The Canadian Auto Workers, CAW, has reached an agreement with Ford Motor Co. As a result, CAW leaders decided to extends its negotiations with both Generals Motors Co. and Chrysler Group LLC indefinitely as long as they are ongoing. Despite the fact that neither General Motors Co. nor Chrysler Group LLC did reached the deal with the CAW, their workers kept on working past a midnight strike deadline, which is explained as a sin of the union’s goodwill.
According to the head of the Canadian Auto Workers, the union will focus on reaching an agreement with Ford Motor Co. as talks continue with all of Detroit’s Big Three car makers with a strike deadline coming closer Monday night. On Monday, exactly at midnight, the current contract expires and the CAW decided to focus on the new agreement with Ford Motor Co.
Ford Motor Co.’s board of directors is due to meet on Thursday. The Ford Motor Co.’s board will probably discuss the most pressing issue facing the American car maker – the retirement of Chief Executive Officer Alan Mulally. The Ford Motor Co.’s board is to consider CEO succession plan. As it was stated by a source familiar with the situation, Ford Motor Co.’s directors are preparing to promote Mark Fields to chief operating officer from president of the Americas. The promotion will make Mark Fields a probable successor to CEO Alan Mulally.
The Hyundai Motor’s labor union has voted to approve a revised wage and working-conditions deal, ending strike that had hurt sales at South Korea’s biggest car maker. The strike at Hyundai Motor is said to be the costliest one in the company’s history.The agreement between Hyundai and labor union comes after endless rounds of negotiations.
Automobile manufacturer, General Motors, was forced to halt the affected Chevrolet delivery of certain vehicles, including some of its most popular vehicles of 2013, due to a problem with the software that is affecting the OnStar communication technology equipped in their vehicles.
The DuPont Co. informed that it was selling the performance coatings unit for $4.9 billion in cash to the Carlyle Group. The DuPont wants to focus on higher gross area such as agriculture and nutrition. The $4.9 billion deal is not a first investment in automotive and industrial segment made by The Carlyle Group. This summer it sealed at least four acquisitions.
Hertz Global Holding Inc. plans to buy Dollar Thrifty Automotive Group Inc. for about $2.6 billion in cash. Dollar Thrifty’s board approved a merger agreement. The purchase of the company will secure Hertz’s place as the No. 2 player in the U.S. market.
Deere & Co. published its fiscal third-quarter results showing that its earnings increased by 11 percent. However manufacturing expenses as well as a drop in international sales caused lower profit than it was initially expected by analysts. Deere & Co. reported a net income of 788.0 million, or $1.98 per share, for the quarter ended July 31, compared with $712.3 million, or $1.69 per share, for the same period previous year.
Ford Motor Co.’s second-quarter earnings dropped more than half, even though the company has large profits in America. The decrease is high mainly due to losses in Europe and other parts of the world. The financial results are not a surprise for Ford, but it was for investors, though. Bob Shanks, the Ford’s CFO, however, warned in June that losses could occur especially in Europe and that there was a very high risk that they would have an impact on the Blue Oval’s profit.
Spyker, the Dutch automaker, bought Saab from General Motors in 2010. These days Spyker is suing General Motors for $3 billion (24 billion euro). General Motor’s action are said to have led directly to Swedish Saab’s bankruptcy in 2011.American car giant is accused of deliberately bankrupting Spyker by blocking its deal with a Chinese investor. General Motor was aware that Spyker was the under-capitalized buyer when it closed the deal in 2010. Spyker tried to save Saab by bringing a Chinese partner in. However General Motor objected, underlying that this contract would jeopardize its leading position in China.
A Chinese company specializing in auto parts production is to rescue U.S. battery maker A123 Systems, a recipient of a quarter-billion dollar green technology grant from the Obama administration. The Chinese company, China’s Wanxiang Group Corp., wants to obtain a controlling stake in the U.S. battery maker A123 Systems.
According to the reports, Ford Motor Co. has forecasted a slip down in their operating profit for the year 2012 as the automobile maker is expecting a loss amounting to of over 644 million pounds or 1 billion dollars in Europe. This forecast has been made by the company on the basis of the hurting sales in the continent due to the deepening crisis of its economy.
Legal action is being taken against General Motors by Spyker NV which is working in support of its subsidiary, Saab. The Dutch sportscar manufacturer has sued GM for over $3 billion on charges of intentionally bankrupting the Swedish unit by preventing a deal from taking place with a Chinese shareholder.
General Motor’s global chief marketing officer, Joel Ewanick, has resigned. His resignation is effective immediately.The resignation was announced on Sunday by GM and it is said to be the result of Joel Ewanick’s controversial decisions regarding GM’s advertising strategy.
Honda Motor Co., Japan’s third largest automaker, published its first-quarter profit. Honda’s quarterly profit rose to 131.7 billion yen ($1.7 billion) as the Japanese company recovered from the 2011 natural disasters selling more cars in all key regions except for Europe. The first quarter profit, which was reported by Honda, missed experts’ estimates after the Japanese currency strengthened and the company decided to increase marketing spending to sell outgoing models.
On Thursday after VW, the biggest automaker of Europe, agreed on buying the remaining part of Porsche, the famous maker of sports cars, the market saw a steep rise in the share prices of the company. The deal was settled at 4.46 billion Euros that is 5.9 billion dollars exercising the options that were held since its initial stake was purchased in the year 2009. According to Stuart Pearson, a London based analyst of Morgan Stanley, it is a very good deal that Volkswagen is getting and as per his predictions to the investors, the completion of this deal would enhance the earnings of VW by 6% the next year.
Brazil does not plan to offer new incentives for automakers, but the government has not stopped taking steps to boost the competitiveness of other industries, Trade and Industry Minister Fernando Pimentel said in an interview.Last week Brazil announced a series of tax breaks and promoted credit to help struggling manufacturers and to speed up the country’s weak economic recovery.
Auto industry in the US has been recovering and shifting its track to the fast lane. Even with gas prices at nearly $4, smaller cars like the Nissan Versa, Ford Focus and Fiat 500 flew off dealer lots in March, and have been giving car makers their best monthly sales in almost five years.
The German automaker, Volkswagen, said it has plans to generate nearly 800 new jobs at its Chattanooga plant, United States, to speed up production of the Passat. Volkswagen said that with the 200 new jobs Volkswagen plant officials said in January it would create, the factory will provide for a total of 1,000 more slots by the end of 2012 as it tries to keep up with demand for the fast-selling Passat.
The rate at which Americans have been buying cars is faster than they have done in four years. The main reason that the analysts are suspecting for the sale jump is the decline in unemployment and improvement in consumer confidence even as gasoline prices topped $4 a gallon in parts of the country.