Category Archives: news analysis

Fiat Group Doubles Q3 Profit to €286 Million. Revenue €951 Million

Posted on 30 October 2012 by Ken Zino

The Fiat Group in Turin today recorded a Q3 profit of €286 million or $371 million (2011 €112 m) as Chrysler earnings in North America offset losses in Europe. Without Chrysler, Fiat would have lost -€281 million in the quarter. Continue reading →

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Ford Motor Posts $1.6 Billion Profit in Q3. Europe Loses $468 Million

Posted on 30 October 2012 by Ken Zino

Ford Motor Company said today that Q3 profits were $1.6 billion based on revenues of $32.1 billion. Q3 pre-tax profit was $2.2 billion, or 40 cents per share, an increase of $200 million from Q3 2011. Ford Credit reported a pre-tax profit of $393 million, a decrease of $188 million from third quarter 2011. The positive results, as they have for years now, came almost entirely from North America, which achieved its highest quarterly profit, pre-tax $2.3 billion and operating margin 12%, since 2000 when the Ford Motor started reporting the region as a separate business unit. Continue reading →

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Japanese Top CR Reliability Survey Again. Ford, Lincoln Plummet

Posted on 29 October 2012 by Ken Zino

Toyota Motor Corporation’s three brands – Scion, Toyota, and Lexus took the highest places in the latest reliability survey released today at the Automotive Press Association in Detroit. The Toyota brands were followed by four other Japanese makes: Mazda, Subaru, Honda, and Acura, respectively. All of the models produced by the top seven Japanese brands had average or better reliability according to Consumer Reports, based on a survey of 800,000 owners who reported on 1.2 million vehicles up to ten years old. Of the 90 Japanese models reflected in the Consumer Reports brand comparison, 86 were average or better, with 35 earning the highest rating. Continue reading →

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GM and BMW Diagnostic Tool Counterfeiter Arrested in Virginia

Posted on 26 October 2012 by Ken Zino

The seller of Chinese-built counterfeit tools was indicted yesterday by a federal grand jury in the Eastern District of Virginia for alleged participating in a conspiracy to sell U.S. consumers more than $3 million worth of counterfeit General Motors (GM) and Bavarian Motor Works (BMW) automotive diagnostic tools, electronic keys and fobs. Continue reading →

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Daimler Posts Q3 Profit of €1.2 Million, a €155 Million Drop

Posted on 26 October 2012 by Ken Zino

The Eurozone crisis expanded into Germany in Q3 as Daimler AG (DAI) posted Group earnings of €1,921 million, off from Q3 in 2011at €1,968 million. Net profits for the period were €1,205 million (Q3 2011: €1,360 million), leading to declining earnings per share of €1.03 (Q3 2011: €1.21). Daimler sold 528,600 cars and commercial vehicles worldwide in Q3, surpassing the prior-year total by 1%. Revenue of €28.6 billion was 8% above the prior-year level. Adjusted for changes in currency exchange rates, the increase amounted to only 3%. As a result, of the weakened results and prospects for the future, Daimler said that it will not match 2011’s earnings. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars tried to be optimistic in a statement: “Considering the significantly more difficult market conditions, Daimler achieved good earnings in the third quarter.” The earnings release was sent out ahead of schedule because of the accidental issuing of an e-mail. Continue reading →

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Presidential Run Gets Uglier – Labor Ads “Romney a Traitor”

Posted on 25 October 2012 by Ken Zino

The United Auto Workers Union among other labor groups is applauding and promoting new advertisements that call presidential candidate Mitt Romney an economic traitor who desecrated teh American flag. The ads – both television and online were unveiled today by a front group called Workers’ Voice and Patriot Majority Continue reading →

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French Government Backs €7B in PSA Peugeot Citroën Debt

Posted on 24 October 2012 by Ken Zino

The French State will provide up to €7 billion in refinancing guarantees for new bond issues during the 2013-2015 period. It is the latest example of a taxpayer bailout of an ailing auto company facing increasingly limited credit options in the private capital markets, if they now exist at all. The subsidy is subject to EU approval by the Competition Commission in Brussels, and is vehemently opposed by the German state of Lower Saxony, the second largest owner of VW, the largest automaker in Europe by far. Continue reading →

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NADA Chairman Says Automakers Use Unfair Business Practices

Posted on 23 October 2012 by Ken Zino

The new chairman of the National Automobile Dealers Association, Bill Underriner, said today that automakers need to stop intruding into dealerships. After noting the Tigers are back in the World Series at the Automotive Press Association in Detroit, he said there’s “good energy here. The auto industry is doing its part to lead the economic recovery. But we still have a long way to go – not just here but all around the country. Auto sales are up, but financial pressures are too…especially on dealerships.” Continue reading →

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Ally Financial Sells Its Canadian Auto Financing Business

Posted on 23 October 2012 by Ken Zino

Notably absent as buyers were Ford Credit and General Motors. Ally has other international operations in Europe and Latin America on the block, and GM has submitted a bid for the business. Ally expects to announce the buyer after the U.S. Presidential election next month. Continue reading →

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BMW to Build a Car Plant in Brazil Prompted by Tough Legislation

Posted on 22 October 2012 by Ken Zino

The BMW Group plans to build a new auto plant in Brazil, based on the government’s new industrial policy under the so-called “Inovar Auto” legislation just adapted. The hard-nosed legislation strictly limits the amount of money that can be counted toward local content, imposes tariffs and requires specific R&D and production investments as a percentage of sales that increase from now until 2017. It is the latest example of protecting a local auto industry against pillaging by global companies in the view of supporters. Critics counter that consumers will pay higher prices. Continue reading →

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Toyota to Buy Cascade Corporation, a Leader in Materials Handling

Posted on 22 October 2012 by Ken Zino

Toyota Industries Corporation (Tokyo Stock Exchange: 6201) (“TICO”) and Cascade Corporation (NYSE: CASC) (“Cascade”) today announced that they have entered into an agreement under which TICO will acquire 100% of the shares of Cascade for $65 per share in cash. The transaction is valued at $759 million in the tender offer. The purchase price is a 23% percent premium over Cascade’s volume-weighted average share price for the last 60 days. No wonder, the buyout has been unanimously approved by the Boards of Directors of both TICO and Cascade. Continue reading →

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Magna International Loses Bid for New Infiniti Compact Car

Posted on 19 October 2012 by Ken Zino

Magna International said today that Nissan Motor will make a new premium compact Infiniti car itself rather than use a Magna Steyr plant in Graz, Austria in 2014. The Infiniti deal, first announced last May, would have represented the first Japanese car ever assembled by the giant Canadian-based auto components company whose largest operations are in Europe. Continue reading →

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Stefan Jacoby Out at Volvo Car. Håkan Samuelsson new CEO

Posted on 19 October 2012 by Ken Zino

The Board of Directors of Volvo Car Group has appointed Håkan Samuelsson as its new President & CEO effective immediately, the Chinese owned company said today. Stefan Jacoby will leave Volvo Car Group and the board. Continue reading →

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Ally Financial to Sell Mexican Insurance Business

Posted on 18 October 2012 by Ken Zino

Ally Financial today announced that it has reached an agreement to sell its Mexican insurance business, ABA Seguros, to the ACE Group, one of the world’s largest multi-line property and casualty insurers. ABA Seguros is the fourth largest insurer in the Mexican auto insurance market, and the transaction has a purchase price of $865 million in cash.

The latest move to fix the balance sheet of the former finance arm of General Motors comes a week after the announcement that Ally will make a payment of approximately $134 million, or $1.125 per share, to the U.S. Treasury next month. U.S. taxpayers have invested $17.2 billion in keeping Ally in business as a bank holding company after improvident home mortgages made it bankrupt under the Bush market crash. Continue reading →

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A123 Files Bankruptcy. Johnson Controls to Purchase its Auto Assets

Posted on 16 October 2012 by Ken Zino

A123 Systems (Nasdaq: AONE), a developer and manufacturer of nanophosphate lithium iron batteries and systems, today filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware. A123 ran out cash as demand for EVs and its batteries remains weak to almost non-existent. As part of a proposed reorganization Johnson Controls (NYSE: JCI) will supply $72.5 million in “debtor in possession” financing to support A123’s continued operations as JCI purchases parts of A123. Continue reading →

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