GM - General Motors

[PlanMaestro]

Unions will not be again what they used to be …

 

Mexican Motors

http://online.wsj.com/article/SB10000872396390444083304578018462369529592.html

[PlanMaestro]

GM: more trouble in Korea

http://blogs.ft.com/beyond-brics/2012/11/21/gm-more-trouble-in-korea/#axzz2CtiLPTXR

 

But the early retirement scheme has sparked strong protests from GM Korea’s 15,000-strong union, after the company announced earlier this month that it will not produce its next-generation Chevrolet Cruze small car in Korea, stoking speculation that the company may shift the production to its loss-making unit in Europe. The current Cruze model is produced in South Korea’s Gunsan plant, accounting for 50-60 per cent of approximately 260,000 cars produced there. According to union officials, from 2014 the new Cruze model will be produced in five regions including Europe, the US and China, although the company said this has not been decided yet.

 

Union officials compared GM’s recent moves to “declaring a war” against them and sent a warning letter to GM Korea’s chief executive Sergio Rocha, complaining that the steps were taken without consulting the union first. “We have seen a series of crucial issues that will have a grave impact on labour relations in the past month. This signals a red light for GM Korea’s future,” said Choi Jong-hak, a union spokesman.

 

Choi also referred to GM’s recent efforts to take full control of its Korean operations by buying back a 17 per cent stake from state-run Korea Development Bank. KDB is the second-largest shareholder in GM Korea with the power to veto the carmaker’s decision. The two sides are currently in talks about the stake sale while the union opposes it.

 

GM has seen a falling market share in South Korea in recent years, as foreign carmakers struggle to compete with domestic rivals such as Hyundai Motor and Kia Motors. GM currently has a less than 10 per cent market share in Korea while Hyundai and its affiliate Kia control nearly 80 per cent of the domestic market. French carmaker Renault also had to shed 800 workers or about 15 per cent of its workforce in its Korean unit earlier this year.

 

Although Korea is a small market for GM, it is a key manufacturing base for the US company, with nearly 2m cars produced each year. GM Korea has served as a small-car production base, manufacturing about a quarter of the company’s Chevrolet-branded cars. GM has been doing well in Asia, with most of the gains coming out of Australia and Korea.

 

[PlanMaestro]

GM in $4.2bn deal for Ally unit

http://www.ft.com/intl/cms/s/0/5d10a5f8-3431-11e2-9ae7-00144feabdc0.html?ftcamp=published_links%2Frss%2Fhome_us%2Ffeed%2F%2Fproduct#axzz2CiGlJ5Zw

 

Ally announced it was selling its European and Latin American operation and its share of a Chinese joint venture to GM’s wholly owned financing subsidiary. The Detroit-based lender said it had agreed a price of $550m above tangible book value, or about $4.2bn at the current valuation.

[PlanMaestro]

also GM would not have had to file for bankrupty if they did want F did which was to raise tons of money before 2008 hit (not that could be attributed partially to luck for F and mostly due to bad management on GM part)

 

That post by hyten raised some very interesting issues and was surprised it did not spark a discussion. I agree with him that GM minus the unions and the legacy costs is a very competitive firm… maybe more than that.

 

Regarding the issue: was Mulally good or lucky?

 

A substantial part of his success was raising money just before the crisis. There is no way to deny that, and from what I've read that was pure luck with the timing.

 

However he simplified Ford a lot:

 

http://farm9.staticflickr.com/8486/8228316120_0bf4e3f0f4.jpg

 

None of this is rocket science. It's something that General Motors can do too… while adding their enormous scale advantage. Any steps in this direction would be a nice extra to the thesis.

 

[txlaw]

also GM would not have had to file for bankrupty if they did want F did which was to raise tons of money before 2008 hit (not that could be attributed partially to luck for F and mostly due to bad management on GM part)

 

That post by hyten raised some very interesting issues and was surprised it did not spark a discussion. I agree with him that GM minus the unions and the legacy costs is a very competitive firm… maybe more than that.

 

Regarding the issue: was Mulally good or lucky?

 

A substantial part of his success was raising money just before the crisis. There is no way to deny that, and from what I've read that was pure luck with the timing.

 

However he simplified Ford a lot:

 

http://farm9.staticflickr.com/8486/8228316120_74b3f4963f.jpg

 

None of this is rocket science. It's something that General Motors can do too… while adding their enormous scale advantage. Any steps in this direction would be a nice extra to the thesis.

 

Taking out the mortgage for liquidity, selling off non-core brands, and making one platform is something that Mullaly was pushing from the start, I believe, in addition to changing the culture there.

 

I happen to think the guy was good.

 

I like GM and think that it's very competitive.  I can't believe what they're earning even with money losing European ops.  Crazy.

[PlanMaestro]

Bad month for GM in a very strong month for the industry and they are spinning.

 

Auto Makers Post Strong November Sales

http://online.wsj.com/article/SB10001424127887323401904578156923665717236.html

Ford's F-series pickup line shot up 18% last month to 56,299 vehicles, the highest since 2005 for November. But GM's large pickup sales fell 8% as demand for Chevrolet Silverado pickup truck sales fell 10.4% and sales of the GMC Sierra dropped 2%.

 

GM said its inventory of unsold pickup trucks shot up to nearly five months of supply, and a company executive on Monday suggested slowing or cutting production could be in the offing.

 

A GM executive said on a conference call Monday that its pickup sales dropped in large part because rivals were offering big discounts on 2012 models that GM didn't match. GM launched 2013 pickup models earlier this year, and plans to launch a new generation of its large pickup lineup in mid-2013.

 

"December will be a whole new ballgame," said Kurt McNeil, vice president of GM's U.S. sales operations. "December is usually a strong month for Silverado, construction is rebounding and we expect to see a resolution in Washington [to the fiscal cliff]."

 

Mr. McNeil said GM would slow its truck production rather than match the competition's price cuts going ahead.

 

"Much of it was due to the amount of incentives from our competitors Ford and Dodge. We were shocked that Dodge had $5,000 off a vehicle. We haven't seen those levels in a long time," said GM Interim Chief Marketing Officer Alan Batey.

 

A Ford sales analyst said the sales incentives on the F-series were below the year-ago level and less than $100 a vehicle higher than in October. A Chrysler spokesperson was unavailable for immediate comment.

 

Industry wide, discounts rose about 4.4%, according to research firm TrueCar.com. Nissan led the industry increase with the heaviest discounts, about $4,273 a vehicle and up 45% over November 2011. GM's discounts were up 20% in November, year-to-year, while incentives for Hyundai Motor Co. 005380.SE +1.33% and Kia Motors Corp. 000270.SE +1.13% rose 29%

 

Incentives dropped for Chrysler and Ford by 22% and 21% over a year ago, respectively, Truecar.com said.

 

[PlanMaestro]

Honda Accord, Ford Fusion, Caddy ATS named 'Car of Year' finalists

http://www.autonews.com/article/20121212/OEM/121219949#ixzz2EshXAs1s

 

Seven automakers had multiple nominees, led by Ford Motor Co. with four: the Ford Fusion, Escape and C-Max and the Lincoln MKZ. Nissan North America had three: the Nissan Altima and Pathfinder and the Infiniti JX35. The others are General Motors with the Cadillac ATS and Chevrolet Malibu, Toyota Motor Sales' Toyota Avalon and Scion FR-S, Chrysler Group's Dodge Dart and Ram 1500 pickup, American Honda with the Honda Accord and Acura RDX and BMW's 3 series and X1.

[hyten1]

gm is in the dog house right now, they have a bunch of new models coming out next year

[CONeal]

gm is in the dog house right now, they have a bunch of new models coming out next year

 

Not only that but they Are showing off the new model truck tomorrow and several people may just wait if they like what they see.  I've seen somewhere that trucks prices are bei g cut 13k off sticker bc they are having problems moving inventory. 

 

I've been looking for a Chevy on and off the last couple of months and have been disappointed.  Do they stock a damn truck with an interior color other than black?  The only time I've seen a color other then black is in the top end model.  The whole computer touch screen is also gibberish.  4 years from now the shit won't work and will be outdated and cost a couple k to fix. 

[LC]

4 years from now the shit won't work and will be outdated and cost a couple k to fix.

Welcome to America, where the shit breaks down, the insurance doesn't cover it, and the word "customer" really means "growing annuity!"

[bookie71]

A lot of folks now think of GM as "Government Motors" and would not think of buying a Chevy pickup.  This could be part of reason that Ford is doing so well.

[CONeal]

Here is the 2014 truck

 

http://www.foxnews.com/leisure/2012/12/13/2014-chevrolet-silverado-and-gmc-sierra-revealed/

[PlanMaestro]

http://farm9.staticflickr.com/8499/8273518706_533f716746.jpg

 

Ford aims at GM by showing new F-150 at Detroit show, report says

http://www.autonews.com/article/20121214/OEM03/121219909#ixzz2F3y2aENd

 

Ford, which declined to confirm its plans to show the truck, aims to launch the 2015 F-150 in the fall of 2014. GM will introduce its new trucks, the 2014 Chevrolet Silverado and GMC Sierra, in the second quarter of 2013.

 

The two largest American automakers are fierce competitors in the full-size pickup segment, which accounts for about 11 percent of the U.S. auto market. But in their latest redesigns, the two U.S. rivals have diverged in their focus, with Ford placing more emphasis on fuel economy.

 

In his note, Johnson said GM's new trucks will make the company more competitive in the pickup truck market and narrow the gap with Ford on prices. But "they will not displace Ford as leader in the highly profitable U.S. full-size pickup segment, unless Ford misfires on quality in its 2014 F-150 relaunch," he added.

 

Jockeying for profit

 

The F-series, which has been the best-selling U.S. vehicle for 30 years, and SUV derivatives such as the Expedition account for more than 90 percent of Ford's global profit, according to Morgan Stanley auto analyst Adam Jonas.

 

The current versions of the big trucks and related SUVs generate profit of $12,000 or more per vehicle and account for about 60 percent of GM's global profit, analysts said.

 

This kind of money often leads to jockeying for bragging rights over who has the toughest truck with the most towing capacity or highest fuel efficiency.

 

For example, GM ran a TV commercial during this year's NFL Super Bowl game depicting several Silverado owners arriving at a prearranged meeting point during the apocalypse. But one of their friends, a Ford driver, fails to show up, implying that Ford trucks are less rugged and durable.

 

Ford called on GM to pull the ad, citing insurance industry data that showed Ford trucks were safer. GM refused to comply.

 

This week, GM touted the new trucks' power and torque, as well as a quieter cab and additional safety features. Meanwhile, Ford is pushing to boost fuel economy of its new F-150 by 15 to 20 percent, in part by using lighter materials.

 

In its F-150 overhaul, Ford is looking to shave an average of 700 to 750 pounds from each vehicle through extensive use of aluminum as well as a redesign of components including brakes and axles. The prototype to be shown next month will provide strong visual clues to the design of the new F-150.

[muscleman]

http://farm9.staticflickr.com/8499/8273518706_533f716746.jpg

 

Ford aims at GM by showing new F-150 at Detroit show, report says

http://www.autonews.com/article/20121214/OEM03/121219909#ixzz2F3y2aENd

 

Ford, which declined to confirm its plans to show the truck, aims to launch the 2015 F-150 in the fall of 2014. GM will introduce its new trucks, the 2014 Chevrolet Silverado and GMC Sierra, in the second quarter of 2013.

 

The two largest American automakers are fierce competitors in the full-size pickup segment, which accounts for about 11 percent of the U.S. auto market. But in their latest redesigns, the two U.S. rivals have diverged in their focus, with Ford placing more emphasis on fuel economy.

 

In his note, Johnson said GM's new trucks will make the company more competitive in the pickup truck market and narrow the gap with Ford on prices. But "they will not displace Ford as leader in the highly profitable U.S. full-size pickup segment, unless Ford misfires on quality in its 2014 F-150 relaunch," he added.

 

Jockeying for profit

 

The F-series, which has been the best-selling U.S. vehicle for 30 years, and SUV derivatives such as the Expedition account for more than 90 percent of Ford's global profit, according to Morgan Stanley auto analyst Adam Jonas.

 

The current versions of the big trucks and related SUVs generate profit of $12,000 or more per vehicle and account for about 60 percent of GM's global profit, analysts said.

 

This kind of money often leads to jockeying for bragging rights over who has the toughest truck with the most towing capacity or highest fuel efficiency.

 

For example, GM ran a TV commercial during this year's NFL Super Bowl game depicting several Silverado owners arriving at a prearranged meeting point during the apocalypse. But one of their friends, a Ford driver, fails to show up, implying that Ford trucks are less rugged and durable.

 

Ford called on GM to pull the ad, citing insurance industry data that showed Ford trucks were safer. GM refused to comply.

 

This week, GM touted the new trucks' power and torque, as well as a quieter cab and additional safety features. Meanwhile, Ford is pushing to boost fuel economy of its new F-150 by 15 to 20 percent, in part by using lighter materials.

 

In its F-150 overhaul, Ford is looking to shave an average of 700 to 750 pounds from each vehicle through extensive use of aluminum as well as a redesign of components including brakes and axles. The prototype to be shown next month will provide strong visual clues to the design of the new F-150.

 

I see so many super investors piling into GM, but not many into F.

They probably based their investment on cheapness. But as an auto fan, I think F is going in the right direction. 20% better fuel economy is a big thing. There will be some need for more powerful trucks, but fuel economy will probably draw better consumer interest.

In addition, I know that Ford's eco-boost engines are really good. Even though the power might be slightly less, it is able to output max torch throughout 1500 rpm to 5000 rpm.

My parents own a Volvo XC60, which uses the Ford ecoboost 2.0L engine. The weight is 4200 lbs, which is about 25% heavier than my VW CC. But I feel that it actually accelerates faster than my CC, which also uses a 2.0L turbo engine, built by VW.

[hyten1]

muscleman

 

note the F 20% better is relative to current F-150

 

we don't know just yet what the new GM trucks few economy will be yet. GM have not announce their few economy for the 2013 new trucks

 

hy

[muscleman]

muscleman

 

note the F 20% better is relative to current F-150

 

we don't know just yet what the new GM trucks few economy will be yet. GM have not announce their few economy for the 2013 new trucks

 

hy

 

I see. I checked the above link for 2014 truck for GM, and they said their fuel economy will be improved also.

But I do know that at present, Ford's ecoboost engine is one of the best.

[hyten1]

ford does have better fuel economy right now, but not by much

 

http://www.shopautoweek.com/articles/2012/05/pickup-truck-comparison-f150-vs-silverado-vs-ram.html

 

I think the marketing, branding (ecoboost) make it sound like F's fuel economy is miles ahead of the competition

 

i am interesting in learning what the final mpg for these next gen trucks would be, i guess we have to wait and see

[PlanMaestro]

GM pickup strategy: Zig as rivals zag

http://www.autonews.com/article/20121217/OEM03/312179978/gm-pickup-strategy-zig-as-rivals-zag

 

Last week's premiere of General Motors' redesigned full-sized pickups spotlighted the divergent truck strategies of GM and its Detroit 3 rivals.

 

Industry insiders had wondered whether GM would try to counter the success that Ford Motor Co. has had with its turbocharged EcoBoost V-6 on its F-150 pickup. Or whether it would use the sort of fuel-saving technologies that Chrysler Group put on its re-engineered Ram 1500, such as an eight-speed transmission or a stop-start system.

 

Instead, GM unveiled next-generation Chevrolet Silverados and GMC Sierras that will offer new small block engines with displacements similar to its current powertrain lineup. None will be turbocharged. All will be combined with six-speed transmissions. No hybrids will be offered.

 

Still, each engine choice -- a 4.3-liter V-6 and 5.3- and 6.2-liter V-8s -- will have better horsepower, torque and fuel economy than its predecessor, GM execs said. The EPA has not yet rated the trucks' fuel economy, and other details will be released early next year. The trucks are to go on sale by June.

 

Some dealers and pundits think GM played it safe with modest exterior styling changes and lack of a sexy powertrain technology. But some think that's a good move.

 

"If this truck can deliver substantial improvements in fuel efficiency and power, then it should do just fine" and "take some share," Morgan Stanley analyst Adam Jonas says. "There's just a ton of loyalty in the full-sized pickup segment."

[PlanMaestro]

GM idles Chevy Malibu plant, tries to clear glut

http://www.autonews.com/article/20121217/OEM01/121219892#ixzz2FNAELsoF

 

On Dec. 1, GM's inventory stood at 788,200 units, or a 106-day supply, the highest level since April 2009, a few months before GM's government-led bankruptcy. GM executives have said that inventories rose higher than their targets and that the company would take steps to reduce stockpiles.

 

Also this week, GM canceled shifts at its Lordstown, Ohio, plant, where the Chevy Cruze is assembled.

 

Stocks of the Malibu, which was redesigned for the 2013 model year, stood at a 164-day supply on Dec. 1. The vast majority of that inventory was of the 2013 models. Dealers had sold through most of their 2012 stocks this spring and summer amid heavy discounting to make way for the redesigned sedan.

 

GM also builds a smaller number of Malibu sedans at a plant in Detroit and Hamtramck, Mich.

 

Malibu sales have climbed 4 percent this year to 199,321 through November, but trail the industry's overall 14 percent growth. Malibu sales have dipped since August, when the redesigned 2013 model was fully rolled out.

 

The Malibu is squaring off in a competitive segment against the redesigned Volkswagen Passat, Toyota Camry, Nissan Altima, Honda Accord and Ford Fusion.

 

Last month, GM CEO Dan Akerson said GM accelerated a refresh of the Malibu to debut in the fall, just 18 months after the car's debut. A mid-cycle refresh typically happens three-year mark under GM's normal cadence.

 

Akerson said he was aware of the mixed reviews that the Malibu has received from the automotive press. He did not say that the refresh is being fast-tracked in response to sour reviews or slow initial sales.

 

Akerson called the planned changes a "mid-cycle enhancement" and said they would include a new front fascia. GM could be planning to incorporate the wider grille featured on the redesigned 2013 Chevy Impala and reskinned 2013 Traverse crossover, a new face that is expected to be incorporated across much of Chevy's lineup.

[hyten1]

http://finance.yahoo.com/news/general-motors-spend-5-5-130155791.html

[PlanMaestro]

http://finance.yahoo.com/news/general-motors-spend-5-5-130155791.html

 

And no title or excerpt? hehehe. One cannot go on vacation internet-free w/o something big happening.

[CONeal]

I thought the gov't stake was valued at $53/share.  So are they saying they give up on trying to get all their money back?

 

edited b/c the average share price is more than $40.

[txlaw]

My understanding is that the government is taking a loss on the amount of money they put in.

 

Of course, it was essentially a fiscal policy move, and the returns the people will get from the government's involvement will be outstanding going forward.  That's just my view of the propriety of the "bailout."

 

B warrants are up quite a bit today.  I wish I had bought more.

[txlaw]

I can't stop trying to find out more info about this car:

 

http://www.cadillac.com/elr-electric-car.html

 

Detroit Auto show coming up next month.  It will be fun to see all the manufacturers' new models.

[Palantir]

This does look really cheap. This firm has 41B in Cash (42 MCap), and only 16B in debt, so the net cash position is like 24B, making the firm's EV = 18B.

 

Depending on what your FCFE projections are....but the "equity bond" yield (FCF/18) could yield anything from 7-15% on this....