Category Archives: economy

Ford Makes $8 Billion in 2012 – Almost all in North America

Posted on 29 January 2013 by Ken Zino

Ford remains heavily dependent on the slowly recovering North American auto market, where it earned $8.3 billion, with an operating margin of 10% on sales of 2.8 million vehicles during 2012. Because of Ford’s 2012 financial performance, the company will make profit sharing payments to 45,800 U.S. hourly employees of $8,300 each. Ford expects similar North American results in 2013, with perhaps a profit increase if the pickup truck – where it is the sales leader – market continues to recover. Continue reading →

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GM to Invest $600 Million in Fairfax Plant and Keep 4,000 Jobs

Posted on 28 January 2013 by Ken Zino

Sadly in the current language of multinational corporations operating in the ailing U.S. economy and its largely jobless recovery, the investment will not create any new jobs but keep 4,000. For this taxpayers of Kansas, according to The Kansas City Star approved $120 million in revenue bonds last September to subsidize the new paint shop. Continue reading →

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Treasury Now Selling More General Motors Stock at a Loss

Posted on 18 January 2013 by Ken Zino

The U.S. Department of the Treasury announced today that it is starting to sell its 300.1 million remaining shares of General Motors common stock with the initiation of a pre-arranged written trading plan. Under the unpublished plan, Treasury will proceed with its December 2012 announcement that it will sell its GM shares “in an orderly fashion” and fully exit its remaining GM investment within the next 12-15 months, subject to market conditions. Continue reading →

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Ford to Hire 2,200 Salaried Workers in the U.S. During 2013

Posted on 11 January 2013 by Ken Zino

Ford Motor said today that it plans to hire 2,200 salaried workers in the U.S. during 2013 to fill jobs in Product Development, Manufacturing and IT. It is the largest increase in new salaried workers in more than a decade. The announcement follows one yesterday when General Motors said it will hire 1,000 computer programmers to staff a new Information Technology office near Atlanta, Georgia. Continue reading →

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BMW Opens Health Center at its South Carolina SUV Plant

Posted on 8 January 2013 by Ken Zino

BMW Manufacturing has opened a Family Health Center at its South Carolina plant for all BMW workers, retirees and their dependents. BMW’s existing onsite family pharmacy was relocated to the new facility and joined there by occupational, primary care services, as well as vision, dental and physical therapy. Continue reading →

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December Car Sales in Western Europe Drop 16%. Off -8% in 2012

Posted on 8 January 2013 by Ken Zino

The last month of 2012 saw car sales in Western Europe decline by 16% to a SAAR – or Seasonally Adjusted Annualized Rate – of just 11.7 million vehicles as the Eurozone crisis deepens. The market dropped more than -8% for the year taking it back to levels not seen since 1993. Sales in 2012 are more than 3 million units lower or -21%, compared to the size of the 2007 market. Continue reading →

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Ally Financial Pays Off Last $4.5 Billion of Debt Issued Under TLGP

Posted on 19 December 2012 by Ken Zino

The U.S. Treasury, via taxpayers, currently holds about 74% of Ally common equity, and $5.9 billion in mandatory convertible preferred securities, which have a dividend rate of 9%, after a more than $17 billion bailout. Ally at the end of Q3 2012 had about $182 billion in assets, so it increasingly looks like taxpayers have a good chance at getting their money paid back, perhaps turning a profit. Continue reading →

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U.S. Treasury to Sell GM Stock at a Loss During the Next 15 Months

Posted on 19 December 2012 by Ken Zino

It appears that Treasury is making a very bad decision here based on ideology, not good old American pragmatism. It was ideologues who opposed the successful TARP bailouts, and now Treasury – the government agency that is supposed to understand money and stock markets – is also taking an impractical position based also on ideology. Since the end of September taxpayers earned more than $1.5 billion from the increase in value of GM stock. Why dump and run now? No surprise here at AutoInformed that most Americans are disgusted with the way government handles their money. Continue reading →

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U.S. Treasury Sells Final Shares of AIG Common Stock. Taxpayers Earn $22.7 Billion! More Profits to Come from the Bailout

Posted on 11 December 2012 by Ken Zino

Along with today’s stock sale, the return to date on the Federal Reserve and Treasury’s combined $182 billion commitment to bailout AIG during the financial crisis is now $22.7 billion. Treasury has now earned a positive return of $5 billion and the Federal Reserve has posted a profit of $17.7 billion. Continue reading →

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GM China Expands Advanced Technical Center in Shanghai

Posted on 30 November 2012 by Ken Zino

Increasingly, sophisticated engineering and development work once done in the U.S. is being shifted to China. Last August, GM began fabricating and testing prototype battery cells and complete systems at the ATC. At the same time, SAIC and Shanghai GM and the Automotive Technical Center opened China’s largest proving grounds. Continue reading →

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Bankrupt Saab Automobile Car Auction Now Underway

Posted on 28 November 2012 by Ken Zino

The receivers of bankrupt Saab Automobile AB are conducting an action of 68 cars, some of them rare models, in order to raise funds. These include cars where only a few examples were ever made, as well as a number of the models Saab began to produce, but were never sold. Continue reading →

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SAIC-GM-Wuling to Build Third China Complex in Ford’s Chongqing

Posted on 28 November 2012 by Ken Zino

Chongqing of course is the original home of Ford China and now contains a sprawling manufacturing center. Changan Ford Mazda Automobile (CFMA) last August broke ground for a third assembly plant, Chongqing 3, in China. CFMA has also signed a letter of intent with the Municipality of Chongqing to explore expanding its research and engineering capability in Chongqing. Continue reading →

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GM to Increase Electric Vehicle Development in China

Posted on 28 November 2012 by Ken Zino

General Motors is increasing the development of electrified vehicles in China, the company’s senior technology leader said during a speech at the FISITA 2012 World Automotive Congress in Beijing. In September 2011, GM China opened the Advanced Materials Lab in Shanghai. The facility, which is part of the GM China’s sprawling Advanced Technical Center, is engaged in research on battery technology and lightweight materials.

This is the result of a deal between SAIC Motor Corporation and GM for the co-development of a new electric vehicle architecture in China. Communist Chinese industrial policy requires local partners as a condition of access to the market. Continue reading →

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GM Buys Overseas Finance Business from Ally for $4.2 Billion

Posted on 23 November 2012 by Ken Zino

GM said that with addition of Ally’s international operations, GM Financial will be able to provide credit for customers and dealers in markets that make up about 80% of GM’s global sales. In essence, GM is recreating GMAC. Continue reading →

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Thanksgiving for Our Democracy

Posted on 22 November 2012 by Ken Zino

What is often called the most American of holidays, Thanksgiving, had its roots in pilgrim and other colonial celebrations of refugee and immigrant survival and bountiful harvests going back to the early 17th century. Continue reading →

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