The inevitable has happened and Chrysler is to now enter bankruptcy protection after failing to persuade a number of hedge funds to write off its debts, a White House official has said. … [Read more...]

Autowired is reporting that The United States Government could take a majority stakeholding in struggling General Motors in an aggressive debt-for-equity swap. The balance sheet restructuring would lower GM's debt by $44 billion to an estimated $23bn, leaving the Government and a healthcare trust managed by the United Auto Workers union with 89% of … [Read more...]

BBC News reports that Chrysler is just hours away from a deadline that could force it to file for bankruptcy protection. Continuing efforts to restructure the business focus on persuading its main lenders to write off its debts, but reports say these talks have stalled. … [Read more...]

The directors of beleaguered vanmaker LDV have applied for administration, raising fresh fears that hundreds of workers will lose their jobs. The Birmingham-based firm has not built any vehicles since last year after its Russian owner Gaz decided to sell the business. … [Read more...]

General Motors has no plans to scrap its Vauxhall brand, says CEO Fritz Henderson. Responding to questions about Vauxhall's future, Henderson said the United Kingdom, where GM sells its cars as Vauxhall, “happens to be our largest market in Europe.” … [Read more...]

The Daily Mail reports that Fiat may consider taking over Vauxhall. Sergio Marchionne, who runs the Italian car maker, said on Monday: 'If the opportunity were to arise, we would give it a hard look.' … [Read more...]

BBC News reports that German carmaker Daimler has reached a deal to give up its 19.9% stake in Chrysler, the company has said. The deal, which will also see Daimler forgive Chrysler's outstanding loans, marks a definitive separation of the German and US firms, Daimler said. … [Read more...]

General Motors are planning to axe US dealerships by a further 42 percent to 3,600 and accelerate job cuts as it struggles against time to avoid seeking bankruptcy protection. … [Read more...]

The Financial Times reports that Volkswagen is considering an audacious bid for Porsche's automotive business, in another extraordinary twist in the corporate saga surrounding Germany's most famous car dynasty. That would turn upside down Porsche's takeover of Volkswagen, which started more than three years ago. … [Read more...]

BBC News reports that General Motors (GM) has received another $2bn (£1.4bn) in loans from the US Treasury, it has been announced. The payment was made on Wednesday and provides working capital to the company, the Treasury said. … [Read more...]

BBC News reports Ford has achieved better-than-expected results for the first quarter of 2009 and says the carmaker does not intend to take government aid. While it still reported a loss for the quarter, of $1.4bn (£0.96bn), this was better than analysts had forecast. … [Read more...]