April 22, 2009
Chrysler CEO Says New Board Coming With Fiat Deal | www.nytimes.com
The U.S. Government in cooperation with the Senior Management of Fiat is going to appoint a new board of directors for this new joint company. Fiat is for all practical purposes a two market auto manufacturer; the home country…Italy (62%), and South America (38%). Chrysler LLC is a one market manufacturer in North America (72%) (Recognizing Graz, Austria (28%) for Minivans & Jeep). Respectively in those markets both companies loose money.
Automotive Tier–One Suppliers; North American Top 15… For Now!
March 5, 2009
GM’s Wagoner Meets With Auto Panel for Six Hours | www.bloomberg.com
In light of the current financial meltdown of the Global Automotive Market I looked at the North American sector to identify the specific commodities of vulnerability to the OEM’s.
March 2, 2009
GM’s Wagoner Meets With Auto Panel for Six Hours | www.bloomberg.com
Publications have used many adjectives over the years to describe the automotive tier one supply base; troubled, distressed, beleaguered, crippled, restructuring, etc... But the last six months it has interesting and painful to watch how the descriptions have progressively deteriorated to the most recent “unable to remain solvent”.
GM / Ford – Restructuring “simplified”
February 6, 2009
GM, Ford Sales Collapse May Force Deeper Industry Restructuring | www.bloomberg.com
Restructuring plans are simple; “What do we design?”, “What do we engineer?”, “What do we manufacture?”, “What do we assemble?” Brand it, Market it, Sell it and get rid of the rest.
Is Honda going to save money by withdrawing from Formula One Racing
December 22, 2008
Honda quits F1 amid economic slowdown | nbcsports.msnbc.com
Honda is quitting! This is important news to the people that follow Formula One Racing throughout the world. Honda is giving up and taking their cars home to Japan. In the economic climate of today’s auto business this is probably a smart move by Honda. The reports say that they will save some six hundred million dollars by giving up the 2009 Formula One season. But money may not be the only reason for this pull back. Honda has not been winning. Winning is why a car company enters F-1 in the first place. Competitors such as Toyota have been finishing in the points and the Honda Teams were struggling. Honda engineers and the Honda Company take great pride in their winning racing heritage and lately that pride has been absent from Formula One Racing and that is why Honda is gone.
October 15, 2008
G.M. and Chrysler Explore Merger | www.nytimes.com
The idea of GM buying out Chrysler is an exciting idea. GM was willing to pay up to five billion dollars for the Jeep Division just a few years ago. Imagine a Cadillac with a Hemi engine and so on. Both companies would benefit from this merger and it would be an exciting time in the industry. The elimination of two corporate offices and personnel departments and technology centers and testing and under utilized plants and etc. would be great for the business and would lower the cost of building autos and trucks. This would be a good idea in normal times, but we are not in normal times and this merger should not happen for GM to succeed in 2010.
Bill Heard Enterprises – “Closed”
October 2, 2008
Major GM Dealer Bill Heard Goes Out of Business | online.wsj.com
As single brand dealership stores fail so does the OEM brand image. You can spin it anyway you like; Independent Dealer, poor management, bad financial risk but at the end of the day perception is reality.
Why the Big US made auto's won't sell
September 9, 2008
Sales Slump In Luxury Car Segment And Auto Makers Offer Deals | online.wsj.com
Current a condition is taking place in the auto industry that is not new put is puzzling to some auto observers. Large American made cars simply are not selling in the US market place. This is not the first time this has happened and will probably not be the last. Here is why: 1. American made large cars are not as fuel efficient as some import cars. 2. The trade in value of used large cars is very low causing a larger trade difference. 3. Dealer selection is very low because most dealers are trying to work these units out of their inventory and are not restocking. 4. Very little has changed on a new large car from the one purchased even four years ago. (Equipment, appearance, engines, and fuel mileage.)
RADICAL CHANGES FOR RADICAL TIMES – OR IS THERE MORE TO IT?
August 13, 2008
Detroit’s race against time : Will the Big Three’s cash last long enough for them to fix themselves? | www.economist.com
Chrysler LLC announced it was exiting leasing entirely in July and GMAC has discontinued leasing in their Canadian market. This in it self may be considered a risk management avoidance given the current market status, however I find it interesting that Chrysler LLC is owned by Cerberus and Cerberus owns 52% of GMAC as well. This is just another curve ball for an already troubled dealer network that now has to rely on regional banks and credit unions that have different approaches and most likely higher interest rates and more stringent qualification requirements.
What Is Next In The US Automotive Industry For Ford, GM and Chrysler.
August 7, 2008
Ford Details Overhaul Plans As Losses Continue To Grow | online.wsj.com
Ford announced it was bringing six European vehicles to the US market and GM announced it was closing four truck Plants and adding shifts and new products to other plants. While driven by the marketplace and predominantly by the price of fuel, this represents a departure from past downturns.
Toyota's California Plant Exit Makes Sense
September 17, 2009
It's Possible Berkshire Hathaway Could Help Kraft Acquire Cadbury
September 10, 2009
California's Impact on the Las Vegas Strip, City Center & the port of LA
September 8, 2009
Toyota Will Feel The Heat Of California Lawmakers In NUMMI Plant Closing
September 1, 2009
US Hotel Industry Recession Enters New Rate Erosion Phase
September 1, 2009