FEATURED ARTICLE
Led by Surging Ford, June Sales Ratcheted Reassuringly
By Dale Buss, Michelle Krebs and Bill Visnic
Automakers expressed more optimism about the U.S. car market despite the fact that overall sales in June fell by 28 percent compared with a year ago, to 859,420 vehicles. That represents only a slight improvement in year-ago comparisons over results for the first five months of this year.
Jesse Toprak, executive director of Industry Analysis for Edmunds.com, characterized the month cautiously. "It means, if nothing else, that things are not getting any worse, although things are not getting that much better, either. There was a lot of volatility, but there were signs of life."
Toprak added that June was "probably the best retail-demand month of the year."
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Industry Fails to Climb Back to 10-Million SAAR; Culprit Likely Cash For Clunkers
July 03, 2009
By Bill Visnic
With several industry consultants and analysts predicting U.S. auto sales would exceed a 10-million-unit Seasonally Adjusted Annualized Rate in June - a much-anticipated watershed many believed would signal slumping auto sales are beginning a consistent recovery - the real numbers didn't quite match the optimistic projections.
Instead, June's SAAR not only failed to hit the 10-million mark, the 9.66-million final tally even regressed from May's figure, according to data analysts at Edmunds.com.
One likely (but unintentional) culprit: the new "Cash-for-Clunkers" legislation signed by President Obama on June 24.
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Posted by Michelle Krebs at 5:21 AM under Analysis , Companies | Comments (0) | digg this | Seed Newsvine
Feds: No More Dough if GM Bankruptcy Not Final By July 10
July 03, 2009
By Bill Visnic
It may not come exactly on the Fourth of July, but the Obama Administration is directly threatening some of its own fireworks - the financial kind - if the ever-quickening pace of General Motors Corp.'s bankruptcy procedure isn't concluded by July 10.
That's barely six weeks since the automaker filed for Chapter 11 bankruptcy protection on June 1.
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Posted by Michelle Krebs at 5:17 AM under GM , News | Comments (0) | digg this | Seed Newsvine
GM Kicks Off Second Half With 72-Hour Sale
July 01, 2009
General Motors announced a 72-hour sale offering zero-interest financing for 72 months on some 2009 and 2010 models to get the second half off to a quick start.
In addition, GM is promoting its 74 models eligible for the Cash for Clunkers program to kick in later this month.
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Posted by Michelle Krebs at 8:48 AM under GM , News | Comments (0) | digg this | Seed Newsvine
GM Bankruptcy: "Bad" GM Wind-Down To Cost $1 Billion Plus
July 01, 2009
NEW YORK -- The cost to wind down the "bad General Motors" after a sale of its good assets to the U.S. Treasury is rising to more than $1 billion, a company representative testified Tuesday.
Albert Koch, appointed GM's restructuring chief who will head the old, bad GM if a sale is completed, testified in bankruptcy court that a wind-down would cost "slightly in excess of $1.25 billion." The funds, more than the $950 million budgeted, will be used to dispose of assets the "new GM" ditches and to pay some creditor claims.
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Posted by Michelle Krebs at 8:41 AM under GM | Comments (0) | digg this | Seed Newsvine
June Car Sales Expected To Show Some Stabilization
July 01, 2009
Automakers selling vehicles in the U.S. report their June sales Wednesday, and the results are expected to show some stabilization in the business or at least a slowing of the decline.
The Seasonally Adjusted Annualized Rate (SAAR) is expected to come in at its highest level so far this year and could touch 10 million vehicles, according to a forecast by Edmunds.com, parent of AutoObserver.com.
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Posted by Michelle Krebs at 8:16 AM under Analysis , Companies | Comments (1) | digg this | Seed Newsvine
June Is Priciest Ever for Automaker Incentives, Edmunds.com Reports
July 01, 2009
SANTA MONICA, Calif. -- Automakers spent more in June on incentives than any June on record, Edmunds.com reports.
The average automaker incentive was $2,930 per vehicle sold in June up $489 -- or 20 percent, from a year ago, Edmunds.com estimates. Incentives were down a scant $22, or 0.8 percent, from May.
"June incentives have never been higher, but we anticipate that the tide is about to turn," said Jesse Toprak, Edmunds.com's executive director of Industry Analysis. "The effects of recent production cuts are starting to be felt, and as supply dwindles, incentives will fall."
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Posted by Michelle Krebs at 4:42 AM under Analysis , Chrysler , Featured , Ford , GM , Toyota | Comments (0) | digg this | Seed Newsvine
How's This for Energy Policy?
June 30, 2009
Portugal said today it is preparing to install some 1,300 electric-vehicle recharging stations in the next two years as the country moves aggressively to gain energy independence.
The initiative's first phase encompasses installation of charging stations in 21 of the country's major cities and most densely populated and trafficked rural areas, reported the Associated Press. The stations will be located in parking areas, shopping malls and gas stations.
Portugal has almost no significant internal energy sources such as coal or petroleum, yet it says it now has renewable-energy sources to supply 43 percent of its electrical demand.
With the charging stations, the country is attempting to prod demand for affordable, mass-market electric vehicles projected to go on sale next year. By 2020, officials claim Portugal could have 180,000 EVs in use and 25,000 public charging sites.
Posted by Bill Visnic at 1:15 PM under In the Media , News , Technology | Comments (0) | digg this | Seed Newsvine
Magna Deal for GM's Euro Operations Souring?
June 30, 2009
Although it has for some time enjoyed a preferred-bidder status to buy Adam Opel AG and the European operations of General Motors Corp., the grip of Canada's Magna International may be slipping.
The Financial Times reports GM is weighing a restructured offer from Belgian holding company RHJ International after detailed negotiations with Magna and its consortium partners became snarled by new conditions.
The Magna-led consortium includes Russia's second-largest automaker, GAZ, and the FT reports the group's offer to GM includes conditions that allow access to certain GM technologies, some of which GAZ seemingly intends to wield for Opel-based vehicles built in Russia.
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Posted by Bill Visnic at 1:01 PM under Business , Companies , GM , News | Comments (3) | digg this | Seed Newsvine
Automakers Hopeful for Some Sales Rebound in June
June 30, 2009
The industry remains cautiously optimistic June vehicle sales in the U.S. will hit a seasonally adjusted annualized rate (SAAR) of 10 million units for the first time in 2009, a milestone analysts think may indicate the deep freeze in auto sales is at least beginning to thaw.
Automakers will report June sales on Wednesday, and Ford Motor Co. chief sales analyst George Pipas told reporters the company believes total industry sales will see less than a 30 percent decline (compared with the same period last year) for the first time since early last fall.
Ford is confident enough in an improving outlook that it will slightly increase its production for the third quarter -- the first time it's hiked scheduled production since 2007.
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Posted by Bill Visnic at 7:24 AM under Business , Companies , Ford , GM | Comments (0) | digg this | Seed Newsvine
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