In a statement made by Delphi Automotive this week, the supplier announced that they had more than doubled their net income in Q4 2013 to $298 million in comparison to $136 million in Q4 2012.
The American half of the newly dubbed Fiat Chrysler Automobiles reported a net income of $1.6 billion in Q4 2013, the majority of which came from a one-time tax gain of $962 million.
The Great Recession has given us so much since it began five years ago with the fall of Lehman Brothers and Washington Mutual, from underwater mortgages and high unemployment, to bailouts of the financial and automotive manufacturing sectors and credit freezes.
Regarding the last item, a byproduct from said freeze will flood automakers with the potential to retain and steal customers when more and more leases draw to completion in the next year.
In lieu of short-term monetary gains over their competitors at Mercedes-Benz and Volkswagen (via Audi), BMW is spending its earnings on building up their i sub-brand through the city-focused i3 and the plug-in hybrid supercar i8.
A German business publication published a report this week claiming that Volkswagen won’t meet its 2015 profit goals, in part due to the costs associated with the new MQB modular platform.
For the 16th consecutive quarter, Ford Motor Co. profits have risen, with the Dearborn automaker reporting a 2nd quarter 2013 profit of $1.23 billion, up 18.6% from 2012, working out to 45¢ per share, exceeding analysts’ projections of 37 cents a share. Pretax profit for the quarter was up 40% to $2.56 billion. The company said that it set records for pre-tax profits in both the 2nd quarter and 1st half of 2013, making $4.8 billion in the first six months of the year.
Shaking off a $468 million loss in Europe, Ford reports better-than-expected profits for the third quarter. (Read More…)
“The estimate of the current loss per unit for each Volt sold is grossly wrong,” GM says as a retort to the Reuters story that GM loses around $49,000 on every Volt. GM says that “it allocates Volt development costs across lifetime volume, not across the current number of Volts sold.” TTAC commenters that rushed to the aid of the beleaguered company suggested the same. Oddly enough, GM passed on a much stronger argument that would have turned the Volt into a money machine. If not immediately, then much earlier than suggested by Reuters. (Read More…)
It’s not all blood and tears in Europe. Actually, the bloodier Europe looks, and the more Marchionne & Co do cry, the bigger the smiles at European carmakers with heavy exposure to foreign markets. The Euro is way down, and a low Euro means heavy profits from abroad – if you have business abroad. BMW sure does, and it posted its second best quarterly earnings in company history. Profit before financial result (EBIT) amounted to € 2.27 billion in the April-June 2012 quarter. (Read More…)
Five years ago, car dealers throughout the country were hit hard by carmageddon. Now, they are about to get hit again where it really hurts: In the workshop, where the real money is being made. The auto sales collapse of 2008 winds its way through the years like a diet through an anaconda. While showrooms were empty five years ago, now it’s the service bays that are deserted. (Read More…)
If you are anxious to hear what Opel is going to do to stop the bleeding of money (just in case you are holding GM stock,) then you need a lot of patience. GM Europe CEO Karl-Friedrich Stracke thinks he might have a plan within two to three months. He might have a plan. Setting the plan in motion may take longer. (Read More…)
Germany’s Hannoversche Allgemeine, usually well-informed in Volkswagen matters, got its hands on hot data: Volkswagen’s 2011 balance sheet , which will be presented to the Supervisory Board on Monday. According to the paper, Volkswagen more than doubled its annual profit to €16 billion ($21.4 billion.) (Read More…)
Opel Chief Karl-Friedrich Stracke told reporters that an agreement with unions about a fix of money-losing Opel is a while away. “I expect this not to happen in a month or so, rather than in a couple of months, that’s at least how I see the timetable,” Stracke told Reuters.
Analysts think that Stracke is an optimist, and that restructuring Opel won’t come cheap. The guesstimate is more than $1 billion, and the payback will take a while. (Read More…)
When GM will announce 4th quarter and year-end earnings tomorrow, a lot of fingers will be pointed at Opel, and on GM CEO Dan Akerson who decided to keep the hemorrhaging unit instead of selling it off to Magna and the Russians. Bloomberg expects that tomorrow’s quarterly profit will be “GM’s lowest since it emerged from bankruptcy in 2009,” despite record sales in the U.S. and China. According to Bloomberg, (Read More…)