Business News » GM

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.

Ford launched economy model of Mustang

viliyana89 — Tue, 09 Mar 2010 12:01:34 +0000

Ford Motor Co. seeks to regain his leadership position on the sports cars in the U.S. economy by developing a new version of the Mustang, communicate their marketing strategy with vehicle manufacturers, cited by agency Reuters. The model 2011 will be released this year, the agency stated. The new Mustang has a 3.7-liter engine will have output of 305 horsepower and will spend about 8 liters per 100 kilometers. With these basic parameters the new model is superior rival in 2010 Camaro General Motors, which is 9 months already the market leader in sports cars. Ford announced in February that they had already taken nearly 11 000 orders for the new model, which is three times more than the previous model, marketed by the company. Overall, Ford’s sales exceeded those of GM last February, which is the first time since 1998.
In the segment of automobiles dual competition between the two automotive giants in Detroit is fierce.

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.

After jump in August the sales of cars in the U.S. took to the bottom

viliyana89 — Wed, 07 Oct 2009 07:01:28 +0000

Sales of new cars and light trucks in the U.S. in September fell sharply after the “cache for old vehicles” suspend in August. On an annual basis ironed sales fell to 9.22 million units, with 14.1 million in August and 12.6 percent in September 2008, writes Financial Times. This is the second worst result for the year after the 9.17 million average annual sales recorded in February. Among the big players with the lowest drop in Ford sales is 5%, two other American manufacturers GM and Chrysler reported a decrease of respectively 45 and 42% over last year’s levels. Japanese manufacturers Toyota, Honda and Nissan have registered a fall of venue in 13%, 20% and 7%. Among the reports more sales during the ninth month of the year compared to the same Kia is raising by 24.4 percent and BMW with an increase of 3.6%. The total number of sold cars and light trucks amounted to 745 997 to 864 973 h in September 2008 or a decrease of 22.7%. One of the few profitable due to the raging economic crisis is a Korean company Hyundai, which gradually began to accumulate a reputation for its relatively cheap but high quality vehicles surged by 27% from last year September.
Together with its sisterly Kia, the company shifted its sales and Nissan currently occupies 6-spot on the U.S. market. Despite the disappointing data on the largest producers got hope that there will be a gradual increase in sales during the fourth quarter, then people went back to the showrooms in the coming holidays. Ford said that by believing in the gradual economic recovery, although it is normal for this process to be accompanied by some fit and fluctuations. The company said it would continue its leasing program advantageous terms of purchasing a new car. Analysts say Ford will continue to take an increasing market share, unlike GM and Chrysler, which is unlikely to show significant improvement by year’s end. The big question before GM and Chrysler will reach when it is time to begin to profit from the sale of smaller cars

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.

The bankrupcy of GM can cause chain reaction

viliyana89 — Wed, 15 Jul 2009 06:19:41 +0000

The Global economy will witness new bankruptcies, though not in such scales as the bankruptcy of the automotive manufacturer General Motors, Reuters agency says to one of the owners of the auditing company Grant Thornton International. Automobile giant, which last week completed the procedure for bankruptcy and now more than 60 percent of its capital belongs to the Ministry of Finance of the United States, promised that he would back the confidence of American consumers will pay the debt to taxpayers. “Sets are chain reaction. We were witnesses of the single, albeit large bankruptcies, but soon will observe cascade of bankruptcies, “said Mike Starr, director at Grant Thornton, one of the leading audit companies. According to him, as a result of the bankruptcy of GM and its suppliers will announce crash. Starr pointed out that such a fate may have the construction sector companies and firms in the services sector with fuel.
“Although somewhat bankruptcy in construction as they are small in number were unexpected, certainly in the future there will be such as the U.S. housing market has not fully recovered”, the Old. He believes that soon there will be economic recovery, but have not yet seen signs of revival. Starr predicted that access to credit will be a problem, although the government has financial assistance programs. “We do not know what are the effects of financial incentives in the long run because we have no such experience. Nobody ever before is an experience no such thing, “said director at Grant Thornton.

General Motors stopped with sellings

viliyana89 — Sat, 11 Jul 2009 13:40:45 +0000

It is expected to sell the most profitable assets to the newly formed General Motors Company, where the governments of the United States and Canada have more than 72 percent participation to end today, said an official representative of the Ministry of Finance in the United States wanted to remain anonymous, cited by Bloomberg. Down GM in Detroit this morning to discuss plans for future operation of the company. There will be new views of the manufacturer of the product and changes in management. It is expected that the company veteranat Bob Luts, who was expected to retire this year, to be held in the managing authority. The transfer of assets to the new company gives the green light to GM to end production of brandove which are emblematic for the company to lay off nearly 6 Hill jobs and close 16 plants. Earlier the company’s CEO Fritz Henderson said it would reduce the management of more than one-third to accelerate decision-making.
All these changes happened after the bankrupcy pf the company weeks ago and stablizing of the financial conditions.