BMW's Mini celebrates its 55th anniversary this month.» Read More
NEW YORK (Reuters) - Chrysler LLC may cut production further amid a steep drop in truck sales, according to a Wall Street Journal online report citing an interview with Chief Executive Robert Nardelli on Tuesday.
Billionaire Kirk Kerkorian's investment company said Tuesday its tender offer for 20 million additional shares of Ford Motor attracted a huge response and will easily enable it to increase its stake in the automaker to about 5.5 percent.
Chrysler is not playing up the Challenger's HEMI engine as the classic muscle car returns. Who can blame them. The HEMI was a hot selling point a few years ago when gas was cheap and buyers clamored for power.
When gas prices spike, the public finally opens its eyes to alternatives. It happened in the mid '70's when compact cars became big sellers. It's happening again today with hybrids flying off of lots.
If speculation makes investing fun, then these stocks offer a wild ride.
Gushing oil prices could swamp stocks in the week ahead, and even if crude pulls back, expect volatility.
With oil surging to $138.54 and being projected by some to hit $150 by July 4, it's putting immediate pressure on automakers to adjust production and push small cars and crossovers while pulling back on trucks and SUVs. On paper, this shift seems simple enough. In reality, it's not so easy.
J.P. Morgan's strategist Thomas Lee told me this two weeks ago: "I think if oil stays at $130, equities are in big trouble...because there's so much pressure here on corporate America because of this oil price."
It's a major achievement Chrysler should rightfully be proud of. But it also highlights the next challenge for them, as well as GM and Ford: closing the "perception gap." First, here's the good news for the Big 3 on assembly plant efficiency.
This year Porsche is number 1 with an average of 67 problems per 100 made. It's followed by Infiniti (jumping from 9th to 2nd), Lexus, Mercedes and Toyota. The Porsche victory is not surprising given it historically does well in quality surveys. Infiniti's jump is impressive and will help that brand continue on the resurgence it's enjoyed in the last couple of years.
Mark it down. May is the month that finally broke the back of the Big 3's great run with trucks and SUVs. Oh sure, Detroit still dominates the truck business, but it's clear buyers want something less, that's what is hurting Detroit.
General Motors and Ford reported sharp falls in U.S. auto sales in May, with sales of trucks hit especially hard as consumers shied away from automobiles with low gas mileage. Toyota Motor, meanwhile, reported a smaller decline.
Residential Capital said Tuesday that parent GMAC and private equity firm Cerberus Capital Management agreed to inject more than $1.4 billion in cash, a move that may help the struggling mortgage lender stay solvent.
Sure, some analysts are skeptical about the relationship between oil and the dollar. The conventional wisdom, though, is that the weaker dollar has encouraged investors to buy dollar-denominated commodities to hedge inflation and has contributed in some part to rising oil prices.
It's sad that it took record high gasoline prices for GM to figure out what it takes to be a competitive global auto maker. It's sad that GM has to go through yet another wrenching restructuring, closing plants and sacking workers from lines that make trucks and big SUVs.
General Motors, facing a sinking US market for gas-guzzling trucks and SUVs, said it will take dramatic steps to shift its focus to smaller vehicles.
The plant closings are prudent. If gas remains at high levels, there will be fewer and fewer buying trucks and SUVs. Sales are down 17.3 % this year, and may not get much better the rest of this year. With 4 fewer plants, GM will save roughly a billion dollars. More importantly, it will reduce the number of SUVs sitting on dealer lots in the future.
General Motors, facing a sinking U.S. market for trucks and SUVs, is expected to unveil steps on Tuesday to conserve cash and cut production of slower-selling models in a bid to shore up a faltering restructuring now in its third year, according to analysts.
After getting hammered last week, shares of General Motors are starting this week moving higher. Some of that is in anticipation of the company announcing Tuesday it will take steps to shift production from slow-selling SUVs and pick-ups, and moving more towards cars.
Toyota Motor is considering downgrading its U.S. sales forecast to account for a worsening outlook for pick-up trucks and other big vehicles, the Financial Times newspaper said on Monday.