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Crunch watch Apr 09: the auto industry in crisis

By Tim Pollard and Ben Pulman Motor Industry 30 April 2009 17:21 Welcome to CAR's news aggregator as we round up the seismic change in the auto industry. Top tip: news summaries are added from the top hour-by-hour  Thursday 30 April 2009• It's official: president Barack Obama confirms this afternoon Chrysler will file for Chapter 11 bankruptcy protection as it strikes a patnership with Fiat (Automotive News, subscription required)• 'Over the past month, seemingly insurmountable obstacles have been overcome,' says Obama. 'Chrysler and Fiat have formed a partnership that has a strong chance of success' • Chrysler is filing for bankruptcy protection under Section 363(b) of Chapter 11 bankruptcy code – expected to last for 30-60 days (Detroit News)• Treasury to pay Chrysler $4.5 billion 'in exit financing'• Chrysler tipped to get new board of directors.

Car makers to be forced to disclaim ‘Official’ economy figures

We’ve banged on for a long time about the futility of official economy figures, especially as car makers get better and better at ‘gaming’ the official economy tests to produce the results they want. Much of the impetus to create the best headline economy figure for a car is driven by taxation, with car makers well aware that the better the official economy results are, the lower their CO2 will be (CO2 isn’t tested for – it’s just extrapolated from the official mpg) and the more appealing the car will be to buyers, particularly fleet buyers. But a ruling by the Advertising Standards Agency (ASA) against Audi could at least see car makers having to admit in their adverts that the ‘official’ economy figure bears no relation to what owners can expect to achieve in the real world.

Mercedes-Benz found guilty of price-fixing in China

Associated Press Mercedes-Benz has been found guilty of fixing prices of car parts in China – with BMW, Audi and Chrysler also facing penalties. China’s state news agency, Xinhua, reports that the German manufacturer has been found guilty of using its power to control the prices of parts. The Chinese government is cracking down on monopolies and has been accused of being too harsh on companies from abroad.