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Canada bailed out GM, Chrysler without really knowing what they were getting into

The Auditor General of Canada recently issued a report that makes at least one thing clear: it doesn't know how effective Canadian government loans given to General Motors and Chrysler in 2009 were in ensuring the viability of both companies. That year, the Canadian and Ontario governments dished out $10.8 billion CAD ($9.6B US) to GM and $2.9 billion CAD ($2.6B US) to Chrysler, but hadn't yet sorted out precisely how the funds were to be used before disbursing them. This happened in spite of the fact that, according to a piece in Bloomberg, the loans weren't meant to be handed out until authorities were clear on the manufacturers' plans for reorganization. In fact, federal officials hadn't finished establishing the concessions made by all the involved parties, the pension liabilities, nor the long-term soundness of the automakers' financial positions. On top of that, apparently it didn't keep close tabs on the money after loaning it: the report says that $1B CAD should have been applied to GM Canada pension plans but was instead given to GM to use. Chrysler repaid $1.7 billion, while GM handed back $3.8 billion and Bloomberg believes the feds in Ottawa still own 110 million shares of The General, which, at the stock price as of writing, would be good for another $3.9 billion. Those were mad, bad days, though, and we're not sure what point the report serves, other than to say, "Oh, by the way...." News Source: BloombergImage Credit: Bill Pugliano / Getty Images Government/Legal Chrysler GM bailout

Minivans could be key to Google-FCA self-driving partnership

Executives from Google and Fiat Chrysler Automobiles have held discussions about creating a technical partnership, the purpose of which would be to further development of self-driving vehicles, according to multiple reports. The two companies might make ideal partners. Google has been at the forefront of developing autonomous technology, and has publicly stated it'd seek partners to build vehicles. FCA, meanwhile, has not invested in self-driving research, and its CEO has been publicly offering the company up for acquisition for the last several years. Combined, they could make both the brains and the bodies of self-driving cars. "Public transit executives could be buying autonomous minivans rather than expensive buses." – Chris Urmson "A Google-FCA tie-up could simultaneously put both companies in the lead in this critical race," said Kelley Blue Book senior analyst Karl Brauer. "... FCA's efforts to merge with another automaker have failed, but if the automaker can join forces with Google, it could immediately change the dynamic. Every car company is trying to get into the tech space right now, because they all know their future depends on it." A Google spokesperson declined comment on the reports Thursday, and FCA did not return a request for comment. But Chris Urmson, director of Google's self-driving car project, may have inadvertently hinted at the partnership Wednesday when he detailed an interest in building autonomous minivans for public-transportation use. "Public transit executives could be buying autonomous minivans rather than expensive buses," Urmson said during a public meeting on autonomous regulations held by the National Highway Traffic Safety Administration in Palo Alto, California. "Federal standards determine what kinds of vehicles cities can use for transit. This needs attention." Minivans are different than the Lexus 450h and pod-like prototypes Google has used for autonomous testing so far. If Urmson is indeed interested in self-driving minivans that provide on-demand services for public transportation users, as he elaborated upon, there may be no more perfect partner than Chrysler, which pioneered the minivan segment three decades ago and recently reasserted its presence the minivan market with the new Pacifica, a completely redesigned vehicle. Ridding the urban environment of traffic-clogging buses might be one small slice of Google's broader plan for transforming cities and the imprint cars make upon them.

Ford tumbles to second worst in Consumer Reports reliability survey, list dominated by Japanese [w/video]

It's no secret that MyFord Touch has had its share of problems since being introduced, but the most recent reliability survey from Consumer Reports shows just how much this infotainment system has affected Ford. Just two years ago, the automaker was in the top 10 for the institute's reliability rankings, but since then, it has tumbled to the second-lowest rung just above dead-last Jaguar. In addition to MyFord Touch, CR also attributes a handful of new products that have had issues right out of the gate.
Compiled from 1.2 million subscriber surveys, this year's auto reliability survey heavily favors Japanese automakers, with eight of the 10 spots hailing from Japan. Toyota brands grabbed the top three spots (Scion, Toyota and Lexus - in that order) with Mazda, Subaru, Honda and Acura filling the next four spots. The only non-Asian automaker cracking the top 10 was Audi at number eight.
Audi climbed a total of 18 spots from last year, and Cadillac and GMC round out this year's top gainers breaking into the top 15. Helping Cadillac's upward movement, the CTS Coupe was named the most reliable domestic car. Lincoln, Volvo and Chrysler join Ford on this year's biggest loser list.