Posts related to ‘Autos’

South Korea Continues To Best US In Auto Trade

The AP reports that South Korean auto groups claim that the Asian country exported 600,000 cars and light trucks to the US last year. Only 7,000 American autos were sold in South Korea during that period. The figures probably got more lopsided this year as Hyundai improved it sales in the US.

The numbers look a bit like those the US had to contend with in the 1970s as Japan began to take a large part of the American market but domestic car companies had trouble getting their products into the Japanese market. Read More »

Posted on: November 20, 2009 – 5:59 am in Autos

52-Week High Club (DCI, NTAP, TSL)

Donaldson Company Inc (NYSE: DCI) rose over 8.5% to a yearly high of $45.19 after the air filter maker reported 3Q earnings of $0.45 per share, beating analyst estimates.  

NetApp Inc. (NASDAQ: NTAP) rose over 5.5% to a yearly high of $31.25 after the server maker reported profits of $0.37 per share, beating analysts estimates.  

Trina Solar Limited (NYSE: TSL) rose over 9.5% to a yearly high of $46.80 after the Chinese solar company reported 3Q profits of $1.29 per share, beating analyst estimates by nearly 50%.  

Garrett W. McIntyre

Posted on: November 19, 2009 – 7:05 pm in Autos, Earnings, Technology Companies, , , ,

GM’s Non-IPO IPO

Both the government and GM management are talking about an IPO at the end of 2010 that would allow the taxpayers to get the money that they put into the No.1 car company in America back. Ron Bloom, head of the Obama administration’s auto task force, said that the target was based on GM paying down completely its debt to the Treasury and becoming profitable again, according to an exclusive report by Reuters. That means the goal is no goal at all. Read More »

Posted on: November 19, 2009 – 5:48 am in Autos

52-Week High Club (AMD, ASMI, ALV, CHS, GGWPQ, LFT, DE)

Advanced Micro Devices Inc. (NYSE: AMD) rose over 10% to a yearly high of $7.33 after the computer processor maker announced today that it would offer $500 million in senior notes, the cash from which will be used to purchase its 5.75 percent convertible notes due in 2012.

ASM International N.V. (NASDAQ:ASMI) rose over 5% to a yearly high of $24.69 after the semiconductor equipment maker was upgraded by Fortis Bank Nederland NV.

Autoliv Inc. (NYSE: ALV) rose over 3% to a yearly high of $41.84 after the airbag manufacturer said that production is holding up well in the fourth quarter.

Chico’s FAS Inc. (NYSE: CHS) rose over 14% to a yearly high of $15.43 after the women’s clothes retailer announced 3Q earnings of $0.13 per share, nearly doubling analysts expectations.  

General Growth Properties Inc. (OTC: GGWPQ) rose over 35% to a yearly high of $6.19 after Simon Property Group Inc. (NYSE: SPG) announced that it had hired Lazard Ltd to lookk into buying assets from General Growth.  

Longtop Financial Technologies Limited (NYSE: LFT) rose nearly 10% to a yearly high of $35.30 after the Chinese software developer said that it had added 3.7 million additional American depositary receipts priced at $31.25.

Deer & Company (NYSE: DE) rose over 6% to a yearly high of $52.28 after Jim Cramer recommended buying shares in the tractor maker, arguing that the company would benefit from increased agricultural activity.  

Garrett W. McIntyre

Posted on: November 18, 2009 – 4:15 pm in Agriculture, Autos, Mergers and Buy Outs, Retail, Semiconductor, Technology Companies, , , , , , , ,

VW Gets “Safest Car” Rating But Can’t Sell Autos In US

The Insurance Institute for Highway Safety came out with its annual list of safest cars. Ford (NYSE:F) and its Volvo unit got six awards, VW and Subaru each got five.

Chrysler had four cars on the list and Honda (NYSE:HMC) and GM each had two

Toyota  (NYSE:TM), BMW, Mazda Motor and Mitsubishi ended up with nothing. Read More »

Posted on: November 18, 2009 – 6:07 am in Autos, , ,

The Auto Industry Restructuring Global Tour Moves To Europe

The restructuring of the American car business is still a work in progress. Chrysler laid people off as late as last month. The industry fired tens of thousands of people during 2008 and 2009. Toyota (NYSE:TM), considered by most the preeminent auto firm in the world, cut costs, people, and production capacity. It is hard to see how any more meat can be taken off the bone of the global car sector. Read More »

Posted on: November 18, 2009 – 4:58 am in Autos,

GM Will Start To Repay US And Continue Installments Next Year

chinaGM will make a $1.2 billion payment to the US and Canada on its $6.7 billion senior note from the Treasury and Canadian government, probably in December. The $6.7 billion is the entire sum of money owed to the governments.  Eighty-five percent of the money will be paid to the US with the balance going to Ottawa. The money given to GM beyond that $6.7 billion is an equity investment that will have to be paid by an IPO or private sale of GM or some of its assets.

GM also announced that it lost $1.2 billion in the third quarter and had an adjusted EBIT loss of only $261 million. GM had total debt of $17 billion at the end of the period.

Read More »

Posted on: November 16, 2009 – 4:46 am in Autos

Another Sign That China Rules The World: Mercedes Sales

carAs another sign of the truth that most of the world’s rich people have moved to China or were born there, sales of the $150,000 Mercedes S class are now higher in the People’s Republic than in the US or Germany.

According to USA Today, Mercedes CEO Dieter Zetsche says that China is its No.3 market  just behind the US and Germany for total sales of all the company’s car and light truck brands regardless of size or cost.

Douglas A. McIntyre

 

Posted on: November 13, 2009 – 10:23 am in Autos, China

VW Passes Toyota (TM) And GM As World’s Largest Car Company

carToyota (NYSE:TM) did not keep its top spot as the world’s largest car company for very long. It held the crown for about a year. Industry statistics show the new VW-Porsche combination has produced 4.4 million cars this year compared to only 4 million by Toyota.

According to The Guardian, Toyota’s cut in production helped VW take the top spot. Toyota could ramp up manufacturing again as the recession ends and move into the  No.1 spot once more.

VW may be helped by the fact that it sells almost no cars in America. Read More »

Posted on: November 12, 2009 – 5:04 am in Autos, ,

The Federal Government In the Car Loan Business

carThe federal government is highly active in getting banks to reset loans for people who want to stay in their homes by improving the terms of their monthly payments. The Homeowner Affordability and Stability Plan has had mixed success, but it has helped keep tens of thousands of people in their homes. It might be said that keeping even one person from being thrown out into the cold is worthwhile, although the Administration’s entire home foreclosure program is a $75 billion multi-purpose plan designed to help as many as nine million borrowers suffering from falling home prices and unaffordable monthly payments. That is an expensive program to help what may be a modest number of people with their mortgages Read More »

Posted on: November 10, 2009 – 5:11 am in Autos, Economy, Editor's Picks,

24/7 Wall St. TV: GM Doubles China Sales In October

24/7 WallSt TVGM sold 166,911 cars and light trucks in China last month. The No.1 US auto company sold 177,603 vehicles in its domestic market in the same period. The FT reports that “A total of 946,400 passenger cars were sold in October, up sharply from 538,500 units sold a year earlier.”

Read More »

Posted on: November 9, 2009 – 9:54 am in Autos, China, TV

GM To Axe Jobs At Opel

gmGM executive Bob Lutz, who has been a senior executive in the car industry longer than any man alive, will become the new chairman of Opel. GM has decided to keep ownership of Opel and British car company Vauxhall after months of negotiations to sell them.

Lutz told Swiss Sonntag newspaper that he is likely to stick with earlier plans to cut overall costs  at Opel by 30%.  That will probably mean that 10,000 of Opel’s 50,000 workers will be fired. Read More »

Posted on: November 8, 2009 – 8:00 am in Autos,

Asia Markets (11/6/2009)

chinaMarkets in Asia rose.

The Nikkei was up .7% to 9,790. Mitsubishi UFJ (NYSE:MTU) was down. Honda (NYSE:HMC) and Sony (NYSE:SNE) both gained.

The Hang Seng rose 1.6% to 21,830.

The Shanghai Composite was up .3% to 3,164.

Data from Reuters and MarketWatch.

Douglas A. McIntyre

Posted on: November 6, 2009 – 3:25 am in Autos, , ,

Will US Taxpayers Fund GM Europe Bailout?

GM has decided to keep its European operations, Opel and Vauxhall. Now, it has to figure out how to pay for them.

Opel owes the German government over $1.3 billion in bridge financing. It may have that on its balance sheet. What it does not have is the capital needed to restructure operations and carry the operation through a recession in the auto industry that is likely to last at least another year.

Of course, the US taxpayers could be a source of Opel bailout money, and probably will be. Read More »

Posted on: November 5, 2009 – 12:56 pm in Autos,

Toyota (TM) Joins Ford (F) By Turning A Proft

fordAlmost no one expected any of the world’s largest car companies to make money this year. Sales around the globe are simply down too much and efforts to cut costs have not been enough to match the drop-off in revenue.

Ford (NYSE:F) shocked Wall St. by making almost $1 billion in the third quarter. Even more of a surprise, it made money in its flagging North American operations.

A second surprise profit was posted today, by the world’s largest car company, Toyota (NYSE:TM) Read More »

Posted on: November 5, 2009 – 5:40 am in Autos, ,

Toyota (TM) Pull Out Of Formula One: The Death Of Car Racing’s Profits

TVThe three major car racing circuits–Formula One, NASCAR, and Indy Car–have built a multi-billion business. Formula 1 revenue, which includes sponsorships and broadcast fees, is estimated to be $3.9 billion, which is more per event than either the NFL or The Premier League of soccer clubs.

Toyota (NYSE:TM) has elected to pull out of Formula 1 because of cost considerations. The world’s largest car company has lost money for more than a year. Read More »

Posted on: November 4, 2009 – 5:52 am in Autos, ,

GM Screws The Germans, Will Keep Opel

gmThe German government went to a great deal of trouble to finance a bid for Canadian parts firm Magna (NYSE:MGA) and a Russian financial group to buy GM’s Opel and Vauxhall operations. GM has turned around and decided to keep the European companies, perhaps relying on US bailout money and an improving US car market to fund retaining and restructuring the companies.

Germany had offered $6.58 billion in state aid to help close the Magna transaction. It remains to be seen if the same capital will be available to GM.

Douglas A. McIntyre

Posted on: November 3, 2009 – 5:27 pm in Autos,

GM Sales Rise, Fueling Hope Of Car Recovery

gmGM’s sales rose unexpectedly, by 4% in October to 177,603 cars and light trucks. Chevrolet retail sales were especially strong, up 31%. The No.1 US car company said fourth quarter production would be 17% above the third quarter of the year.

GM’s news follows positive news from Ford (NYSE:F) which had a sales increase of almost 3% in October to 132,483. Sales of the third market leader, Toyota (NYSE:TM) were flat at 152,165.

Chrysler’s sales were down, as expected, falling 30% to 65,803.

Taken as a whole, the October data indicates that US car sales have bottomed and that the rest of the quarter may be stronger than expected.

Douglas A. McIntyre

Posted on: November 3, 2009 – 2:02 pm in Autos, ,

A Guide To The Auto Industry’s 2010 Winners And Losers

chryslerJerome York is a nasty piece of work and a financial genius who has been successful as a lieutenant to billionaire raider Kirk Kerkorian. York’s curriculum vita as a financial analyst is impeccable. He has been CFO of Chrysler and IBM (NYSE:GM) and a board member of GM, when it still had a real board, and Apple (NASDAQ:AAPL)

York was at the center of Kerkorian’s efforts to sell-off Chrysler and GM, or at least get new managements for them both.  He knows the global auto industry as well as anyone in the world who does not work in it full time, and probably better than most of those who do. Read More »

Posted on: November 3, 2009 – 4:48 am in Autos, , , ,

Bill Gates Goes Deeper Into Autos (AN, MSFT, KMX, BRK-A)

Bill Gates ImageWe noted just last week that Bill Gates was getting more entrenched in the waste disposal sector.  It turns out that Mr. Gates is getting deeper into the auto-retailing sector as well.  In an SEC filing after the closing bell, Gates added some 500,000 shares to his stake of AutoNation, Inc. (NYSE: AN).  His Cascade Investment LLC investment vehicle bought 483,800 at a weighted average price of $17.608 and bought another 16,200 shares at a weighted average price of $18.217.  Both transaction dates took place on October 29, 2009.
Read More »

Posted on: November 2, 2009 – 5:23 pm in Activist Investor, Autos, Buffett, Insider Activity, , , ,