Dec. 12, 2013, 8:20 AM
- Shares of Peugeot (PEUGF) crumble in Paris trading after the automaker warns of more write-downs and hints again it may need another capital raise.
- General Motors (GM) is scaling back its plans with Peugeot, but still has part of its European fortunes tied to the French automobile brand through partnerships and a 7% ownership stake.
Dec. 12, 2013, 6:55 AM
- General Motors (GM) scaled back its estimate for annual savings from sharing development costs with Peugeot (PEUGF) to $1.2B from $2B, but some analysts think little savings will ever emerge out of the partnership.
- ISI analyst Arndt Ellinghorst appears to be on the low wide with his forecast the joint savings will amount to nil.
- The automakers are currently working on development of a light commercial vehicle, a multi-purpose people carrier, and a crossover SUV.
Dec. 11, 2013, 1:20 PM
- General Motors (GM -0.3%) doesn't owe $450M in medical benefits for Delphi Automotive retirees which it contracted for before it filed for bankruptcy, according to a new ruling.
- Though GM won the case, the judge did hint that the automaker might have a "moral obligation" to make good on the payment.
Dec. 11, 2013, 3:44 AM
- GM (GM) intends to follow in Ford's footsteps and halt manufacturing in Australia by 2017.
- GM will take pretax charges of $400-$600M in Q4, while 2,900 workers will lose their jobs.
- "The decision to end manufacturing in Australia reflects the perfect storm of negative influences the automotive industry faces in the country, including the sustained strength of the Australian dollar, high cost of production, small domestic market, and arguably the most competitive and fragmented auto market in the world," outgoing GM CEO Dan Akerson said.
- GM's decision will leave Toyota (TM) as the last major car manufacturer in Australia, although the latter might now also leave. The move will "place unprecedented pressure on the local supplier network and our ability to build cars in Australia," Toyota said.
- The country's car industry is now in serious danger of collapse; it supports over 40,000 workers and 150 supplier companies. (PR)
- Australia ETFs: EWA, AUSE, FAUS
Dec. 10, 2013, 2:09 PM
- The dizzying week for General Motors (GM -0.8%) after its announcement of a fresh CEO, global cutbacks (South Korea, Australia, Chevrolet in Europe), and imminent exit by the Treasury Department as an investor gets even more interesting as it reveals one of the biggest goals of all for the company.
- The automaker plans to make a serious push in Indonesia where Japanese automakers (NSANY, TM, HMC, MZDAY, SZKMY, FUJHY) outsell it by a huge margin and its market share is just a shade over 1%.
- In a clever move, GM has been watching what works for rivals in Indonesia before deciding which segment to jump into and who to partner with in the country of 247M people.
Dec. 10, 2013, 12:23 PM
- Consol Energy (CNX +1.8%) is Sterne Agee's top stock pick in coal, metals and mining; the firm admires CNX's low costs and growing gas production, and sees shares rising to $60 from the current $37-$38 in the coming year.
- The firm believes investors will increasingly support CNX's steps toward becoming an energy growth vehicle; generating value for some of its capitalized, non-core thermal coal assets while de-risking its balance sheet and providing accretive growth capital for its shale holdings should allow valuation to improve as coal and natural gas markets normalize.
- Other top energy and industrial favorites: GM, DHI, HAL, EXP, EGN, RAIL, PCP, CRS.
Dec. 10, 2013, 10:03 AM
- Mary Barra will take over for General Motors (GM +0.1%) on January 15 as the automaker continues a strong metamorphosis from its bailout era.
- The timetable for the exit of CEO Dan Akerson's was pushed up due to the medical condition of his wife, according to GM.
- Reaction in Detroit: Barra was one of the odds-on favorites to land the top job at GM and she will become the first woman to head a major automaker. Her successful run in developing vehicles for global markets and her deep GM roots make her a solid choice, say a number of auto industry analysts.
Dec. 10, 2013, 8:52 AM
Dec. 10, 2013, 7:11 AM| Dec. 10, 2013, 7:11 AM | 1 Comment
Dec. 10, 2013, 4:19 AM
- GM (GM) hasn't yet decided whether to end production in Australia after 2016, the carmaker said today as it kept up the pressure on the country's government to provide more aid to the industry.
- The comments are in contrast to a report on Sunday that said that GM planned to halt manufacturing in Australia, where the company has been hit by the strong Aussie dollar.
- The government isn't best pleased and has repeatedly called on GM to clarify its plans.
- The fear is that if GM follows Ford in stopping production in Australia, Toyota also will, which could lead to the collapse of a sector that supports over 40,000 workers and 150 supplier companies.
Dec. 9, 2013, 4:33 PM
- The U.S. government has sold the remainder of its stake in GM, with the final sale netting $9.2B. Out of $51B Treasury invested in the automaker, it recovered $39B.
- Shares +1% AH following a 1.8% gain in the day's regular session.
Dec. 9, 2013, 4:27 PM
- The Treasury department confirms it has sold its remaining 31.1M GM shares. The department says it recouped $39B from its original investment.
- The sale will put an end to restrictions on executive pay, and could pave the way for dividend/buyback announcements.
- Previous: GM gains as Treasury exit could be imminent
Dec. 9, 2013, 12:28 PM
- General Motors (GM +2.3%) is an outlier to the upside in the auto sector today - hitting a new 52-week high amid a WSJ report, the Treasury could exit the rest of its stake (31.1M shares) as soon as this week. North America boss Mark Reuss expects a boost in sales thanks to the return of some customers who shunned "Government Motors" in wake of the bailout.
- The government exit will allow GM to immediately adjust executive pay, which should boost the recruitment and retention of key talent.
- Separately, the company says it is moving some call center ops back to the U.S. to hopefully improve interaction with customers. About 300 workers and 35 managers will be employed at a new "customer engagement center" in Warren, MI. The jobs are coming from the closing of a call center in Argentina.
- Earlier: GM to cut South Korean output; end Australian production.
Dec. 9, 2013, 3:47 AM
- GM (GM) is reportedly planning to reduce production in South Korea by up to 20% by 2016 and close its two factories in Australia, where the high dollar has hurt the carmarker's competitiveness. In Korea, the company has had to deal with high wages and labor unrest.
- The cutbacks would add to the shutting of a factory in Germany and GM's decision to significantly scale back Chevrolet sales in Europe.
- The ending of Australian manufacturing would follow similar moves by Ford and Mitsubishi, and would come after the new government indicated it would phase out support for the auto industry.
- "They (GM) are starting to act like a global organization and are breaking up the fiefdoms," says Morgan Stanley auto analyst Adam Jonas. "The financial controls have been changed and there is more accountability to Detroit."
Dec. 7, 2013, 10:30 AM
- Barron's top 10 stock picks for 2014 shows an affinity for low P/E ratios, with 6 of the group sporting multiples of 10 or lower. The 2013 picks - which are up 35.2% on average, 900 bps ahead of the S&P 500 - had five names with single-digit P/Es. This year's list:
- A depressed play on a depressed commodity, don't be surprised if Barrick Gold (ABX) gets the attention of an activist investor next year.
- Up just 11% YTD, Canadian Natural Resources' (CNQ) free cash flow is set to quintuple to $5B in 2018 once the Horizon oil-sands facility expansion is completed.
- A rising world population needs food. At less than 10x earnings, Deere (DE) is the kind of company Warren Buffett might like to buy if it became available. "Stranger things have happened," writes Andrew Bary.
- Even after gaining 55% YTD, MetLife (MET) sells for less than 10x 2014 EPS and just above book value, but bigger gains are ahead once the company is given regulatory permission to buy back stock and boost its dividend. Met's also a good hedge against rising rates, as life insurers will benefit by having higher yields to invest in.
- The rest: Citigroup (C), GM, Intel (INTC), Nestle (NSRGY, NSRGF), Simon Property (SPG), U.S. Airways (LCC).
Dec. 7, 2013, 8:25 AM
- BofA Merrill Lynch is a more cautious buyer of stocks after this year's gains, and its top 10 large-cap stocks to buy for 2014 are mostly under-owned and unloved on Wall Street: ADM, Caterpillar (CAT), CenturyLink (CTL), Citigroup (C), Cisco (CSCO), DaVita (DVA), Exxon (XOM), GM, NextEra Energy (NEE) and Nucor (NUE).
- On CAT, the Lynch analysts point to high foreign sales prospects for 2014, and see strength in energy-related profits offsetting weakness in global mining; the firm has a $100 price target vs. ~$90 consensus.
- XOM is considered inexpensive compared to many large-cap energy names, it is expected to continue its large share buyback program and should increase the dividend; Lynch's target is $110 vs. $96 consensus.
- NUE is the ultimate contrarian play, as Wall Street is underwhelmed by steel stocks, but Lynch sees a rebound in commercial building as a big boost for 2014 earnings; the firm has a $60 target vs. $55 consensus.
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
Other News & PR