Tuesday, November 18, 2008
Ford Sells 20% of Mazda
Mazda said that its Executive Vice President Takashi Yamanouchi is slated to become its new president and CEO.
Hard-up GM to sell Suzuki stake
General Motors is selling its 3% stake in the Japanese carmaker Suzuki for $230m (£156m) to raise cash.
Suzuki said it would buy back the stake, adding that it understood GM faced a need to secure funding.
GM has reported a net loss of $2.5bn in the third quarter and has been trying to secure an emergency government loan along with its Detroit competitors.
The "Big Three" US car firms Chrysler, Ford and GM are seeking a total $25bn in federal aid.
Suzuki, which specialises in small cars, said the two companies would continue to cooperate in a number of joint projects, including developing new technologies. Their partnership started in 1981.
"We understand full well that GM faces a need to sell its shareholdings to secure funding," Suzuki said.
The US carmaker had already sold a 17% stake in Suzuki, in 2006.
US car firms companies have been hit by falling US sales and growing losses.
GM has said it would cut jobs and costs and has also suspended merger talks with Chrysler to focus on current issues.
Finance withdrawn from GM and Ford suppliers
Two finance companies have refused to insure British firms supplying Ford and General Motors in the UK.
The decision will force hundreds of manufacturers across the country to consider whether they wish to consider taking the risk of supplying parts to the US car giants, who have been hit by a sharp fall in sales, reported The Independent.
Euler Hermes and Atradius withdrew policies that guarantee payments from the companies, due to concerns about their financial standing.
A third credit insurer, Coface, is considering removing the cover.
DATED: 18.11.08
FEED: AM
Carmakers lobby chancellor for financial help
Britain's carmakers are to make their first appeal to government for direct financial support this week, reported the SundayTimes yesterday.
The newspaper claims they will ask chancellor Alistair Darling for cheap loans to fund their finance arms and help with restructuring manufacturing operations.
It quoted sources saying UK car companies were not "holding out a begging bowl", but were asking for support to tide over a healthy industry through an unprecedented period of turbulence.
DATED: 18.11.08
FEED: AM
CAP begins re-valuation exercise
For the first time in its history, CAP has begun a full market re-forecast for used vehicle values covering all model ranges in one exercise.
CAP said that residual values will continue to fall until at least early summer 2009 as the recession bites and VED changes hit polluting vehicles.
The news means that dealers must keep focus on their used car stocking policy and part exchanges must be valued or underwritten with extreme care.
The latest issue of CAP Monitor already partially reflects the impact of the re-forecasting, with 4x4s and other 'heavy' vehicles suffering from a "significant downward revision of forecasts at the three-year/60,000 benchmark".
CAP's Mark Norman said: "All evidence currently suggests that the bulk of significant adjustments will be focused on larger-engine vehicles as market sentiment continues to favour smaller, more economical cars.
"Future residual value forecasts for the latter are therefore little changed, or stable at present. Other sectors, which will be significantly impacted are upper-medium and large executive."
The re-forecasting process will continue until December, although CAP cannot rule out that the process will not continue beyond then.
Rival EurotaxGlass's, published of Glass’s Guide, has said there are grounds for cautious optimism about sales of new and used cars in 2009.
Its managing editor Adrian Rushmore said the used car market is likely to be the first to recover from today's lows, followed by a steady - albeit modest - upturn in retail sales of new cars.
Residual values have been hit by a trio of knocks that have seen millions of pounds un-expectantly wiped off the value of used cars over the past few months.
The government’s decision to alter the road tax system has made consumers shy away from larger-engined used cars, while the lenders' unwillingness to provide used car buyers with credit has significantly reduced the number of customers in the market.
However, the biggest factor has been the shadow of a recession, which has seen the few buyers still out there opt either not to buy at all or to chose a smaller, cheaper used car.
DATED: 18.11.08
FEED: AM
