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Crunch watch Mar 09: the auto industry in crisis

By Ben Pulman and Tim Pollard Motor Industry 31 March 2009 13:48 Tuesday 31 March 2009• Porsche said that its earnings before tax rose to €7.3 billion in the six months to the end of January – including a €6.8bn windfall from its VW share options (Financial Times)• Fritz Henderson, GM's president and chief operating officer, will step up to replace Rick Wagoner, who was ousted on Sunday as CEO of General Motors (Financial Times)• President Obama is essentially CEO-in-chief of GM – despite not owning a single cent of stock, says Detroit News commentator (Detroit News)• German chancellor Angela Merkel gives assurances that any would-be investors in GM's European arm will be given state support. Opel is asking for €3.3 billion in aid – and up to 25,000 jobs in Germany depend on it, with up to 300,000 jobs across Europe including Saab and Vauxhall (BBC News)Monday 30 March 2009• General Motors' chief executive Rick Wagoner has been ordered to resign by US president Barack Obama with immediate effect. It's part of Obama's administration's critique of GM and Chrysler's turnaround plans – he's understood to be unhappy with the plans submitted (BBC News)• New GM non-executive chairman Kent Kresa has admitted that at the company's next general meeting it will have 'a majority of new directors' (General Motors)• Chrysler will receive US government aid for the next 30 days, but the Obama administration has said that if the company cannot secure a tie-up with the Fiat Group within that time period it will not receive any more money from the taxpayers and could go into liquidation.

VW Phaeton – the 2010 facelift is unveiled at Beijing

Pay attention at the back. This is the new, facelifted VW Phaeton, unveiled today at the 2010 Beijing motor show. It most certainly is.

Cuba removes new car purchase restrictions

Granma, the Communist Party’s newspaper of record in Cuba, said Wednesday that the Council of Ministers approved regulations that “eliminate existing mechanisms of approval for the purchase of motor vehicles from the state.” That means the sale of new and used cars will be allowed to the public. Up until now, Cubans could buy and sell vehicles to each other, but they had to request permission from the government to purchase a new vehicle -- the main reason for the island's unique automotive landscape. The new laws will be enacted gradually, according to Granma, with a set minimum price.