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Current DateTime: 08:24:34 12 Nov 2009
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    • GM Chairman Urges Easing of Pay Caps  11 Nov 2009

        GM chairman Ed Whitcare says it is hard to attract talent with pay restrictions, reports CNBC's Phil Lebeau.

    • GM's Road Ahead  11 Nov 2009

        General Motors Chairman Ed Whitacre is calling on the Obama administration to loosen pay caps. CNBC's Phil LeBeau has more on this and GM's road ahead.

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        The UK's trade deficit widened to an eight-month high in September as the number of imported cars rose sharply. Neil MacKinnon from VTB Capital spoke to CNBC about the outlook for the UK and sterling.

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        The Nikkei 225 finished up 0.2% at 9,808 Monday, but volume was down at a 6-week low. Fast Retailing, Suzuki Motor, and Kubota were top gainers, but major power companies were among the hardest hit. Makiko Utsuda from The Nikkei has more.

    • Fiat's 5-Year Road Plan for Chrysler  05 Nov 2009

        Fiat said its 5-year road plan to turn around Chrysler will result in the doubling of revenue. "There is no alternative but for Chrysler to be ambitious at this point," Stefano Aversa, co-president of restructuring specialists Alix Partners, said Thursday. "They have plenty of cash."

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Current DateTime: 08:24:34 12 Nov 2009
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Behind The Wheel

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Oct.21
10:24 AM ET
Tuesday, 21 Oct 2008
Kerkorian Cashes In Ford Chips With Losing Hand

Kirk Kerkorian
AP
Kirk Kerkorian

The billionaire investor who said he bought Ford stock as a long term investment is pulling out of the automaker after a short, money losing ride. Kirk Kerkorian still owns more than 6% of Ford's outstanding common shares.

But in selling 7 million shares, the legendary investor says he may further liquidate his Ford stake.

Back of the envelope math: Kerkorian bought the stock for roughly $6.91 a share and sold at $2.43 a share meaning he lost $32.7 million. So what does all this mean?

For the average investor you can take this as a sign that Kerkorian and Jerry York, his chief lieutenant on auto investments, do not see Ford [F  Loading...      ()   ]rebounding anytime soon. In fact, Kerkorian's firm Tracinda Corp believes its money is now better allocated in gaming and hospitality investments. In other words: Ford shares are dead money for the foreseeable future.

But in an auto industry on the cusp of consolidation, selling off of brands, and painful changes, Kerkorians move is harder to read.

I never bought into the idea some floated that Kerkorian wanted to wrestle control of Ford away from the Ford family. I think he truly saw a beaten down stock and company that has been making the necessary moves to ultimately profit and thrive under CEO Alan Mulally. And let's be honest, when he bought Ford at $8.50 a share it looked like a decent bet.

But it never worked out. And once again, Kerkorian and Tracinda corp get out of an American automaker on a less than triumphant note. He sued Daimler Chrysler over his investment in Chrysler. He bowed out of GM [GM  Loading...      ()   ]after failing to get the automaker into an alliance with Nissan/Renault. And now he is bailing on Ford with the stock close to a 25 year low. In short, Kerkorians investment history in Detroit has been as reliable as a Big 3 car built in the late 70's.

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- Ford Motor [F  Loading...      ()   ]

- General Motors [GM  Loading...      ()   ]

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