Feb. 28, 2014, 12:36 PM
- Deutsche Bank weighs in on General Motors (GM -0.9%) amid reports the automaker has increased discounts on its trucks.
- The investment firm says the move feeds into its concern that GM's newest lines haven't been as successful as expected and that the discounting cadence could continue
- What to watch: GM still has several high-profile pickup and SUV launches this quarter which could stem any erosion in profits if they go off well.
Feb. 28, 2014, 8:33 AM
- General Motors (GM) and Ford (F) have increased their level of discounting in order to drive traffic into showrooms, according to Reuters.
- A scan of online deals shows the competitive full-size pickup market is seeing some of the more lush deals for consumers.
- What to watch: Though the relentless string of wintry weather and growing inventory has the industry edgy, overall pricing for February could still come in level with a year ago. March and April could be the months that slimmer profits for GM and Ford unless pent-up demand is unleashed.
Feb. 27, 2014, 3:59 PM
- New U.S. auto sales are expected to rise just 0.8% Y/Y in February, according to Edmunds.com, which expects to be hampered by poor winter weather for the second month in a row.
- Edumnds estimates 1.2M new cars and trucks will be sold in the U.S. in February, up from slightly less than 1.2M a year ago and improving from January's total.
- Among major auto makers, roughly 5% sales declines are projected for GM and Ford (F), with more modest sales drops seen at Toyota (TM) and Honda (HMC); Fiat Chrysler (FIATY) and Nissan (NSANY) are likely report double-digit sales increases, and Hyundai (HYMLF) sales are expected to rise 2%.
Feb. 25, 2014, 4:57 PM
- General Motors (GM) doubles to 1.6M the number of small cars it is recalling to fix faulty ignition switches linked to fatal crashes, expanding an earlier recall to include models that had similar problems.
- Just two weeks ago, GM announced the recall of more than 780K Chevrolet Cobalts and Pontiac G5s; it's now adding 842K Saturn Ion compacts, Chevrolet HHR SUVs and Pontiac Solstice and Saturn Sky sports cars.
- According to a chronology of events GM filed yesterday with the NHTSA, the company knew of the problem as early as 2004 and was told of at least one fatal crash in 2007.
Feb. 25, 2014, 1:47 PM
- The Tesla Model S (TSLA) racked up the highest score ever recorded in the annual survey of car owners compiled by Consumer Reports.
- Other automobile brands which showed well in the survey were Subaru (FUJHY), Lexus (TM), and Acura (HMC) - while Ford F and Cadillac (GM) came in weak.
- Ford's poor performance was due to a large number of owners complaining about the Ford Sync and MyFord Touch in-car connectivity systems.
Feb. 24, 2014, 3:07 PM| Feb. 24, 2014, 3:07 PM
Feb. 21, 2014, 1:51 PM
- General Motors (GM +0.2%) could see a double-digit jump in sales in China this year as demand stays strong. As scale gets larger, the double-digit pace becomes even more impressive.
- The aspirational aspect of larger GM models also keeps the potential for increased profitability very much on the table.
- Buick, in particular, has a strong brand reputation in the region.
- Bloomber report (video)
Feb. 21, 2014, 9:50 AM
- Automobile sales made an impressive jump in the second week of February, according to data compiled by J.D. Power.
- Winter storms had auto sales for the month tracking 5% lower than a year ago, but a strong bounce has now cut the falloff to closer to 1%. A monthly forecast for 15.7M vehicles delivered is back on track with more late-month momentum expected.
- Perhaps of equal importance, pricing has held up with the average transaction price of $29.9K looking good for a challenging month to get potential buyers onto dealer lots.
- What to watch: Analysts know February alone won't solve the inventory issue of the Big Three (GM, F, FIATY), but an improving trend needs to be confirmed to alleviate concerns. The month will also give a good read on several head-to-head model battles between Toyota (TM) and Honda (HMC).
Feb. 21, 2014, 4:55 AM
- General Motors (GM) is "working hard" to increase sales in China by 10% or more this year, says Matt Tsien, the President of the car-maker's operations in the country. Such growth would take sales to almost 3.5M vehicles from 3.16M in 2013.
- Ford (F) is way behind GM in China, although it expects to top 1M vehicle sales this year after the company and its joint ventures sold 935,813 units last year. That represented growth of 49%.
Feb. 19, 2014, 10:22 AM
- Shares of General Motors (GM +0.7%) and Ford (F +0.5%) are both mild out-performers after GM announces it will use aluminum in future truck lines.
- GM is expected to reap some significant long-term benefits from its move, while Ford's aluminum play doesn't look as risky with its rival following its tracks.
- Automobile industry analysts are split on which automaker is set up to see the largest gains: Ford has a huge head start and the F-150 brand juggernaut in its favor, while GM has scale and a production tech advantage.
Feb. 18, 2014, 7:21 PM
- GM is accelerating efforts to field a largely aluminum-bodied next-generation pickup truck by late 2018, recently locking in supply contracts with Alcoa (AA) and Novelis which are now working to increase their aluminum sheet production to supply the GM pickup, WSJ reports.
- The push to develop an aluminum intensive large pickup marks an apparent change of direction for GM; before Ford (F) unveiled its 2015 F-150 with a body made almost entirely of aluminum, GM execs had questioned whether such a vehicle could be cost competitive or appealing to U.S. customers.
- GM is said to believe it can offset Ford's head start by using more advanced welding techniques to produce a lighter, stronger and easier to assemble truck.
Feb. 14, 2014, 1:06 PM
- Jana Partners added 400K shares of General Motors (GM +1.8%) to its holdings to take its position up to 7.971M shares as of December 31, 2013.
- In other bets on the automobile industry, the hedge fund disclosed it was long 50M shares of Sirius XM Holdings (SIRI +1%) and 2.78M shares of Visteon (VC +0.7%) on the same date.
- SEC Form 13G
Feb. 14, 2014, 11:43 AM
- Employee voting ends today at a Volkswagen (VLKAY) plant in Tennessee on the issue of joining the UAW.
- The stakes are very high with the UAW still searching for its first representation at a plant of a foreign automaker.
- The Big Three (GM, F, FIATY) are quiet on the issue, but wouldn't mind a more level playing field.
- What to watch: There are close to 20 automobile plants in the South at risk of unionization if Chattanooga falls. A Mercedes-Benz (DDAIF) factory in Alabama and Nissan (NSANY) location in Mississippi could be the first two on the list.
Feb. 13, 2014, 7:04 AM
- General Motors (GM) will recall 619K 2005-2007 Chevrolet Cobalt and 2007 Pontiac G5 vehicles in the U.S. to address a potential problem with ignition switches.
- The automaker says some ignition switches weren't tightened in the proper manner which could lead to a problem if the vehicles runs roughly or go off the road.
Feb. 12, 2014, 1:47 PM
- TRW Automotive Holdings (TRW +0.8%), BorgWarner (BWA +0.5%) and Delphi Automotive (DLPH +1.8%) look more attractive to Morgan Stanley's Adam Jonas than General Motors (GM -0.1%) and Ford (F +0.7%) on concerns that auto loan credit will tighten.
- "Subprime as a percentage of new car sales has approached pre-crisis peaks and leasing is setting new records." warns the analyst in his note to clients.
- The trio of auto parts makers could have more global upside potential than the Detroit automakers if the U.S. auto industry hits some speed bumps.
Feb. 12, 2014, 4:31 AM
- The major auto makers have found themselves in a bit of a dilemma.
- They've been offering discounts in order to clear an increasing amount of unsold inventory in the U.S., which in January reached the highest level since August 2009.
- However, the industry wants to avoid getting sucked into the kind of price wars that have caused so much trouble in the past.
- Production cuts are not on the agenda at the moment.
- Relevant tickers: TM, RNSDF, VLKAF, GM, DDAIF, BAMXF, FIATY, HMC, PEUGF, F
General Motors Co. engages in the business of design, manufacturing and sale of cars, trucks and automobile parts worldwide. It operates through four segments: GM North America, GM Europe, GM International Operations and GM South America. The GM North America segment sells vehicles under the... More
Sector: Consumer Goods
Industry: Auto Manufacturers - Major
Country: United States
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