Big Three, Auto Industry | featured news

G.M. said Wednesday that it had positive cash flow of $1 billion in the six months after it emerged from bankruptcy protection last July, but that it lost $4.3 billion in that period, mostly because of the cost of settling with the United Auto Workers union over retiree health benefits, one of the burdens that helped bring the company to its knees.

Ford and GM report an increase of 43% for the month. And Honda is up 22% compared with a year ago as automakers keep pace with incentives offered by troubled Toyota.

Chrysler Group LLC Chief Executive Sergio Marchionne reiterated that the auto maker "intends to break even" on an operating basis this year and will hit its target of selling 1.1 million new vehicles in the U.S.

Ford Motor reached an agreement to sell its Volvo subsidiary to a Chinese conglomerate for $1.8 billion.

General Motors Co. will reinstate more than half the dealerships it targeted to drop from its network. GM executives said Friday that about 600 dealerships out of the 1,100 seeking to stay with GM will receive letters giving them the option to remain with the automaker.

General Motors said Tuesday that United States sales rose 11.5 percent in February over the period a year ago, including a 32.2 percent gain for the four brands it is keeping: Buick, Cadillac, Chevrolet and GMC.

GM is looking at two offers for its Hummer brand after a deal to sell the line of sport utility vehicles to a Chinese manufacturer collapsed this week.

The automaker says it's unable to complete a deal to sell its SUV brand to a Chinese industrial company. It plans to wind down Hummer operations, which would affect about 3,000 workers.

US auto sales rose in January but were tempered by Toyota Motor Corp. (TM), which suffered a sales slide late in the month from a recall that led the auto maker to halt sales of more than half its vehicles.

GM's Swedish brand remains hopeful a sale can be agreed to keep it alive, even though it is still preparing to wind down operations.