BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Johnson Control Benefits From Auto Production]]>http://www.bloggingstocks.com/2010/07/23/johnson-control-benefits-from-auto-production/http://www.bloggingstocks.com/2010/07/23/johnson-control-benefits-from-auto-production/http://www.bloggingstocks.com/2010/07/23/johnson-control-benefits-from-auto-production/#commentsFiled under: ,

Johnson Control (JCI) said Friday that a boost in auto production and new vehicle launches helped it turn in a profit during the fiscal third quarter. The company reported net income of $418 million, or 61 cents per share, during the quarter. Excluding one-time items, JCI earned 54 cents per share, missing the consensus estimate by a penny. Quarterly revenue came in at $8.54 billion, an increase of 22% and better than the expected $8.48 billion.

The Milwaukee-based company also announced that it has agreed to up its stake in a joint venture with South Korean firm Delkor Corp. to 90%. The higher stake will cost the company $90 million. Delkor Corp. produces automotive batteries.

Continue reading Johnson Control Benefits From Auto Production

Johnson Control Benefits From Auto Production originally appeared on BloggingStocks on Fri, 23 Jul 2010 09:45:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto sectorautomotiveautomotive productsDelkorinthenewsJCIJohnson ControlsFri, 23 Jul 2010 09:45:00 EST<![CDATA[Ray of Light: Credit Thaw Increasing Money for Auto Loans]]>http://www.bloggingstocks.com/2010/05/21/ray-of-light-credit-thaw-increasing-money-for-auto-loans/http://www.bloggingstocks.com/2010/05/21/ray-of-light-credit-thaw-increasing-money-for-auto-loans/http://www.bloggingstocks.com/2010/05/21/ray-of-light-credit-thaw-increasing-money-for-auto-loans/#commentsFiled under: ,

In this market, you take the good news where you can get it, and Friday's positive data came from the credit markets.

There are signs that U.S. credit markets are loosening as they pertain to the U.S. auto sector.

About $22.9 billion in bonds backed by auto loans, borrowings for dealer inventory, and related debt were issued through April, up 67% from a year ago, according to data compiled by Bloomberg News.

Continue reading Ray of Light: Credit Thaw Increasing Money for Auto Loans

Ray of Light: Credit Thaw Increasing Money for Auto Loans originally appeared on BloggingStocks on Fri, 21 May 2010 17:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto sectorcreditfeaturedinthenewsnew car loansnew carsFri, 21 May 2010 17:30:00 EST<![CDATA[Layoffs slowing down, but upturn isn't coming yet]]>http://www.bloggingstocks.com/2009/11/07/layoffs-slowing-down-but-upturn-isn-t-coming-yet/http://www.bloggingstocks.com/2009/11/07/layoffs-slowing-down-but-upturn-isn-t-coming-yet/http://www.bloggingstocks.com/2009/11/07/layoffs-slowing-down-but-upturn-isn-t-coming-yet/#commentsFiled under: , ,

Employers are planning to cut fewer jobs for the third month in a row, according to a new report that Challenger, Gray & Christmas has supplied to BloggingStocks.

The executive outplacement firm says that the number of planned reductions fell 16% in October to 55,679 positions -- from 66,404 in September. Last month's level was the lowest seen since March 2008, when 53,579 layoffs were planned. And, it's 51% lower than October 2008's 112,884 result. Planned staff reductions have fallen in eight of the past 10 months.

Continue reading Layoffs slowing down, but upturn isn't coming yet

Layoffs slowing down, but upturn isn't coming yet originally appeared on BloggingStocks on Sat, 07 Nov 2009 14:10:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto industryauto sectorchallenger gray christmasdownsizingjob creationjob cutsjobless recoverylayoffsSat, 07 Nov 2009 14:10:00 EST<![CDATA[General Motors may actually be listening to the consumer]]>http://www.bloggingstocks.com/2009/08/20/general-motors-may-actually-be-listening-to-the-consumer/http://www.bloggingstocks.com/2009/08/20/general-motors-may-actually-be-listening-to-the-consumer/http://www.bloggingstocks.com/2009/08/20/general-motors-may-actually-be-listening-to-the-consumer/#commentsFiled under: , ,

A couple of weeks ago, General Motors announced that it was going to release a compact crossover under the Buick name. Yesterday, the company announced that it scrapped the plans. The automaker decided to do away with the vehicle because it received poor reviews from consumers, industry analysts, and automotive journalists.

On GM's blog, the company's Vice Chairman Tom Stephens noted that the company received "great positive feedback" on some of its designs, but that the "Buick crossover we showed received consistent feedback from large parts of all the audiences that it didn't fit the premium characteristics that customers have come to expect from Buick." Translation: the people didn't like the car, it got bad reviews, and it will not be made. Reportedly, one of the consumers invited called the auto "hideous."

Continue reading General Motors may actually be listening to the consumer

General Motors may actually be listening to the consumer originally appeared on BloggingStocks on Thu, 20 Aug 2009 11:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto sectorautomotive sectorBuickGeneral Motorsinthenewsnew carsTom StephensThu, 20 Aug 2009 11:30:00 EST<![CDATA[How about a $12 billion 'cash for clunkers' program?]]>http://www.bloggingstocks.com/2009/08/03/how-about-a-12-billion-cash-for-clunkers-program/http://www.bloggingstocks.com/2009/08/03/how-about-a-12-billion-cash-for-clunkers-program/http://www.bloggingstocks.com/2009/08/03/how-about-a-12-billion-cash-for-clunkers-program/#commentsFiled under: , , ,

The "cash for clunkers" program, once thought to be a minor, symbolic effort to stimulate the U.S. economy, actually may end up being substantive.

The program, which is designed to give rebates to enable citizens to trade in older vehicles for more fuel-efficient models, thus stimulating auto sales and the economy, ran out of its limited $1 billion allocation Congress approved earlier this year. So the U.S. House moved quickly last Friday to approve an additional $2 billion for the popular plan. Look for the Senate to follow, although the new proposal may be modified.

Continue reading How about a $12 billion 'cash for clunkers' program?

How about a $12 billion 'cash for clunkers' program? originally appeared on BloggingStocks on Mon, 03 Aug 2009 09:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto sectorAutoSectorcash for clunkersCashForClunkersinthenewsMon, 03 Aug 2009 09:00:00 EST<![CDATA[Surprisingly, Goldman Sachs raised the auto sector to Attractive]]>http://www.bloggingstocks.com/2009/06/18/surprisingly-goldman-sachs-raised-the-auto-sector-to-attractive/http://www.bloggingstocks.com/2009/06/18/surprisingly-goldman-sachs-raised-the-auto-sector-to-attractive/http://www.bloggingstocks.com/2009/06/18/surprisingly-goldman-sachs-raised-the-auto-sector-to-attractive/#commentsFiled under: ,

This morning, Goldman Sachs felt it prudent to up its view of the U.S. auto sector to Attractive from Neutral. The brokerage stated that it would use any current weakness as an opportunity to build positions. If, like me, you are questioning Goldman's strategy, the firm explained, "Despite the significant rally in auto shares since the February lows, we think we are still in the middle phase of a cyclical rebound in the auto sector."

In its note to clients, Goldman Sachs predicted, "improved affordability, improving confidence and significant pent-up demand as likely to offset the impact from gas prices and deliver significantly more upside in the space as auto sales gain momentum."

Continue reading Surprisingly, Goldman Sachs raised the auto sector to Attractive

Surprisingly, Goldman Sachs raised the auto sector to Attractive originally appeared on BloggingStocks on Thu, 18 Jun 2009 10:10:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>armArvinMeritorauto industryauto sectorAutoIndustryAutoSectorBorgWarnerbwaGoldman SachsGoldmanSachsinthenewsupgradeThu, 18 Jun 2009 10:10:00 EST<![CDATA[Analyst upgrades, downgrades and initiations: DNDN, ANDE, the auto sector, DGX, MTB, ADVS, ITG, MF and PCLN ]]>http://www.bloggingstocks.com/2009/04/22/analyst-upgrades-downgrades-and-initiations-dndn-ande-the-au/http://www.bloggingstocks.com/2009/04/22/analyst-upgrades-downgrades-and-initiations-dndn-ande-the-au/http://www.bloggingstocks.com/2009/04/22/analyst-upgrades-downgrades-and-initiations-dndn-ande-the-au/#commentsFiled under: , , , , , , , , , , , ,

Analyst upgrades:
  • Merriman upgraded Dendreon (NASDAQ: DNDN) to Buy from Neutral on expectations shares will react positively to the full IMPACT data release on April 28. The firm thinks Provenge could represent the first cancer immunotherapy approved in the U.S. and raised its valuation range on the stock to $33-$34 from $18-$19.
  • Piper Jaffray upgraded Andersons (NASDAQ: ANDE) as it believes the valuation is attractive, investor expectations are low, and the company's fertilizer and rail segments could recovery in FY10. The firm has a $19 target on shares. Goldman upgraded the auto sector to Neutral from Cautious and added Ford (NYSE: F) to its Conviction Buy list. The analyst does not believe Ford will have to declare bankruptcy and sees the company benefiting from Chrysler share declines and GM's (NYSE: GM) reduced product offerings. Ford's price target is $6
  • Banc of America/Merrill upgraded U.S. Airways (NYSE: LCC) to Buy from Underperform.
  • Broadcom (NASDAQ: BRCM) was upgraded to Equal Weight from Underweight at Morgan Stanley.
  • Caterpillar (NYSE: CAT) was raised to Overweight from Neutral at JP Morgan.

Continue reading Analyst upgrades, downgrades and initiations: DNDN, ANDE, the auto sector, DGX, MTB, ADVS, ITG, MF and PCLN

Analyst upgrades, downgrades and initiations: DNDN, ANDE, the auto sector, DGX, MTB, ADVS, ITG, MF and PCLN originally appeared on BloggingStocks on Wed, 22 Apr 2009 13:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Advent SoftwareAdventSoftwareADVSANDEAndersonsauto sectorAutoSectorBRCMBroadcomCATCaterpillarChryslerCLcolgatecolgate-palmoliveDean FoodsDeanFoodsDendreonDGXDNDNDTDuetsche TelekomDuetscheTelekomFFordGeneral MotorsGeneralMotorsGILDGilead SciencesGileadSciencesGMInvestment Technology GroupInvestmentTechnologyGroupITGKnight capitalKnightCapitalLCCLMTLockheed MartinLockheedMartinMFMF GlobalMfGlobalMT BankMTBMtBankNITEPCLNPricelinePriceline.comProvengeQuest DiagnosticsQuestDiagnosticsRHHBYRocheU.S. AirwaysU.s.AirwaysWed, 22 Apr 2009 13:20:00 EST<![CDATA[Socialist Sweden won't save iconic Saab auto company]]>http://www.bloggingstocks.com/2009/03/23/socialist-sweden-wont-save-iconic-saab-auto-company/http://www.bloggingstocks.com/2009/03/23/socialist-sweden-wont-save-iconic-saab-auto-company/http://www.bloggingstocks.com/2009/03/23/socialist-sweden-wont-save-iconic-saab-auto-company/#commentsFiled under:

The Swedish government said it "is not prepared to own car factories," The New York Times reported Monday -- a stance widely seen as the government's refusal to bail out the iconic Saab Automobile company, which is owned by General Motors.

If the Swedish government's decision does not change, that would mean that mostly-socialist Sweden will not provide loans to a major, domestic automaker, while the mostly-capitalist United States will. General Motor's (NYSE: GM) shares closed Monday up 17 cents to $3.35.

Investors may legitimately ask: how can this be? The answer isn't simple.

Continue reading Socialist Sweden won't save iconic Saab auto company

Socialist Sweden won't save iconic Saab auto company originally appeared on BloggingStocks on Mon, 23 Mar 2009 18:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto sectorGeneral MotorsGMSaabSwedenMon, 23 Mar 2009 18:00:00 EST<![CDATA[Big 3 slump may lead to U.S. innovation slump]]>http://www.bloggingstocks.com/2009/02/08/big-3-slump-may-lead-to-u-s-innovation-slump/http://www.bloggingstocks.com/2009/02/08/big-3-slump-may-lead-to-u-s-innovation-slump/http://www.bloggingstocks.com/2009/02/08/big-3-slump-may-lead-to-u-s-innovation-slump/#commentsFiled under: , , , ,

The mantra of the day is frugality and cutback. Rightsize and hunker-down, as tougher economic times are ahead.

But graft hunkering-down on to a U.S. auto sector that has accounted for a disproportionate share of lateral innovation, and you have the makings of an U.S. innovation slump, if not a drought.

The Wall Street Journal points out that the U.S. auto sector has had a kind of dual personality with regard to innovation. The Big 3 have failed to roll-out technologies that would have made their cars more competitive on the global stage, while at the same time pushed their suppliers -- including steel makers and auto parts suppliers -- to improve their parts supplied in order to retain the Big 3's business. Further, that high-performance-bar for suppliers has benefited other industries: one example -- metal parts in cars that last longer has led to metal parts in other applications, and for other industries, that do the same.

Continue reading Big 3 slump may lead to U.S. innovation slump

Big 3 slump may lead to U.S. innovation slump originally appeared on BloggingStocks on Sun, 08 Feb 2009 15:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto bailoutauto rescueauto sectorChryslerFFordGeneral MotorsGMinnovationinthenewsSun, 08 Feb 2009 15:40:00 EST<![CDATA[Ford may have to obtain federal loan, due to sales slump]]>http://www.bloggingstocks.com/2009/01/12/ford-may-have-to-obtain-federal-loan-due-to-sales-slump/http://www.bloggingstocks.com/2009/01/12/ford-may-have-to-obtain-federal-loan-due-to-sales-slump/http://www.bloggingstocks.com/2009/01/12/ford-may-have-to-obtain-federal-loan-due-to-sales-slump/#commentsFiled under: , , ,

Ford may have to abandon its plan to skip a federal loan, as slumping sales continue to weigh on company revenues.

Ford (NYSE: F) predicted that U.S. light vehicle sales will total 12.2 million vehicles. General Motors (NYSE: GM) expects to sell 10-11 million vehicles, Chrysler, about 11 million.

Economist Richard Felson told BloggingStocks Monday a 2009 U.S. GDP decline of 2% or more "would make it virtually impossible for Ford to sell 12 million light vehicles."

"A combination of layoffs and still constrained credit markets will continue to hurt the auto sector for most of 2009," Felson said. "An optimistic scenario would be a sector recovery in the second half of 2009."

Ford's shares early Monday fell 2 cents to $2.60, GM's fell 3 cents to $3.99. Chrysler is privately held.

Continue reading Ford may have to obtain federal loan, due to sales slump

Ford may have to obtain federal loan, due to sales slump originally appeared on BloggingStocks on Mon, 12 Jan 2009 11:11:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto bailoutauto rescueauto sectorChryslerCongressFFordGeneral MotorsGMinthenewsMon, 12 Jan 2009 11:11:00 EST<![CDATA[Tell-tale stat: BMW U.S. 2008 sales decline most in 16 years]]>http://www.bloggingstocks.com/2009/01/09/tell-tale-stat-bmw-u-s-2008-sales-decline-most-in-16-years/http://www.bloggingstocks.com/2009/01/09/tell-tale-stat-bmw-u-s-2008-sales-decline-most-in-16-years/http://www.bloggingstocks.com/2009/01/09/tell-tale-stat-bmw-u-s-2008-sales-decline-most-in-16-years/#commentsFiled under: , , ,

What's another high-end stat, along with a decline in sales of apartments in the heart of New York City -- Manhattan -- that doesn't bode well for the economy? A decline in sales of performance and luxury cars.

Sales of Bavarian Motor Works' namesake brand in the United States plunged 15.2% to a 16-year low in 2008, as the credit crunch and the U.S. recession scared away even buyers for one the world's highest-quality makes, The Associated Press reported Friday.

U.S. sales declined to 249,113 vehicles, The AP reported. Global 2008 sales slumped 5.8% to 1,202,239 vehicles. BMW's shares rose 49 euro cents to 22.39 euros Friday on the Frankfurt exchange.

Economist Richard Felson said BMW's sales decline "is indicative of a pervasive economic slowdown and a loss in confidence, across society and on both sides of the Atlantic."

Continue reading Tell-tale stat: BMW U.S. 2008 sales decline most in 16 years

Tell-tale stat: BMW U.S. 2008 sales decline most in 16 years originally appeared on BloggingStocks on Fri, 09 Jan 2009 17:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto sectorBMWBMW U.S.inthenewsluxury carsperformance carsFri, 09 Jan 2009 17:00:00 EST<![CDATA[How can investors keep Obama, Democrats (economically) honest? ]]>http://www.bloggingstocks.com/2009/01/04/how-can-investors-keep-obama-democrats-economically-honest/http://www.bloggingstocks.com/2009/01/04/how-can-investors-keep-obama-democrats-economically-honest/http://www.bloggingstocks.com/2009/01/04/how-can-investors-keep-obama-democrats-economically-honest/#commentsFiled under: , ,

The United States is preparing for a new year, and a new presidential administration -- one that has the potential to usher-in a rejuvenation of the U.S. economy, society, and culture, after nearly a decade of descent.

Still, that's not to say measures should not be taken to keep the Obama Administration and the Democrats honest. Now yours truly is not talking about the rhetorical observations and critiques of right-wing talk radio, which opposes seemingly everything from an increase in federal student loan programs to the rising of the sun in the east, but rather about techniques investors can use to make sure the Obama Administration remains true to its word -- i.e., to keep Obama and the Democrats honest.

Benchmark 1: The economy and job growth. Obama and the Democrats have promised a large fiscal stimulus package that invests in the nation's infrastructure and public institutions (schools, hospitals, civil administration buildings, parks), and that provides aid to the states, among other benefits. The fiscal stimulus package alone will not guarantee a return to robust economic growth and job creation, but it will point the U.S. economy in the direction of sustainable growth, with hundreds of thousands of jobs that will help 'prime the pump' for additional commercial activity. Hence, the U.S. economy and the stimulus package represent the top priority: any failure to deliver here would be a serious underperformance.

Continue reading How can investors keep Obama, Democrats (economically) honest?

How can investors keep Obama, Democrats (economically) honest? originally appeared on BloggingStocks on Sun, 04 Jan 2009 08:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto sectorCongressDemocratic PartyDemocratsenergy policyfeaturedgdphealth careObamaRepublicansU.S. economySun, 04 Jan 2009 08:40:00 EST<![CDATA[Japan's government signals it may intervene to support dollar, drive yen lower]]>http://www.bloggingstocks.com/2008/12/18/japans-government-signals-it-may-intervene-to-support-dollar-d/http://www.bloggingstocks.com/2008/12/18/japans-government-signals-it-may-intervene-to-support-dollar-d/http://www.bloggingstocks.com/2008/12/18/japans-government-signals-it-may-intervene-to-support-dollar-d/#commentsFiled under: , ,

Free markets? Unfettered capitalism? Government getting out of the way so that businesses can operate?

Not exactly. Try mercantilism, national industrial policy, and monetary protectionism.

Japan's finance minister jolted currency markets early Thursday after he signaled that the Japanese government is prepared to intervene in the foreign exchange to support the dollar and euro and drive the yen lower.

The yen Thursday weakened 1.25 yen to 88.39 yen versus the dollar on the news. The yen also weakened 1.5 yen to 128.70 versus the euro. Both pairings had spiked significantly higher immediately after the finance minister's comments were published.

Finance Minister Shoichi Nakagawa said he has "the means" to limit the yen's advance.

In the modern era, Japan has periodically intervened in the market to drive the yen lower and support the dollar to prevent the yen from becoming too strong versus the dollar, and the world's other major currencies. A strong yen hurts Japan's export sales, including cars, by making those cars too expensive for foreign consumers.

Continue reading Japan's government signals it may intervene to support dollar, drive yen lower

Japan's government signals it may intervene to support dollar, drive yen lower originally appeared on BloggingStocks on Thu, 18 Dec 2008 13:55:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto sectordollareuroexportsforexinthenewsJapanyenThu, 18 Dec 2008 13:55:00 EST<![CDATA[Once again, in auto dispute, it's 'rhetoric for dollars' time in Washington ]]>http://www.bloggingstocks.com/2008/12/12/once-again-in-auto-dispute-its-rhetoric-for-dollars-time-in/http://www.bloggingstocks.com/2008/12/12/once-again-in-auto-dispute-its-rhetoric-for-dollars-time-in/http://www.bloggingstocks.com/2008/12/12/once-again-in-auto-dispute-its-rhetoric-for-dollars-time-in/#commentsFiled under: , , , ,

Could 10 or 12 economically conservative Republican Senators prevent a Big Three auto rescue and the cessation of domestic auto manufacturing operations?

Indeed they could. Many of the conservative Republicans come from states where General Motors (NYSE: GM), Ford (NYSE: F) and Chrysler do not have a large manufacturing presence. Hence, there's likely to be little home-front pressure.

That fact, combined with the filibuster era - - whereby lawmakers routinely abuse the Senate's unlimited debate power to oppose any legislation that does not have 60 votes - - the total need to invoke 'cloture' or cut-off debate - - means a dedicated cadre of Senators has the political and procedure power to defeat any legislative item below the 'sweet 60.' Hence, in that sense a dedicated, numerical minority can undermine the will of the majority, the will of the people.

Now the real auto rescue debate begins

What's more likely is that the economic conservative Senators will use the filibuster weapon as a means to extract additional concessions from Big Three stakeholders - - primarily the United Auto Workers. And their goal is obvious enough: a UAW defeat will drive labor costs lower and represent another victory for those who believe the lower wages fall for the typical person and worker, the better. In this argument, wages are merely another cost in the production machine, and the less money allocated for this expense category - - as with any expense category - - the better.

Conversely, the UAW will argue that any attempt to weaken them - - or bypass them - - will hurt/eliminate the only organized power that the typical person and worker has at the bargaining table and in the American economic system. They'll also argue that a living and decent wage for all working Americans is the foundation for a strong, stable U.S. economy, with sustainable GDP growth.

Each side is likely to offer exaggerated business and economic statistics in favor of their arguments, in a Washington process known as 'rhetoric for dollars' that frequently accompanies appropriations bills and government loans. The economic conservatives are likely to argue that UAW total compensation costs are 'wildly above' those for auto workers in Japan and Germany. The UAW will likely argue that it's already made 'major concessions' in previous contracts, without noting that work rules haven't changed that much.

Continue reading Once again, in auto dispute, it's 'rhetoric for dollars' time in Washington

Once again, in auto dispute, it's 'rhetoric for dollars' time in Washington originally appeared on BloggingStocks on Fri, 12 Dec 2008 14:42:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto sectorbailout billBush AdministrationDemocratsfeaturedObama AdministrationRepublicansrescue billUAWUnited Auto WorkersFri, 12 Dec 2008 14:42:00 EST<![CDATA[Columbia's Jeffrey Sachs: Big 3 can become auto sector technology leaders again]]>http://www.bloggingstocks.com/2008/12/08/columbias-jeffrey-sachs-big-3-can-become-auto-sector-technolog/http://www.bloggingstocks.com/2008/12/08/columbias-jeffrey-sachs-big-3-can-become-auto-sector-technolog/http://www.bloggingstocks.com/2008/12/08/columbias-jeffrey-sachs-big-3-can-become-auto-sector-technolog/#commentsFiled under: , , ,

Can the U.S. auto sector re-claim technological supremacy in the global auto market?

True, innovation, breakthrough technology, and supremacy are not exactly words that come to mind when one currently hears the corporate names 'General Motors,' 'Ford,' and 'Chrysler.'

The auto sector as an asset, even now?

But Columbia University Prof. Jeffrey Sachs forecasts that the U.S. auto industry can return to greatness, in the nation that's championed innovation and ingenuity during the modern era -- if Congress passes a comprehensive rescue package for the Big Three, C-SPAN reported.

Sachs is doing what academics do best: looking down the field -- to what macroeconomic conditions and global commerce -- and auto demand -- will look like 5, 10, 20 years from now.

General Motors Corporation (NYSE: GM) rose 69 cents to $4.77, while Ford Motor Company (NYSE: F) added 53 cents to $3.25 per share in Monday afternoon trading. Chrysler is privately held.

Continue reading Columbia's Jeffrey Sachs: Big 3 can become auto sector technology leaders again

Columbia's Jeffrey Sachs: Big 3 can become auto sector technology leaders again originally appeared on BloggingStocks on Mon, 08 Dec 2008 15:31:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto bailoutauto rescueauto sectorChryslerColumbia UniversityCongressEarth InstituteFFordgdpGeneral MotorsGMJeffrey Sachsmpgparadigmparadigm shiftsupercarU.S. economyMon, 08 Dec 2008 15:31:00 EST<![CDATA[Big 3 rescue 'a done deal,' given 2 million jobs lost in 2008, economist says ]]>http://www.bloggingstocks.com/2008/12/05/big-3-rescue-a-done-deal-given-2-million-jobs-lost-in-2008-e/http://www.bloggingstocks.com/2008/12/05/big-3-rescue-a-done-deal-given-2-million-jobs-lost-in-2008-e/http://www.bloggingstocks.com/2008/12/05/big-3-rescue-a-done-deal-given-2-million-jobs-lost-in-2008-e/#commentsFiled under: , , , ,

The behavioral sciences teach us that it's mature to compartmentalize, for many circumstances. To use a magazine industry analogy, a lethargic advertising sales staff should not affect your attitude toward your features writing department.

Compartmentalize? Washington doesn't

Sorry, it doesn't work that way inside the beltway. Image matters. Signals matter. In short, events in one theater can affect the entire political climate.

And that's the case with the nation's job losses in 2008 and the proposed $34 billion rescue package for the Big Three auto manufacturers winding its way through Congress, so says economist David H. Wang.

"We have now suffered 2 million jobs lost in 2008, including an awful 533,000 jobs lost in November. That means the auto rescue package is a done deal," Wang said. "There will continue to be debate on the scope of the rescue, the metrics, the form of the U.S. government's investment, the timetable for the repayment, and how much Congress wants the new auto sector to contribute to energy policy goals, but the status of the package is a done deal."

And the political climate clincher, is obvious enough, Wang added.

"The U.S. Congress is not going to say, after seeing two million jobs lost in a year, 'O.K., here's another, automatic, 1-million job loss, just for good measure, to further drive the U.S. economy into a ditch' " Wang said. "The U.S. auto sector represents too many good-paying industrial jobs and spin-off jobs. They are a key component of our industrial base and will play a role in the nation's economic recovery."

Continue reading Big 3 rescue 'a done deal,' given 2 million jobs lost in 2008, economist says

Big 3 rescue 'a done deal,' given 2 million jobs lost in 2008, economist says originally appeared on BloggingStocks on Fri, 05 Dec 2008 13:56:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto sectorbailoutChryslerCongressFFordGeneral MotorsGMinthenewsjobsrescue packageunemploymentFri, 05 Dec 2008 13:56:00 EST<![CDATA[GAO says Fed, Treasury have authority to rescue Big 3 ]]>http://www.bloggingstocks.com/2008/12/04/gao-says-fed-treasury-have-authority-to-rescue-big-3/http://www.bloggingstocks.com/2008/12/04/gao-says-fed-treasury-have-authority-to-rescue-big-3/http://www.bloggingstocks.com/2008/12/04/gao-says-fed-treasury-have-authority-to-rescue-big-3/#commentsFiled under: , , , ,

The Government Accountability Office, Congress' investigative arm and watchdog, said the U.S. Federal Reserve and the U.S. Treasury have the authority to bail-out the Big Three automakers, marketwatch.com reported Thursday.

Gene Dodaro, acting head of the GAO, said the Fed and Treasury could provide loans to the struggling U.S. automakers under an emergency loan designation.

The above ruling conflicts with the view of U.S. Treasury Secretary Henry Paulson, who has said that the $700 billion in TARP funds administered by the Treasury Department can only be used for financial companies.

However, Dodaro said the TARP legislation "is worded broadly enough" to allow Treasury to lend money to General Motors, Ford, and Chrysler, marketwatch.com reported.

Shares of GM (NYSE: GM) fell 33 cents to $4.57 while Ford (NYSE: F) fell 4 cents to $2.81 on Thursday at mid-day.

Continue reading GAO says Fed, Treasury have authority to rescue Big 3

GAO says Fed, Treasury have authority to rescue Big 3 originally appeared on BloggingStocks on Thu, 04 Dec 2008 14:17:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto sectorChryslerCongresscredit crunchDemocratsFFedfiscal policyFordGAOGeneral MotorsGMGovernment Accountability OfficeinthenewsRepublicansTARPU.S. TreasuryThu, 04 Dec 2008 14:17:00 EST<![CDATA[Should Congress buy millions of Big 3 vehicles for government fleet?]]>http://www.bloggingstocks.com/2008/11/19/could-congress-buy-millions-of-big-3-vehicles-for-u-s-governmen/http://www.bloggingstocks.com/2008/11/19/could-congress-buy-millions-of-big-3-vehicles-for-u-s-governmen/http://www.bloggingstocks.com/2008/11/19/could-congress-buy-millions-of-big-3-vehicles-for-u-s-governmen/#commentsFiled under: , , ,

The first rule of public relations is never get in a fight with anyone who buys ink by the barrel. And a major tenet of investing is don't take a stock position in conflict with Congressional policy, once Congress has committed to a program.

The wisdom behind the second adage, like the first, is obvious enough: Congress has the ability to suddenly and substantially change the investment landscape.

Case in point: Congress, which is currently hearing testimony on a performance-based rescue package for General Motors (NYSE: GM), Ford (NYSE: F), and Chrysler, could end up further funding reform by the Big Three by buying millions of the companies' vehicles for the U.S. government's auto fleet.

'Catching three fish with one cast'

Economist David H. Wang says the tactic has appeal in several areas -- economic, industrial, energy.

"It would help the three companies retain essential employees while transforming their operations, it would keep more industrial spin-off jobs in the U.S., and it would save energy by increasing U.S. government auto fleet efficiency," Wang said. "It would be like catching three fish with one cast and I think the new Obama administration would look very favorably on the energy efficiency aspect, both private and public sector dimensions."

Shares of GM fell 30 cents to $2.79, while Ford declined 16 cents $1.52 in Wednesday morning trading.

Continue reading Should Congress buy millions of Big 3 vehicles for government fleet?

Should Congress buy millions of Big 3 vehicles for government fleet? originally appeared on BloggingStocks on Wed, 19 Nov 2008 15:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto bailoutauto rescueauto sectorBushChryslerCongressDemocratsFfeaturedflex fuel carsFordGeneral MotorsGMmpgObamaRepublicansWed, 19 Nov 2008 15:00:00 EST<![CDATA[Unsold foreign cars piling up at U.S. ports]]>http://www.bloggingstocks.com/2008/11/19/unsold-foreign-cars-piling-up-at-u-s-ports/http://www.bloggingstocks.com/2008/11/19/unsold-foreign-cars-piling-up-at-u-s-ports/http://www.bloggingstocks.com/2008/11/19/unsold-foreign-cars-piling-up-at-u-s-ports/#commentsFiled under: , , , ,

It's rapidly becoming the world's largest parking lot.

Is it the Cross Bronx Expressway at 6 p.m.? No, it's the Long Beach, California port, which along with the Los Angeles port is rapidly becoming a defacto storage lot, The New York Times reported, as thousands of unwanted, new foreign cars pile up, their future unknown.

The reason? Foreign new car sales have plunged as consumers cut back spending amid the caution-inducing U.S. recession and unemployment levels rise, which historically has led to a decline in new car sales. New car dealers order cars months in advance but have the authority to reject delivery if demand declines.

Further, if you thought only U.S. automakers General Motors (NYSE: GM), Ford (NYSE: F) and Chrysler had lots and storage fields of unsold new cars, you're mistaken, so says economist Peter Dawson.

"This recession is an equal-opportunity pain inflicter for auto manufacturers, and it's hitting foreign car manufacturers as well," Dawson said. "Toyota (NYSE: TM), Nissan, even Mercedes-Benz are seeing their inventories build, despite promotions and sales incentives."

Continue reading Unsold foreign cars piling up at U.S. ports

Unsold foreign cars piling up at U.S. ports originally appeared on BloggingStocks on Wed, 19 Nov 2008 10:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto sectorconsumer spendingConsumerSpendingffeaturedgmimportstmvehiclesWed, 19 Nov 2008 10:30:00 EST<![CDATA[Why we should invest in GM, Ford and Chrysler]]>http://www.bloggingstocks.com/2008/11/17/why-we-should-invest-in-gm-ford-and-chrysler/http://www.bloggingstocks.com/2008/11/17/why-we-should-invest-in-gm-ford-and-chrysler/http://www.bloggingstocks.com/2008/11/17/why-we-should-invest-in-gm-ford-and-chrysler/#commentsFiled under: , ,

First, the United States Congress should pass and the president of the United States should sign a rescue package for General Motors, Ford and Chrysler, post-haste.

If this was the "Roaring '90s" or even the "Fabulous '50s," an operational cessation by General Motors (NYSE: GM), Ford (NYSE: F) and Chrysler, would hurt the U.S. economy. As investors know, however, we are not in the 1990s or the 1950s, but in a teetering economy, and an auto sector cessation would be devastating, driving the U.S. economy into a deeper and longer recession.

Second, the notion that only companies that "perform" in the free market should continue and that others, the underperformers, should fail, as an absolute rule, simply has not been the history of the United States economy. Moreover, dozens of companies receive billions of dollars in subsidies from the U.S. government, which is you, the taxpayer.

Need a few examples? Let's do what the late, great New York Governor Al Smith would do: Let's look at the record.

Continue reading Why we should invest in GM, Ford and Chrysler

Why we should invest in GM, Ford and Chrysler originally appeared on BloggingStocks on Mon, 17 Nov 2008 18:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto manufacturersauto rescueauto sectorBushChryslerFfeaturedfiscal policyFordGeneral MotorsGMindustrial policyObamaU.S. CongressMon, 17 Nov 2008 18:00:00 EST