General Motors is moving closer to terminating the term “Government Motors” as they filed plans to go public and begin selling common shares as soon as this Fall.

As you already know, GM has resurrected from bankruptcy and has come out a leaner company posting profits again. GM hopes to raise up to $16 billion in the stock sale which would be among the largest public offerings in history. The IPO will generally pay taxpayers back (recover from the 61% stake in GM) for the supplied bailout money.

After the (stock) sell takes place, the government’s stake in GM would be expected to be below 50%. This comes as good news as yet another American automotive company is emerging from the doom and gloom of last year.

For more in-depth information, please visit the source at Autonews.com (Subscription req.).

I am no politician, and I doubt I’ll ever intend on attempting to understand politicians because I believe many of them don’t have the sense that God gave a goat. One thing that I do know a little about is the automotive industry and what is put on blast in the media, on TV, and through the internet. In the current state of America’s economy it is obvious that it still stinks BUT, we are actually showing growth in areas of the American automotive industry.

When President Obama took office we were already headed for disaster, and many of us are still unsure if President Obama actually helped our economy with the government’s hands in the American auto industry. Two of the big three took a bailout that we are all too familiar with, while Ford was able to rebuild without billions of our tax payers money. Some of the most recent stories in the media will tell you that things are on an upswing as President Obama visits the heart of car country at a Chrysler plant, Chevy’s Volt plant and Ford’s plant where they will be building the new 2011 Ford Explorer.

Given the depth of the automotive industry and the slowdown of consumer spending, the automotive industry is only showing marginal returns. Nevertheless, they (GM, Ford and Chrysler) are turning over a profit, something that they have not seen in 6 years, says Obama.

Critics are still taking issue to President Obama’s plan that poured billions into American car companies in an effort to “save” them from disaster. If we face the facts of the matter, we would have seen a trickle down effect of automotive suppliers pulling the plug if one of the big three were to actually liquidate or close their doors completely. Whether that meant an even bigger job loss than what we have already seen or a possibility of someone else absorbing that failed company.  We will never know what would have taken place. What we do know is, some people are claiming to see a victory on the horizon. Some analysts and industry experts believe the American auto industry dodged the bullet but are still on the battle field. Others might tell you the bullet wound is still bleeding out and needs another doctor to fix it.

From an economic standpoint, a large percentage of Americans feel that they have taken ownership of two American car companies. Basically, tax payers have footed the bill on this bailout and they want to see better results. Could it be some have less patience than others, or is the growth that we are seeing in the American auto industry a direct result of “the bailout”?

These are my questions to you: Was the automotive bailout necessary? Ford did just fine without the assistance. Were GM and Chrysler so bad off that they needed this type of “bailout” assistance? Would we have seen a bigger crisis in America if they didn’t have an automotive bailout? Would we be seeing the marginal growth in the American auto industry TODAY? Was the “Investment” in the future of this industry worth it?

Check out the videos of President Obama’s visit to the Ford, Chevy, and Chrysler plants below.

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Visit msnbc.com for breaking news, world news, and news about the economy

Ford Motor Co. posted a net income of $2.1 billion in the first quarter of this year which is almost twice as much as projected by analysts.

Last year Ford reported a loss of $1.4 billion in one of the worst economic years for the United States. The current revenue rose to $28.1 billion from $24.4 billion. Second quarter productions will be boosted says the automaker.

This should be a good indication that the economy is starting to show signs of a return. Although we are nowhere close to where we need to be, it is a step in the right direction. Politicians will make claim that the “auto bailout” has actually worked as we will start seeing auto companies hire back employees and make growth as leaner and meaner companies.

[source: autonews]

“Our plan is working, and the basic engine that drives our business results — products, market share, revenue, and cost structure — is performing stronger each quarter, even as the economy and vehicle demand remain relatively soft,” CEO Alan Mulally said in a statement.

Ford can’t risk complacency and arrogance as it tries to complete a turnaround, according to Bill Ford. First-quarter U.S. sales totaled 1.08 million in 2000. This year’s tally was 441,708.

“I’ve seen this movie before,” Bill Ford said in Detroit last week. “I know how quickly self-satisfaction can turn into self-destruction.”

For now, Ford reaps rewards for going it alone and not taking a government rescue, McGinn said. Of 16 analysts covering the shares, eight say buy, six advise holding and two recommend selling, according to data compiled by Bloomberg. In January 2009, one analyst had a buy rating while eight said hold and three said sell.

“Ford just seems like it can do no wrong,” said John Wolkonowicz, an analyst at consultant IHS Global Insight. “The company is doing very well, and the stock is doing very well.”

Okay, the economic situation was already pretty serious. Now it is really hitting big companies like General Motors, very hard.

General Motors is preparing to announce the closure of the Pontiac brand. Yes, that is right; there will be no more Pontiac. The announcement will be made as part of an updated viability plan to the U.S. auto task force.

Other automotive news sources have said that GM was considering to phase out the brand instead of sticking with the current plan to have it continue as a niche brand or marquee.

GM is barely holding on to its cash even with the $15.4 billion in U.S. government loans as part of the bailout. Original plans for GM included keeping the brands Buick, Chevrolet, GMC and Cadillac while selling off Hummer, Saturn and Saab.

[source: autonews]

One of the highlights of the delivery that President Obama gave to the joint session of congress was a vow not to walk away from the automotive industry. The tone seemed directed at the American infrastructure of the automotive industry which directly includes the suffering Big 3.

The points that were brought out by autonews and others in the automotive industry were the positive inspirational parts of the speech saying, “We will rebuild, we will recover, and the United States of America will emerge stronger than before.” Then later a specific address was directed towards the automotive industry having an obvious effect on the economy where the President said, “As for our auto industry, everyone recognizes that years of bad decision-making and a global recession have pushed our automakers to the brink. We should not, and will not, protect them from their own bad practices. But we are committed to the goal of a re-tooled, re-imagined auto industry that can compete and win. Millions of jobs depend on it. Scores of communities depend on it. And I believe the nation that invented the automobile cannot walk away from it.”

The speech will be critiqued among the media and other officials and a new wow factor may be brought out by those in the automotive industry where the President said, “We know the country that harnesses the power of clean, renewable energy will lead the 21st century. And yet, it is China that has launched the largest effort in history to make their economy energy efficient. We invented solar technology, but we’ve fallen behind countries like Germany and Japan in producing it. New plug-in hybrids roll off our assembly lines, but they will run on batteries made in Korea.”

With those words it gives the automotive industry a positive and supported hope, one that the President spoke of during his campaign and now lives it out as President of the United States. Others may remain skeptical of his economic remedies but a good portion of America, especially in the automotive world, woke up today with a new inspiration to rebuild, retool and bring this country back to where it needs to be.

[sources: autonews, whitehouse.gov]

Late Thursday the U.S. Senate rejected the emergency bailout bill that would have provided upwards of $14 Billion to the Big 3 Detroit automakers. Many were hopeful of that was to come of the bailout after it was passed by the U.S. House just two days ago. Now the outlook is grim for the big 3 GM may actually run out of cash by the end of this month while Chrysler may have it’s issues by March.

Other options that are being pushed through is the step to do a repeat vote when Congress comes back next year with new legislation. We will all have to sit back and see what takes place in this situation. Rest assured, we will all be keeping our eyes open on this one. Maybe bankruptcy is not such a bad idea after-all.

Some believe that the auto workers union put a stall to the bailout by continuing to pay it’s people several dollars more an hour in comparison to the US autoworkers who work for foreign car companies here in America (ie: Toyota and Honda). Seems like more of the same when it comes to the “old” traditional ways that may have put us in the situation that we are in now. You can form your own opinion about that.

Hey Toyota!… do you want to buy GM or Chrysler? I think Ford may actually survive on it’s own considering it has the most cash on hand out of the GM and Chrysler.

What do you think? Express your comments, facts or opinions below!!!

President and CEO of the Ford Motor Co., Alan Mulally, says he will work for $1 a year if they have to take from the government loan money. In addition, he said that they will continue to seek money from the government but they may not need it.

Talking about bold moves again here! Not only has this tid bit of news come out but they plan on putting the sugar on top by traveling to Washington D.C. in a new Ford Escape Hybrid instead of the private jet that all big 3 automaker CEO’s were highly criticized for during the last visit to D.C.

Below is an excerpt from the Associated Press regarding this “new deal” from the Ford CEO.

WASHINGTON – Ford Motor Co. CEO Alan Mulally says he’ll work for $1 per year if the automaker has to take any government loan money. He also said Tuesday his company will seek money from the government, but may not need it.

Detroit’s automakers, making a second bid for $25 billion in funding, are presenting Congress with plans Tuesday to restructure their ailing companies and provide assurances that the funding will help them survive and thrive.

Under Ford’s plans, the automaker will cancel all management employees’ 2009 bonuses and will not pay any merit increases for its North American salaried employees next year.