| The Economic View from the Railroads Jim Delaney submits: After yesterday’s about face erasing all of Wednesday’s rout and adding a few additional points to the SPX, does it mean that Ken Chenault, CEO of American Express (AXP), was right all along when he said: “Today, while there is still reason to be cautious about high unemployment levels, we are seeing broad-based improvements in credit quality, the trends in card member spending are encouraging, and there are signs that the recession may be approaching an end,” while discussing 3Q09 earnings? After all, haven’t we been bludgeoned with the eco-snippet that 70% of our GDP is driven by the consumer and while possibly at the higher end of the spending spectrum, don’t most “card members” use their cards for consuming?Complete Story » seekingalpha.com |
Ford Brokers Deal to Sell Volvo to Chinese Automaker Geely TheCarConnection.com submits: After months of negotiations and numerous trips to the bargaining table, Ford (F) has finally brokered a deal to sell Volvo to Chinese automaker Geely. According to a Ford press release, an official agreement will be signed by Ford and Geely in the first quarter of 2010, with the sale to close in the following quarter, provided that financing arrangements and approvals by various regulatory agencies stay on-pace. Neither party has yet discussed specifics of the sale. However, we know that Ford bought Volvo for around $6 billion in 1999, and since most of the rumors surrounding these negotiations set Geely's bid between $2 billion and $3 billion, the sale is likely to represent a big cash loss for Ford. It's also safe to assume that Ford's concerns over intellectual property rights have now been addressed, as has Ford's wish to see Volvo's base of production remain in Europe (even though Geely has already begun expanding its resources in China). We also gather that the American investment consortium known as Crown was unable to make a compelling offer.Complete Story » seekingalpha.com |
AutoNation Projecting Improved Quarter Zacks.com submits: AutoNation Inc. (AN) has projected an improvement in results for the first quarter of 2010 due to a gradual recovery in the industry. The automotive retailer expects to earn 29–32 cents per share from continuing operations in the first quarter of 2010. This is an improvement from 22 cents per share earned in the same quarter a year ago.AutoNation also expects new vehicle sales to increase 18% to 45,000 units, and used vehicle sales to rise 12% to 38,000 units during the quarter. Consequently, the retailer anticipates its revenue to go up to $2.8 billion from $2.4 billion in the prior-year quarter.Complete Story » seekingalpha.com |
How Financial Regulation Reform Will Affect Car Dealerships Steve Hosaflook submits: Recently, the United States Senate has been in serious discussion about Financial Regulation Reform. Financial reform has passed the House (December 2009) and the Senate (May 2010), and now awaits the negotiation process between the two legislative bodies.There are several topics that this legislation is attempting to address, including: derivatives, proprietary trading, the size of financial institutions, and new consumer protection initiatives. Any reform in these areas will have major impacts on a diverse group of companies and industries.Complete Story » seekingalpha.com |
The Cruel Realities of EV Range John Petersen submits:By John PetersenAn English proverb teaches us to hope for the best but plan for the worst. With the imminent introduction of a variety of plug-in vehicles that will begin hitting showroom floors in the next few months, the phobia du jour is range anxiety, an entirely rational terror that an EV will get you to your destination in eco-chic style but only get you home with the help of a tow-truck. Sadly, most people who extol the virtues of electric drive are incurable optimists that have little or no regard for the risks inherent in complex systems and the widely variable needs of individuals. The quick and dirty overview is that every plug-in owner will have to cope with range degradation before the new car smell fades and his problems will only get worse as time passes.Complete Story » seekingalpha.com |