Business News » General Motors

GM is the new leader in cars sales

viliyana89 — Mon, 08 Aug 2011 19:24:12 +0000

General Motors (GM) has surpassed Toyota and become the world leader in sales of cars in the first half because of the devastating earthquake in Japan in March. GM sales rose 8.9 percent to 4.536 million units for the first six months of the year. The second position is for a Volkswagen with 4.13 million units, while Toyota fell to third place with 3.71 million units sold, including their luxury brand Lexus, Daihatsu Motor and Hino Motors. The GM sales in the U.S. have increased 669,065 units in the second quarter, according to Autodata Corp. The best-selling vehicle for them is Chevrolet Cruze. Toyota expects production to be completely normal in September. In early August the company reported its first loss of 2 years, although lower than expected. In late June, Moody’s lowered the credit rating of Japanese auto giant because of the strong yen and expensive raw materials. Takeshi Miao, an analyst at consulting firm Carnorama in Tokyo, said that even the production back to normal by September, the recovery in sales of Toyota will take several more months.

Shares of GM started with high increase

viliyana89 — Fri, 19 Nov 2010 06:52:59 +0000

The shares of General Motors, which went bankrupt last year after more than a century of stock market in New York rose over 9% after the company returned to the stock exchange to conduct an initial public offering for $ 20 billion. Shares of GM rose 9.1 percent to 35.99 dollars in cash during the first half hour after opening the stock exchange on Thursday. The car producer company owners, including the state’s finance ministry, sold 15.8 billion ordinary shares at a price of 33 dollars per share in the largest IPO in U.S. history. Along with the preference shares sold for 4.35 billion dollars and options for resale company expects to raise 23.1 billion dollars – more than the record for world stock markets 22.1 billion generated in the IPO-it China’s Agricultural Bank of China Ltd. The GM’s supply was made 16 months after the resurrection of the company. GM owes the American taxpayers 49.5 billion dollars. The company realized good financial strategy for increasing the incomes and will invest the profits in innovating the factories and decrease the price of production.
The state’s finance ministry, which will receive 13.6 billion dollars from the IPO-it will have to sell its remaining stake in the company for about $ 53 per share to recover their entire investment.

GM increased the size of its IPO

viliyana89 — Wed, 17 Nov 2010 10:47:26 +0000

The Initial public offering (IPO) of General Motors Co. may grow to 15.8 billion dollars, after state’s finance ministry and the union pension fund for workers in the automotive sector United Auto Workers increased the number of shares to sell. The IPO may grow by 31% to 478 million shares, reported sources close to the company of Bloomberg, anonymity. For resale the IPO may reach 550 million, or 18.2 billion dollars. Detroit-based carmaker yesterday increased its offer range up to 32-33 dollars per share by 26-29 dollars earlier. The sale, scheduled for today will help the company to return part of the loan of 49.5 billion dollars, which GM received from the federal government to save from bankruptcy in 2009, the U.S. Treasury, which will be a loss sale, could win only if the company’s shares rise by 60%. The Finance Ministry is confident that there is demand and the shares will be redeemed, “says Michael Yoshikami, who manages $ 1 billion in CMNet Advisors. “There is sense in what they do because they are talking about prices that are much higher than the level at which implies that there will be demand”. The IPO will be the second largest in U.S. history after the sale of Visa Inc. for 19.7 billion dollars in March 2008 Taking into account the increase in preference shares to $ 4 billion from $ 3 billion, GM can raise 22.2 billion dollars.
So far, the largest IPO in history is Agricultural Bank of China Ltd., Which sold shares for 22.1 billion dollars in Shanghai and Hong Kong in the past quarter.

GM turned back to profit

viliyana89 — Tue, 18 May 2010 17:08:50 +0000

The biggest U.S. carmaker General Motors account in the first quarter of 2009 net profit of 865 million dollars, said. This is the first positive result for the company since 2007. The reason for the good results of the automobile, which in July last year out of bankruptcy procedure, is the result of higher sales and lower reductions offered cars. Operating profit of the company until the crisis was the leader in sales of cars worldwide is 1.2 billions US dollars. For the first three months of 2009 the company reported a loss of $ 6 billion and revenues of 22.4 billion US dollars. The company indicated that its cars produced worldwide were 2.1 million units to 1.3 million a year ago. The company’s market share remained stable at 11.2%. In the words of Chief Financial director Chris Lidel, current indicators are a good prerequisite towards the return of GM’s stock. The company realized high loses last years and was almost in front of bankruptcy, but the financial injection from the US government recovered the company.
The GM is one of the most important companies for US economy, having thousands of employees and large market stake.

Opel will release a profit in 2012

viliyana89 — Tue, 02 Mar 2010 04:33:12 +0000

Undergone a procedure of bankruptcy American automobile company General Motors announced it would return to profit of its European Opel division to profit in 2012, reported the British radio BBC. Michigan manufacturer for this purpose will pour 1.9 billion to restructure Opel, which is three times more money than originally announced. Currently, GM has asked the European Commission, which allow the countries in which cars are produced by the mark, to grant guaranteed loans amounting to 2 billion euros. The amount is by 700 million euros less than the previous similar inquiry by the U.S. manufacturer. GM plans over the next 5 years to put 11 billion euros in the development of new models complement the British media. Only this year have provided the prime ministers of eight new models, a new next four. By the BBC noted that the increase in funds provided for Opel, might prove difficult political task.
The reason is that 62% of GM is owned by the U.S. government, which means that more American taxpayers’ money is diverted to Europe.

The deal for Opel still in delay

viliyana89 — Sun, 25 Oct 2009 06:14:40 +0000

General Motors to postpone finalizing the deal to sell the Opel consortium between Magna International and Russian Sberbank, reported in its online blog delegation of leading U.S. automaker for negotiating the sale, John Smith. According to him, Opel deal could not be finalized until the board of directors did not discuss it again at its meeting on 3rd of November. Ten days ago from General Motors announced that the company intends to finalize the deal by the end of last week. “Board of Directors will consider the letter from the Minister of Economy, Germany Gutenberg changes in the proposal of Magna and Sberbank of 9 September,” says Smith. It comes to responding to the Government of Germany on an official request by General Motors, the choice of the Magna is not political. Representatives of European countries in which Opel has assets subjected to sharp criticism of Berlin’s preference to sell the Opel of Magna and Sberbank. Competition Commissioner Neelie Kroes has expressed doubts last week promised state aid to the new majority owners of Opel from the government of Angela Merkel. In a letter to Germany’s economy minister Karl-Theodor zu Gutenberg Euro-Commissar writes that “must be given the opportunity to review the current owners of the election results of the offer in writing stating categorically the German government of that state aid will be granted, regardless of the chosen investor or a restructuring plan.
Cruz noted the media that it seems that the promised aid of 4.5 billion euros from the German government is bound to the purchase of Opel from the Canadian company Magna and its Russian partner Sberbank. Be recalled that in early September, General Motors announced that the Canadian auto parts company Magna and Russian bank Sberbank will acquire a majority stake in Opel – European division of a U.S. company. Consortium of Magna gets 55 percent of the capital of Opel, while American automakers retained 35%. The remaining 10% are workers of the company, which is about 50 000 people. But now two months until a deal is not reached.

Opel remains American

viliyana89 — Fri, 16 Oct 2009 16:56:51 +0000

The U.S. carmaker General Motors is working on a “plan B” on the future of Opel and a willingness to continue to manage its European division, says the Wall Street Journal. Despite the fact that the company is working on finalizing the deal with Canadian-Russian consortium Magna and Sberbank, problems associated with EU regulations may prevent the deal. Comes to aid of 4.5 billion, which German government grant to help Opel, a step which Community directives prohibited. At the end of last week, European Commissioner for Competition Neelie Kroes sent a letter to the Minister of Economy of Germany Karl-Theodor Gyutenberg in which it was stated that GM should have the opportunity to again review process associated with the sale of Opel. We recall that in September, GM decided to sell Magna 55 percent of Opel, as stocks remaining 35%, while the other 10 remain in the hands of employees.
Under Plan B out of Detroit and the company envisaged restructuring cuts would be deeper and scale of those proposed by Magna. Gutenberg minister in turn said that Berlin would make the necessary transactions to be conducted so as not in conflict with European directives.

Sales of Ford, Chrysler and Nissan registered decrease

viliyana89 — Thu, 01 Oct 2009 16:15:10 +0000

Sales of automobile companies Ford Motor, Chrysler Group LLC and Nissan Motor of the United States reported a decline in September was canceled after the program for the purchase of old cars by the government, known as “money for old cars” (cash for clunkers). The decline in sales of Ford was 5.1%, which was more than economists’ expectations and represented the first monthly drop in two months of growth. For its part, Chrysler reported that sales for U.S. consumers fell by 42 percent, while those of Nissan decreased by 7 percent. The The US carbuilder General Motors has not yet published data on its sales last month, but the market expected to fall by 44 per cent. Economists expect sales of Toyota to decrease by 9,7 percent, while those of Honda to fall by 13%. Contraction of the automotive market is fully expected – it became a reality after the previous two months sales of automobile manufacturers were supported by the U.S. the government program for the purchase of old cars to their owners to buy new and more efficient vehicles.
Of 27 July on 24 August by the program were purchased 700 000 vehicles.

The Belgian holding company RHJ raised the price for Opel

viliyana89 — Sat, 05 Sep 2009 10:04:46 +0000

The Belgian investment holding company RHJ International improve its financial proposal for the purchase of German car manufacturers Opel, owned by General Motors, offering 300 million Euro (about $ 431 million) for 50.1% of the shares of the company, police agency Reuters. The amount is 25 million more than the original price. Thus the Belgian concern hopes to grips with the Canadian Consortium Magna, which is in alliance with the Russian Sberbanka. Representatives of RHJ have confirmed their intentions in writing yesterday, September 1. Moreover, the Belgian candidate who is favored by GM, has requested that only 3.2 billion euros state aid (with EUR 6 million less than the previous application for 3,8 billion euro) and promised to return the state-guaranteed loan in period in 2013 was reduced by one year, states Reuters. Other investment and production plans have not changed RHJ.
Board of Directors of GM meet on 1 September, but information was not communicated. However, well informed sources have said they would rather chance to take a final decision any prospective buyer of Opel. Germany’s government hopes that novitya owner of a controlling interest of shares in automotive will be known until the parliamentary elections on Sept. 27. “I hope that the transaction will be completed before the elections and we are working on it,” Chancellor Merkel said in an interview on Radio Bayerische Runkfunk. Official Berlin and the German Opel unions want to be bought by Magna and Sberbank. Their argument is that the Canadian consortium will retain around 25 thousand jobs. Representatives of GM, however, have repeatedly declared that their sympathies are on the side of RHJ as an argument and point out that after the purchase Magna will claim full control over the intellectual property of the German division of GM.

GM returns 1350 employees on work

viliyana89 — Thu, 20 Aug 2009 07:10:45 +0000

The American car-builder General Motors will increase its production by 60 000 vehicles by the end of the year to meet increased demand resulting from the government program against money for old cars” forward DPA. Production will be increased mainly during the period from September to December as likely in the coming months will boost production in all plants, said General Motors. The company will return to work in 1350 people in the U.S. state of Ohio and the Canadian province of Ontario and will focus on the Chevrolet Equinox, Chevrolet Cobalt and the GMC Terrain.
Government program against money for old cars provides premiums to 4500 dollars for a change in the old car with high fuel consumption of new, more economical new model.