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The AutoGuide News Blog is your source for breaking stories from the auto industry. Delivering news immediately, the AutoGuide Blog is constantly updated with the latest information, photos and video from manufacturers, auto shows, the aftermarket and professional racing.
 |  May 05 2011, 1:20 PM

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General Motors cruised to their fifth straight quarter in the black, announcing a gross profit of $3.2 billion, helped along by a sale of GM subsidiary Delphi for $1.6 billion in March.

In a prepared statement, General Motors CEO Dan Akerson said “GM has delivered five consecutive profitable quarters, thanks to strong customer demand for our new fuel-efficient vehicles and a competitive cost structure that allows us to leverage our strong brands around the world and focus on driving profitable automotive growth.”

GM CFO Dan Ammann cited a strengthening market and an attractive lineup of fuel efficient vehicles as some of the reasons behind GM’s strong financial showing. While GM’s South American and International divisions were profitable (with China counted as part of the International sector), GM Europe reported a loss, and is hoping to break even by year’s end.

[Source: Automotive News]

 |  Jan 31 2011, 12:15 PM

Hit by fewer fleet sales and high interest on government loans, Chrysler posted a $199 million operating loss in it’s fourth quarter of 2010, despite generating earnings of $10.76 billion.

However, not factoring the interest on the loans from the US and Canadian governments , the company actually recorded an operating profit of $198 million in the same period.

During the course of 2010 Chrysler produced some 1.5 million vehicles, thanks to multiple new or revised product introductions and generated $42 billion in revenue, including $763 million in operating profit, in line with projected estimates for the year.

In 2011, the company hopes to go public once again, though CEO Sergio Marchionne has stated that Chrysler, which is 25 percent owned by Fiat; must report at least a ‘couple’ of quarters of net income before an Initial Public Offering of shares can be issued.  In addition, in order to issue an IPO, the company has to refinance its government loans to reduce interest on the debt owned.

Chrysler has said it expects 2011 revenue to increase by nearly a third, to $55 billion, with projected net income between $200 and $500. If those targets are met, then it’s highly likely, Chrysler stock will become publicly traded once again before the end of the year.

The company also said that it plans to achieve more 13 percent US market share by 2014; currently it stands at 9.2 percent, up from 8.8 in 2009.

[Source: msnbc.com]

 |  Nov 08 2010, 12:05 PM

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Chrysler recorded it’s third straight profitable quarter, raking in $239 million in Q3, as the company rode a wave of optimism regarding increased sales and a new product lineup.

Chrysler is due to launch roughly 16 new products by 2012.  “We are not only living up to our commitments, but we are exceeding our 2010 financial objectives,” Chrysler CEO Sergio Marchionne said in a statement. “Our 2010 accomplishments are just the beginning of building Chrysler into a vibrant and competitive automaker.”

Sales in the United States rose 20 percent this quarter, amid strong demand for the Chrysler Town & Country minivan and the Jeep Grand Cherokee.

[Source: Automotive News]

 |  May 06 2010, 12:43 PM

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BMW announced today that it is on track to save about $5.2 billion by 2012, by spending less on components and through a strategic partnership with Mercedes-Benz. A report by Bloomberg said that BMW will surpass its goal of cutting $5.2 billion.

“We can say that from today’s perspective we will certainly and easily reach the 4 billion-euro savings goal, and even significantly surpass it,” said Herbert Diess, a board member responsible for overseeing the cost-cutting. BMW is already beating earnings forecasts, posting a $417 million net income for the first quarter of 2010. Analysts expected the number to be $340 million. Diess credited the partnership with Mercedes-Benz for an expected savings of $129 million per year.

[Source: Left Lane News]

 |  Apr 27 2010, 12:48 PM

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Ford posted a $2.1 billion profit for this quarter, beating market expectations by a full year despite a lull in the new vehicle market. Ford has undergone a series of cost-cutting measures, including plant closures and layoffs, but has also introduced a torrent of new product in nearly every segment.

Ford hasn’t earned $2 billion profit since 2004, when the company sold 17 million vehicles. Expectations for this year include sales of fewer than 12 million cars and trucks. Ford’s strong performance has been attributed to a number of factors. New products like the Fiesta, Mustang, Edge and Fusion have been extremely well received by the automotive press and well as consumers. Sales of the full-size Taurus are up 96 percent from the previous generation. Ford’s image has also remained strong, as it avoided taking government loans (unlike rivals GM and Chrysler), and avoided the quality problems that have plagued Toyota.

However, Ford’s executive chairman told the New York Times that the success of the company was attributable to its own strengths, not the weaknesses of its competitors.

“I don’t know how much it really helped because it’s all about the product,” Mr. Ford told reporters after a speech in Detroit this month. “People will come into our showrooms but if they don’t see anything they like, they’ll go elsewhere.”