Tag Archives: autoinformed

Ford Cuts 2014 Earnings Outlook. Warranty Costs Hurt 2013

In a sense, 2014 is an investment year that will hurt returns short term, but is necessary to keep Ford competitive going forward. Overall, FMC will launch 23 new vehicles globally, with 16 launches in North America, it’s only solidly profitable region. Since these North American freshenings will cover a significant percentage of the region’s volume, Ford said that it now expects sales next year to be lower, even as the region grows by roughly one million units or more in total. Continue reading

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New NASCAR Rules Announced. Let the Cheating Begin

NASCAR has a disjointed TV package split among networks, and a blue-collar fan base that remains severely hurt by the ongoing effects of the Great Recession and growing income inequality, which is leaving empty seats in its stands. Worse, in the one area that NASCAR can control, the racing is hardly that. Competition is limited, passing difficult or rare, and cars strung out. Ho-hum. Continue reading

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General Motors Sells Record 3 Million Vehicles in China

However, the Detroit based automaker is facing a serious challenge to its long held sales leadership in the communist country from Volkswagen Group this year. Continue reading

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EU November Cars Sales Up Slightly

In absolute numbers, this represents the third lowest level recorded for a month of November since ACEA, the automakers trade group, recorded new registrations in the EU27 in 2003. Continue reading

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Mercedes-Benz USA Names Dietmar Exler VP Sales

Exler succeeds Michael Slagter, senior vice president, sales, who will retire at the end of February after 11 years of service with MBUSA and nearly four decades in the automotive industry. Continue reading

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GM to Invest More than $1 Billion on Five U.S. Plant Upgrades

General Motors said today it will invest almost $1.3 billion in plant upgrades at five manufacturing sites in Michigan, Ohio and Indiana to produce new fuel-efficient engines and transmissions, improve quality and streamline logistics. The investments combined will create or retain about 1,000 jobs. Continue reading

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Chevy’s European Exit Cost to GM More than $1 Billion

While the dropping of Chevrolet as a mainstream brand in Eastern and Western Europe by 2016 is a good strategic move for GM, the retreat will be costly to shareholders. GM estimates that it will take special charges of $700 million to $1 billion primarily in Q4 of 2013 and continuing through the first half of 2014. Continue reading

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Odometer Fraud Continues – $760 Million lost annually

Odometer fraud remains a major problem for car owners and shoppers with more than 190,000 vehicles having their odometers rolled back every year. Continue reading

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See the USA in a Chevrolet, but Not Europe

Cadillac is finalizing plans for expanding in the European market to expand its distribution network during the next three years as it prepares for numerous product introductions. It sounds like the same strategy as the old Chevrolet one, but the difference is GM will not be competing against itself. Cadillac “only” has to compete against Audi, BMW, Lexus and Mercedes-Benz… Continue reading

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Global Light Vehicle Sales at Record Pace

Led by the Chinese market, the world’s largest, global vehicle sales again were at a record pace during the month of November. Preliminary results for show the light vehicle market soared to a new record of more than 86 million units a year. Continue reading

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GM to End Manufacturing in Australia by 2017

There has been a whirlwind of announcements recently from GM as the U.S. government sold all its stock, Mary Barra appointed the next CEO, and numerous actions taken to clean up its balance sheet and improve its ability to produce vehicles with the economies of scale that GM lost during the past couple of decades. Continue reading

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GM sells all of its Stock in Ally, formerly GMAC

GM’s plan is to put back in place a GMAC-like operation, dubbed GM Financial, with many of the companies coming from Ally, which was GMAC and went bankrupt at the onset of the Great Recession because of its reckless home lending practices. A controversial U.S. taxpayer-funded bailout ensued, one that has not been paid back. Continue reading

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Fuel Economy of New U.S. Vehicles at Record High

The large fuel economy improvement is part of longer-term trends. Fuel economy has increased by 2.6 mpg or 12% since 2008, and by 4.3 mpg or 22% since 2004. The average carbon dioxide emissions of 376 grams per mile in model year 2012 also was a record low. Continue reading

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GM Sells Peugeot Shares. Claims Strategic Alliance Lives

As GM was issuing its statement, PSA shares in Paris were sinking after the automaker said more write-downs are coming with perhaps the need to raise more capital. GM has already written of part of its investment in PSA and it is clearly cutting its losses, with another write-down likely to follow in its Q4 results. Peugeot is trading at $15 a share, down from $30 in 2012. Continue reading

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Auto Engineering now White Water Rafting as CAFE Goes Up

Currently, estimates for the cost of compliance range from zero to $10,000 per vehicle for what is a difficult engineering task that has become – once again and as always – an ideological battleground, with posturing from automakers, regulators and pressure groups. Continue reading

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