Looking to purchase a used private jet at a good price? General Motors is selling not one but two of its corporate private jets. After grounding two of its seven leased jets in Sept., GM is now getting rid of two more according to GM spokesman Tom Wilkinson.

It all started when the Big 3 CEOs flew to Washington last week to lobby Congress for $25 billion to save their companies from bankruptcy. Sounds pretty crazy right? We were actually thinking last week that Wagoner, Mulally and Nardelli should fly coach just to show that they are penny pinching and here they are flying from Detroit to Washington in private jets.

Either way, politicians in Washington were basically baffled by the idea. “There’s a delicious irony in seeing private luxury jets flying in to Washington, D.C., and people coming off of them with tin cups in their hands saying that they’re going to be trimming down and streamlining their businesses,” said New York Democrat Gary Ackerman during the House hearing. “It’s almost like seeing a guy show up at the soup kitchen in high hat and tuxedo.”

According to Automotive News who spoke with Wilkinson, GM will now keep three corporate jets.

Source: eGMCarTech

Cash hungry GM may go to Congress for some extra needed cash to move towards a possible acquisition of Chrysler LLC. According to a person familiar with the financial side of the deal, said that GM is looking to go as the government to help it purchase Chrysler although he is not sure if the General had approached the government as of yet.

Chrysler reportedly has about $11 billion available that GM can tap into. However, that may not be enough for GM to purchase Chrysler, which is losing money, unless Congress jumps in on the negotiations. According to insiders, without additional money, GM may be unwilling to buy Chrysler from 80.1 percent share holder Cerberus.

Why would Congress like to help? Analysts say that Congress may be forced to take on pension costs for Chrysler if the company goes bankrupt. Not only that, Congress may want to help preserve as many as 49,000 Chrysler U.S. jobs.

An official word on the deal is expected by the end of this month.

Source: eGMCarTech

Detroit's Big Three automakers lobbied hard up to nearly the last minute to win passage of the $700 billion Wall Street bailout package -- which includes new tax breaks for plug-in vehicles and an extension of the research and development tax credit -- passed today by the House 263-171.

The bill -- signed into law this afternoon by President Bush -- includes a tax credit worth up to $7,500 for plug-in vehicles and fully electric vehicles. The $1 billion tax credit over 10 years is a big boost to General Motors Corp., which will begin selling its extended-range electric Chevrolet Volt in late 2010. But its expensive battery pack will push the cost of the vehicle to as much as $40,000 -- and the $7,500 tax credit may help some consumers afford it.

It also will aid Nissan Motor Co. and Chrysler LLC, which plan to sell full-electric vehicles. The credit is for vehicles with at least a 4 kwh battery pack; they'll qualify for a $4,168 tax credit. The rescue package also includes an extension of the research and development tax credit -- a move automakers have been strongly pushing for since they spend so much money on research and development.

Source: Detroit News

The price of retail gasoline could fall by half, to around $2 a gallon, within 30 days of passage of a law to limit speculation in energy-futures markets, four energy analysts told Congress on Monday.

Testifying to the House Energy and Commerce Committee, Michael Masters of Masters Capital Management said that the price of oil would quickly drop closer to its marginal cost of around $65 to $75 a barrel, about half the current $135.

Fadel Gheit of Oppenheimer & Co., Edward Krapels of Energy Security Analysis and Roger Diwan of PFC Energy Consultants agreed with Masters' assessment at a hearing on proposed legislation to limit speculation in futures markets.

Krapels said that it wouldn't even take 30 days to drive prices lower, as fund managers quickly liquidated their positions in futures markets.

"Record oil prices are inflated by speculation and not justified by market fundamentals," according to Gheit. "Based on supply and demand fundamentals, crude-oil prices should not be above $60 per barrel."

Source: MarketWatch

Congress agreed to raise fuel-economy standards by 40 percent for cars and light trucks by 2020 in a move described by lawmakers as a historic step toward cutting U.S. oil consumption and curbing global warming.

The new rules would require the U.S. to set mileage standards for each type of vehicle to meet a national average of 35 miles per gallon. In exchange for a higher benchmark than automakers had wanted, the industry would continue to get credit for making vehicles that run on alternate fuels such as gasoline blended with ethanol.

"This landmark energy legislation will offer the automobile industry the certainty it needs, while offering flexibility to automakers and ensuring we keep American manufacturing jobs and continued domestic production of smaller vehicles,'' House Speaker Nancy Pelosi said in a statement.

The deal ends almost six months of opposition by the industry and marks the first overhaul of fuel-economy rules in three decades. Automakers argued that complying with a 40 percent increase would cost them billions of dollars that would be passed on to consumers. Environmental groups waged a multimillion-dollar campaign against the industry and urged lawmakers to act.

The proposal, worked out by House and Senate negotiators late yesterday, is part of a larger energy bill scheduled to be voted on in both houses of Congress this month and will include new goals for renewable sources of energy. The bill must be signed by President Bush before it becomes law.