Category Archives: results

Treasury Selling More GM Common Stock

The U.S. Department of the Treasury is continuing its sales of GM common stock starting today by launching a third “pre-defined written trading plan.” Terms were not disclosed. Continue reading

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GM Prices $4.5 Billion of Bonds to Buy Back VEBA Stock

General Motors Company announced today the pricing of three series of bonds that it will sell and use the $4.5 billion in proceeds to buy back stock from the UAW Retiree Medical Benefits Trust. Continue reading

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GM to Buy Back UAW Held Stock. Dividends to Follow?

The VEBA currently holds 260 million shares of Preferred Stock, and Canada GEN Investment Corporation holds another 16 million shares. Until the ownership of these shares transfer back to GM or other independent buyers, the slur “Government Motors” still applies since the shares where part of a controversial but effective bankruptcy reorganization that Canadian and U.S.> taxpayers subsidized in 2009. Continue reading

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BMW Recalls 5-Series Cars for Defective Rear Lights

BMW said that it does not believe a safety defect exists but is recalling the cars anyway. While likely such language is lawyer dictated, the Bavarians have a precarious relationship with U.S. safety regulators. Previously BMW was fined by NHTSA for covering up safety defects. Continue reading

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European Car Sales Down. Lowest Level Ever for Year

From January through August 2013, new car sales amounted to 7,841,596 units or 5.2% less than in the same period last year. This means that it was the lowest January to August level ever recorded since record keeping began in 1990, according to ACEA, the automakers trade association. Continue reading

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U.S. Trade Deficit Disaster Continues. Auto Industry Hit Hard

The United States’ international trade deficit in goods and services increased to $39.1 billion in July from $34.5 billion in June as exports decreased and imports increased. Imports increased to $228.6 billion in July from $225.1 billion in June. Goods were $191.3 billion in July, up from $187.9 billion in June. Services were $37.3 billion in July, up from $37.2 billion in June. Continue reading

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U.S. New Car Transaction Prices Continue Slow Rise

The average transaction price for new light vehicles in the United States was $31,657 in August 2013, an increase of $221 or +0.7% year-over-year. Continue reading

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Chrysler IPO Filing this Week

The UAW says the stock is worth $10.3 billion; Fiat says it is worth $4.2 billion. Fiat, of course, saved Chrysler from oblivion in 2009 as part of a controversial U.S. Treasury financed bankruptcy proceeding that essentially handed over Chrysler to Fiat for Fiat’s promise to save UAW jobs and reinvest in the company, but no cash. Continue reading

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China Auto Sales Continue Upward. GM Sets August Record

China’s entire light vehicle market posted a solid start in Q3, with locally‐made light vehicle sales according to the latest data available reaching 1.43 million units in July, up 9.3% from a year earlier. Continue reading

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2014 Toyota Corolla Ups Ante in Compact Car Game

Toyota Motor coming off two straight months knocking Ford Motor out of its traditional Number Two sales position in the U.S. market is introducing an all-new Corolla model. Not only will this present formidable competition for the Ford Focus, but it will also challenge Honda Civic, Nissan Altima, Mazda3 as well as the rest of compact cars in this high volume segment. Continue reading

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August European Auto Sales Down Again

Auto sales in Western Europe fell by 5.3% in August dashing the hopes of auto executives that the market had finally bottomed out while continuing a five year negative trend as the results continue to confirm the bleak conditions facing the industry. Continue reading

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Ford Motor Company Credit Ratings Raised by S&P

Standard & Poor’s Ratings Services today raised its credit ratings on Ford Motor Company and Ford Motor Credit to an investment grade of ‘BBB-‘ from ‘BB+’, and revised the outlook on both companies to stable from positive. Continue reading

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Asian Brands Dominate U.S. August Sales

While the pickup truck market dominated by the Detroit Three exploded during August, in the crucial and larger car market, Asian brands ruled. Continue reading

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Chrysler, Ford, GM Post Double Digit August Sales Gains

Chrysler, Ford and GM all recorded double digit gains in U.S. August sales as the market went back to the pre-Great Recession levels of 2007. Robust pickup truck sales, a relatively trouble free changeover to the production of 2014 models, cheap credit and strong retail demand, all were factors in an overall industry that is now running at more than 16 million units annually. Continue reading

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Ford Motor Used Vehicle Sales Running at Record Levels

In general, automakers are setting record used car sales through their dealers as the U.S. economy slowly recovers – more than 80% of workers commute to work in vehicles – and interest rates remain at absurdly low rates as taxpayers continue to subsidize the bankers and Wall Street firms that caused the Great Recession. Record high new vehicle prices – more than $30,000 on average for a car, +$40,000 for a truck – are also forcing some buyers into used vehicles. Continue reading

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