Posts Tagged auto
G.M. Is Still Hopeful for Payback to Government
Posted by Oksana Grebenjuk in Business on Июнь 7th, 2011
The chief executive of General Motors said on Tuesday that he hoped the federal government would be able to sell its stake in the automaker soon, and expressed concern about the country’s economic recovery.
The executive, Daniel F. Akerson, said that G.M. was working to maximize its payback to taxpayers, but that the government did not make a bad investment even if it did not recover the full amount given to the company.
“At some level, the government’s got to decide: are they an investor or were they trying to save the industry?” Mr. Akerson told reporters ahead of G.M.’s first annual stockholder meeting since its 2009 government-financed bankruptcy.
A report last week by the White House National Economic Council concluded that the government would probably have to write off about $14 billion of the $80 billion spent rescuing the auto industry by the Bush and Obama administrations.
Mr. Akerson said that a G.M. liquidation would have saddled taxpayers with more than $17 billion in pension liabilities. G.M. has cut its pension shortfall in half since 2009, he said, adding that he wanted the plan to be fully financed during his tenure as chief executive. Read the rest of this entry »
If you must buy a car now, here’s what to do
Posted by Oksana Grebenjuk in Budget, Favourites on Май 27th, 2011
Rising prices and a looming vehicle shortage make this summer one of the worst times in years to go car shopping. But if your vehicle is on its last leg or your lease is about to come due, here are some tips on how to navigate through a difficult market.
• Consider cars with incentives: Manufacturers still offer some incentives, especially for cars that are near the end of their model cycle or are slow sellers. Most of the big auto information companies, including Edmunds.com, TrueCar.Com and kbb.com (Kelley Blue Book), offer incentive data on their websites.
• Check supply: While inventories are tightening across the board, some manufacturers will have ample inventory for some vehicles, and these will have the better deals. TrueCar’s TrueTrends report offers a monthly listing of new vehicles with the shortest and longest days’ inventory. This month’s report, for example, will tell you that Hyundai dealers have only an eight-day supply of their hot-selling Elantra sedan. It’s also tough to find a Ford Explorer — only a nine-day inventory. But if you want a BMW Z4, start shopping. The Z4 is about to be replaced with a new-generation model, and BMW dealers have a fat 161-day supply — more than five months’ worth. Similarly, Hyundai dealers are sitting on a 133-day inventory of the automaker’s Azera sedan.
• Be a contrarian: For now, that means bigger. With many buyers gravitating to smaller, fuel-efficient vehicles, consider buying something that drinks a bit more gas. Yes, it will cost you more each time you go to the pump, but with small-car prices going up rapidly you might find that the price gap between a compact vehicle and something larger has narrowed considerably. Large cars and trucks have the biggest discounts this month, and that’s likely to be the case throughout the summer. Read the rest of this entry »
Best option for car shoppers: Postpone buying
Posted by Oksana Grebenjuk in Favourites, Trading Markets on Май 26th, 2011
Inventory shortages caused by the effects of Japan’s earthquake have led to rising prices for new and used vehicles, creating what one analyst describes as a ‘huge seller’s market.’ Attention all car buyers: The era of cut-rate financing, generous cash-back offers and big discounts is coming to an end.
With the effects of the earthquake in Japan rippling through the industry and causing shortages, prices are rising for both new and used cars, and fewer models and options will be available come summer, especially for the hybrids and fuel-efficient vehicles that Japan produces.
That’s prompted many experts to voice something rarely said in the sales-happy auto industry: With consumers facing the toughest market in recent memory, if you can, put off purchases until things sort out, probably early next year.
«If you don’t have an immediate need, you are probably better to wait and figure out where the market is headed,» said Jesse Toprak, an analyst with auto information company TrueCar.com. Read the rest of this entry »
Toyota Plants in Japan Closed Through March 26
Posted by Oksana Grebenjuk in Trading Markets on Март 23rd, 2011
Toyota Motor (TM) said Tuesday it will keep all 12 of its assembly plants in Japan closed through at least March 26 as it struggles to get back on its feet following the country’s catastrophic earthquake and tsunami.
The world’s largest automaker halted vehicle production at the plants on March 14, including those of its subsidiary manufacturers. A decision about when vehicle production will resume in the island nation has yet to be made.
Production of replacement parts, however, resumed on March 17 for vehicles already on the market. On Monday it resumed production of parts for vehicles in overseas markets.
The impact on its North American operations so far remains limited, with all 13 vehicle and engine plants in the region running normally, though overtime has been curtailed to conserve parts that come from suppliers in Japan. Read the rest of this entry »
Consumer Spending in U.S. Rises More Than Forecast
Posted by Oksana Grebenjuk in Favourites, Trading Markets on Август 30th, 2010
Consumer spending in the U.S. rose more than forecast in July, exceeding gains in incomes, a sign the improvement will not last without more jobs.
Purchases rose 0.4 percent, the most since March, after little change the prior month, Commerce Department figures showed today in Washington. Incomes climbed 0.2 percent, less than projected, and the savings rate dropped.
Disposable incomes, or the money left over after taxes, dropped for the first time since January after adjusting for inflation, showing the lack of jobs is hurting Americans’ spending power. Companies from Intel Corp. to J. Crew Group Inc. are cutting forecasts as unemployment and flagging confidence prompt households to scale back.
“This, so far, is allaying near-term double-dip concerns,” said Derek Holt, an economist at Scotia Capital Inc. in Toronto, referring to fears the world’s largest economy will tip back into a recession. “It nonetheless showcases very lackluster growth in the U.S. economy.”
Stock-index futures fell after the report, extending earlier losses, and Treasury securities rose. The contract of the Standard & Poor’s 500 Index was fell 0.3 percent to 1,060.3 at 8:54 a.m. in New York. The yield on the benchmark 10-year Treasury note dropped to 2.60 percent from 2.65 percent late on Aug. 27. Read the rest of this entry »
Retail Sales in the U.S. Increase More Than Forecast
Posted by Oksana Grebenjuk in Trading Markets on Ноябрь 16th, 2009
October retail sales in the U.S. rebounded more than anticipated as demand for autos climbed, easing concern households will curtail spending after government incentives ended.
The 1.4 percent increase followed a 2.3 percent drop in the prior month that was much larger than previously estimated, making last month’s gain less impressive, Commerce Department figures showed today in Washington. Purchases excluding autos rose less than forecast.
Rising demand at retailers from discount chain TJX Cos. to luxury store Saks Inc. may foreshadow a brighter holiday shopping season. Acceleration in consumer spending, which accounts for 70 percent of the economy, will depend on an improvement in the labor market that has yet to unfold.
“Consumers are looking relatively resilient,” said Michael Feroli, an economist at JPMorgan Chase & Co. in New York, who projected sales would increase 1.3 percent. “They are spending a little more freely, which bodes well for the holiday season. Given the backdrop of the labor market, this is actually as good as one can hope for.” Read the rest of this entry »
Car industry shakeup opens door to China upstarts
Posted by Oksana Grebenjuk in Trading Markets on Апрель 21st, 2009
As ailing global automakers agonize over their survival strategies, China’s upstarts are racing them to launch homegrown hybrid and electric vehicles in the only major market that is still growing.
Shanghai’s biannual auto show, which opens Monday, will showcase these»new energy»vehicles, as the Chinese call them, alongside a cornucopia of conventional gas guzzlers, compacts, luxury and mid-range vehicles.
No purely electric vehicles, apart from a few experimental buses, are on Chinese roads just yet: automakers are still working on developing products with prices and performance that are competitive with conventional cars.
Yet, the focus on innovation reflects China’s desire to curb its growing dependence on imported crude oil and clear its polluted city skies. Beijing is plowing $1.5 billion into new energy vehicle technologies in the next three years.
«There’s a lot of interest in electric vehicles because it’s a technology that’s emerging from China’s strong research and development base for lithium-ion batteries,»said Ray Bierzynski, vice president for engineering in the Asia-Pacific for General Motors Corp. Read the rest of this entry »
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