AutoGuide News Blog
The AutoGuide News Blog is your source for breaking stories from the auto industry. Delivering news immediately, the AutoGuide Blog is constantly updated with the latest information, photos and video from manufacturers, auto shows, the aftermarket and professional racing.
Your credit score could play a significant role on how much you’re paying for auto insurance a new study has revealed.
“Tens of Million” of dollars secured to keep luxury brands afloat
In this volatile economic environment, no auto manufacturer is safe from hard times, including Jaguar and Land Rover. According to an Automotive News/Reuters report, the two historic British car companies are facing a “cash crisis.” Parent company Tata Motors, the Indian auto manufacturer that recently purchased the luxury brands from Ford for $2.3 Billion, recently secured funding from the banks for “tens of millions” of dollars in aid. The news comes after Tata poured “hundreds of millions” of dollars into the struggling companies earlier this year.
It was thought such a move would be unlikely as the current squeeze in the credit market would make borrowing such sums of money impossible. According to the report, however, banks were more forthcoming after rumors surfaced that the British government may also borrow money to help keep the iconic nameplates of Jaguar and Land Rover afloat.
[Source Automotive News from Reuters]
Manufacturer blames credit crunch, not lack of demand
Chrysler has just announced that starting this Friday (December 19th) it will cease production until January 19th – at the earliest.
The month long “production pause” is not due to a lack of demand says Chrysler, which recently scheduled a meeting with dealers to assess the economic crisis. According to Chrysler dealers, 20 to 25 percent of their reduction in volume can be attributed to a lack of available credit.
This reinforces the belief that it is the instability of the banks and their consequent tight grip on credit that is driving the economy into a recession.
News of the production pause comes just as The Wall Street Journal erroneously reported that Chrysler is back in merger talks with General Motors.
See official press release after the jump: