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Hot sales have Detroit automakers shortening summer shutdowns

Back in May, there was speculation that the Detroit Three automakers would maintain or perhaps even extend their traditional summer shutdowns, mostly due to a bitingly cold winter that saw below-freezing temperatures infiltrate the southernmost reaches of the US, putting a chill on auto sales. Now, though, the numbers are in, and thanks to some promising sales figures, it looks like some domestic line workers are going to be working clear through July, in some cases.
According to Automotive News, Ford has slashed its traditional two-week hiatus for factory workers in half at four of its plants, while both Chrysler and General Motors will keep factories running nonstop (two plants in Chrysler's case and a third of GM's factories).
This is, as we said, thanks to some positive numbers. Chief among those is the Seasonal Adjusted Annual Rate, which was at an eight-year high of 17 million units. Individual figures were less promising. GM, embroiled in its recall scandal, still saw a one-percent increase while Ford dropped six percent in year-over-year sales. Chrysler was the big winner, though, with a nine-percent jump in June.

Chrysler recalling nearly half a million Durangos and Grand Cherokees

Rule number one of public relations – save the bad news for Friday. Fiat Chrysler has adhered to that, announcing today that it'd be voluntarily recalling 467,480 SUVs. This latest recall could actually be thought of as a continuation of a September 2014 recall, relating to the fuel-cell relay. In that case, some 188,723 Dodge Durango and Jeep Grand Cherokee CUVs from model year 2011 were recalled. And this time, it's the Durango and GC in trouble again. FCA is adding crossovers from model years 2012 and 2013 to the fuel-pump recall, although only diesel-powered Jeeps with the 3.0-liter V6 that were sold outside of North America are affected this time around. As with the previous recall, deformities in the fuel-pump relay, which could affect its functioning. In most cases, FCA reports that the affected vehicles simply won't start, although they also could be prone to stalling. A new relay circuit will be installed that promises increase durability. Of the 467,480 vehicles being recalled, 338,216 were sold in the US market, 18,991 went to Canada and 10,829 were shipped south of the border, to Mexico. Outside of the NAFTA region, FCA is recalling 99,444 vehicles. No injuries or accidents have been associated with this recall. Statement: Fuel-Pump Relay February 27, 2015 , Auburn Hills, Mich. - FCA US LLC is voluntarily recalling an estimated 467,480 SUVs worldwide to install new a relay circuit that improves fuel-pump relay durability. FCA US engineers have determined a condition identified in a previous investigation may extend to additional vehicles. The previous investigation, which led to a recall, traced a pattern of repairs to fuel-pump relays that are susceptible to deformation. This may affect fuel-pump function, preventing a vehicle from starting, or leading to engine stall. Of the two scenarios, the no-start condition is the more common. FCA US is unaware of any related injuries or accidents. The fuel-pump relay is located inside the Totally Integrated Power Module (TIPM), which also helps manage other vehicle functions. None of these other functions, including air-bag deployment, is affected by the fuel-pump relay. The new campaign affects an estimated 338,216 vehicles in the U.S.; 18,991 in Canada; 10,829 in Mexico and 99,444 outside the NAFTA region. Covered are model-year 2012 and 2013 Dodge Durango full-size SUVs and non-NAFTA 2011 Jeep Grand Cherokee mid-size SUVs equipped with 3.0-liter diesel engines.

Auto bailout cost the US goverment $9.26B

Depending on your outlook, the US Treasury's bailout of General Motors, Chrysler (now FCA) and their financing divisions under the Troubled Asset Relief Program was either a complete boondoggle or a savvy move to secure the future of some major employers. Regardless of where you fall, the auto industry bailout has officially ended, and the numbers have been tallied. Of the $79.69 billion that the Feds invested to keep the automakers afloat, it recouped $70.43 billion – a net loss of $9.26 billion. The final nail in the coffin for the auto bailout came in December 2014 when the Feds sold its shares in Ally Financial, formerly GMAC. The deal turned out pretty good for the government too because the investment turned a 2.4 billion profit. The actual automakers have long been out of the Treasury's hands, though. The current FCA paid back its loans six years early in 2011, the Treasury sold of the last shares of GM in late 2013. According to The Detroit News, the government's books actually show an official loss on the auto bailouts of $16.56 billion. The difference is because the larger figure does not include the interest or dividends paid by the borrowers on the amount lent. While it's easy to see fault in any red ink on the Feds' massive investment, the number is less than some earlier estimates. At one time, deficits around $44 billion were thought possible, and another put things at a $20.3 billion loss. Outside of just the government losing money, the bailouts might have helped the overall economy. A study from the Center for Automotive Research last year estimated that the program saved 2.6 million jobs and about $284.4 billion in personal wealth. It also indicated that the Feds' reduction in income tax revenue alone from Chrysler and GM going under could have been around $100 billion for just 2009 and 2010, significantly more than any loss in the bailout.