It's possible her campaign is finding a speck of hope in the weeks before the Pennsylvania primary--and now, Sen. Hillary Clinton's trying to turn that faint hope brighter by appealing to Rust Belt voters in a promise to bail out the Big Three.

The Detroit News reports that Clinton's offering a government-backed bailout for the Big Three automakers to prevent any of the trio from going out of business. The News quotes the Senator's interview with the Pittsburgh Post-Gazette from Monday, in which she says she wouldn't let General Motors, Ford, or Chrysler go out of business without a fight. But a government bailout wouldn't be free: The money wouldn't come "unless they change their direction," Clinton said with no small amount of imprecision.

The fly in the campaign ointment? None of the three companies involved is asking for any federal money to stay in business. But GM and Ford spokespeople were appreciative nonetheless, in one of the few signs of outreach from the Presidential campaign to Detroit's auto industry. A GM spokesperson was "pleased that the senator recognizes the importance of the domestic auto industry," while Ford's PR said they appreciated the Senator's support.

The comments are in sharp contrast to statements from Sen. Barack Obama, who railed against Detroit's automakers in their own backyard rather famously last year--and even to President George W. Bush, who said two years ago that Detroit should "build a product that's relevant."

A new survey finds a result that won't surprise anyone following the 2008 Presidential campaign: auto execs favor John McCain in the general election coming in November, reports the Detroit News.

McCain's no friend of the auto industry, as TheCarConnection.com has reported throughout the year. Not only has he adopted global warming as a campaign issue in an attempt to defang Democratic control of the climate change debate, McCain's also shown solidarity with Calif. Governor Arnold Schwarzenegger in his state's battle to set its own carbon-dioxide emissions rules. McCain, according to many Detroit insiders, could be a crapshoot as a president, in terms of industry politics.

As the News reports, from a recent survey by law firm Dykema Gossett PLLC, McCain's seen in Detroit as the candidate with the best chance for a positive impact on the auto industry. Some 70 percent of the 46 execs polled by the law firm in their 2008 Global Automotive Survey named him in that respect, but none of the three candidates -- McCain, Sen. Hillary Clinton, and Sen. Barack Obama -- were tagged as "pro-automotive."

Mainly, the study suggested, execs chose McCain only because the other candidates were seen as markedly anti-automotive. Almost 57 percent of those polled tagged Obama as the most negative candidate for the industry.

In addition, 87 percent of the polled had a negative outlook for the industry in the year ahead.

UPDATE: Ford just confirmed the sale to Tata for $2.3 billion. We'll have more as details emerge -- the press release follows this item:

A variety of outlets, including the New York Times, are reporting that the sale of Jaguar and Land Rover will be announced tomorrow.

Ford has been trying to unload both British brands for more than a year, since the successful sale of Aston Martin to a group of Kuwaiti-led investors netted the company $925 million. The Jaguar-Land Rover deal, with India's Tata Motors, has gone through an extensive bidding process that weeded out hedge funds fronted by former Ford exec Jac Nasser, even other Indian automakers, before narrowing down the field to Tata.

The deal for the brands could total $2 billion, the Times says. But while it will mean a change of hands and a change in control, Ford's role in the duo won't come to an immediate halt. The various production arrangements and supplies of parts could take a few years to unwind. And at $2 billion, the deal would value the brands significantly less than was being talked about just last year -- with some outlets reporting Ford's asking price was initially around $8 billion.

As a part of the deal, the Times adds, the Jaguar headquarters will remain in Coventry, England, and the existing product plan will not be altered until at least 2011.

Tata is in the midst of a huge global expansion, and could end up with the most wildly divergent group of cars on the planet -- from the Jaguar XKR-S to the Queen's favorite Range Rover to the teensy, $2500 Tata Nano.




PRESS RELEASE


Ford Motor Company Announces Agreement to Sell Jaguar Land Rover to Tata Motors

DEARBORN, Mich., March 26 /PRNewswire-FirstCall/ -- Ford Motor Company
(NYSE: F) announced today that it has entered into a definitive agreement
to sell its Jaguar Land Rover operations to Tata Motors.

The transaction is the culmination of Ford's decision last August to
explore strategic options for the Jaguar Land Rover business, as the
company accelerates its focus on its core Ford brand and "One Ford" global
transformation.

The sale is expected to close by the end of the next quarter and is
subject to customary closing conditions, including receipt of applicable
regulatory approvals.

The total amount to be paid in cash by Tata Motors for Jaguar Land
Rover upon closing will be approximately US $2.3 billion. At closing, Ford
will then contribute up to approximately US $600 million to the Jaguar Land
Rover pension plans.

"Jaguar and Land Rover are terrific brands," said Alan Mulally,
president and CEO, Ford Motor Company. "We are confident that they are
leaving our fold with the products, plan and team to continue to thrive
under Tata's stewardship. Now, it is time for Ford to concentrate on
integrating the Ford brand globally, as we implement our plan to create a
strong Ford Motor Company that delivers profitable growth for all."

"This is a good agreement. It provides the Jaguar Land Rover management
team and employees with the assurances needed to maintain their focus on
delivering the best results for the business," said Lewis Booth, executive
vice president, Ford Motor Company, who has responsibility for Ford of
Europe, Volvo and Jaguar Land Rover. "I am confident that, under its new
owner, Jaguar Land Rover will continue to build upon the significant
improvements and product successes it has achieved in recent years."

As part of the transaction, Ford will continue to supply Jaguar Land
Rover for differing periods with powertrains, stampings and other vehicle
components, in addition to a variety of technologies, such as environmental
and platform technologies. Ford also has committed to provide engineering
support, including research and development, plus information technology,
accounting and other services.

In addition, Ford Motor Credit Company will provide financing for
Jaguar and Land Rover dealers and customers during a transitional period,
which can vary by market, of up to 12 months.

The parties believe these arrangements will support Jaguar Land Rover's
current product plans, while providing Jaguar Land Rover freedom to develop
its own stand-alone capabilities in the future that will best serve its
premium manufacturer requirements.

The parties do not anticipate any significant changes to Jaguar Land
Rover employees' terms of employment on completion.

Speaking about today's agreement, Mr. Ratan N. Tata, Chairman of Tata
Sons and Tata Motors, commented: "We are very pleased at the prospect of
Jaguar and Land Rover being a significant part of our automotive business.
We have enormous respect for the two brands and will endeavor to preserve
and build on their heritage and competitiveness, keeping their identities
intact. We aim to support their growth, while holding true to our
principles of allowing the management and employees to bring their
experience and expertise to bear on the growth of the business."

Jaguar Land Rover's employees, trade unions and the UK Government have
been kept informed of developments as the sale process progressed and have
indicated their support for the agreement.

Speaking on behalf of Jaguar Land Rover, Geoff Polites, chief executive
officer, said: "Jaguar Land Rover's management team is very pleased that
Ford and Tata Motors have come to an agreement today. Our team has been
consulted extensively on the deal content and feels confident that it
provides for the business needs of both our brands going forward.

"We have also had the opportunity to meet senior executives from Tata
Motors and the Tata group," Polites continued. "They have expressed
confidence in the team that has delivered significant improvements in
Jaguar Land Rover's business performance. We feel confident that we can
forge a strong working relationship with our new parent company, and we
look forward to a bright and successful future for Jaguar Land Rover."

The American Family Association says it's ending its controversial boycott of Ford Motor Company after two years, saying that its goals were met and that the company has suffered for its support for gay organizations.

The boycott started two years ago, when the AFA called for its members to stop spending money with Ford and its brands, which include Volvo, Jaguar and Land Rover. The association, which cites religious and moral principles for its anti-gay stance, said a Ford boycott would force the company to disavow contributions to gay groups like the Human Rights Campaign, which Ford had supported.

The AFA declared victory -- but Joe LaMuraglia, our colleague and the founder of Gaywheels.com, calls the AFA's rationale for the end of the boycott "laughable."

"AFA's claim that they were responsible for Ford's sales decline is so laughable that I don't know what to say," LaMuraglia blogged on his site, which informs users on the gay-friendly status of various automakers. "It is akin to me taking responsibility for all of Saturn's sales growth because they sponsored us at a Gay Pride event. Their boycott may not have helped Ford but it was by no means the primary reason they've fallen on hard times."

LaMuraglia said that the Ford ad cuts were a result of big losses, not political pressure, and cited a letter from Ford public relations on the matter that said the company was "committed to treating everyone fairly and with respect, including our dealers, customers and employees....Difficult business conditions in recent years have reduced our overall spending across the board."

What triggered it all? LaMuraglia says it may have been Ford's relationship with the HRC and a promotion that directly linked the company to the organization. "As a gay man, I thought the idea was great. They were clearly supporting our community," he says. "As a marketing professional, I thought it was risky move that clearly hit the nerve of the AFA. All they saw was that Ford supported HRC and HRC = gay marriage. Can you say controversial topic?"

Speaking of controversy, we want to know what you think of the role of auto companies in supporting gay causes - but we strongly recommend you keep the discussion civil, otherwise we'll have to block you, as the commercial goes. Talk to us in a comment below.

As part of the new effort to trim costs that Chrysler announced last Friday, it plans to close its Pacifica Advanced Product Design Center in California, which has been the source of several of the company's concept vehicles in recent years.

"Increasingly, we are leveraging resources worldwide, forming new joint ventures and alliances and consolidating operations in order to better achieve global balance and manage fixed costs," Chrysler said in a statement.

"As such, we are closing the Pacifica Advance Product Design Center, consolidating the Advance Design function in Auburn Hills. Advance Design remains an integral part of our future design efforts, led by Trevor Creed, Senior Vice President -- Design.

"These changes set the stage for Chrysler's future global growth efforts, which also include our intent to establish global expertise in design, engineering and sourcing through centers of excellence. These actions will help the Company meet its long-term globalization goals," the company said.

Despite the impending shutdown of the Pacifica studio, Chrysler officials insist they have adequate resources to finance the company's future product plan, despite the pressures created by the economic slowdown and the heavy financial losses in 2006 and 2007. Since the private equity firm of Cerberus Capital Management now owns Chrysler, it no longer has to disclose financial data. However, the automaker is expected to post more losses this year because of weak sales and the ongoing cost of restructuring the company.--Joe Szczesny