Category Archives: news analysis

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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September EU Vehicle Sales Drop 11%. Eurozone Crisis Unabated

Posted on 16 October 2012 by Ken Zino

EU new vehicle registrations continued their downward slump in September declining 11% from September 2011. It was the twelfth straight month of sales declines across the economically embattled Eurozone as the trade bloc comprised of 27 bickering nations or tribes heads for its fifth straight year of declining sales. Continue reading →

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Gibbs High Speed Amphibian Unveiled – Quadski, a $200 Million Bet on an Unknown Market. Faster Horse or an Incipient Model T?

Posted on 15 October 2012 by Ken Zino

“Most people wouldn’t be doing what we are doing,” says Alan Gibbs, “because you can’t research the market.” The entrepreneur and multi-multi millionaire Gibbs along with his engineering partner Neil Jenkins are placing a $200 million bet against unknown odds that their jointly-held private company can become a force in what they call the high speed amphibian market. It’s a new form of transportation according to proponents, but a trifle according to critics. Continue reading →

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Ford and GM Set China Vehicle Sales Records in September

Posted on 15 October 2012 by Ken Zino

General Motors Company and Ford Motor Company have set September sales records in China, the world’s largest automarket. The results were in keeping with the disparate positions of the Number One and Number Two U.S. automakers in the communist country. Continue reading →

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NHTSA Prompts Toyota Power Window Switch Recall for Fires

Posted on 14 October 2012 by Ken Zino

Toyota Motor Sales, U.S.A. will recall 2.5 million vehicles – 7.5 million units worldwide – because a defective power window switch can cause fires. The latest Toyota safety problem was discovered by NHTSA earlier this year after it opened an investigation about an unusual number of consumer complaints – 32 – alleging a burning electric window switch on the driver’s side door. Toyota and NHTSA have known of the problem for years. Continue reading →

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Ally Financial Declares Dividends on Preferred Stock

Posted on 12 October 2012 by Ken Zino

The Ally Financial board of directors has declared a quarterly dividend on outstanding preferred stock effective 15 November 2012. A payment of approximately $134 million, or $1.125 per share, will go to the U.S. Treasury, which has invested $17.2 billion in keeping Ally, formerly GMAC, in business as a bank holding company. Continue reading →

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Ford Motor and General Motors Declare Stock Dividends

Posted on 12 October 2012 by Ken Zino

The Boards of Directors of Ford Motor (NYSE: F) and General Motors Company (NYSE: GM) have declared quarterly stock dividends, as the U.S. auto industry continues its slow financial recovery because of increasing auto sales. Continue reading →

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Driving the 2013 Lexus LS 460, F Sport and 600hL Flagship Sedans

Posted on 10 October 2012 by Ken Zino

Lexus after decades of understated luxury has turned to relying on a “bold new grilles” and German-like performance models across the lineup to attract younger buyers. The latest example comes from its flagship LS sedan, which once upon a time (1989) catapulted Lexus to luxury car fame by being anti-German with its compliant ride without harshness and nosie, anti-German with a simple interior, anti-German with its limited maintenance requirements, anti-German with its much higher quality and durability, and decidedly anti-German with its much lower – by thousands and thousands of dollars lower – sticker prices. This formula has Lexus on track to sell 250,000 luxury vehicles in the U.S. this year, where it has dominated luxury sales for decades, except for natural disaster induced production losses that curbed sales during 2011. Continue reading →

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U.S. Motorcycle Thefts Decrease to One Every 11 Minutes

Posted on 8 October 2012 by Ken Zino

The National Insurance Crime Bureau today said that motorcycle thefts were down 6% in 2011 from their 2010 total. This means 46,667 motorcycles reported stolen in 2011 compared with 49,791 in 2010. The theft rate, which sounds low, actually averages to one motorcycle theft every 11 minutes. Continue reading →

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New “Eco Friendly” Refrigerant Can Burn in Accidents Says Mercedes

Posted on 8 October 2012 by Ken Zino

Sometimes the cure is worse than the disease. Environmentalists have forced the use of a new air conditioning refrigerant in Europe, saying it is better at cutting down on global warming, but it turns a out that the latest concoction from DuPont or Honeywell can go up in flames during an accident. Continue reading →

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