Archive for the ‘Earnings’ Category

Barra Completes Two-Day Tour, Sticks to GM’s Guns About Closings

Senators push CEO to change her mind — with no luck.

by on Dec.07, 2018

General Motors CEO Mary Barra said no changes would be made to the closures of five U.S. plants.

General Motors Chairman and CEO Mary Barra completed two days of tense discussions with politicians in areas affected by the company’s recently announced plans to close five plants and displace thousands of workers.

Barra’s message was that these decisions were not made lightly and that the company would find jobs for many of the displaced workers, but ultimately they were made due to shifts in the buying habits of Americans.

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“We had really productive discussions, and I think they have a better understanding of what we’re doing and why, and how we’re making sure that we’re supporting the displaced workers, especially at the plants that are impacted, ” she said after meeting with Michigan politicians, the Detroit News reported.  (more…)

Toyota’s U.S. Chief Says More Tariffs Will Hurt Auto Sales

Lentz has reservations about NAFTA replacement as well.

by on Dec.06, 2018

Toyota's Jim Lentz expressed concern about the imposition of new tariffs and the impact they'll have on the auto industry.

The imposition of a new round of tariffs by the Trump administration could raises the price of new cars and trucks and cripple the U.S. auto industry, Toyota’s top executive in the United States said this week.

Jim Lentz, chief executive officer of Toyota North America, said during an appearance at the Detroit Economic Club, like at Ford and General Motors, Toyota operating costs for steel and aluminum have increased by because of the increase in tariffs on steel and aluminum.

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“We use American-made steel, but the cost has gone up 40%,” Lentz said. (more…)

Volvo’s Care Subscription Program Key to Growth Plans

VCNA chief acknowledges reliability concerns but says problems, warranty costs, are tumbling.

by on Nov.08, 2018

Volvo Cars North America CEO Anders Gustafsson with images of some of the first workers at the automaker's new Charleston plant.

U.S. new vehicle sales are on course to post their second consecutive decline as 2018 draws to a close, but you’d have a hard time telling that if you were just looking at Volvo’s numbers.

The Swedish automaker has posted a 27% jump in demand through the end of October and, with more products ready to land in U.S. showrooms, Volvo Cars USA CEO Anders Gustafsson said Thursday he is optimistic the company can keep its momentum growing.

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Several factors could give meaning to his forecast, including not just the launch of the new Volvo S60, but the start of production at the Chinese-owned automaker’s first U.S. assembly plant in Charleston, South Carolina. Then there’s Care by Volvo, the subscription program the carmaker launched late last year.

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Nissan Profits Fall 8% in First Half of Fiscal Year

Sales hit in North American while China grows.

by on Nov.08, 2018

Nissan CFO Hiroshi Karube reported the company's profits fell 8% overall due to falling sales in North America and Europe.

Nissan Motor Co. reported an 8% drop in quarterly profits due to declining sales in its biggest markets, North America and Europe, as well as hits on raw material costs.

The Japanese automaker reported quarterly profits of 130.4 billion yen, or $1.1 billion, on Thursday, down from 141.6 billion yen the same period a year earlier. The automaker noted that quarterly sales fell nearly 3% to 2.82 trillion yen, or $24.8 billion.

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However, this dip in profits wasn’t enough for Nissan to revise its forecast for the fiscal year through March for a 500 billion yen, or $4.4 billion, profit on 12 trillion yen, or $106 billion, sales. (more…)

Is Toyota Next to Pare Back its Passenger Car Line?

US CEO “taking a hard look” at model mix in the era of the SUV.

by on Nov.06, 2018

No longer #1; the Camry is just one of the Toyota passenger car models losing momentum.

With the exception of the Mustang, Ford is winding down production of passenger cars. Fiat Chrysler has eliminated almost all of its sedans and coupes, as well. In an era when SUVs have come to rule the roads, could Toyota be far behind?

While we’re not likely to see the Camry or Corolla nameplates vanish anytime soon, the Japanese giant is also rethinking its model mix and could toss some of its sedans, coupes and hatchbacks as it puts more of an emphasis on sport and crossover-utility vehicles, according to the head of its North American operations.

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“We are taking a hard look at all the segments we compete in, to make sure we are competing in profitable segments and that products that we sell have strategic value to the brand,” Jim Lentz told the Wall Street Journal.

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Toyota Earnings Soar on Global Sales Surge

Automaker lifts full-year forecast.

by on Nov.06, 2018

Strong demand for Lexus, especially in the Chinese market, helped Toyota deliver strong earnings.

Toyota Motor Corp. reported a 28% increase in its net profit for the July-September quarter, earnings buoyed by strong demand in key global markets, including the Americas, Asia and Europe.

The Japanese giant also advised that it expects to see earnings push past earlier forecasts for the full year, in part driven by unexpectedly strong demand in China. Sales of the Lexus brand, have been booming there, despite a slowdown in the overall Chinese market.

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Sales gains were only one of the factors that propped up Toyota’s bottom line, said Senior Managing Masayoshi Shirayanagi. Referring to aggressive cost-cutting efforts, he said, “We are steadily making progress toward achieving our challenge-level target.”

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Subaru Profits to be Hit by Inspection Scandal, Recalls

Japanese maker struggling to get inspection issue resolved.

by on Nov.05, 2018

Subaru plants in Japan are still struggling with false inspections, which will impact its yearly earnings.

Subaru continues to struggle with recall issues, saying it would recall more vehicles sold in the Japanese market due to newly found instances of inspection cheating. Coupled with its recent engine recall and other actions and the company’s profits are expected to be cut by about 25%.

The company plans to recall about 100,000 vehicles, including its popular Impreza sedan, after it was found the final tests for components including brakes were not conducted properly. Vehicles sold overseas will not be affected. 

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“It’s unforgivable that these inspection-related issues are continuing,” CEO Tomomi Nakamura said. According to Reuters, he repeatedly added he believed that the latest recall would be the last related to testing misconduct.  (more…)

GM Offering Buyouts to Salaried Employees to Cut Workforce

Automaker may terminate employees if buyout doesn't achieve results.

by on Oct.31, 2018

General Motors is offering buyouts to 18,000 employees as it seeks to streamline its North American operations.

After reporting a better-than-expected third quarter, General Motors is being “proactive” and offering voluntary buyouts to about 18,000 salaried employees in North America.

The offer is being extended to workers with 12 years or more experience and are designed to get ahead of rising costs, particularly in China. Employees were informed via a newsletter emailed Wednesday.

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The automaker reported a net profit of $2.53 billion during the July-to-September quarter, or $1.75 a share. A year ago, it lost $2.98 billion, or $2.03 a share, though that figure largely reflected the cost of completing the sale of its European-based Opel subsidiary to France’s PSA Group. (more…)

GM Handily Beats Earnings Forecast, Buoyed by Truck Sales

Shares soar in pre-bell trading.

by on Oct.31, 2018

GM's Renaissance Center headquarters in Detroit.

General Motors delivered a positive surprise to analysts and investors on Wednesday morning, delivering significantly stronger earnings than had been forecast, buoyed by surging demand for its light truck line-up, including the completely redesigned Chevrolet Silverado pickup.

The announcement stands in sharp contrast to rival Ford Motor Co. which, last week, reported a significant decline in third-quarter income, despite strong demand for models like its F-150.

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GM said it earned a net of $2.53 billion during the July-to-September quarter, or $1.75 a share. A year ago, it lost $2.98 billion, or $2.03 a share, though that figure largely reflected the cost of completing the sale of its European-based Opel subsidiary to France’s PSA Group.

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Fiat Chrysler’s Q3 Profits Dinged Due to Diesel Emission Charges

Record earnings before diesel issue may mean dividend payment.

by on Oct.30, 2018

Fiat Chrysler's third quarter earnings were hurt by charges tied to possible diesel emissions violations.

Fiat Chrysler Automobiles net income dropped 38% during the third quarter despite record adjusted earnings before interest and taxes of 2 billion euros, or $2.27 billion, opening the door for the company to pay its first dividend since it was re-organized in 2014.

However, net profit decline 38% to 600 million euros, or $681.16 million, including a 700 million charge related to U.S. diesel emissions matters. FCA is now under investigation by U.S. Department of Justice for the company’s failure to disclose software on about 104,000 diesel-powered pickups and SUVs that regulators said could be similar to the “defeat devices” Volkswagen AG used to cheat emissions-testing on millions of its diesel-powered vehicles.

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FCA’s worldwide shipments increased by 3% and net revenue grew by 9% to 28.8 billion euros during the quarter. Despite cost of the diesel penalties, FCA’s adjusted EBIT in the North America region grew by 51% with margin at 10.2%, according to the financial information released by the company. (more…)