News about the nation’s embattled automakers nearly dominated the top stories of the week. A potential deal where GM would have bought Delphi’s steering business was shot down by the U.S. Treasury Department. Delphi now has until May 9 to resolve its bankruptcy case. If Delphi doesn’t emerge from bankruptcy then, liquidation could be the next step. The companies said the deal, which would have been worth more than $100 million, would have helped both parties.
GM confirmed that it would cease production of the Pontiac at the end of 2010 and plans to concentrate on its four "core" brands: Chevrolet, Cadillac, Buick and GMC. It was the latest move in the company’s plans to restructure under the watch of the U.S. Automotive Task force.
Chrysler’s announcement that it would be the first major American car manufacturer to file for bankruptcy, while not surprising, was certainly evidence that plans to re-work the auto industry are firmly under way. But the bankruptcy announcement was tinged with a bit of hope since Chrysler will be working with Italy’s Fiat to produce smaller vehicles. With word of the bankruptcy came news that Robert Nardelli, who joined Chrysler in August 2007, would leave the company and return to Cerberus Capital, the New York-based private equity fund that bought the company. Nardelli took a $1 salary in coming to Chrysler. “My severance is easy,” Nardelli said, in a story from Bloomberg. “I pick up my pencil and walk out the door. I have no contract. I have no golden parachute.” Nardelli had taken a $210 million severance package when he left Home Depot.
Tech must have been on the minds of aftermarketNews.com readers this week, as news that Autonet Mobile, which can turn vehicles into rolling Wifi hotspots, will now be available at Advance Auto Parts stores nationwide. The monthly service is half the cost of a cell card and maintains a constant connection even when the car is moving. Autonet Mobile works with any WiFi enabled device, including netbooks, Apple’s iTouch and iPhone, laptops, and gaming devices.
Finally, news of O’Reilly’s first-quarter earnings topped the list of most-read stories. On Thursday, the company announced record revenues. Gross profit for the first quarter of 2009 increased to $0.54 billion (or 46.6 percent of sales) from $0.29 billion (or 44.6 percent of sales) for the first quarter of 2008, representing an increase of 88 percent.
