The Truth About Cars » stocks http://www.thetruthaboutcars.com The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. Wed, 16 Jul 2014 04:01:57 +0000 en-US hourly 1 http://wordpress.org/?v=3.9.1 The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars no The Truth About Cars editors@ttac.com editors@ttac.com (The Truth About Cars) 2006-2009 The Truth About Cars The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars » stocks http://www.thetruthaboutcars.com/wp-content/themes/ttac-theme/images/logo.gif http://www.thetruthaboutcars.com General Motors to Divest Remaining Ownership of Ally Financial http://www.thetruthaboutcars.com/2013/12/general-motors-to-divest-remaining-ownership-of-ally-financial/ http://www.thetruthaboutcars.com/2013/12/general-motors-to-divest-remaining-ownership-of-ally-financial/#comments Thu, 05 Dec 2013 12:53:39 +0000 http://www.thetruthaboutcars.com/?p=671586 Renaissance Center

Ally Financial, the bank holding company formerly known as GMAC, is still a major part of the United States federal government investment portfolio in the five years since it was bailed out at the start of the Great Recession. Yet, it may be able to soon divest its ownership in part due to General Motors selling their remaining shares.

GM announced Wednesday that they would sell off their remaining 132,000 shares — or 8.5 percent of the total shares available — of the finance company through a private placement. The action would clear the way for Ally to begin final preparations for their long-awaited IPO to the investing public. In turn, the federal government could sell part if not all of their ownership, currently holding at 64 percent.

When the IPO will be offered is still unknown, though both GM and Ally are hoping rising interest in the latter by investors will light the path toward complete freedom from government ownership. In the meantime, GM will net $900 million from the private placement.

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BMW Pulls Ahead With Investors http://www.thetruthaboutcars.com/2012/12/bmw-pulls-ahead-with-investors/ http://www.thetruthaboutcars.com/2012/12/bmw-pulls-ahead-with-investors/#comments Tue, 18 Dec 2012 17:02:45 +0000 http://www.thetruthaboutcars.com/?p=470581

The S-Class Mercedes has been the default choice for the global taste-and-wealth set for a very long time, probably since the demise of the Elwood Engel Continental. The 7-Series BMW, by contrast, has always been a slightly embarrassing purchase, the choice of the man cut out from the classy club by birth, ignorance, or a slightly unseemly insistence on driving dynamics. BMW is the striver’s brand, launched into the spotlight by a man who was sort of the Nadia Comaneci of sweaty social climbing. Mercedes is the real thing. Hasn’t it ever been thus?

German investors, on the other hand, seem to like the Roundel.

An article published by Bloomberg late last week seems to suggest that the bloom is off the Daimler-Benz rose, and a large part of that is due to the infamous Dr. Z:

BMW’s market capitalization has surged to 45 billion euros ($58.8 billion), versus 42.2 billion for Daimler. Subtract a reasonable price for Daimler’s truck business — the world’s biggest — and the value investors assign to Mercedes stands at about 25 billion euros.

“The market is saying that the prospects for Mercedes are much worse than for BMW,” said Hans-Peter Wodniok, an analyst with Fairesearch in Kronberg, Germany. “The market’s always right. In terms of innovation, BMW is the leader.”

“The market’s confidence in Daimler management is pretty much at rock bottom,” said Max Warburton, a Bernstein analyst in Singapore. “Investors have little or no confidence that current management will be able to do what is necessary to close the gap to BMW.”

One would think that the time to have lost confidence in Daimler management would have been a decade ago, when the product was iffy at best and even the mighty S-Class was often seen driving around with a dead COMAND screen and a droopy air suspension. Sometimes perception lags reality. Not to worry, though: investors may be bearish on the three-pointed star but there’s redemption ahead.

the potential of the Mercedes brand in China is “ overwhelming,” said Yale Zhang, managing director of consultancy Automotive Foresight in Shanghai. “Every consumer understands the value of Mercedes and the logo.

While the S-Class no doubt reigns supreme in China as elsewhere, the relatively lackluster star quality of the C-Class probably has customers there wondering if they really wouldn’t rather have a Buick.

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