Life Without Chrysler Suits Daimler Fine

German firm keeps minority stake in American auto giant

(NEWSER) - DaimlerChrysler has sold a majority stake in the Chrysler Group to the American private-equity firm Cerberus for $7.4 billion, the auto giant announced today. The deal unhooks the money-losing American arm of the international conglomerate from its German partner, which will retain a 19.9% stake in Chrysler and change its name to Daimler AG as soon as this fall. More»

Gizmos proliferate amid concerns on distracted driving

(NEWSER) - Imagine cruising down the highway at 65mph while checking tweets, buying movie tickets online, or booking reservations at a restaurant. This scenario is the not-too-distant future of driving, reports the Wall Street Journal , as auto manufacturers seek to design an innovative "connected car" full of Internet-accessible gadgetry. The push for a tech-infused car comes as a national push for rules banning phones in cars seems to be fizzling out and automakers look to entice the youth demographic. More»

(NEWSER) - The 1970s was "a decade of excess mediocrity in so many quarters it's hard to catalog it all," Tony Borroz writes in Wired. But you can start with the cars. Here follow five total flops.

• Ford Mustang Cobra II: "An over-glorified Pinto" that made a "mockery of the venerable Cobra name" and the car "that launched the pony car revolution."
• Mercury Bobcat: Basically a Pinto, but "by porking up the platform by that much, Mercury succeeded at making a bad car even worse."

Auto bailout throws good money after bad, goes against US capitalism itself

(NEWSER) - American prosperity relies on creative destruction—the failure of nonviable companies and their replacement by defter rivals. The government endeavors to protect the worker in periods of transition, writes David Brooks in the New York Times, but not the firms themselves. That’s why the auto-industry bailout is a bad idea: Extending the life of the Big Three means preserving their unworkable business models. More»

Will auto bailout change that?

(NEWSER) - Even as nearly bankrupt Detroit automakers beg Congress for a bailout, Chrysler is preparing to pay its top executives $30 million in retention bonuses, the Detroit Free Press reports. Chrysler says the deals were necessary measures to keep top talent in place when they were conceived last year during Daimler's sale of Chrysler, but a human resources VP admits they might be a bit controversial now. More»