Category Archives: economy

Ford Reduces Debt With Successful Conversion Offers

Posted on 24 November 2010 by Ken Zino

Ford Motor Company (NYSE: F) announced today the results of conversion offers of bonds for stock that will reduce the company’s Automotive debt by more than $1.9 billion, lowering annualized interest costs by about $180 million. “These successful conversion offers represent another significant step toward our goal of reducing our Automotive debt and improving our balance sheet,” said Lewis Booth, Ford executive vice president and chief financial officer.

However, Ford is still listed as below investment grade by the rating agencies such as Moody’s Investors Service (Ba2) and Standard & Poor’s B+. Both junk ratings raise borrowing costs and limit large funds from buying Ford bonds. Ford lost its investment grade rating in 2005. Continue reading →

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Bailout Blessing! GM Saves 184 Jobs in Three Plants

Posted on 24 November 2010 by Ken Zino

General Motors has just announced a $163.2-million investment in its operations in Flint and Bay City, Michigan, and Defiance, Ohio, to support engine production for the Chevrolet Volt, Chevrolet Cruze and a new Chevrolet small car to be built in the United States. The investment will protect 184 jobs at the three sites. Continue reading →

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Use Your Safety Belt, Please

Posted on 24 November 2010 by Ken Zino

The National Safety Council estimates 441 people will die and 42,700 will be seriously injured in U.S. traffic crashes during the 2010 Thanksgiving holiday period, from 6 p.m. Nov. 24 to midnight Nov. 28.

However, NSC estimates that as many as 336 people will be saved because they used their safety belts, and an additional 115 lives would be saved if everybody buckled up during the Thanksgiving holiday. Continue reading →

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Thanksgiving Auto Travel Up, but 30% below 2005 Peak

Posted on 24 November 2010 by Ken Zino

AAA projects the number of Americans traveling for the Thanksgiving holiday will increase 11.4 percent from 2009, with approximately 42.2 million travelers taking a trip at least 50 miles away from home. Continue reading →

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Ex Car Czar Settles with SEC; Sued for Bribery by New York

Posted on 19 November 2010 by Ken Zino

As General Motors stock successfully returned to public trading yesterday, Steven Rattner, 58, the Obama Administrations’ former “car czar,” was sued by New York’s Attorney General for using bribes to secure $150 million in investments for his former firm, the Quadrangle … Continue reading →

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GM Stock Price Soars on IPO Frenzy

Posted on 18 November 2010 by Ken Zino

My how quickly public perceptions change. General Motors, the ailing symbol of demonstrably bad senior management and worse union labor practices, is now the darling of Wall Street as it returns to public trading today in New York and Toronto under the ticker symbol “GM.” Continue reading →

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Just How Bad is GM’s Accounting?

Posted on 14 November 2010 by Ken Zino

GM says that it doesn’t have the financial controls in place to know if its published results are real or if there are potential material changes lurking. Continue reading →

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Ford to Build a Second Engine Plant in China

Posted on 2 November 2010 by Ken Zino

Ford Motor Company and its government dictated partners are building new engine plant in China that is due to open in 2013. With the additional capacity of 400,000 units at the new facility, Ford’s joint venture, Changan Ford Mazda Automobile Ltd (CFMA) is more than doubling its existing engine capacity of 350,000, to 750,000 engines annually.

China is now by far the world’s largest auto market, and Chinese industrial policy in effect requires that all profits earned there are reinvested in the country and its local partners. The U.S. remains alone among industrialized nations – with elected or totalitarian governments – without any such job and investment protecting policy.    Continue reading →

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About AutoInformed

Posted on 1 November 2010 by Ken Zino

While “automobility” continues to thrive in this still new century, the reigning auto world order is amidst an upheaval that parallels revolutions of the 18th. There are similar consequences for all involved in automobiles.  

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