July 2007
GM Offers Long, No-Interest Loans on Trucks
By Michelle Krebs July 30, 2007General Motors began offering zero percent financing for up to 60 months on its full-size Chevrolet Silverado and GMC Sierra pickup trucks over the weekend and will continue through September 4. The incentives are in response to similarly aggressive ones being offered by Ford, Chrysler and Toyota on their trucks. GM reports second-quarter earnings Tuesday and is expected to announce disappointing sales again for July. Edmunds.com is forecasting a nearly 19 percent fall in year-over-year sales for GM, which reports sales on Wednesday. more
Tower Automotive CEO Steps Down
By Michelle Krebs July 30, 2007One of the auto industryâs highest-ranking women, Kathleen Ligocki, has stepped down as CEO of struggling auto supplier Tower Automotive. She will become a consultant for Towerâs new owner, Cerberus Capital Management, which is also buying Chrysler. Ligocki, 50, has been president and CEO of Detroit area-based Tower since August 2003. She joined Tower from Ford, where she had been personally recruited by then CEO Jac Nasser. more
New Chrysler: Wolfgang Bernhard Reportedly to Return
By Michelle Krebs July 30, 2007As many predicted, Wolfgang Bernhard reportedly will become chairman of the board of the New Chrysler when the upcoming owner, Cerberus Capital Management LP, takes over, possibly by this Friday. Few know Chrysler better. Cerberus hired Bernhard, who left Chrysler for Volkswagen in a political dispute and left VW for the same reason, as an adviser when it was negotiating to buy Chrysler. more
GM Profit Predicted: Modest? Disappointing?
By Michelle Krebs July 30, 2007Industry analysts expect General Motors will report a second-quarter profit -â around $639 million -- when it announces its financial results tomorrow. Some say it will be a modest profit; still others say earnings will be disappointing. On the plus side, analysts say GM is benefiting from a high proportion of sales coming from trucks and well-equipped vehicles in North America and strong growth in emerging markets in Asia, Europe and Latin America. On the negative side, however, GM, despite successful launches of new models, is struggling for sales, market share and profits in its home market. more
The New Chrysler: Still Connected Under the Hood with Daimler and Others
By Michelle Krebs July 30, 2007By Bill Visnic The “breakup†of Daimler-Benz and the Chrysler Group is nearly complete, with Chrysler’s new owner, Cerberus Capital Management, due to ink the deal any day now. But like a married couple that’s amicably split, the two companies will continue to “get along†-- continuing with many technical, manufacturing and development ventures neither company is seeking to put asunder. For one, Chrysler will stay connected in an under-the-hood venture with Daimler and other entities because of the capital-intensive nature of developing new powertrain technologies for global use. Chrysler said recently will spend upward of $3 billion on new, more
Ford Makes Money
By Michelle Krebs July 27, 2007After seven quarters of losses despite cost-cutting, Ford reported a surprise second-quarter profit. Ford posted a net profit of $750 million, compared with a loss of $317 million a year earlier. Revenue increased to $44.2 billion from $41.9 billion a year earlier. "Overall our plan is working and is showing clear signs of progress. We have a long way to go,"ÂÂ Ford CEO Alan Mulally said Thursday in a statement. Ford is closing 16 plants, cutting up to 45,000 jobs and trying to sell Jaguar and Land Rover. Ford said it was doing a strategic review of Volvo, which has more
Edmunds.com Forecast: July Sales Down
By Michelle Krebs July 27, 2007Summer 2007 is turning out to be rather unusual compared to summers of the recent past, and it is showing up in sales. This summer, no big blowout, model-year-end incentives are being offered -- yet -- to consumers to clean up leftover inventories. In recent years, General Motors has led the parade with big campaigns that have forced others to follow, But throughout this year, GM has tempered its incentives. As a result, in part, July new vehicle sales, to be announced next week, are expected to be down for the industry, according to Edmunds.com's forecast. more
Chrysler Offers Lifetime Powertrain Warranty
By Michelle Krebs July 26, 2007Chrysler was expected to announce this morning that it will offer a lifetime powertrain warranty on vehicles sold beginning today. Believed to be the first of its kind in the industry, the warranty applies to the original owner of the vehicle and is not transferable. The warranty covers virtually all new Chrysler, Dodge and Jeep models, with a few exceptions, sold beginning today. It does not cover rental cars and special fleet vehicles, like for police and fire departments. A no-charge inspection is required every five years, within 60 days of the vehicle's every five-year anniversary. more
Toyota To Test Plug-In Hybrids in Japan, Europe and U.S.
By Michelle Krebs July 25, 2007The plug-in hybrid race is on. Toyota announced in Japan today that it has developed a plug-in hybrid that it will test on public roads in Japan, Europe and the U.S. Like other Toyota hybrids, the Toyota Plug-in HV uses a gasoline internal combustion engine, an electric motor and a nickel-metal hydride battery â- not the advanced lithium-ion batteries currently under development. The five-passenger Toyota Plug-in HV, like the Chevrolet Volt concept unveiled by General Motors at this yearâs Detroit auto show, uses increased battery capacity to allow longer electric-motor-only cruising mode and a battery-charging device that replenishes the batteries more
GM: Turnaround Continues With $891 Million Profit
By Michelle Krebs July 31, 2007General Motors this morning posted a better-than-forecasted second-quarter profit of $891 million, compared with a $3.4 billion loss in the same quarter a year ago. GM's improved financial performance suggests the automaker's turnaround plan is progressing. Investors liked the news as GM shares were on the rise in early electronic trading, Reuters reported. Now, the question is can GM be profitable for a full year after two years of losses? more