What We're Saying: On GM, Toyota, Truck Sales, Hummer and Cash for Clunkers Benefits

What We're Saying: On GM, Toyota, Truck Sales, Hummer and Cash for Clunkers Benefits

By Michelle Krebs April 9, 2010

Edmunds.com analysts had their say with a number of media outlets on various topics including: GM's financial report; the Transportation Department's fine against Toyota and the release of Toyota internal documents; the pick-up in truck sales; and Washington's promotion of the benefits of last summer's Cash for Clunkers program.

Here are some highlights:

 

Jessica Caldwell, Edmunds.com senior analyst and director of Pricing and Industry Analysis, was interviewed by a trio of media outlets on the $16.4 million fine levied against Toyota by the U.S. Department of Transportation for being less than forthcoming about its quality issues.

Caldwell told CNN Money that Toyota could consider challenging the record-high fine and question how it was determined but, in the end, it is a drop in the bucket" for Toyota, which would be better served by paying it. Likewise she told the Associated Press Toyota should pay the fine and prevent drawing even more attention to itself. Additionally, she told the AFP that the fine was unlikely to have much impact on Toyota's stock price. And in the end, Toyota opted to pay the fine.

Caldwell also appeared on CNBC this week to respond to White House charges regarding  Edmunds.com's analysis of the benefits of last summer's Cash for Clunkers program. The Obama Administration is hailing the program as one of its victories in stimulating the economy.

Michelle Krebs, Edmunds.com senior analyst and editor at large, did double duty in her appearance on Bloomberg television. She commented on the government's fine against Toyota.

She also suggested that for some media outlets to declare the economy and auto industry on the upswing because of higher March pickup truck sales was premature. In fact, she pointed out, Edmunds.com analysis shows truck sales in December 2009 were higher than March and they dipped from December in January and February. Further, March truck sales were driven by incentives, which have been edging upward again.

Bill Visnic, senior editor for Edmunds' AutoObserver.com, discussed General Motors' first financial report since its emergence from Chapter 11 bankruptcy last summer. He noted to the Los Angeles Times that becoming profitable is necessary before GM goes public. "Everybody knows that's what needs to be done to get rid of this public perception and the baggage of being known as 'Government Motors,' " the paper quoted him as saying.

Visnic told Dow Jones Newswires that GM's report shows the automaker is flexing its muscles as the healing properties of bankruptcy take hold. Freed from enormous debt and union obligations, GM is now concentrating on what it's supposed to do, Visnic said. That is, sell cars.

CNN Money interviewed Jeannine Fallon, Edmunds.com's spokeswoman, on General Motors' shutdown of the Hummer brand, since the proposed sale to a Chinese company collapsed and no other buyer was found. GM is offering hefty incentives to get rid of Hummers on dealer lots. But Fallon told CNN Money that fat rebates still may not make a Hummer a good deal, especially as its value will fall, a factor the consumer who wants to sell or trade it in the future should bear in mind.
 

 

Michelle Krebs:  is Editor-in-Chief of AutoObserver.com. Follow @AutoObserver on Twitter.