC will take over the charge of the company as soon as the closing date occurs around the end of March 2009. The officials said as soon as possible new board of the company will be formed. Expecting that in the new board there will be four members from IPIC and two members from the MAN AG Group.

IPIC is mainly responsible for all type of foreign investments in the oil as well as chemicals sector. The company is run by an independent Board of Directors directly under the chairmanship of Sheikh Mansour bin Zayed Al Nahyan. The company is supervised by the Supreme Petroleum Council of Abu Dhabi which oversees the United Arab Emirates’ oil and gas operations and related industries. On the other hand, MAN Ferrostaal is one of the biggest providers of industrial services. According to statistics in 2007, it has got 4,200 workforce and an annual turnover of euro around 1.4 billion. This company serves various customers in above 60 countries globally. It is part of the Munich-based MAN AG group. The company provides industrial services in two areas such as Projects and Services. However, the company is now focusing on energy and fuels more and more. That’s why, they make a deal with IPIC.

Related Tags

ipic group, Ipic man group

The markets of the automobile companies are facing terrible time at the present. Even the large companies like General Motors and Chrysler are seeking government funds. On the other hand Ford Motor Co. is looking for attracting their customers and muscle car fans with the 2010 Ford Shelby GT500.

The 2010 Shelby GT500 is the forth model since it’s been reintroduced in 2007. The Shelby was first produced when former race-car driver Carroll Shelby joined with Ford and became a designer. They first refashioned the Mustang in 1960s. Back then the Mustang was all about the muscle, loud racing engine sound and big tiers. Still today the Shelby is sticking to its original concepts but also added some latest technologies.

Ford spokesman Allan Hall indicates the Shelby “polishes the Ford oval” as the car presents off good vibes about Ford. They are also hopping that Shelby will also improve the image of Ford while last year some of the US Motor companies which are competitive to Ford faced serious financial problems and received loans from the Treasury Department. In a statement Hall said “Products like the Shelby speak to the die-hard enthusiast and help fire up their passion about the brand and be our product advocates to friends and neighbors,” and moreover he added “It really shows that Ford still loves making cars, making hot cars. We’re not just producing appliances.”

President Bush recently announced that two of the giant US carmakers GM and Chrysler will be provided with US$13.4bn short-term loan from his administration. This money will come from the $700bn Troubled Asset Relief Programme (TARP), which is originally anticipated to provide financial institutions with emergency liquidity.

President Bush has said that the two carmakers will receive $13.4bn financial help to cover immediate liquidity alarm and another $4bn will be provided later. He also added that “The American people want the auto companies to succeed and so do I”.

Bob Nardelli, Chrysler’s chairman and CEO thanked Bush and said “A letter of intent was signed which outlines the specific requirements that must be achieved”. He also thanked the administration and treasury for their confidence in the company in his statement.

On the other hand, General Motor said, “We appreciate the president extending a financial bridge at this most critical time for the US auto industry and our nation’s economy.  This action helps to preserve many jobs, and supports the continued operation of GM and the many suppliers, dealers and small businesses across the country that depends on us. General Motor is already in a big financial crisis as they have only $14bn to launch with 2009.