Ford Motors Inc., the only Detroit automaker who did not receive a federal bailout loan last year, is now amongst the first three companies to get a loan from the government aimed at accelerating the development of more fuel efficient cars. Nissan and Tesla Motors are the other two companies who will be receiving loans for this purpose. Ford will be using their loan to retool some of its Midwest factories.

The $5.9 billion loan Ford was granted was only about half of what they initially requested, and will go to retool 11 Midwest factories. The money will help to make 13 of its models more efficient. Ford is planning to sell four models of electric vehicles by 2012.

Japanese car manufacturer Nissan will also receive $1.6 billion to overhaul its Smyrna, Tenn. factory, where it plans to build electric vehicles. Tesla Motors, a California based company, will receive $465 million to make electric vehicles and drive trains.

Now that bankruptcy proceedings are in action, things are moving along pretty swiftly at General Motors Corp. An individual briefed on the deal now says that GM has a tentative agreement to sell its Hummer brand to Sichuan Tengzhong Heavy Industrial Machinery Co. in China. GM announced earlier on Tuesday that they had in place a memorandum of understanding to sell the brand, but did not disclose the buyer.

A formal announcement is expected to be made this afternoon.

GM also says that they have 16 buyers interested in purchasing their Saturn brand, and three parties interested in purchasing the Swedish Saab brand.

Sichuan Tengzhong primarily deals in plastics, resins, road construction, and other industrial products. The person who was briefed on the deal notes that Hummer would be its first venture into the automotive business.

Ohio Attorney General Richard Cordray has filed yet another objection to the impending sale of Chrysler LLC, citing concerns that the deal would sidestep state laws that regulate automobile dealerships. Cordray, along with officials from nine other states, filed a limited objection and statement in support of auto dealers this week in U.S. Bankruptcy Court of New York.

The attorneys general made the argument that the sale shouldn't allow the bankrupt automaker to escape the requirements of state laws, including those which pertain to the termination of dealership agreements.

In a release, Cordray said:

“On less than 30 days’ notice, Chrysler proposes to reject dozens of dealer agreements in Ohio. Some consideration should be given to those dealers, and Chrysler shouldn’t be allowed to disregard its obligations under Ohio law.”

In mid-May, Chrysler announced plans to eliminate 789 dealerships from its networ. This week, Automotive News reported that a Bankruptcy Court hearing has been set for June 3 on the company's move to revoke the franchises.

Things are beginning to move along pretty quickly for General Motors Inc. (NYSE: GM). According to a Friday report in the Washington Post, the Detroit automaker is expected to file bankruptcy as early as late next week, but could snag up to $30 billion in additional federal bailout funds.

The Post's sources on this story are those familiar with the discussions between GM and President Obama's administration, who state that the government will push them into filing either late next week or during the first week in June.

As for the extra $30 billion in federal funds, that would bring the government's total investment in the company up to a staggering $45 billion, and would give them a 50 percent stake in the automaker.

Another struggling Detroit automaker, Chrysler LLC, may emerge from bankruptcy as early as next week. They were the first of Detroit's "Big Three" to file for bankruptcy.

Both GM and Chrysler have accepted billions in federal bailout funds. They've also both announced that they would be cutting loose nearly 1,900 dealerships. The only member of the Big Three not to have accepted federal bailout money is Ford Motor Co. (NYSE: F).

On Thursday the White House's auto recovery leader said that the federal government will give $50 million in grants to car manufacturing communities to be used to train laid-off workers for jobs in the energy efficiency and renewable energy sectors. In addition, the funds will provide job counseling and placements services.

Ed Montgomery, President Obama's director of recovery for auto communities and workers said:

"American workers are the best in the world, and they have been hard hit by changes in the auto industry. This funding will help workers gain new skill sets that build upon their manufacturing experience."

The $50 million is a part of the $500 million which has been provided by the federal stimulus law.

In order to qualify for the money, a community must have a motor vehicle manufacturer or supplier and have experienced significant layoffs. Details of the program, including application deadlines, are expected to be released in June.

Montgomery is currently touring the state of Ohio with stops in Dayton and Toledo on Thursday, and Twinsburg on Friday.

Ohio Governor Ted Strickland said of the stimulus money:

As talks with debtholders have broken down, Chrysler LLC will become the first of the "Big Three" American automakers to file for Chapter 11 bankruptcy. The White House all but confirmed the impending action Thursday morning announcing that President Obama and members of the auto task force would address the fate of the company at noon.

According to individuals briefed on the talks, last minute efforts by the Treasury Dept. to win over Chrysler debtholders failed Wednesday night. Barring a last minute agreement, Chrysler is now expected to seek Chapter 11 protection, and most likely in New York.

Chrysler is also in talks with the Italian automaker Fiat. They would, however, file for bankruptcy first, and then subsequently would present an agreement with Fiat to the court for approval. This could possibly take place on Monday, according to the sources speaking with the media.

Chrysler's bankruptcy filing could serve as a preview as to what a General Motors filing might look like. GM, like Chrysler, received federal assistance last year and now faces a June 1 deadline for restructuring.

According a report by the New York Times, the federal government has instructed General Motors (NYSE:GM) to begin preparing for the possibility of filing for bankruptcy by June 1. Citing unidentified sources, the Times said that the Treasury Dept. has directed GM executives to lay the groundwork for a "surgical" bankruptcy that could be as short as a few weeks for portions of the company.
Those portions would be the "good" parts of the company. The "less desirable" parts of GM's business would remain in court for much longer, and could possibly be liquidated. These undesirably parts of the struggling US automaker could include "unwanted brands, factories, and health care obligations."

To date, GM has accepted in $13.4 billion in bailout loans from the government. They have asked for $16 billion more. President Barack Obama rejected the company's initial restructuring plan, and forced out CEO Rick Wagoner. The government has since set a May 31 deadline for GM to come up with an acceptable plan.

GM's newly crowned CEO, Fritz Henderson, has said that while GM was not ruling out bankruptcy, it wasn't inevitable. He believes that the company may be able to reorganization itself without bankruptcy.

Things are beginning to look mighty desperate over at General Motors, America's largest carmaker. On Monday they revealed plans to auction off about 100 of its classic cars, as well as sell of Saab in an attempt to avoid bankruptcy.

GM will auction off 100 antique and show cars to help raise money and cut down on storage feels. The auction will take place in Palm Beach, Florida, and will begin on Thursday. Amongst those cars that will be auctioned off are a 1920 Chevrolet Model T truck, a 1978 Corvette Indy 500 pace car (one of only 4 ever made), and a 1999 Camero Z/28 that was used in the movie "Runaway Bride." GM held a similar auction back in January of this year, putting up nearly 250 classic cars for sale, most of which were 80's and 90's models.

Greg Wallace, manager of the General Motors Heritage Center, told the LA Times, "Every little bit counts. It costs a lot to house that many vehicles."

GM is also looking to offload Swedish automaker Saab Automobile. The Wall Street Journal has reported that a deal looks likely to happen by June 2009. Saab claims in court documents that "currently there are more than 20 interested parties", although declined to mention any names.

GM's new CEO, Fritz Henderson, said Tuesday that more of the Detroit automaker's plants could close down as a part of the company's effort to meet stricter requirements for government assistance. During his first television conference as CEO, Henderson said he expects GM would "need to take further measures" in terms of plant closures, going beyond the five plants the company announced it would close when it submitted a restructuring plan to the government in February.

Within the state of Ohio, GM employs thousands at several different plans. GM's largest Ohio plant is in Lordstown, which is nearby Youngstown in the eastern portion of the state.

In addition, Henderson said that GM is likely to offer another buyout program to workers to cut labor costs.

On Monday, President Barack Obama said that GM's plan submitted last month wasn't enough. GM now has 60 days to make more cuts, as well as get concessions from bondholders and unions, or it will face bankruptcy. Henderson stated that an in-court bankruptcy filing is not preferred but is "certainly more probable" at this point.

Henderson also said that the future and fate of GM's Hummer brand, which has been rumored about for months now, will be revealed in the next few weeks.

General Motors (NYSE:GM) confirmed Monday morning that CEO and Chairman Rick Wagoner is stepping down immediately following the White House's rejection of restructuring plans that were submitted by both GM and Chrysler. In a written statement, Wagoner said that administration officials asked him to "step aside."

Taking over as CEO is Fritz Henderson, GM's current chief operating officer. Kent Kresa, a board member, will take over as chairman.

President Barack Obama is also expected to announce Monday that his auto task force doesn't believe that plans GM and Chrysler delivered in February will or even can result in viable companies. He's expected to give them more time, as well as an aggressive set of conditions.

Presently, GM and Chrysler are operating on a combined $17.4 billion in government loans that were approved by the Bush administration in December. They were given until March 31 to show that they were viable to qualify for additional loans. They have requested another $21.6 billion. The companies will be given more time, but Obama's administration has also not ruled out a controlled bankruptcy for either company.