GenVibe - Community for Pontiac Vibe Enthusiasts

Obama said the government will guarantee warranties on any GM or Chrysler vehicle. There doesn't appear to be any limitation on when the vehicle was purchased. So I guess the 5 year powertrain warranty on my '09 Vibe and Lifetime powertrain Warranty on my '07 T&C is protected. My understanding is that the sales tax benefit would not help those who do not itemize, those who live in a state that does not have a sales tax, or those who itemize nad already opt to take the sales tax deduction instead of the state/local income tax deduction. It is difficult to make a tax provision like this "fair" to all. Then there is a "generous credit" (retroactive to Monday - assume 3-30-09), when you replace an older, less fuel-efficient car and buy a new, cleaner vehicle.[Maybe there should be a generous surcharge if you replace an older more fuel efficient car and buy a Hummer.]-------------------------------------------------------------------Associated PressPublished: March 30, 2009WASHINGTON—President Barack Obama says the federal government is preparing to offer several incentives to get Americans to buy more U.S.-made cars.In a White House speech, Obama said the IRS will start notifying consumers who purchased cars after Feb. 16 that they can deduct the cost of any sales and excise taxes. The program would remain in effect till year’s end.Obama says he wants to work with Congress to use parts of the economic stimulus package to fund a program that would allow consumers to get a “generous credit” when they replace an older, less fuel-efficient car and buy a new, cleaner car.The president says he wants to make the program retroactive starting Monday. It’s meant to boost car sales in the U.S., which have seen their worst decline in 27 years.Obama also said the government will guarantee warranties on any GM or Chrysler vehicles. A look at the Obama administration’s plan for General Motors Corp. and Chrysler LLC:GENERAL MOTORS CORP.:- President Barack Obama’s auto task force determined that General Motors has not presented a viable plan that would succeed.- Top executive Rick Wagoner will step down as chairman and chief executive. Kent Kresa, a GM board member, will serve as interim chairman and current president Fritz Henderson will serve as chief executive.- The administration is willing to give GM adequate working capital for 60 days to develop a more aggressive restructuring plan.- The company’s stakeholders - unions, bondholders and others - will need to make sacrifices.- Using the bankruptcy code “in a quick and surgical way” could be employed to help revitalize General Motors. CHRYSLER:- The task force has concluded that Chrysler is not viable as a standalone company.- The administration will provide Chrysler with working capital for 30 days to conclude an alliance with Fiat SpA, an Italian automaker.- If successful, the government will consider investing up to $6 billion to help the partnership between Chrysler and Fiat succeed.- If the agreement is not reached, the government will not invest any additional taxpayer funds in Chrysler.- The company’s stakeholders - unions, bondholders and others - will need to make sacrifices.- Employing the bankruptcy code “in a quick and surgical way” could be used to help revitalize Chrysler. CONSUMERS:- The administration will protect consumer warranties from General Motors and Chrysler vehicles.- The plan includes an incentive program meant to increase car sales. Obama will work with Congress to use parts of the economic stimulus package to fund a program that would give consumers a “generous credit” when they replace an older, less fuel-efficient car and buy a new, cleaner vehicle.- The Internal Revenue Service will launch a campaign to alert consumers of a new tax benefit for auto purchases between Feb. 16 and the end of the year. Consumers may be able to deduct the cost of any sales and excise taxes, a provision that could lead to has many as 100,000 new car sales.

SAN FRANCISCO (MarketWatch) -- Chrysler LLC and owner Cerberus Capital Management said Monday they entered into a global alliance with Italian auto maker Fiat SPA.Chrysler said the Fiat alliance will not only help it pay back government loans sooner but strengthens its ability to create and preserve U.S. jobs. The alliance raises the possibility that the U.S. government may invest another $6 billion in Chrysler.

- Using the bankruptcy code “in a quick and surgical way” could be employed to help revitalize General Motors.Why didn't they come up with this new revolutionary concept before dumping billions of our dollars into the company? The bigger government gets, the stupider it gets. If The Fed does let GM file chapter 11, I suspect it will not let the bankruptcy judge do his job without federal intervention. The Democrats are warm and cozy in bed with the Unions. If all those UAW members have to start giving up benefits and pay, they may retaliate by not voting for them in the next election. Obama will make sure "American Worker" does not have to suffer at the hands of corrupt "Big Business."