A shortage of parts at a Texas sport-utility vehicle plant has resulted in General Motors (NYSE:GM) shutting the plant down for Friday.
The plant is based in Arlington, and build large SUVs, among them the popular Chevrolet Tahoe and GMC Yukon.
Even in the midst of a high gas price environment sales continue to be robust, although that could change as gas prices reach the point where consumers start thinking about cutting back on costs.
In March, GM sold 37,258 of the big SUVs, a gain of 20 percent over March of 2010, according to market watcher Autodata Corp.
The plant will reportedly resume production on Monday.
General Motors closed Thursday at $32.25, falling $0.06, or 0.19 percent.
Showing posts with label GM. Show all posts
Showing posts with label GM. Show all posts
Friday, April 8, 2011
Friday, March 25, 2011
Is General Motors (GM) Cheap?
With the stain of a taxpayer bailout still tarnishing General Motors (NYSE:GM), which has resulted in the company being identified by many as Government Motors, they haven't been in favor much overall by the general public, or investors.
Since its recent IPO the company has fallen below its $33 opening price.
The full year estimates of $4.02 a share in 2011 and $5.05 a share for 2012 are becoming more dubious as well, and that has been enhanced by the uncertainty surrounding part supplies coming from Japan, which could shut down more production at the company.
Also of concern is the skyrocketing price of oil, which will have a negative impact on the overall auto industry, including GM.
But if you believe the estimates on the company, the stock would be considered cheap, and with a long term outlook, that could make investors some money.
It will probably take time though to make an informed decision, as the fallout from Japan has to be understood and factored in before that can happen.
General Motors closed Thursday at $31.39, gaining $0.23, or 0.74 percent.
Since its recent IPO the company has fallen below its $33 opening price.
The full year estimates of $4.02 a share in 2011 and $5.05 a share for 2012 are becoming more dubious as well, and that has been enhanced by the uncertainty surrounding part supplies coming from Japan, which could shut down more production at the company.
Also of concern is the skyrocketing price of oil, which will have a negative impact on the overall auto industry, including GM.
But if you believe the estimates on the company, the stock would be considered cheap, and with a long term outlook, that could make investors some money.
It will probably take time though to make an informed decision, as the fallout from Japan has to be understood and factored in before that can happen.
General Motors closed Thursday at $31.39, gaining $0.23, or 0.74 percent.
Wednesday, March 23, 2011
Ford (F), GM (GM), Toyota (TM) Challenged by Parts Shortage
It'll be at least several months of off-and-on part shortages the major auto makers like Ford (NYSE:F), GM (NYSE:GM) and Toyota (NYSE:TM) will have to endure, adding to an already tough parts supply situation they've experienced over the last year or so.
While the shortages are expected to be sporadic and unpredictable, when added to prior shortages, it could be a significant factor in some of the models sold by the auto makers, especially those that are moving slower.
The thought is the companies will probably focus their parts strategy on faster moving vehicles and only the parts left over after that will be applied to other models.
Production for top models shouldn't be impacted by the parts shortage, but expectations are it will definitely affect the margins of the companies for the duration of the shortage.
Ford Motor closed Tuesday at $14.34, falling $0.25, or 1.71 percent. General Motors closed at $30.74, dropping $0.54, or 1.73 percent. Toyota Motors ended the session at $83.00, down $0.75, or 0.90 percent.
While the shortages are expected to be sporadic and unpredictable, when added to prior shortages, it could be a significant factor in some of the models sold by the auto makers, especially those that are moving slower.
The thought is the companies will probably focus their parts strategy on faster moving vehicles and only the parts left over after that will be applied to other models.
Production for top models shouldn't be impacted by the parts shortage, but expectations are it will definitely affect the margins of the companies for the duration of the shortage.
Ford Motor closed Tuesday at $14.34, falling $0.25, or 1.71 percent. General Motors closed at $30.74, dropping $0.54, or 1.73 percent. Toyota Motors ended the session at $83.00, down $0.75, or 0.90 percent.
Tuesday, March 22, 2011
General Motors (GM) Lays Off NY Workers on Japan Effect
Almost 10 percent of the General Motors (NYSE:GM) work force at a plant in Buffalo, N.Y. will be laid off as a result of a part shortages coming from the effects of the earthquake in Japan.
Of the 623 workers at the New York engine plant, 59 will be laid off until further notice, according to GM spokeswoman Kim Carpenter.
GM also announced on Monday it was slowing down production at its Opel Corsa subcompact car in Europe because of a shortage of parts, closing down two of the three shifts at its Eisenach, Germany, plant and shutting another plant in Zaragoza, Spain. The Corsa is one of the smallest cars in Opel's lineup.
In the American scene, thoughts are GM is focusing on its more profitable vehicles and so will target those facilities not producing them before they shut down the others if they have to.
GM closed Monday at $31.28, falling $0.57, or 1.79 percent.
Of the 623 workers at the New York engine plant, 59 will be laid off until further notice, according to GM spokeswoman Kim Carpenter.
GM also announced on Monday it was slowing down production at its Opel Corsa subcompact car in Europe because of a shortage of parts, closing down two of the three shifts at its Eisenach, Germany, plant and shutting another plant in Zaragoza, Spain. The Corsa is one of the smallest cars in Opel's lineup.
In the American scene, thoughts are GM is focusing on its more profitable vehicles and so will target those facilities not producing them before they shut down the others if they have to.
GM closed Monday at $31.28, falling $0.57, or 1.79 percent.
Monday, February 14, 2011
Where's Anger Over GM (NYSE:GM), Chrysler Worker Bonuses?
With the outcry over the bonuses bankers were receiving while being bailed out, there's growing murmuring by taxpayers over the outrageous bonuses being paid union workers working at the failed automakers General Motors (NYSE:GM) and Chrysler, which awarded them with bonuses while they still owe taxpayers big money.
Taxpayers still, unfortunately and wrongly, own part of GM and Chrysler while they deem it within their power to hand out these bonuses.
GM said they're paying out $3,200 to each worker, while Chrysler is paying out $750. That money should be used to pay back us taxpayers and not the overpaid union workers which were part of the problem in the first place.
With Ford, they have every right to award what they want to their workers, and they did with each hourly worker getting $5,000 each in profit-sharing for 2010.
The difference is Ford (NYSE:F) leadership refused to take the government handout which taxpayers opposed, and rightly took the situation into their own hands and overcame the difficult economic challenges they faced.
Ford workers deserve their bonuses as they and the company performed admirable. GM and Chrysler workers don't and the companies should be under fire for their irresponsible and unethical decisions.
The government should have allowed them to fail, and as usual, allow the free market to pick up the pieces of the poorly run companies. That should have happened with the banks and other financial institutions as well.
That's the greatness and power of the free market. It eliminates the poorly run companies via customers making decisions and voting with their dollars. For the government to step in and circumvent the decision of consumers is outrageous, unethical and props up the weak companies and allows them to continue on with their poorly run businesses.
Ford and its leadership and workers deserve praise for bypassing the government handout, which resulted in the workers being rewarded while Ford continues to pay down its debt.
For GM and Chrysler to continue to be allowed to survive is wrong and shouldn't have happened. But to throw it in the face of taxpayers who were forced by the U.S. government to bail out the failed companies by offering the workers of the companies bonuses is not different than the ridiculous bonuses paid to bank executives while their companies were failing.
Taxpayers still, unfortunately and wrongly, own part of GM and Chrysler while they deem it within their power to hand out these bonuses.
GM said they're paying out $3,200 to each worker, while Chrysler is paying out $750. That money should be used to pay back us taxpayers and not the overpaid union workers which were part of the problem in the first place.
With Ford, they have every right to award what they want to their workers, and they did with each hourly worker getting $5,000 each in profit-sharing for 2010.
The difference is Ford (NYSE:F) leadership refused to take the government handout which taxpayers opposed, and rightly took the situation into their own hands and overcame the difficult economic challenges they faced.
Ford workers deserve their bonuses as they and the company performed admirable. GM and Chrysler workers don't and the companies should be under fire for their irresponsible and unethical decisions.
The government should have allowed them to fail, and as usual, allow the free market to pick up the pieces of the poorly run companies. That should have happened with the banks and other financial institutions as well.
That's the greatness and power of the free market. It eliminates the poorly run companies via customers making decisions and voting with their dollars. For the government to step in and circumvent the decision of consumers is outrageous, unethical and props up the weak companies and allows them to continue on with their poorly run businesses.
Ford and its leadership and workers deserve praise for bypassing the government handout, which resulted in the workers being rewarded while Ford continues to pay down its debt.
For GM and Chrysler to continue to be allowed to survive is wrong and shouldn't have happened. But to throw it in the face of taxpayers who were forced by the U.S. government to bail out the failed companies by offering the workers of the companies bonuses is not different than the ridiculous bonuses paid to bank executives while their companies were failing.
Tuesday, December 21, 2010
GM (NYSE:GM), Ford (NYSE:F) Joining Battle Against E15 Ethanol
With the potential to do extraordinary damage to vehicles and machinery, the obsession by some with forcing more ethanol on the American people is being opposed by a growing number of people and corporations, with GM (NYSE:GM) and Ford (NYSE:F) the latest to join the battle against increasing the ethanol mix in gasoline.
They know when vehicles they sell end up getting damaged from ethanol, it'll be them that have to pay to cost of fixing it, or possibly even being sued over it.
The increasingly destructive Environmental Protection Agency forced the mix of gasoline to go up from 10 percent to 15 percent in October, creating the parameters of limiting it to cars and trucks that are newer.
All that stands between destruction of a vehicle (assuming it is safe for new cars and trucks) is for someone to accidentally put it in a vehicle it's not made for.
The answer of the Environmental Protection Agency is to be sure the pumps are marked. Really! That's it. That's what stands in the way of consumers and the destructive E15 ethanol forced on American drivers.
At this time the guidelines offered by the EPA is that cars built in 2007 and later can use E15. The EPA is incredibly and reportedly going to waive cars built after 2001 as well.
Hopefully consumers will refuse this nonsense and continue using E10.
As for safety, even E10 is known to cause a tremendous amount of damage to just about every type of small engine and many older cars as well.
Lawmakers ignored or neglected the opportunity to end this farce when they voted to extend the tax cuts last week. Now we'll have to continue on with this menace until next time the issue is raised.
They know when vehicles they sell end up getting damaged from ethanol, it'll be them that have to pay to cost of fixing it, or possibly even being sued over it.
The increasingly destructive Environmental Protection Agency forced the mix of gasoline to go up from 10 percent to 15 percent in October, creating the parameters of limiting it to cars and trucks that are newer.
All that stands between destruction of a vehicle (assuming it is safe for new cars and trucks) is for someone to accidentally put it in a vehicle it's not made for.
The answer of the Environmental Protection Agency is to be sure the pumps are marked. Really! That's it. That's what stands in the way of consumers and the destructive E15 ethanol forced on American drivers.
At this time the guidelines offered by the EPA is that cars built in 2007 and later can use E15. The EPA is incredibly and reportedly going to waive cars built after 2001 as well.
Hopefully consumers will refuse this nonsense and continue using E10.
As for safety, even E10 is known to cause a tremendous amount of damage to just about every type of small engine and many older cars as well.
Lawmakers ignored or neglected the opportunity to end this farce when they voted to extend the tax cuts last week. Now we'll have to continue on with this menace until next time the issue is raised.
Monday, December 13, 2010
Ford (NYSE:F) Shrinks Pay Gap with Foreign Automakers
One of the major competitive challenges of American automakers over the recent years was the outrageous amount that had to pay their workers, which made them unable to compete. For Ford (NYSE:F) that has changed as a result of union concessions which brought compensation back to reality.
It had cost Ford $75 an hour for each worker in the past, while competitors like Toyota (NYSE:TM) were able to operate at $56 an hour. Now Ford is able to compete at $59 an hour, bringing them close in line to their peers.
Ford said they're going to continue to work to lower that gap in order to be able to compete on a sustainable level.
Other competitors like Nissan, Hyundai and Kia operate at a level of about $48 an hour per employee.
One way they were able to make it look closer was to remove the cost of healthcare from their balance sheets by creating trusts to cover the costs.
Ford closed Friday at $16.73, down $0.03, or 0.18 percent.
It had cost Ford $75 an hour for each worker in the past, while competitors like Toyota (NYSE:TM) were able to operate at $56 an hour. Now Ford is able to compete at $59 an hour, bringing them close in line to their peers.
Ford said they're going to continue to work to lower that gap in order to be able to compete on a sustainable level.
Other competitors like Nissan, Hyundai and Kia operate at a level of about $48 an hour per employee.
One way they were able to make it look closer was to remove the cost of healthcare from their balance sheets by creating trusts to cover the costs.
Ford closed Friday at $16.73, down $0.03, or 0.18 percent.
Thursday, November 18, 2010
Bank of America (NYSE:BAC), Citigroup (NYSE:C), JPMorgan Chase (NYSE:JPM), Morgan Stanley (NYSE:MS), Have 30 Days to Exercise GM (NYSE:GM) Option
The long anticipated, but overhyped IPO of General Motors (NYSE:GM) has finally come, and interest in the shares could result in Bank of America (NYSE:BAC), Citigroup (NYSE:C), JPMorgan Chase (NYSE:JPM) and Morgan Stanley (NYSE:MS), who are underwriters of the offering, to exercise an overallotment option, which could increase the number of shares offered by another 14.3 million. They have 30 days to make the decision.
Shares in General Motors increased by 7 percent in early trading on Thursday, which will help them to pay back taxpayers who essentially saved the company; something that shouldn't of happened, but here we are anyway.
GM traded at about $35.25 at 12:00 PM EDT.
Including the $4.35 billion of preferred shares and overallotment option, it would bring the IPO to be the largest in history, although shares would have to climb significantly in order for the automaker to pay generate a profit to its major investors.
The U.S. Treasury offered close to 360 million shares in the IPO at an initial value of $33 a share. GM shares will have to rise to $53 in order for the Treasury to break even in the deal.
The government paid GM $49.5 billion. Of that, about $13.6 billion will be paid back as a result of the IPO immediately.
Shares in General Motors increased by 7 percent in early trading on Thursday, which will help them to pay back taxpayers who essentially saved the company; something that shouldn't of happened, but here we are anyway.
GM traded at about $35.25 at 12:00 PM EDT.
Including the $4.35 billion of preferred shares and overallotment option, it would bring the IPO to be the largest in history, although shares would have to climb significantly in order for the automaker to pay generate a profit to its major investors.
The U.S. Treasury offered close to 360 million shares in the IPO at an initial value of $33 a share. GM shares will have to rise to $53 in order for the Treasury to break even in the deal.
The government paid GM $49.5 billion. Of that, about $13.6 billion will be paid back as a result of the IPO immediately.
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