The U.S. Senate approved a stop-gap spending measure that funds the government through March and includes up to $25 billion in low-cost government loans for automakers to retool plants to build fuel efficient vehicles.

The Senate’s 78-12 vote sends the bill to President Bush, who is expected to sign it before the government’s current budget expires Tuesday.

The president’s signature will mark the culmination of nearly two years of efforts to win additional financial support for automakers who face tens of billions of dollars in costs to increase the efficiency of their vehicles by at least 40 percent by 2020.

Automakers will get up to 25 years to repay the loans. Because they have sub-investment grade credit, they would save more than $100 million per $1 billion borrowed in lending costs. They could also ask the Energy Department to defer repayment for up to five years.

Senate approves auto industry loans - detnews.com

Cerberus Capital Management is in talks with Daimler AG about acquiring the German company’s remaining minority stake in Chrysler LLC, the companies said today.

“We are currently in discussions. In the event of a successful transaction, all existing industrial relationships between Daimler and Chrysler would continue,” said a statement from Cerberus spokesman Peter Duda.

Daimler in talks to sell rest of Chrysler to Cerberus - freep.com

A look at four new Chrysler lines and how the auto industry is watching the Wall St. crisis closely, with Bob Nardelli, Chrysler chairman/CEO and CNBC’s Phil Lebeau.

Chrysler LLC is aiming to launch full “portfolio” of electric vehicles cars and trucks, and sports-utility vehicles starting in late 2010, a person familiar with the company’s plans said.

Testing the Cars as Chrysler Goes Electric - cnbc.com

The Road for Chrysler - cnbc.com

So if he hands you a dollar
Say, Thank you sir, cause I’ve been up and down
And I know what it’s worth
Get it while the gettin’s good baby
Take it cause the others would
Ain’t no hesitating, they just might be waiting
Get it while the gettin’s good
You know I gotta have it, ain’t no doubt about it
Get it while the gettin’s good
You can say you don’t want it
But deep inside you know, you really do
You know what I’m talking about
Well everybody’s thinking just like me
Wonder who the lucky fool’s going to

Bear Stearns, Lehman Brothers, Merrill Lynch, AIG… you might as well add Chrysler, General Motors, and Ford to the list. If my tax dollars are providing a safety net to rich investment bankers, well then I want to support the Midwestern autoworker as well.

With the upcoming elections around the corner, people debate Democratic and Republican values. They speak of ownership society and pulling yourself up by the bootstraps. Heated debates about universal health insurance and the effects of offshoring. After this week, I have little faith in the government’s ability to live up their party’s core tenets and values. We have bailed out investment banks, insurance companies, and soon the speculative homebuyers. Instead of letting the pendulum swing between a liberal or conservative democracy, we have now become a socialist society. I do not think anyone signed up to let their hard-earned tax dollars provide a safety net for yuppie bankers with Hampton vacations homes.

Chrysler, Ford, and General Motors, please send all your lobbyists and leaders to Washington DC. Lobby hard and make sure you ask for as money that you need. Because if I am bailing out bankers and traders who are worried about they will pay for their $5K monthly apartment rentals, I rather use my tax dollars to help the common autoworker.

Chrysler LLC, in a bid to cheer up its dealers, next week plans to offer them a glimpse of an electric car it is scrambling to develop, people familiar with the matter said.

The compact car is supposed to be able to travel about 40 miles on battery power alone, these people said. For longer trips, a small gasoline engine would generate power and keep the battery charged, they said.

Chrysler has already showed many of its future vehicles to members of its dealer council. Reached by phone, Sid DeBoer, a council member and chief executive of Lithia Motors Inc., a large dealership chain, declined to discuss Chrysler’s future vehicles. He acknowledged Chrysler dealers are facing a tough market, but added that Chrysler has “a lot of stuff coming in 2010 that will surprise people.”

Chrysler to Show Dealers Electric Car - wsj.com

A conversation with Bob Nardelli - charlierose.com

Chrysler LLC has drawn interest from international and North American parties for the possible sale of its high-performance Dodge Viper sports car line, Vice Chairman and President Jim Press told reporters on Wednesday.

Chrysler in late August announced it was exploring the sale of the Viper sports car business as part of its effort to generate cash and ride out the deepening U.S. auto industry downturn. The Viper is a low-volume V10-powered sports car first produced in 1992.

“We have been approached by outside individuals who want to work with us to buy the asset and sustain Viper going forward,” Press told reporters after an Automotive Press Association event.

Press said it would not be necessary for Chrysler to retain any stake in the sports car line.

It sounds like Press is not a fan of the “halo car” marketing approach. He is turning Chrysler into Toyota. High volume, fewer brands and models, focused on quality and efficiency.

Chrysler says parties interested in buying Viper - reuters.com

From the article: “Chrysler LLC will offer buyouts to more than 13,000 hourly workers in Michigan, in the latest wave of job-reductions sweeping the hard-hit auto industry.

Chrysler did not disclose a specific reduction target on Friday, but company officials said they wanted to eliminate at least 2,000 jobs, representing the number of idled workers collecting wages in the Chrysler jobs bank.

All automakers are struggling in the U.S. market, which has sunk to its lowest level in more than a decade. But Chrysler has contracted more than any of its major rivals. Its sales through August have fallen 24 percent, or more than double the overall market’s decline.”

Chrysler offers new round of buyouts - detnews.com

Dodge Grand Caravan and Chrysler Town & Country minivans have strong sales month, up 7 percent over last year

Dodge Ram light-duty truck and Jeep® Liberty performance improves versus July

Dodge Journey gains momentum; buyers coming out of larger SUVs

Dodge Charger sales continue to grow

Up to 40 percent off MSRP available in September

Auburn Hills, Mich., Sep 3, 2008 - Chrysler LLC today reported total August 2008 U.S. sales of 110,235 units, down 34 percent from the same period last year. Total August sales reflect an industry-wide slowdown, segment shifts and reduced fleet sales. Compared with July 2008, Chrysler’s August sales increased 12 percent supported by enhanced financing offers, efforts to shift lease-oriented customers to purchasing, leasing availability from independent financial institutions and better demand for key vehicles. Although Chrysler Financial is no longer offering leasing options to Chrysler customers, customers are still able to lease Chrysler, Jeep® and Dodge products through independent financial institutions and qualify for available discounts.

Chrysler LLC Reports August 2008 U.S. Sales; Continues ‘Shop ‘Til You Drive’ Campaign with up to 40 Percent off MSRP - chrysler.com

Last week, we heard of Nardelli’s plan to shop around the Dodge Viper car business. The once iconic, untouchable halo car now has a “For Sale” slapped right across the windshield like a used car. Whatever happened to brand DNA, image, etc?

I found the following excerpt interesting:

Earlier this month, Vice Chairman Tom LaSorda said the company has identified more than $1 billion in “nonearning” assets that it intends to sell to generate cash.

Nonearning assets….would patents, trademarks, and copyrights be included in that $1 billion treasure chest of assets?

What if Chrysler decided to sell the Plymouth trademark? Would it be worth $50 million…$100 million?

What if the guys in the HQ decided to sell the Cuda trademark and design? Given the average rare Cuda now fetches 300K on eBay, there is considerable demand for the car. Maybe a specialty coachbuilder would be interested in buying the rights for the Cuda. I imagine someone would $200-300M for the rights to the Cuda.

The prospect of a potential Viper sale implies that nothing is off the table. No sacred cows…

What other trademarks, patents, or copyrights do you think would generate cash for Chrysler? Post it as a comment and make sure to include a price tag.