GM - General Motors

[Packer16]

You are correct that is why I bought the B warrants versus the common.  Monish Pabrai has done this as well.

 

Packer

[Guest 50centdollars]

You are correct that is why I bought the B warrants versus the common.  Monish Pabrai has done this as well.

 

Packer

 

Didn't Monish sell his GM position?

[hyten1]

he did sell his common, but switch to B warrants

 

hy

 

You are correct that is why I bought the B warrants versus the common.  Monish Pabrai has done this as well.

 

Packer

 

Didn't Monish sell his GM position?

[Guest 50centdollars]

he did sell his common, but switch to B warrants

 

hy

 

You are correct that is why I bought the B warrants versus the common.  Monish Pabrai has done this as well.

 

Packer

 

Didn't Monish sell his GM position?

 

 

Thanks

[fareastwarriors]

http://online.wsj.com/news/articles/SB10001424052702304744304579248001805812732?mod=WSJ_business_whatsNews

 

 

GM Sees Sales Bump From U.S. Exit

 

Some Buyers Shunned Auto Maker Because of Government Ownership Stake

[fareastwarriors]

http://dealbook.nytimes.com/2013/12/09/u-s-sells-remaining-stake-in-gm/

 

 

U.S. Sells Remaining Stake in General Motors

[txlaw]

http://www.bloomberg.com/news/2013-12-10/gm-said-to-choose-barra-as-first-female-ceo-of-automaker.html

[merkhet]

 

http://www.bloomberg.com/news/2013-12-10/gm-said-to-choose-barra-as-first-female-ceo-of-automaker.html

 

 

I like that she's been with the company since 1980 -- that's a rarity to see these days...

[merkhet]

http://blogs.wsj.com/cfo/2013/12/06/finance-in-the-drivers-seat/

 

Not sure if anyone posted this before, but it's some great insight into the mind of Dan Ammann.

[txlaw]

 

http://www.bloomberg.com/news/2013-12-10/gm-said-to-choose-barra-as-first-female-ceo-of-automaker.html

 

 

I like that she's been with the company since 1980 -- that's a rarity to see these days...

 

Yeah, it's a good thing.  Maybe it will be a trend to have women elevated to the C-Suite who are lifers. 

 

Gini Rommety was a lifer, I believe. 

[txlaw]

Cadillac will apparently be featured on Bloomberg's C-Suite tonight, btw.

 

I'm a big fan of the Bloomberg TV app.  It's way better than the CNBC equivalent.

[fareastwarriors]

http://www.nytimes.com/reuters/2013/12/11/business/11reuters-autos-gm-analysis.html?src=busln

 

With Heavy Lifting Done, GM's Focus Turns to Cars, Fixing Europe

[fareastwarriors]

http://www.bloomberg.com/news/2013-12-12/gm-announces-its-selling-off-entire-7-stake-in-peugeot-citroen.html

 

GM Selling Entire Peugeot Stake as Alliance Finds Less Savings

[racemize]

http://www.bloomberg.com/news/2013-12-12/gm-announces-its-selling-off-entire-7-stake-in-peugeot-citroen.html

 

GM Selling Entire Peugeot Stake as Alliance Finds Less Savings

 

So what's the gain/loss on their 1 year investment here?  Seems like a poorly executed idea...

[fareastwarriors]

G.M. Sells Rest of Stake in Ally Financial

 

http://dealbook.nytimes.com/2013/12/12/g-m-sells-rest-of-stake-in-ally-financial/?_r=0

 

General Motors announced on Thursday that it had sold the last of its holdings in Ally Financial, its onetime financing arm, through a private placement of shares for $900 million.

 

G.M., which declined to identify the buyer, said it expected to record a gain of $500 million in the fourth quarter on the sale of the 8.5 percent stake.

[fareastwarriors]

BusinessWeek cover:

The Inside Story of GM's Comeback and Mary Barra's Rise

 

http://www.businessweek.com/articles/2013-12-12/exclusive-the-inside-story-of-gms-comeback-and-mary-barras-rise

[hyten1]

Chevrolet sweeps Autoweek's best of 2013 road tests

 

http://www.autonews.com/article/20131213/OEM03/131219926/chevrolet-sweeps-autoweeks-best-of-2013-road-tests#axzz2nMuPQtH7

 

lets hope all these awards changes some minds/perception about GM as well as increase sales :)

[hyten1]

nice article

 

this is exactly why the old gm went bankrupt, take a look at this fortune cover from the 80's

 

http://www.curbsideclassic.com/wp-content/uploads/2012/11/Fortune-cover-GM-A-bodies.jpg

 

there are 4 cars, 4 different brands, looks pretty much identical, that was back in the 80's

 

 

here are 3 cars in 2013 with similar fundamental architecture underneath, but have totally different style/function/target audience etc.

 

http://machinespider.com/wp-content/uploads/2013/03/2014-Buick-LaCrosse-2.jpg

http://www.tflcar.com/wp-content/uploads/2012/11/2014-Chevrolet-Impala-67.jpg

http://www.autoguide.com/auto-news/wp-content/uploads/2011/05/x10cc_ca007_pt.jpg

 

hy

 

BusinessWeek cover:

The Inside Story of GM's Comeback and Mary Barra's Rise

 

http://www.businessweek.com/articles/2013-12-12/exclusive-the-inside-story-of-gms-comeback-and-mary-barras-rise

[fareastwarriors]

http://blogs.wsj.com/corporate-intelligence/2013/12/17/alongside-booming-car-sales-booming-loan-debt/?mod=WSJBlog&mod=WSJ_corp_intel

 

Alongside Booming Car Sales: Booming Loan Debt

[fareastwarriors]

http://online.wsj.com/news/articles/SB10001424052702304173704579264591784583248?mod=WSJ_Heard_LEFTTopNews

 

GM's Catalytic Converter Looks Better Than Ford's

 

 

Investors have started to think General Motors GM -2.89% is a different kind of car company.

 

Ever since GM went public again three years ago, its shares and those of Ford Motor F -7.01% have tended to zig and zag together. This can be measured using the correlation coefficient for the two stocks' daily performance, where one represents perfect correlation and zero no relationship whatsoever. As of two months ago, the trailing two-month coefficient was 0.84.

 

 

But that linkage has since broken down, with GM's stock rising 17% and Ford's falling 4.4%. This reflects a string of positive developments at GM, including stabilization in European car sales, the U.S. government selling off the last of its shares, and the announcement that product development head Mary Barra will become chief executive next year. There is even talk of a renewed dividend.

 

The stage seems set for GM to take more of the steps to improve operations that Ford, under CEO Alan Mulally, has taken already.

 

It is less clear where Ford, following successful efforts to date, goes next. Indeed, questions about how much longer the well-regarded Mr. Mulally—rumored to be in the running to be Microsoft's MSFT -1.42% next CEO—will be at Ford have raised concerns over how well the company will handle the transition. Ford's management bench is said to be deep. But so was Apple's when Steve Jobs stepped down.

 

Investors may have gone a bit too far imagining how much GM will improve under Ms. Barra. After all, Ford has proved its ability to change for the better while GM has much to do. Still, both stocks now trade at roughly equal forward price/earnings multiples of nine times. With more catalysts for improvement, GM's stock could continue to pull away as we head into 2014.

 

[jay21]

Opel is on track to reach profitability by 2016, Neumann said, but the company expects a difficult year ahead, weighed down by restructuring costs for ending vehicle production at its factory in Bochum in Germany.

 

"If the world doesn't come to an end, we should keep growing, and then we don't need additional cost savings," Neumann said in an interview with the paper.

 

http://finance.yahoo.com/news/gm-unit-opel-sees-enough-090943382.html

 

Seems like people believe we are at a bottom in Europe, always nice to hear a reiteration of breakeven/profitability starting 2015/2016.

[fareastwarriors]

GM to Consider Shareholder Dividend

 

http://online.wsj.com/news/articles/SB10001424052702304858104579262212075413166?mod=WSJ_auto_IndustryCollection

 

 

 

 

General Motors Co. GM +0.88% Chief Executive Dan Akerson said on Monday the auto maker could consider paying a dividend next year even as it looks to raise executive salaries and invest $1.3 billion in modernizing five U.S. factories.

 

Investors have been anticipating a move by GM to return some of its $27 billion in cash since the U.S. Treasury sold the remaining shares acquired as part of the auto maker's 2009 federal bailout. GM stock jumped on Mr. Akerson's comments, trading up $1.40, or 3.5%, at $41.43 in 4 p.m. New York Stock Exchange trading on Monday.

 

Mr. Akerson also highlighted $1.3 billion in new investments destined for several Midwest production facilities, and defended the government rescue that made them possible in a speech in Washington, D.C.

 

GM will upgrade a truck assembly plant in Flint, Mich., retool a plant in Romulus, Mich., to produce a new ten-speed automatic gearbox and a six-cylinder engine; and upgrade other operations in Detroit, Toledo, Ohio, and Bedford, Ind.

 

 

 

 

The five factories now employ about 7,500 people. The Detroit company said the moves will protect or create 1,000 jobs, but didn't specify how many new jobs will result.

 

GM's investment follows Ford Motor Co. F -0.77% 's statement last week that it plans to add 5,000 jobs in the U.S. next year. About 3,300 of those jobs will be for engineers, Ford said. Ford said it will hire 6,000 new workers in Asia next year, and open three new factories to meet increased demand overseas, two in Asia and one in South America.

 

Mr. Akerson said last week he would step down on Jan. 15 and turn command of GM over to Mary Barra, currently head of world-wide product development. GM's new chairman will be Theodore "Tim" Solso, former chairman and CEO of heavy duty engine maker Cummins Inc. CMI +1.23%

 

Any decision on restoring a common stock dividend will likely occur on Ms. Barra and Mr. Solso's watch, but Mr. Akerson signaled that shareholders who have been pressing the company to give back some cash would likely get their wish.

 

"We are producing a fair amount of cash and we have improved our balance sheet by buying back some asset-backed securities so I do think it gives us some bandwidth to consider it," Mr. Akerson said, referring to a dividend payment.

 

Mr. Akerson said GM must move to raise the wages of its executive team to make them more competitive. Wages had been previously been effectively capped by the U.S. Treasury, which held a stake in the auto maker until last week.

 

"We need to pay competitive salaries," Mr. Akerson said moments before his speech. "I will be chairman of the board through January but I don't think a decision [on pay] will be made by then."

 

Ms. Barra's selection last week as the first woman to run a major global auto maker came amid a flurry of restructuring and management changes announced by GM.

 

Since taking over as CEO in 2010, Mr. Akerson has wrestled with how to respond to criticism of the $49.5 billion federal rescue of the auto maker, which collapsed amid the financial crisis of 2008 and filed for bankruptcy in 2009. Company executives have said sales were hurt by the "Government Motors" label hung on the company by opponents of the bailout.

 

With the U.S. Treasury's sale of its GM shares, Ford now owes more to the U.S., an about $6 billion low-interest loan for factory modernization, than GM does, he said.

 

The U.S. Treasury last Monday sold its remaining shares of GM stock, locking in a loss of $10.5 billion on the bailout.

 

Mr. Akerson has made a series of decisions aimed at resolving some troublesome issues for Ms. Barra. GM will wind down an unsuccessful effort to establish the Chevrolet brand in Eastern and Western Europe by 2016, and focus instead on rebuilding its German brand, Opel. Chevrolet will continue to be sold in Russia.

 

Last week, GM said it had divested a 7% stake held in French auto maker PSA Peugeot Citroën and scaled back an automobile-development alliance with the struggling firm.

 

GM also confirmed it will end production in Australia in 2017, although it will continue to sell cars and will keep the Holden brand name alive in the nation. The end of production will cost about 2,900 Australian workers their jobs.

 

"There were so many factors in that decision," Mr. Akerson said in Washington. "Basically you have a low tariff economy so outside importers to the country had an advantage. You had a strong Aussie dollar, [and] a supply chain that is weaker because of fewer auto makers in the country."

 

Mr. Akerson also took a shot at critics of the Chevrolet Volt, the plug-in hybrid he has championed, despite sales that fell short of the company's early expectations.

 

"We will sell more Volts this year than Jaguar will sell cars in this country," Mr. Akerson said. "There are a lot cars that aren't selling as well as the Volt. This car is a step forward."

 

[fareastwarriors]

http://www.businessweek.com/articles/2013-12-24/if-cadillac-keeps-growing-like-this-itll-be-the-best-selling-luxury-car-in-america#r=hp-ls

 

If Cadillac Keeps Growing Like This, It'll Be America's Bestselling Luxury Car

[fareastwarriors]

http://www.bloomberg.com/news/2013-12-26/gm-robo-glove-to-meat-hook-smooth-human-machine-teamwork.html

 

GM Robo-Glove to Meat Hook Smooth Human-Machine Teamwork

[fareastwarriors]

http://www.nytimes.com/reuters/2013/12/27/business/27reuters-gm-china-recall.html?src=busln

 

 

GM to Recall Around 1.5 Million Vehicles in China-Regulator