Category Archives: news analysis

Chevrolet Orlando Debuts this October in Canada, but not U.S. Competitive MPV Rejected Because of Greater Equinox Profits

Unfortunately, U.S. buyers won’t get a shot at Orlando because some executives inside GM are basking in the profits (at the moment) of the more expensive and fuel thirsty Chevrolet Equinox. ‘mericans like trucks and all-wheel-drive, and those versions of the Equinox are giving GM some badly needed profits at the moment.

It’s one of those GM financial decisions that look good on paper at the time, but in my view represents the inability to take a longer term chance by attacking a segment GM’s not in. Ford, with its decision to shelve the C-Max seven passenger minivan, and offer only low volume, expensive plug-in hybrid versions has given GM an opening here. And that says nothing of successful entries such as the Mazda 5 or even the Scion Xb, and who knows what else. Continue reading

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Porsche Sales Down in July, But Set New Record in China

Porsche said it had record sales in the Chinese market in July with deliveries of 2,484 vehicles, the best monthly result in China ever. In total the sports car manufacturer delivered 14,751 vehicles in the current financial year in what is now Porsche’s second largest market. This marks a 72.6 % increase compared with the period January to July 2010. The Cayenne especially is in strong demand in Asia. Continue reading

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GM Rethinks ASEAN Strategy. Invests $150M in Indonesia

The investment represents a change in GM strategy in Asia by expanding GM production away from Vietnam and especially Thailand, which provided a good infrastructure and previously political stability. However, Indonesia has been widely derided for its corruption and red tape. Continue reading

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GM CEO Akerson Buys Another 10,000 Shares at $25.05

Akerson vowed this week that there was plenty of upside in GM stock given its new structure and emphasis on managing costs. On a cost cutting side, one program with great promise involves vehicle architectures. Akerson said “We need to simplify.” The company said that by 2018 it plans to cut that number to 14 from the 30 currently use.

Skeptics, and there are many, say show us the earnings per share and start paying dividends. Well, at least Akerson is putting his money where his promises are, so to speak. Continue reading

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EU-South Korea Free Trade Agreement Favors Koreans

Under current market conditions, this waiver will not balance the current €10.7 billion trade deficit in automobiles, according to the respected consultancy Frost & Sullivan. Continue reading

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$10,000 Solar Panel Option Coming for Focus Electric Vehicle. Ford is using the new “Green Math” to Calculate Benefits

So if you have enough sunshine to generate the 3,000 kWh, that means you save $330 annually for a pay back period of, um, 30 years and four months (using basic arithmetic, not green math). The panels are guaranteed for 25 years by the way. Continue reading

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GM Stock Below $25 down from $39 High as Conference Opens

During the program, senior leaders reviewed GM’s progress and outline plans for further improvement. In a sense GM is playing a “beat the reaper” game – can GM increase share and sales of less profitable small cars such as the Chevrolet Sonic, which is just entering production, at a greater rate than the drop off in truck sales and larger per unit profits in North America, while growing in Eastern Europe, South America and Asia? Continue reading

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President Obama to Announce First Fuel Economy Regulations for Heavy Trucks, Buses. $50 Billion in Fuel Savings Claimed

The complicated standards vary by size and type of truck, and whether gasoline or diesel engines are used. However they appear stringent, calling for a 7-20% reduction in emissions with roughly corresponding increases in fuel economy. Continue reading

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BMW Group Posts Record Global Sales for July

BMW was the best-selling premium automobile brand in the US market, although incentive costs were rising to almost $3,000 a unit and Lexus was effectively shut out of the market because of earthquake shortages. Continue reading

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General Motors Posts Q2 Earnings of $2.5 Billion. Most in N.A.

Virtually all of GM’s earnings – $2.2B – came from North America, a worrisome development for the most international of the Detroit 3, whose largest markets are China, followed by the United States, Brazil, the United Kingdom, Germany, Canada, and Italy.

Earnings were helped by booking revenue from pickup trucks shipped to North American dealers. GM built 516,000 light trucks in Q2, up 14% from a year earlier. Passenger car production increased 10% to 308,000. GM dealers currently have 209,000 pickups in stock – the equivalent of a 115 days supply in an industry that considers 60 days normal. Continue reading

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Bye Bye American Dream – One in Four Could Not Pay for a Major Auto Repair in Latest AAA Economic Survey

One in four American drivers could not pay for a car repair of $2000 if faced with one today, according to the results of a survey released today by AAA. The survey also said one in eight would be unable to pay for a repair bill of $1000 – easily reached with overly complex vehicles on the road. Continue reading

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Japanese Sales: Toyota, Honda Down. Nissan up Slightly in July

There were varying results for Japanese sales in the U.S. sales race in July with Toyota and Honda posting double digit declines while Nissan increased sales from July of 2010. Overall, the total U.S. light vehicle market grew less than 1% from what was a weak July of 2010 as the economy languishes and unemployment remains above 9%. Continue reading

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Ford Recalls More than 1 Million F-Series Trucks for Fuel Tank Fires. Reverses No Risk Stance after NHTSA Digs Deeper

Ford Motor Company is recalling more that 1 million F-Series pickup trucks and corresponding Lincoln versions built during model years 1997 through 2004 because of fuel tank fires. The Ford recalls result from the automaker’s latest corrosion problem caused by … Continue reading

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Toyota Posts FY Q1 Loss from Earthquake and Strong Yen

Toyota Motor Corporation (TMC) in Japan today said that operating income decreased from ¥211.6 billion to a loss of ¥108.0 billion, while income before income taxes was a loss of ¥80.5 billion yen. This was Toyota’s first quarterly loss in two years as Net income decreased from ¥190.4 billion yen to ¥1.1 billion. Operating income decreased by ¥319.6 billion yen. Continue reading

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July Used Car Sales Boom. Have Automakers Priced New Vehicles – Now with an Average $30,000 Price – Too High?

The latest research shows that sales of used cars and light trucks in the U.S. grew strongly – up more than 13% for the month of July. About 4.5 million previously owned vehicles changed hands. That’s the best July since 2005… Continue reading

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