TOP 100 TRANSPORTATION AND LOGISTICS SITES
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| Remodeling the Auto Industry - Barron's When the Obama administration decided the recovery plans of General Motors (GM) and Chrysler were not viable, it set the stage for a major reordering of the U.S. auto market. Barron's Jay Palmer makes the case that Asian automakers are set to see major gains in the U.S. The White House is aiming for a viable, profitable, potentially smaller Detroit. GM will either meet its restructuring deadlines quickly or enter government-protected bankruptcy. Some analysts think viability will require GM to halve its production capability, workforce and dealer network, and cut at least a third of its existing volume.Complete Story » seekingalpha.com |
GM Bankruptcy Watch: Woe to Main Street Bondholders Rick Newman submits:One of the saddest stories emerging from the GM bankruptcy drama is the plight of “Main Street” bondholders. Most of the investors holding $27 billion in GM debt are big banks and institutional firms, but apparently Mom and Pop-type investors hold about $7 billion in GM bonds. Unlike the big firms, they’re generally not secured: They can’t demand collateral if GM defaults, and for the most part they didn’t buy financial insurance to hedge against the risk of losses. So in bankruptcy, they go to the back of the line, where they’ll be lucky to recover even a small portion of their investment.Complete Story » seekingalpha.com |
Rumor: Another Clean Car Start-Up TheCarConnection.com submits: By Richard Read It's good news/bad news day for T. Boone Pickens. On the one hand, his push for natural gas vehicles seems to be gaining traction in D.C. On the other, his new V-Vehicle Company in Monroe, Louisiana is about to get a little competition from two doors down. Chinese exile Yang Rong -- former head of Brilliance China Automotive Holdings Ltd. and formerly one of China's three richest men -- is setting up shop in Alabama to produce clean-tech vehicles. No word on where the factory will be located or even what form these vehicles will take, but they'll supposedly be for sale across the U.S. Your move, Pickens. [Reuters via BusinessInsider]Complete Story » seekingalpha.com |
Rumor: Daimler, BMW May Buddy-Up to Retain Market Share TheCarConnection.com submits: Despite all the great news coming out of Germany in recent days, it's apparently not all biergartens and schnitzel over there: a new article in Der Spiegel reports that high-end German automakers Mercedes-Benz and BMW are facing tough times on the sales floor, as the world's touch-and-go economy forces customers to purchase cars from their lower-priced competitors. Mercedes-Benz's parent company, Daimler AG, has seen auto sales drop by 18% compared to last year, and their truck sales are at about 50% of what they had been. First-quarter losses for 2009 total around $3.5 billion, and rumors abound that Daimler's legendary CEO, Dieter Zetsche, may be replaced in the not-too-distant future. So far the company has limped along, supported by government subsidies for its sprawling workforce, but it's clear that things are going to hit the fan very soon.Complete Story » seekingalpha.com |
Four Reasons Buffet's Buying Burlington Northern Warren Buffett agreed to buy Burlington Northern Santa Fe (BNI) for 34 Billion in Cash and stock. BNI Shareholders will have the option of being bought out in cash (100 dollars per share) or Berkshire stock. Berk-B (BRK.B) is currently trading for $ 3,310 per share, but the Berkshire Board has approved a 50-1 Split for Burlington Share holders that have smaller denominations of equity. Buffett already owns 22% of the Railroad but is going all in on his biggest acquisition ever. Complete Story » seekingalpha.com |