SubscribeAll Posts Tagged With: "auto industry"
Ford’s Sales Down 48 Percent
Tom Krisher, AP Auto Writer
Ford Motor Co. says its U.S. sales fell 48 percent in February, proof that huge rebates and low-interest financing aren’t enough to entice fearful consumers to make a major purchase
The Dearborn, Mich., automaker sold 99,060 vehicles last month, compared with 192,248 the same month in 2008. Other automakers report their sales later Tuesday
My comment: We have too many cars, houses, nail salons, Applebees, strip malls, Home Depots, sub shops etc…already. Peoples standard of living has to return to the mean. That will mean a drastic shrinkage in all of these businesses. I think we can start using the…
4Mar2009 | The Real Deal | 0 comments | ContinuedU.S. Auto Sales Post Worst Year Since 1992
Total U.S. auto sales last year hit a 16-year low as the world’s major carmakers racked alarmingly high double-digit sales drops in the recession-plagued United States.
According to industry research firm Autodata Corp., U.S. vehicle sales clocked in a 13.2 million, the lowest since 1992. The year before, annual sales were 16.1 million.
U.S. auto sales fell 36% in December, an alarming signal that we’ve yet to see the worst.
“It’s one of the worst years ever, and this year will be worse,” Stephanie Brinley, an analyst at consulting firm AutoPacific Inc. in Southfield, Mich., told Bloomberg “It’s not a gas problem.…
7Jan2009 | Money Morning | 0 comments | ContinuedGMAC: A Sign of the Times
WASHINGTON — The Treasury Department said Monday that it will provide $5 billion to GMAC Financial Services LLC, the ailing financing arm of General Motors Corp., from the $700 billion bank rescue program.(The Huffington Post)
GMAC will also potentially receive up to $1 billion from the Treasury in the form of an equity purchase. Shocking right? Not if you have two eyes and can read beyond a 4th grade level.
Back in the first week of September I shared with you this figure from Ty Andros.
* Lehman Brothers (LEH)–11-13%
* Merrill Lynch (MER)–11-12%
* Morgan Stanley (MS)–9-10%
* Citigroup (C)–9 ½-10…
Buy, Sell or Hold Insight: GM Remains a High Risk Profit Play, Even as it Files its Turnaround Plan Today
With America’s “Big Three” automakers all due to submit turnaround plans to Congress today (Tuesday) – a requirement if General Motor Corp. (GM), Ford Motor Co. (F), and Chrysler Corp., are to receive $25 billion in government loans – I couldn’t help but recall the moment eight years ago when I realized the U.S. auto industry was skidding toward a financial collapse.
I’ve been thinking about that market call of mine a lot of late, particularly after recently reading that JP Morgan Chase & Co. (JPM) credit analysts had rated GM’s distressed debt as a “Buy,” noting that the company was…
2Dec2008 | Money Morning | 0 comments | ContinuedGM, Ford, and Chrysler Chiefs Push for Action in Washington as Congress Debates Another Bailout
Executives from Detroit’s “Big Three” auto companies – General Motors Corp. (GM), Ford Motor Co. (F), and Chrysler LLC – yesterday (Tuesday) joined Congressional Democrats on Capitol Hill to make the case for an industry-wide bailout that could spare their troubled companies from totally collapsing. Detroit’s bigwigs have been met with considerable resistance so far, but will continue to make their case today and into the New Year.
Ford, GM and Chrysler are all in danger of folding into bankruptcy after a complete lack of innovation and outmoded business models combined with the current financial crisis and a lack of credit to…
20Nov2008 | Money Morning | Comments Off | ContinuedObama Wants to Appoint Auto Czar, Seeks Billions in Detroit Aid
President-elect Barack Obama is asking a Congressional lame-duck session to approve $25 billion to $50 billion in rescue aid for Detroit’s crumbling auto industry.
He also wants to appoint a czar or board to oversee the auto industry’s rescue and reconstruction, Bloomberg reported.
Both are steep requests that would require nationwide support – from Michigan state officials all the way up to President George W. Bush. Without 60 seats in the Senate, Democrats would need a few Republicans to cross the party aisle on the vote, should Congress draft and approve legislation by the end of next week’s session.
Story…
14Nov2008 | Money Morning | Comments Off | ContinuedGM almost out of cash
CNN Money
11/07/08
Chris Isidore
General Motors shook an already embattled auto industry Friday as it reported a huge quarterly loss that was much worse than expected and warned it is in danger of running out of cash in the coming months.
The nation’s largest automaker reported that it lost $4.2 billion, or $7.35 a share, excluding special items. That’s up from the loss $1.6 billion or $2.86 a share it reported a year earlier and was far worse than the forecast of analysts surveyed by earnings tracker Thomson Reuters, which had forecast a loss of $3.70 a share.
But the most shocking news came…
10Nov2008 | The Real Deal | Comments Off | ContinuedBailout Plan Forcing U.S. to Borrow $1.4 Trillion, Creating a $1 Trillion Deficit
The U.S. Treasury Department plans to borrow a record $550 billion in the current quarter, and another $368 billion in the first three months of the New Year – money needed to fund the $700 billion bailout plan the government is using to battle the worst financial crisis since the Great Depression.
Wall Street bond traders estimate that the U.S. government will have to borrow a record $1.4 trillion during the current fiscal year – an unprecedented amount of debt that’s nevertheless needed to cover a federal budget deficit that’s expected to approach $1 trillion for the fiscal year, CNNMoney.com reported.
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GM and Ford Choose Different Routes to Return to Profitability
Shares of Ford Motor Co. (F) and General Motors Corp. (GM) posted gains yesterday (Tuesday) on speculation that consolidation in the U.S. domestic auto industry could be the struggling sector’s saving grace.
Over the last three trading sessions, Ford shares are up almost 18%, while GM shares are up over 37% on reports of possible merger talks and asset sales.
Both stocks have been hammered year-to-date, with Ford shares having plunged over 63% and GM shares down a staggering 74%. Declining sales have seen the automakers’ stocks touch lows not seen in decades.
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GM Announces Second Round of Cost Cuts in Six Weeks as U.S. Economy Continues to Slump
General Motors Corp. (GM) yesterday (Tuesday) announced a series of cost-saving measures aimed at fighting waning domestic sales fueled by a weak U.S. economy and the soaring cost of fuel.
“We are responding aggressively to the challenges of today’s U.S. auto market,†GM Chairman and Chief Executive Officer Rick Wagoner said in a General Motors company statement announcing the cuts.
“We will continue to take the steps necessary to align our business structure with the lower vehicle sales volumes and shifts in sales mix,†he added, “We remain committed to bringing to market great products that target changing consumer preferences for more fuel-efficient…
16Jul2008 | Money Morning | Comments Off | Continued
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