Automakers will be receiving $220 million in tax credits to help develop battery packs for hybrid and plug in hybrids vehicles. The credits, which include $100 million for battery manufacturers and $120 million for battery pack assembly, are designed to benefit Ford Motor Co., General Motors Corp. and Dow Chemical Co.

Ford plans to move production of battery packs from Mexico to southeastern Michigan and to invest up to $500 million to assemble hybrids and lithium ion batteries there. “This is huge,” said James McBride, vice president of the Michigan Economic Development Corp. “This is the rebirth of the auto industry in this state.”

Despite the recent excitement over electric cars, the National Research Council thinks that it will be a few decades before we see hybrids in “meaningful numbers”.

Complaints made to Congress from GM and Chrysler dealerships has led to a House approved $1.1 trillion spending bill. This bill will give dealerships a chance to dispute their closure depending on their past success. G.M. and Chrysler proposed their own review processes last week in an effort to keep Congress from getting involved, but their proposal was rejected.

Today, Chrysler came back challenging the decision, calling it ‘unconstitutional legislation’. Sergio Marchionne (CEO of the Fiat and Chrysler Group LLC and Chairman of the European Automobile Manufacturers Association) said that restoring large numbers of dealerships could cause havoc within Chrysler. “We are in a completely different position than G.M.” he said. G.M. has about $42 billion in cash in September, paying back $6.7 is easier than it would be for us.” Mr.. Marchionne also said G.M. was more focused on repaying the loans because the government owns 60% as opposed to 10% of Chrysler. Chrysler’s majority shareholder is the United Automobile Workers union’s retiree health care trust.

Chrysler is planning to make investments that would provide jobs and other economic benefits. Building a fuel-efficient engine with Fiat technology in the United States is one of three goals that each allow Fiat to gain an additional 5 percent of Chrysler.

Ed Whitacre has only been chief executive of G.M. for a short time but it is evident that he is serious about the companies mission to build and sell the world’s best cars and trucks. Whitacre says he wants to give people more responsibility as well as hold them accountable. Some of his changes are: Mark Reuss, president of North American operations; Susan E. Docherty, G.M.’s vice president for sales and marketing and Nick Reilly president of GM Europe.

Mr. Whitacre and his revamped management team must prove that they can spend taxpayers dollars productively on new cars, trucks and crossover vehicles. The bankruptcy process, which forced the government to step in and lend it a total of $50 billion to survive, removed most of G.M.’s crushing debt load and long-term obligations to its retirees. It also allowed G.M. $42.6 billion in cash reserves which will be put towards designing, building and selling the world’s best vehicles. With these ‘hit’ vehicles, G.M. hopes to become profitable, and once stabilized will be back on the public stock offering. Mr. Reuss said going public and repaying the government are “at the very top of our desires of what this company will look like next year.”

One of the vehicles pushed by G.M. is the Volt. It’s development time has been reduced by seven months which could have us seeing it on roads and early as November of 2010. Another model they hope will be a hit is a small, rear-wheel drive luxury car for the Cadillac division which they hope will compete head-on with the German car maker’s 3-series sedan. Mark Reuss hopes the car would prove that a Cadillac can be every bit as exciting as the best that BMW has to offer.

A recent government report stated that taxpayers are not likely to receive full payment for the loan made to GM. Mr. Whitacre, General Motor’s Chairman, says that General Motors has every intention of repaying the taxpayers $6.7 billion. This excludes nearly a billion dollars that was lent to the old GM that remains in bankruptcy. The remaining $50 billion that was borrowed was given in the form of stock which the U.S. Government hopes to get back from public stock offerings.

The chief of Nissan has announced plans to produce a small car for sale in India. It will cost less than any other car sold in the world. It should be available in 2011.

The car will be manufactured by Bajaj Auto in India. It will compete with with Tata Motors, Nano, which sells for as little as $2,500.00 and started selling this year. The Nano is a hatch back that can seat up to five people.

General Motors and Toyota have announced that they also intend to sell a low cost car in India.

2006 Saturn Outlook – Fuel System problem – On some motor homes built on a Ford chassis, the fasteners holding the fuel tank mounting may not have been properly tightened which could mean the fuel tank might loosen and fall. If this happens, there is the possibility for the tank to ignite which could result in personal injury, and property damage. Please call you dealership to schedule an appointment immediately.

2006 Saturn Outlook – structure problem – On certain motor homes equipped with Kwikee electric steps, the steps may have been manufactured incorrectly. The defective control unit could develop an electrical short which could cause the plastic case to ignite. This could result in a personal injury and/or vehicle property damage. Please contact your dealer immediately.