Washington - The struggling US car industry will be given one last chance to restructure operations or lose the government's support, President Barack Obama announced Monday, declaring that General Motors Corp and Chrysler LLC had so far failed to prove that they can survive.

In a dramatic government intervention in the industry, the White House forced out long-time GM chief executive Rick Wagoner, who will be replaced by the company's president Fritz Henderson.

According to the New York Times Monday reports, for the Auburn Hills, Michigan-based Chrysler to qualify for additional loans from the US government, it must strike a deal with Italian auto biggie Fiat SpA by April 30. As per the terms of the alliance, Fiat would receive a 35 per cent stake in Chrysler, but would provide no cash infusion.

In case Chrysler, the third largest automaker, fails to materialize the projected pact with Fiat by the set deadline, it would receive no more aid from the government, because the Obama administration would not consider it a viable stand-alone company.

Washington, Mar.

New York  - Frederick "Fritz" Henderson, second in command at beleaguered General Motors, is the likely candidate to take over the firm amidst reports that GM head Rick Wagoner has been asked to leave by the US government, media reports said Sunday.

Henderson, 50, the chief-operating-officer, is the likely replacement, at least on a temporary basis, The New York Times reported, citing people close to the situation. Henderson met with members of the government panel overseeing the car industry bailout.

It seems that the stage is all set for the cheap cars in India. After Nano, Volkswagen group company Skoda is lining up a cheap car aimed at the masses in the country.

The Czech carmaker is planning to expand its product portfolio and will introduce its small car by the year 2011.

The car is believed to carry the price-tagged around Rs. 3 lakh. The small car from Skoda will be available in both petrol and diesel variants.
According to the company sources, the Czech carmaker would prefer to manufacture the car at its existing Aurangabad unit.

Mr. RC Bhargava, Maruti Suzuki chairman, on Thursday, said that Tata Motors newly announced mini car ‘Nano’ will have a marginal impact on Maruti-800 sales.

However, Mr. Bhargava said that Maruti would not slash prices to go up against the latest offering from the Tata stable.

Two-wheeler manufacturers including Hero Honda, Bajaj Auto and TVS Motors, too, understated the expected impact of Nano, and said that the two-wheeler market would remain untouched by the Nano attack.