[Keith_McClary]

$this->bbcode_second_pass_quote('IslandCrow', '
')http://news.bbc.co.uk/2/hi/business/8362291.stm

[Keith_McClary]

$this->bbcode_second_pass_quote('', 'B')y LIAM DENNING

Last year's North American International Auto Show in Detroit was something of a danse macabre. The specter of recession haunted the displays. General Motors and Chrysler were weeks away from bankruptcy.

This week's show promises a bit more cheer. U.S. vehicle sales, while back to 1982 levels, appear to be stabilizing. Yet the industry's near-death experience didn't lead to the profound changes needed.

For car companies and their investors, this lost opportunity will shape the next decade. As shown by the salvation of GM and Chrysler, and the tussle over Opel, politicians still love their cars and the job-providing factories that make them.

In North America, capacity is down from 18.3 million units in 2006 to about 16 million, says IHS Global Insight. That still is 17% more than forecast 2010 sales. Meanwhile, in Europe, political unwillingness to close factories is "more entrenched than ever," says Tim Urqhart, senior analyst at IHS. Globally, capacity to make 90 million vehicles compares with expected sales of 62 million this year, estimates Goldman Sachs.

Chronic overcapacity resulting from high barriers to exit has made for a dismal long-term investment. Shareholder returns for the global auto sector have trailed the market and have been on a downward trajectory for three decades. U.S. firms have struggled to adapt to deteriorating conditions in their home market, historically attractive because of a "unique" combination of size, wealth and low fuel prices, says John Casesa, managing partner at consultancy Casesa Shapiro Group.

One strategy has been to globalize. But few car makers are truly global. Ford Motor and GM have big positions in North America and Europe, but these are low-growth.

Emerging markets are the next big thing, with China alone expected to account for almost half of incremental vehicle sales by 2024, says Casesa Shapiro. But profits won't be easy, given China's fragmented industry and price-conscious buyers.

As a whole, however, low returns mean the industry needs to take capital out of the production process. That should mean mergers. But few will want to risk repeating Daimler's experience with Chrysler. Technology-sharing joint ventures are more likely, with Toyota Motor and Hyundai Motor particularly attractive partners, says Goldman.

Meanwhile, Ford shifted from the model of regional engineering fiefdoms to cost-saving, unified vehicle platforms sold world-wide. That sort of self-help will be critical. Despite structural weaknesses, the industry must accommodate the demands of climate-change legislation, changing vehicle tastes and new entrants, like China and India exporters. Detroit 2020 promises to be a very different show, perhaps with fewer exhibitors. Hopefully for Detroit, that would result from consolidation, rather than merely the real action having moved elsewhere in the world.

[Novus]

Did you see the cars they are showing this year? It is mostly all gas guzzlers from GM. Turbo charged this, V8 powered that, 400 horse power here, 500 horse power there. When will these idiots ever get a clue? They should have been allowed to go under. Stupid Stupid Stupid.

[shortonsense]

$this->bbcode_second_pass_quote('Novus', 'D')id you see the cars they are showing this year? It is mostly all gas guzzlers from GM. Turbo charged this, V8 powered that, 400 horse power here, 500 horse power there. When will these idiots ever get a clue? They should have been allowed to go under. Stupid Stupid Stupid.

[Tanada]

$this->bbcode_second_pass_quote('', 'F')ord Motor Vehicles have emerged winners at the Detroit Auto Show winning the title “North American Car and Truck of the Year”. The jury which decided about the twin honors consisted of 49 journalists from around dozen newspapers, online publications, magazines, freelance writers and editors. Ford created a history by becoming the only company to win the honors in both the categories of Car and Truck in 17 years of the award history. In the car category it was their Fusion Hybrid model and in truck group it was the Transit Connect a Euro – designed small commercial van, remodeled to suit the American market.

[Keith_McClary]

This Is Progress? GM Loses $4.3B, Needs $12.3B to Fund Its Pension
$this->bbcode_second_pass_quote('', 'G')eneral Motors is out of bankruptcy but the troubled car giant still can't turn a profit. The company lost $4.3 billion in its first six months since emerging from bankruptcy. GM Chief Financial Officer Christopher P. Liddell is confident the road ahead will be smoother, saying "there's a chance of achieving profitability in 2010."

Let's hope so. The U.S. government owns 61% of the company.

GM is also struggling with its pension obligations; a large portion of GM's loss was due to a settlement with the United Workers Automobile Workers union over retiree health care liabilities.

According to a report by the Government Accountability Office, GM will need to add $12.3 billion into its pension fund by 2014. If GM and Chrysler (which is in the hole $2.6 billion) terminate their pensions, the Pension Benefit Guaranty Corporation – funded by, you know who - would then become responsible for as much as $14.5 billion in unfunded liabilities.

[timmac]

Most companies coming out of BK usually ends up better and stronger, but GM comes out of BK still billions in the red and needs 12 billion to help with pension ??.

This might sound stupid but they might be better off just shutting down..

[Ludi]

$this->bbcode_second_pass_quote('timmac', 'M')ost companies coming out of BK usually ends up better and stronger, but GM comes out of BK still billions in the red and needs 12 billion to help with pension ??.

This might sound stupid but they might be better off just shutting down..

[efarmer]

Spontaneous deceleration, the government pays you, spontaneous acceleration,
you pay the government.

Simple.

[Maddog78]

http://ca.news.finance.yahoo.com/s/2104 ... -sign.html

$this->bbcode_second_pass_quote('', 'D')ETROIT - General Motors Co. has repaid the US$8.1 billion in loans it got from the U.S. and Canadian governments, a move its CEO says is a sign automaker is on the road to recovery.

GM CEO Whitacre announced the loan paybacks - US$8.4 billion including interest - Wednesday at the company's Fairfax Assembly Plant in Kansas City, Kansas.

"GM is able to repay the taxpayers in full, with interest, ahead of schedule, because more customers are buying vehicles like the Chevrolet Malibu and Buick LaCrosse we build here in Fairfax," he said.

"We are now building some of the best cars, trucks, and crossovers we have ever built, and customers are taking note. Our dealers are increasing their sales, we are investing in our plants, and we are restoring and creating jobs."

GM had made about $2 billion in loan payments to the U.S. government and $384 million to Canada in December and March and had promised to repay the full loans by June. But company officials have said its cash flow, mainly from the sales of newer models, has been better than expected, allowing it to make the remaining $5.8 billion in payments early - about $1.1 billion to Export Development Canada and another $4.7 billion to the U.S. Treasury Department.

Whitacre also announced that GM is investing $257 million in the Kansas factory and the Detroit-Hamtramck plant, both of which will build the next generation of the midsize Chevrolet Malibu.

GM got a total of $52 billion from the U.S. government and $9.5 billion from the Canadian and Ontario governments as it went through bankruptcy protection last year. The U.S. considered as a loan $6.7 billion of the aid, while the Canadian governments held $1.4 billion in loans.

snip..........................

[Keith_McClary]

$this->bbcode_second_pass_quote('', '[')url=http://news.therecord.com/Business/article/730082]GM withdraws applications for EU aid to Opel[/url]

BERLIN — General Motors Co. said Wednesday that it is withdrawing applications for some 1.8 billion euro ($2.2 billion US) in European government aid to its Opel and Vauxhall units and will fund their restructuring itself.
...
In Detroit, GM spokesperson Tom Wilkinson said the decision not to seek European aid means U.S. and Canadian government dollars will be used to help restructure Opel.

[Keith_McClary]

$this->bbcode_second_pass_quote('', '[')url=http://www.reuters.com/article/idUSTRE66M03120100723]GM plans to file for IPO during week of August 16: sources[/url]

(Reuters) - General Motors Co GM.UL plans to file its registration for an initial public offering during the week of August 16, just after the expected date for its second quarter results, according to two people with direct knowledge of the preparations.
A GM filing with the U.S. Securities and Exchange Commission would be the first step toward an IPO to reduce the U.S. government's ownership in the automaker after a $50 billion bailout in 2009.

By filing with the SEC in August, GM is aiming to complete its IPO before the November U.S. elections, according to the sources, who asked not to be named because the closed-door preparations remain confidential.

[Keith_McClary]

GM posts $2B profit as IPO nears
$this->bbcode_second_pass_quote('', '[')img]http://www.cbc.ca/gfx/images/news/topstories/2010/07/22/general-motors306x172.jpg[/img]
GM, whose headquarters are shown here, plans to raise $10 billion US in its forthcoming initial public offering. Stock prices will have to rise substantially for governments to make back what they forked over in bailouts, though. (Paul Sancya/Associated Press)

[gollum]

$this->bbcode_second_pass_quote('Novus', 'D')id you see the cars they are showing this year? It is mostly all gas guzzlers from GM. Turbo charged this, V8 powered that, 400 horse power here, 500 horse power there. When will these idiots ever get a clue? They should have been allowed to go under. Stupid Stupid Stupid.

[Lore]

The auto industry is under a slight pause in what inevitably will be a spiral downward. Boom and bust oil shocks will whipsaw the future buyer into near stupefaction. At which point they will buy only the least amount of transportation that suits their limited budget. In time that may end up just being a bicycle, a horse or foot power.

It makes little sense in terms of valuable energy spent, either fossil fuel or electric, to drive a couple hundred pounds of person down the road encased in a ton of vehicle. The only thing that will keep the relics of this industry going is the fact that as a country the U.S. is so spread out and dependent on a network of roads to supply its citizens with the necessities of life.

[Keith_McClary]

$this->bbcode_second_pass_quote('gollum', 'I')n all fairness, yes GM in the past failed to build good quality small efficient cars. However they built the cars that Americans wanted and that used fuel subsidized through our military involvement in the middle east. Having looked at both the Volt and the Cruze our next vehicle will be a GM. In these times I consider it unsightly and unpatriotic to not support American jobs and workers.

[Maddog78]

My co. vehicle is a 2006 GMC pickup. It only has 37,000 miles.
The tranny blew up the other day. When it was towed in they found axle seals and power steering leaks, too.
Only cost $5200 to fix.
Good thing it isn't my personal vehicle.
Maybe it was just a lemon?


I think I'll go with Ford next time.
They have an engine with over 400 hp now.

[radon]

$this->bbcode_second_pass_quote('gollum', ' ')In these times I consider it unsightly and unpatriotic to not support American jobs and workers.

[copious.abundance]

LINK
$this->bbcode_second_pass_quote('', 'N')ov. 11, 2010
Detroit comeback?: Ford, GM profits both top Toyota

General Motors earning bigger profits than Toyota? Sounds like 1980, not 2010. But it's happening.

Of course, Ford is out in front of both of them. But it was only two years ago that the notion of Toyota being stopped on its march to the top of the automotive heap looked inevitable. By contrast, Ford, General Motors and Chrysler were Detroit basket cases.

Now, GM has reported third-quarter net income of $2.2 billion, bringing its earnings this year to $4.8 billion. Bloomberg makes the comparison that shows it is well above the $4.5 billion profit by Toyota. And Ford has hit it out of the park: $6.4 billion in the nine months ended Sept. 30, already more than doubling last year's profit of $2.7 billion. Honda Motor Co.'s $5.3 billion in profit is the second-highest this year.

[...]

$this->bbcode_second_pass_quote('Lore', 'T')he auto industry is under a slight pause in what inevitably will be a spiral downward. Boom and bust oil shocks will whipsaw the future buyer into near stupefaction. At which point they will buy only the least amount of transportation that suits their limited budget. In time that may end up just being a bicycle, a horse or foot power.

It makes little sense in terms of valuable energy spent, either fossil fuel or electric, to drive a couple hundred pounds of person down the road encased in a ton of vehicle. The only thing that will keep the relics of this industry going is the fact that as a country the U.S. is so spread out and dependent on a network of roads to supply its citizens with the necessities of life.