February 2007
$100,000 for Workers; $1-Million Bonus for LaSorda
By Michelle Krebs February 28, 2007Chrysler announced yesterday that it will offer eligible U.S. hourly employees up to $100,000 to leave as part of the companyâs plan to scale back its workforce and turn profitable by next year. At the same time, Chrysler’s annual report revealed Chrysler President and CEO Tom LaSorda received compensation of $3.175 million, including a $1.1-million bonus. The report, which for the first time since the 1998 merger with DaimlerBenz detailed executive compensation for Chrysler execs, showed LaSorda was the second-highest paid employee after DaimlerChrysler CEO Dieter Zetsche, who had total compensation of $6.7 million, including a bonus of more more
Saturn: GM's Best Defense Against Toyota
By Michelle Krebs February 28, 2007Saturn is conquering one of GM's most formidable challenges: it's getting on the shopping lists of potential buyers and converting lookers into buyers like never before, according to an analysis by Edmunds.com. Surpassing Edmunds.com forecast for a 52-percent sales increase in February, Saturn reported a 60-percent increase in sales, helping GM boost its total U.S. sales by 3.5 percent in a flat market and while Ford and Chrysler posted declines. Just as important, sales are coming from largely Asian brands, especially Japan's Big Three -- Honda, Nissan and Toyota. And while GM is often criticized for having too many more
Ford: Contract Dispute, Lower Sales
By Michelle Krebs February 27, 2007It’s one problem after another for Ford. Navistar International Corp. will stop supplying diesel engines to Ford for its all-important F-Series Super Duty pickup trucks, just now hitting showrooms; and the automaker confirms its February sales will show a double-digit drop when reported later this week. more
Chrysler Could Be First With a Chinese-Built Car
By Michelle Krebs February 27, 2007As expected, DaimlerChryslerâs supervisory board gave the green light to its Chrysler Group, allowing it to move forward with a plan to develop and build small vehicles with Chinaâs Chery Motor. That means Chrysler could become the first automaker to distribute Chinese-built vehicles in the United States. Under the approved framework of an agreement –- one that excludes an equity partnership -- Chrysler brands would be able to distribute Chery-built vehicles primarily in North America and Western Europe. Chrysler said the partnership with Chery would allow it to develop much needed small vehicles more quickly and with less money. more
Toyota Picks Mississippi
By Michelle Krebs February 27, 2007The Wall Street Journal and The Nikkei, a Japanese business newspaper, report today that Toyota, hungry for additional North American manufacturing capacity, picked Tupelo, Miss., as the site for its eighth assembly plant. Mississippiâs governor is expected to make the announcement today. The Wall Street Journal further reported Toyota’s top management has adjusted its plans for the plant, which has been in the works for some time, because of growing concern about the health of the U.S. auto market. The plant has been scaled back in terms of capacity to 150,000 units a year, down from 200,000, and start of more
Recession: Greenspan Says Itâs Possible This Year
By Michelle Krebs February 27, 2007As if the U.S. auto industry wasnât struggling enough, now former U.S. Federal Reserve Chairman Alan Greenspan warns that the American economy might slip into recession by yearâs end. Greenspan said in a satellite link to a business conference in Hong Kong signs suggest the current economic expansion, which started in 2001, is coming to an end. Those worrisome signs include stabilizing corporate profit margins and a still large federal budget deficit, though Greenspan sees little impact on the economy from the current housing slowdown. Other economists note the economy has slowed to its lowest level since 2002 but put more
Fordâs Mark Fields: âIâm humanâ
By Michelle Krebs February 26, 2007Ford’s President of the Americas Mark Fields reached out to the Detroit Free Press, which ran a Page 1 profile of him in Sundayâs edition, in an apparent attempt to soften his image, get the troops on his side and show heâs got what it takes to turn around the automaker. Fields, author of the automaker’s Way Forward recovery plan, has been under intense fire, most recently for missing various targets for sales. That has led to increasingly harsh criticism and speculation that he might be fired. “I’m human,†he told the paper. “I would have liked to have gone more
Fordâs Mulally: New Book Gives Him Negative Reviews
By Michelle Krebs February 26, 2007A new book entitled Boeing vs. Airbus , by veteran journalist John Newhouse paints anything but a glowing picture of Fordâs new CEO Alan Mulally, who was plucked from the aircraft manufacturer last summer to turn around the automaker. Reviewed on Sunday by the suburban Detroit newspaper, The Oakland Press, the book chronicles the contest between Boeing and its European rival Airbus. It specifically blames Mulally for being slow to address some of the aircraft makers’ problems that finally led Airbus to overtake Boeing in sales. It quotes former Boeing CEO Harry Stonecipher as saying he came close to more
Chrysler: As the Rumor Mill Churns
By Michelle Krebs February 26, 2007GM? India? Magna? Private equity? Analysis, speculation and flat-out rumors continue as DaimlerChrysler âexplores all optionsâ regarding the future of its Chrysler Group. A potential Chrysler-General Motors link has generated the most interest. The Financial Times in London reported on Sunday that DaimlerChrysler is considering taking a minority stake in GM as payment for Chrysler if a deal between the two carmakers goes ahead. Buying part or all of Chryslerâs industrial assets for shares placed with DaimlerChrysler would relieve GM of the need to raise new cash, which GM would find onerous given the current âjunkâ status of its debt, more
Will the Stock Market Cause Consumer Confidence To Nosedive?
By Michelle Krebs February 28, 2007Americans were more confident in the U.S. economy in February than at any time since August 2001, the New York-based Conference Board reported yesterday. The Index of Consumer Confidence index, a key indicator watched by the auto industry, showed a rise in February from January, indicating the consumerâs view of current conditions increased strongly and their expectations for the future edged up slightly. The board said the trend suggests the economy is robust and might even be gaining some momentum. Tell that to Wall Street. The Consumer Confidence report was released just before the stock market tumbled, with the Dow more