Autoblog http://www.autoblog.com Autoblog http://www.autoblog.com/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2008 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[City of Flint gives GM tax breaks for Cruze and Volt factory]]>http://www.autoblog.com/2008/08/28/city-of-flint-gives-gm-tax-breaks-for-cruze-and-volt-factory/http://www.autoblog.com/2008/08/28/city-of-flint-gives-gm-tax-breaks-for-cruze-and-volt-factory/http://www.autoblog.com/2008/08/28/city-of-flint-gives-gm-tax-breaks-for-cruze-and-volt-factory/#commentsFiled under: , , , ,

Giveth, and taketh away, isn't that always the story? On the taketh away side, GM has recently lost a serious chunk of change. On the giveth side, The General received a $56 milion package of tax credits and grants to keep an SUV factory open in Ohio. It has also just received another package of tax credits from the city of Flint, Michigan to aid its investment in a factory that will build engines for the new Volt and Chevy Cruze. Approved over some constituent disapproval by the Flint City Council, getting GM to build the factory there will keep 300 jobs in the city. GM is now looking to the state of Michigan for more tax incentives.

[Source: Detroit News via Green Car Congress]

 

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]]>factoriesflintflint michiganFlintMichigangmplantstax breaktax breakstax incentivetax incentivesTaxBreakTaxBreaksTaxIncentiveTaxIncentives2008-08-28T18:32:00+00:00<![CDATA[Toyota cuts sales forecast almost 7%]]>http://www.autoblog.com/2008/08/28/toyota-cuts-sales-forecast-almost-7/http://www.autoblog.com/2008/08/28/toyota-cuts-sales-forecast-almost-7/http://www.autoblog.com/2008/08/28/toyota-cuts-sales-forecast-almost-7/#commentsFiled under: , ,

Last September we told you of Volkswagen's plan to overtake Toyota in global sales by 2015. Some Autoblog staffers giggled at the prospect. That was before Toyota reported a 39% drop in profit and began writing down leases, and long before today's news of the Japanese automaker reducing its sales goal for 2009 by almost 7%. Instead of the 10.4 million vehicle sales it predicted for 2009, Toyota says it now may only sell 9.7 million.

While 7% may not sound like a big reduction, consider that Toyota has seen steady growth since its founding in 1934, and any drop is a big deal. Last month, Toyota reported an 18% drop in sales from last July, while VW posted a 4% drop. If those sales rates continue, VW's goal of total domination should be much easier to attain.

[Source: Reuters]

 

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]]>automotive salesAutomotiveSalestoyotatoyota salesToyotaSalesvolkswagen salesVolkswagenSalesvolkswgen2008-08-28T10:59:00+00:00<![CDATA[Toyota tops GMAC as the biggest U.S. auto lender]]>http://www.autoblog.com/2008/08/25/toyota-tops-gmac-as-the-biggest-u-s-auto-lender/http://www.autoblog.com/2008/08/25/toyota-tops-gmac-as-the-biggest-u-s-auto-lender/http://www.autoblog.com/2008/08/25/toyota-tops-gmac-as-the-biggest-u-s-auto-lender/#commentsFiled under: , , , ,

Toyota Financial Services recently leaped over GMAC Financial services to take the lead as the biggest U.S. auto lender in terms of loan and lease contract volume. The study by AutoCount (a unit of the Experian Automotive company) estimates that Toyota captured 6.35% of the market from January through June, while GMAC had 6.2% for a close second place. Rounding out the top five were Chase Auto Finance, American Honda Finance, and Ford Credit (in that order).

As GMAC has made major cutbacks in leasing over the summer, many industry experts expect Toyota to hold its lead through the end of the year. A spokesperson from GMAC was quick to point out that the study did not include two wholly owned subsidiaries: Nuvel Credit and National Auto Finance. When those two companies are included, GMAC's share increases to 6.72 percent -- effectively placing them at the top again. While the automakers battle for the title position, the independent banks are the ones to watch. They've been steadily increasing their lending share as the Detroit 3 struggle with the rising costs of funds and declining credit ratings.

[Source: Automotive News, subs. req'd]

 

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]]>AutoCountBiggestbiggest U.S. lenderBiggestU.s.LenderExperianfirst placeFirstPlacegmacgmacfinancialleaseloanToyota Financial ServicesToyota FinancingToyotaFinancialServicesToyotaFinancing2008-08-25T18:59:00+00:00<![CDATA[<i>WSJ</I>: Big 3 seeking $25 billion from Feds]]>http://www.autoblog.com/2008/08/22/i-wsj-i-big-3-seeking-25-billion-from-feds/http://www.autoblog.com/2008/08/22/i-wsj-i-big-3-seeking-25-billion-from-feds/http://www.autoblog.com/2008/08/22/i-wsj-i-big-3-seeking-25-billion-from-feds/#commentsFiled under: , , , ,



No matter how you slice it, a proposed $25 billion loan from the Feds is a bailout, and that's exactly what Detroit's Big Three automakers are after, according to a report by the Wall Street Journal.

Lobbyists for General Motors, Chrysler and Ford have met with White House officials, Rep. John Dingell and a smattering of Michigan Democrats to discuss the loan, with plans to unveil the proposal after Labor Day.

The plan includes lending $25 billion to automakers in its first year at an interest rate of 4.5 percent (about one-third of what the companies are currently paying), with the government having the option to defer any payment for up to five years.

Details are scarce, and naturally, GM, Ford and Chrysler reps aren't saying much, but if the automakers and the Feds are serious, expect more information to leak out before the proposal is officially announced.

[Source: WSJ, Photo by Tracy O | CC2.0]

 

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]]>25 billion25Billionbailoutchryslerfordgeneral motorsGeneralMotorsgm2008-08-22T16:58:00+00:00<![CDATA[Ford to sell $500m in new stock]]>http://www.autoblog.com/2008/08/15/ford-to-sell-500m-in-new-stock/http://www.autoblog.com/2008/08/15/ford-to-sell-500m-in-new-stock/http://www.autoblog.com/2008/08/15/ford-to-sell-500m-in-new-stock/#commentsFiled under: ,

In an effort to secure more capital and reduce debt, Ford plans to sell $500m in new stock. Ford will use the cash infusion to buy bonds from Ford Motor Credit, which has been struggling with the slow economy and nation-wide credit crunch. Goldman Sachs is handling the stock sale, and Ford has given no timetable for when the stocks will enter the market. Ford has already exchanged debt for equity to the tune of $927m in the past year. With shares of Ford stock at under $5 per share right now, anybody can own a share of the Blue Oval for the price of a value meal.

[Source: Automotive News (subs req'd)]

 

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]]>ford creditford stockFordCreditFordStockstock saleStockSale2008-08-15T14:01:00+00:00<![CDATA[Clarkson and BBC team up to take <i>Top Gear</i> global]]>http://www.autoblog.com/2008/08/14/clarkson-and-bbc-team-up-to-take-i-top-gear-i-global/http://www.autoblog.com/2008/08/14/clarkson-and-bbc-team-up-to-take-i-top-gear-i-global/http://www.autoblog.com/2008/08/14/clarkson-and-bbc-team-up-to-take-i-top-gear-i-global/#commentsFiled under: ,

A new business deal signed between the BBC on the one hand and Top Gear host Jeremy Clarkson and producer Andy Wilman on the other could see the vast expansion of the Top Gear brand worldwide. The deal involves BBC Worldwide, the international commercial arm of the government-owned television network, taking a majority stake in Badder 6. The latter is a company set up by Clarkson and Wilman two years ago for reasons unknown, but will now act to channel all revenues from the Top Gear brand back to the BBC, Clarkson and Wilman.

The deal is seen as a necessity to keep Clarkson happy so he'll remain on the show amidst offers from competing networks and producers for the world's most famous automotive journalist. Badder 6, which now includes three top-level BBC Worldwide executives, will be responsible for managing the marketing of Top Gear around the world, including the magazine, the original British television program, the new program for the United States undertaken by NBC, an additional new series for Australia, and all related merchandising opportunities. Now reaping the rewards for his efforts, Clarkson will act in a direct capacity as the figurehead for the Top Gear brand around the world. Although the deal did not involve his co-hosts Richard Hammond and James May, the pair are reported to have secured more lucrative deals themselves in light of Clarkson's new arrangement.

[Source: The Guardian via Inside Line]

 

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]]>andy wilmanAndyWilmanbadder 6Badder6bbcbbc worldbbc worldwideBbcWorldBbcWorldwideclarksonjeremy clarksonJeremyClarksontop gearTopGearwilman2008-08-14T08:29:00+00:00<![CDATA[Ford: We can make money on small cars!]]>http://www.autoblog.com/2008/08/13/ford-we-can-make-money-on-small-cars/http://www.autoblog.com/2008/08/13/ford-we-can-make-money-on-small-cars/http://www.autoblog.com/2008/08/13/ford-we-can-make-money-on-small-cars/#commentsFiled under: , , , , ,

Click above for high-res gallery of the Euro Ford Focus

For years, enthusiasts have been clamoring for Euro-only Blue Oval models to be sold in American dealerships. This dream is finally coming true, starting with the new Ford Fiesta and next-gen 2010 Ford Focus. Mark Fields has revealed that the European Focus and Foci built in North America will share 90% of their parts compared to just 20% today. Not only will this make for better cars, it also allows Ford to realize a double-digit profit improvement on each Focus compared to what it's earning today. This is certainly a positive development, as the automaker believes that the small car segment will nearly double in the next few years. We're inclined to agree unless Exxon discovers that the Earth's core is made of crude. The other part of Ford's plan is to make its North American plants flexible enough to respond quickly to the ever-changing U.S. market, which is something Toyota, Honda and other import automakers assembling vehicles in this country have already done with great effects.

Gallery: 2008 Euro Ford Focus


[Source: Ford]

Continue reading Ford: We can make money on small cars!

 

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]]>2010 ford focus2010FordFocusfordford fiestaford focusFordFiestaFordFocussmall carsmall carsSmallCarSmallCars2008-08-13T16:58:00+00:00<![CDATA[Harley-Davidson and MV Agusta sign acquisition deal]]>http://www.autoblog.com/2008/08/13/harley-davidson-and-mv-agusta-sign-acquisition-deal/http://www.autoblog.com/2008/08/13/harley-davidson-and-mv-agusta-sign-acquisition-deal/http://www.autoblog.com/2008/08/13/harley-davidson-and-mv-agusta-sign-acquisition-deal/#commentsFiled under: ,

Last month we brought you confirmation of Harley-Davidson's impending take-over of the MV Agusta Group in a deal valued at $109 million. The two parties have now signed the deal, leaving only regulatory approval to proceed with the acquisition.

Although MV Agusta built nearly 6,000 motorcycles in 2007, production has slipped dramatically this year as the company was over-run with debt. Part of Harley's take-over involves the payment of some $70 million in MV Agusta's outstanding debts. Harley-Davidson announced that Claudio Castiglioni, the current chairman of the group, which also includes Cagiva motorcycles, as well as chief designer Massimo Tamburini, will remain in their posts and the company will continue to operate out of its headquarters in Varese, Italy. However, Harley-Davidson intents to appoint a new management team for MV Agusta, including a new managing director. With such measures in place, we're sure that the partnership between Milwaukee and Varese can only lead to good things for both companies.

[Source: Harley-Davidson]

Continue reading Harley-Davidson and MV Agusta sign acquisition deal

 

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]]>harley agustaharley davidsonharley-davidsonHarleyAgustaHarleyDavidsonmv agustamv agusta harley-davidsonMvAgustaMvAgustaHarley-davidson2008-08-13T09:29:00+00:00<![CDATA[Toyota voices its support for success of Detroit 3]]>http://www.autoblog.com/2008/08/12/toyota-voices-its-support-for-success-of-detroit-3/http://www.autoblog.com/2008/08/12/toyota-voices-its-support-for-success-of-detroit-3/http://www.autoblog.com/2008/08/12/toyota-voices-its-support-for-success-of-detroit-3/#commentsFiled under: ,


According to Steve St. Angelo, a VP at Toyota North America, a healthy Detroit 3 is good for Toyota. While that may sound a bit odd or even patronizing, St. Angelo notes that the U.S. supplier base is working for both the Americans and Japanese. If one of their big clients like GM or Ford is in trouble, the effect to the supplier will in turn affect Toyota. What's more, the U.S. economy is closely tied in with the success of the automakers in Detroit and a depressed economy can only serve to hurt Toyota's U.S. sales numbers, a fact that is surely apparent when you glance at our By The Numbers posts over the past few months. Toyota's sales are still relatively strong, enough so that it has passed Ford to become America's second largest automaker and is currently knocking on GM's door (and giving them a spinning leg hook belly-to-back suplex) to take over the role as number one. So while a defeated member of the Detroit 3 may be bad for Toyota, a wounded one might be OK.

[Source: The Detroit News]

 

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]]>2008-08-12T18:27:00+00:00<![CDATA[Chrysler asks UAW for 10-hour, four-day workweek]]>http://www.autoblog.com/2008/08/11/chrysler-asks-uaw-for-10-hour-four-day-workweek/http://www.autoblog.com/2008/08/11/chrysler-asks-uaw-for-10-hour-four-day-workweek/http://www.autoblog.com/2008/08/11/chrysler-asks-uaw-for-10-hour-four-day-workweek/#commentsFiled under: , ,

In an effort to cut down on travel and energy costs, Chrysler is said to be in negotiations with the United Auto Workers Union to switch from five, eight-hour days down to four days with ten-hour shifts. We first heard this scheme mentioned as a possibility for the Jeep Factory in Toledo, Ohio, though it now appears as if all but the few plants turning in high amounts of overtime would be affected if the UAW agrees to allow Chrysler to make the scheduling change. As is typical with the new Cerberus-owned automaker, the Chrylser LLC isn't giving out any information on specific savings targets, though preliminary figures put the reduction at something close to -- but under -- $10 million a year. The new shifts are already underway at a Chrysler distribution center in Atlanta, Georgia.

[Source: Automotive News - sub. req'd]

 

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]]>chryslerchrysler work weekChryslerWorkWeekfour day shiftFourDayShiftten hour daysTenHourDayswork weekWorkWeek2008-08-11T17:03:00+00:00<![CDATA[Is Pininfarina's future in doubt after CEO's death?]]>http://www.autoblog.com/2008/08/08/is-pininfarinas-future-in-doubt-after-ceos-death/http://www.autoblog.com/2008/08/08/is-pininfarinas-future-in-doubt-after-ceos-death/http://www.autoblog.com/2008/08/08/is-pininfarinas-future-in-doubt-after-ceos-death/#commentsFiled under: ,


Click above for hi-res gallery of the Pininfarina Sintesi Concept

Even prior to Pininfarina CEO Andrea Pininfarina's untimely death while out riding his scooter, the market for coachbuilt automobiles was shrinking fast. To wit, the Italian car design firm had recently just managed to sign an agreement with its creditors to reschedule the company's debt and is now asking for an extra one-hundred-million Euros from shareholders for future product development. Pininfarina is also planning on designing and building its own electric car using batteries and technology supplied by a French company known as The Bolloré Group. Currently, many questions surround the storied Italian marque. As of today, for instance, Pininfarina is without a leader as the company has yet to announce its next CEO, despite the fact that it is knee-deep in a turnaround plan to bring the company back to profitability. Can the storied design firm and coach-building company survive these tumultuous times without a leader? Time, as always, will tell.

Gallery: Pininfarina Sintesi concept


[Source: Just-Auto - sub. req'd]

 

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]]>andrea pininfarinaAndreaPininfarinapininfarinapininfarina ceopininfarina sintesipininfarina sintesi conceptpininfarina-sintesiPininfarinaCeoPininfarinaSintesiPininfarinaSintesiConcept2008-08-08T19:33:00+00:00<![CDATA[CNBC's "Saving GM" gets thumbs up from Lutz]]>http://www.autoblog.com/2008/08/08/cnbcs-saving-gm-gets-thumbs-up-from-lutz/http://www.autoblog.com/2008/08/08/cnbcs-saving-gm-gets-thumbs-up-from-lutz/http://www.autoblog.com/2008/08/08/cnbcs-saving-gm-gets-thumbs-up-from-lutz/#commentsFiled under: ,



There has been a lot said about GM in the wake of tough market conditions and the Detroit Automaker's $15.5B Q2 loss. As you can imagine, a lot of the talk isn't upbeat. GM Vice Chairman Bob Lutz seems to think much of the discussion surrounding the General is nothing more than speculation and uninformed bias, but then again Maximum Bob's got a bit of a pro-GM bias of his own. So you can imagine that Blogger Bob was interested to see an hour long special called Saving GM, which recently aired on CNBC. Mr. Lutz' assessment of the piece? He thought it was fair and unbiased, and it touched on the good and bad of GM over the past few years in an honest way. Lutz said he liked that the documentary concluded that GM needs the public to think "smash hit vehicle from GM" and think of "cars in showrooms, not museums."

We haven't seen the hour long special Saving GM, so we reserve judgment as to whether or not it was fair, but we've heard from a few people it's worth a watch. Saving GM will re-air on CNBC on August 10 at 10 pm ET, so set your TiVo. You can also read more about here at the CNBC website if you need more convincing.

[Source: GM Fast Lane Blog, CNBC]

 

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]]>blogger bobBloggerBobbob lutzBobLutzcnbccnbc saving gmCnbcSavingGmGMmaximum bobMaximumBobSaving GMSavingGm2008-08-08T13:29:00+00:00<![CDATA[Neat trick: Chrysler claims $1.1 billion profit]]>http://www.autoblog.com/2008/08/08/neat-trick-chrysler-claims-1-1-billion-profit/http://www.autoblog.com/2008/08/08/neat-trick-chrysler-claims-1-1-billion-profit/http://www.autoblog.com/2008/08/08/neat-trick-chrysler-claims-1-1-billion-profit/#commentsFiled under: , ,





It's a claim that needs a big, fat asterisk after it, but Chrysler's Jim Press is cheerily touting a $1.1 billion dollar gross profit. The number, which wasn't pulled out of a posterior orifice but has yet to be adjusted, is known as the EBIDA, or earnings before interest, depreciation, and amortization. Well, shoot, if you take all of the albatrosses off the necks of the automakers, they're all cranking along with nice gross profit numbers. Too bad that Chrysler's gross profit will turn into a disgusting loss once the accounting is done. It's good news that Chrysler's still making some money, even if a gross profit will turn into a net loss, and Press seems to indicate that Chrysler is aimed at right-sizing itself for future success. Moving vehicles is increasingly becoming a challenge as we suffer a hangover from the boom years of easy credit, and total volume is bound to be off by millions compared to just a few short years ago. Chrysler's product line doesn't strike us as well situated to eventually earn a net profit, saddled as it is with subpar interior materials, powertrains that want for refinement and output (in everything that's not V8- or Hemi-powered, that is), and uninspired design, but if Cerberus hangs in there instead of making everyone's strip and flip fears come true, the automaker may be able to get its act together for its product line after 2010.

[Source: Motor Trend]

 

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]]>chrysler earningschrysler gross profitchrysler profitChryslerEarningsChryslerGrossProfitChryslerProfit2008-08-08T10:58:00+00:00<![CDATA[Toyota's Q1 profit drops 39%]]>http://www.autoblog.com/2008/08/07/toyotas-q1-profit-drops-39/http://www.autoblog.com/2008/08/07/toyotas-q1-profit-drops-39/http://www.autoblog.com/2008/08/07/toyotas-q1-profit-drops-39/#commentsFiled under: ,

Toyota is not used to seeing its profit margins drop, as the Japanese auto giant has enjoyed increased profit for nine straight years. Expect that run to end this year, though, as Toyota is discovering that it is not immune to the downturn of the American auto market. For the year, Toyota has revised its sales forecast from 9.06 million units to an estimated 8.74 million. For the first quarter of the year that ended in June, Toyota has also announced that its operating profit took a 39% plunge from lower sales in both the United States and Europe, the increased value of the Yen and higher cost of raw materials. Oh, and then there's the pesky problems of leases. Still, Toyota sales remain fairly strong in this sinking market and a profit is a profit. We'd imagine that this is a problem any one of the Detroit 3 would love to have on its hands.

[Source: Automotive News - sub. req'd]

 

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]]>toyotatoyota profittoyota salesToyotaProfitToyotaSales2008-08-07T18:58:00+00:00<![CDATA[Chrysler considering four-day work week at Toledo Jeep plant]]>http://www.autoblog.com/2008/08/07/chrysler-considering-four-day-work-week-at-toledo-jeep-plant/http://www.autoblog.com/2008/08/07/chrysler-considering-four-day-work-week-at-toledo-jeep-plant/http://www.autoblog.com/2008/08/07/chrysler-considering-four-day-work-week-at-toledo-jeep-plant/#commentsFiled under: , , , , ,



Jeep sales are down. They're way down, in fact, posting a 44-percent drop in their daily sales rate last month. Though the larger 'utes are really dragging down sales, even the once-untouchable Wranger has been feeling the sting of escalating fuel prices, as its blocky shape and 3.8-liter V6 engine conspire to deliver awful fuel mileage. Also selling rather slowly are the Jeep Liberty and Dodge Nitro, which are assembled at the same plant in Northwest-Ohio. In an effort to save costs, Chrysler officials are considering reducing the work-week at the Toledo plant from the normal five days down to four and allowing its workers to stay on for ten-hour shifts. While that total still equals the forty-hours from a five-day, eight-hour per day work-week, Chrysler believes it can save on energy and fuel costs by shuttering the plant for an extra day.

[Source: 13abc.com]

 

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]]>jeepjeep wranglerjeep wrangler unlimitedJeepWranglerJeepWranglerUnlimitedtoledotoledo jeeptoledo jeep planttoledo ohtoledo ohioToledoJeepToledoJeepPlantToledoOhToledoOhio2008-08-07T15:30:00+00:00<![CDATA[Industry in trouble when Toyota writes down leases]]>http://www.autoblog.com/2008/08/07/industry-in-trouble-when-toyota-writes-down-leases/http://www.autoblog.com/2008/08/07/industry-in-trouble-when-toyota-writes-down-leases/http://www.autoblog.com/2008/08/07/industry-in-trouble-when-toyota-writes-down-leases/#commentsFiled under: ,

Due to a miserable U.S. car market, Detroit automakers are losing billions from lower than expected residuals on leased vehicles. Since the residuals on Motown metal are traditionally below that of the Japanese competition, many industry insiders thought that Toyotas in this country world were immune to the trend. It appears that's not the case. Toyota announced it had to "set aside major reserves for its first quarter to cover losses from vehicle leases in the U.S."

The problem is predictably bad with trucks and SUVs, but other products aren't selling off lease as well as they have in the past. With residuals dropping, used cars are dirt cheap. That gives prospective buyers an affordable alternative to buying a new car. That's bad news for Toyota, but it may even be worse news for everyone else.

Toyota has been making money and gaining market share during these tough times, but even the automotive juggernaut is struggling in today's difficult economic conditions. Including Lexus, Toyota's Daily Sales Rate is down for seven straight months versus prior year numbers, with July missing the mark by 18.7%. This news proves that even Toyota has its share of problems, but what it really shows is that Chrysler may have been on to something when it stopped offering leases.

[Source: BloggingStocks]

 

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]]>leasing woesLeasingWoesresidual valueresidualsResidualValuetoyota2008-08-07T10:00:00+00:00<![CDATA[Owners refute rumors of firing Ecclestone and selling F1]]>http://www.autoblog.com/2008/08/07/owners-refute-rumors-of-firing-ecclestone-and-selling-f1/http://www.autoblog.com/2008/08/07/owners-refute-rumors-of-firing-ecclestone-and-selling-f1/http://www.autoblog.com/2008/08/07/owners-refute-rumors-of-firing-ecclestone-and-selling-f1/#commentsFiled under: , , ,

Rumors have been circulating that CVC, the commercial rights holders to Formula One, have considered selling the series. But before that could happen, they would have to give Bernie Ecclestone the boot.

The reports were fueled by comments made by Max Mosley, the embattled president of the FIA, who related to reporters that conversations about the subject had taken place with executives at CVC. According to Mosley's conclusion, CVC would consider selling Formula One if a huge offer were made - possibly by an Arab consortium - but Ecclestone would need to be replaced because "the whole business depends on a man who is 78 years old". However, CVC issued a strong statement at this past weekend's race in Hungary that it had no immediate plans to sell F1 and was pleased with its performance as well as that of Bernie Ecclestone.

[Source: Autosport, Photo by Odd Andersen/AFP/Getty]

 

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]]>bernie ecclestoneBernieEcclestonecvccvc ecclestoneCvcEcclestoneecclestonefiafia mosleyFiaMosleyfomformula one managementFormulaOneManagementmax mosleyMaxMosleymosley2008-08-07T08:32:00+00:00<![CDATA[Manufacturers raise the price of carbon fiber]]>http://www.autoblog.com/2008/08/05/manufacturers-raise-the-price-of-carbon-fiber/http://www.autoblog.com/2008/08/05/manufacturers-raise-the-price-of-carbon-fiber/http://www.autoblog.com/2008/08/05/manufacturers-raise-the-price-of-carbon-fiber/#commentsFiled under: , ,

If you were looking at carbon fiber as the magical lightweight solution to the parallel automotive woes of low power-to-weight ratios and high fuel consumption, we have some potentially disappointing news for you. Two of the world's largest suppliers of carbon fiber have announced that they are raising their prices. And not by a little, either, with the going rate for the high-tech material rising by 10 to 30 percent in one shot.

The simultaneous announcement from Toray Industries Inc. (the #1 supplier of carbon fiber) and Mitsubishi Rayon Co. (the third largest) marks the first time both companies have universally raised their prices at the same time. The development would border on price-fixing if not for the fact that the second biggest carbon fiber manufacturer, Teijin Ltd., didn't participate. However Teijin is expected to announce its own price hike sometime this week, as well.

We all expected prices to drop as use of the exotic material became more commonplace in automotive, aerospace and commercial applications. However the rising costs of raw materials have contributed to the higher price. They're at Y4,000 (~$37) per ton now and are expect to go up by between Y400 and Y1,200 per ton. Because of the high demand for carbon fiber, the price increase is expected to take immediate effect. As for the impact on he automotive industry, it could mean price increases for cars using the material, while the development of new cars is likely to forgo employing carbon fiber in their construction for other materials like aluminum and plastic. Hopefully Honda and Nissan finish developing their mass-market carbon fiber sooner rather than later.

[Source: TradingMarkets.com via Carbon Fiber Gear]

 

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]]>carbon fibercarbon fibreCarbonFiberCarbonFibrecost carbon fibercost carbon fibreCostCarbonFiberCostCarbonFibrecostsprice carbon fiberprice carbon fibrePriceCarbonFiberPriceCarbonFibreprices2008-08-05T17:29:00+00:00<![CDATA[Analysts: Ford could sell Mazda to raise capital]]>http://www.autoblog.com/2008/08/04/analysts-ford-could-sell-mazda-to-raise-capital/http://www.autoblog.com/2008/08/04/analysts-ford-could-sell-mazda-to-raise-capital/http://www.autoblog.com/2008/08/04/analysts-ford-could-sell-mazda-to-raise-capital/#commentsFiled under: , ,



Ford's 33.9-percent stake in Mazda, enough to give the Blue Oval control of the Japanese automaker, could come up for grabs if Ford is not able to turn its dire financial position around in short order, according to BusinessWeek. Such a move would likely cause major headaches at both automakers, as the two jointly develop many of their products and combine research and development costs between themselves. In fact, many of Ford's best and most important cars in the U.S. are built atop Mazda's midsize sedan platform. What's more, the cash infusion of Mazda's sale would only net Ford around $2.5 billion, barely more than what the automaker received for its stake in Jaguar and Land Rover. That amount would only allow Ford to stretch a little while longer without returning to profitability. In other words, it would hardly be worth the trouble and is therefore, we're hoping, rather unlikely.

[Source: BusinessWeek]

 

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]]>fordford mazdaFordMazdamazdamazda salemazda stakeMazdaSaleMazdaStake2008-08-04T17:01:00+00:00<![CDATA[Analyst: GM 'In a battle for their life']]>http://www.autoblog.com/2008/08/04/analyst-gm-in-a-battle-for-their-life/http://www.autoblog.com/2008/08/04/analyst-gm-in-a-battle-for-their-life/http://www.autoblog.com/2008/08/04/analyst-gm-in-a-battle-for-their-life/#commentsFiled under: , ,

According to the Center of Automotive Research (CAR), General Motors is the trauma patient with doctors gathered around the gurney giving their all to save it -- and just outside the ER doors, nurses are holding back concerned parties and shouting "It's better that you don't see!" CAR Chairman Dave Cole says it comes down to revenue, and with GM's $15.5 billion Q2 loss, revenue is down by $10 billion vs. Q2 of 2007.

Cole says "Revenue is a measure of the business going forward." We think that's a bit overstated, and that revenue is more accurately a measure of business just transacted. True, multi-billion dollar losses and revenue decreases don't make the best stories, but did anyone really expect it to be cotton candy canes as the world's -- possibly -- largest automaker transfers nearly its entire product lineup from trucks to cars and crossovers?

Admittedly, GM has nothing but an indefinitely long fight-to-the-death cage match ahead of it. The product turnaround probably won't be completed in Q3. And, as GM's CFO said, it's "going to have to grow the business" in addition to making cost cutting moves like shuttering four truck plants by 2010. But we figure there's probably quite a bit more life left in little boy blue than some give it credit for.

[Source: Auto News, sub req'd]

 

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