By on June 22, 2016

battle

Let’s hope the cutlery was plastic and the sandwiches didn’t come with toothpicks.

Amid an investigation into the emissions scandal that recently ensnared the company’s ex-CEO and current brand chief, Volkswagen shareholders big and small gathered today to calmly discuss the company’s actions and finances.

By all accounts, the calm didn’t last. (Read More…)

By on April 22, 2016

2015 Volkswagen Golf family, Image: Volkswagen of America

The heavy financial cost of Volkswagen’s diesel emissions scandal is becoming clear.

After reaching a settlement yesterday with U.S. consumers and regulators, the automaker is more than doubling the size of its “make the problem go away” cash pile, Bloomberg is reporting.

Volkswagen set aside 16.2 billion euros ($18.6 billion) today to deal with the scandal’s fallout, up from the 6.7 billion euro ($7.6 billion) figure previously stated.  (Read More…)

By on December 6, 2015

2016 Volkswagen e-Golf

According to a report by Bild am Sonntag (via Reuters), Volkswagen’s third largest shareholder, the Qatar Investment Authority (QIA), wants trade unions to have less influence in what happens at the automaker amid Volkswagen’s ongoing emissions scandal.

QIA, which owns 17 percent of Volkswagen, is said to use a meeting scheduled today with automaker CEO Matthias Müller to “demand a scaling back of the role of the works council,” reported Reuters.

Volkswagen representatives denied the report, stating, “Co-determination (joint decision-making by corporate and labor representatives) and the (role of the) works council were not on the agenda of the talks.”

(Read More…)

By on June 30, 2015

GM First Day as a Public Company Celebration

A group of General Motors shareholders found their lawsuit over the February 2014 recall dismissed in Delaware Monday due to lack of evidence.

(Read More…)

By on May 28, 2014

balancing act

Capitalism has no loyalties.

Everybody is replaceable.

Products. Employees. Employers. Services. Alliances. Joint Ventures. Financiers. Even the executives of multinational firms along with their board of directors are only as good as whatever quarterly numbers can be cooked up by their ‘independent’ auditing firm.

Capitalism is the ultimate “Let’s go!”, “Do it!” and “Screw you!” of economic systems. You name the angle or need in capitalism, and chances are that there is a market substitute that can immediately fill the gap. Even government regulations can be routinely challenged by trade organizations, international courts, and the all too common political handshake.

All this reality happens… on paper.

(Read More…)

By on April 7, 2014

GM-building-US-Flag

In spite of General Motors losing $3 billion in shareholder value over four weeks since the recall crisis began, Bloomberg reports investors are holding onto their shares in the belief the automaker will recover from the debacle. Though questions about the delay persist, most shareholders are pleased with how CEO Mary Barra is guiding her company through the maelstrom.

Other factors in the massive stock decline include overseas challenges and weaknesses in product lines, including bringing European profits into the black, while Chevrolet’s Silverado fights Ram’s offerings in order to regain its traditional place in the monthly sales charts.

(Read More…)

By on October 16, 2010

In 1999, a group of shareholders launched a court action against DaimlerChrysler management. They shareholders felt that their shares in Daimler AG (before the DaimlerChrysler “merger of equals”) were undervalued because management used an unfair exchange ratio (1.005 shares of DCX to every share of old Daimler AG). In 2006, a Stuttgart court ruled in favor of the shareholders and ordered DaimlerChrysler to pay them €230m (about $321m in today’s exchange rates). As far as everyone was concerned, that was the end of that. But not to Daimler. (Read More…)

By on May 13, 2010

After four straight profitable quarters, Alan Mulally’s forecast today of a “solidly profitable” 2010 shouldn’t come as a huge surprise. But, as Executive Chairman Bill Ford put it to Ford shareholders at the company’s annual meeting [via AP],

It is the very early days in our recovery. We still have a lot of debt

And he’s not kidding. As of the end of Q1 2010, Ford was carrying $34b in debt. And though Ford faces a higher cost of borrowing because of its staggering debts, Bill Ford was clear that he wouldn’t trade places with Ford’s Detroit competitors, which cleaned out their balance books, at the expense of government bailouts and accompanying PR problems. After all, while GM and Chrysler were rebuilding, Ford managed to outperform both of them last year by gaining sales and market share. And Ford’s leadership sees that momentum carrying forward into next year.

(Read More…)

By on February 8, 2010

For years, TTAC has argued that General Motors suffers from a profound lack of accountability. Specific instances include the $2b “Fiatsco,” most of Roger Smith’s tenure, and cars like the Pontiac Aztek and Cadillac Cimmaron. Incidents like these helped GM along its decades-long plunge into bankruptcy, unchecked by the lax corporate governance of what came to be called its Board of Bystanders. Hyundai’s CEO may have received similarly lax treatment from South Korea’s criminal justice system, but at least the shareholders are standing up for their investment.
(Read More…)

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