Overcapacity: The Auto Industry's Big Little Problem
Robert Salomon submits: Kudos to The Economist for recognizing that overcapacity continues to plague the automobile industry and just won’t go away (see Trouble Down the Road). Although cash-for-clunkers and other government subsidy programs meant to prop up the ailing automakers have helped the industry avert imminent disaster, the reality is that by enacting such programs governments have simply kicked today’s problems down the road until tomorrow. Not one of the major automakers has been allowed to fail in any meaningful sense, whereby massive productive capacity has eliminated from the industry. According to The Economist:Complete Story » seekingalpha.com |
Customer Is the Winner in the Electric Vehicle Market
John Addison submits:Electric cars and hybrid cars are prominent here at the LA Auto Show. GM highlighted big plans for the Chevy Volt. Toyota (TM), owning some 65 percent of the U.S. hybrid market, displayed the Prius Plug-in Hybrid Vehicle [PHV] along with a growing family Toyota and Lexus hybrids. The Volt will have triple the electric range of the PHV. Toyota may have a $10,000 price advantage over the Volt.For extended driving, the Toyota plug-in will normally blend power from the 1.8L gasoline engine and from the 60kW electric motor, just as the Prius does now. The Volt, however, is powered purely with its electric drive system, with a one liter gasoline engine configured in series to act as a generator. Although series designs have been used for years, GM insists that the Volt is in a unique category – the extended range electric vehicle [EREV]. What may be unique is consumer confusion. Clean Fleet Report refers to both the Volt and Prius Plug-in as plug-in hybrids.Complete Story » seekingalpha.com |
An ETF for Improving Auto Sales
Tom Lydon (ETF Trends) submits: The auto industry and sector-related ETFs have shown significant gains as a result of higher sales numbers. However, American consumers aren’t buying like they used to, and some don’t think the sales numbers of yesteryear will return anytime soon.U.S. auto sales increased 6% in January despite weak demand from consumers and the well-publicized Toyota Motor problems, reports Chris Isidore for CNN Money.Complete Story » seekingalpha.com |
Defending General Dynamics Corp as a Value Investment
Bud Labitan submitsGeneral Dynamics Corporation (GD) offers a portfolio of products and services in business aviation; combat vehicles, weapons systems and munitions; shipbuilding design and construction, and information systems, technologies and services. General Dynamics operates through four business groups: Aerospace, Combat Systems, Marine Systems, and Information Systems and Technology.The Company’s primary customers are the United States Department of Defense and the intelligence community. It has also developed relationships with other United States Government customers, including the Department of Homeland Security and several first-responder agencies.Complete Story » seekingalpha.com |
AutoNation, Inc. Q2 2010 Earnings Call Transcript
AutoNation, Inc. (AN)Q2 2010 Earnings Call TranscriptComplete Story » seekingalpha.com |