Tag: finances

By on August 6, 2020

An ongoing pandemic and serious North American sales hit weren’t enough to bring Toyota to a loss in the quarter ending June 30th.

The automaker posted its weakest fiscal first-quarter return in nearly a decade, but last quarter’s operating profit, despite plunging 98 percent on a year-over-year basis, still came out in positive territory. While the road ahead is rocky and paved with uncertainty, Toyota says it was surprised as how quickly it bounced back. (Read More…)

By on July 31, 2020

Fiat Chrysler Automobiles revealed a second-quarter loss of $1.24 billion on Friday, down slightly from the $1.8 billion net loss posted for Q1.

As before, the pandemic weighed heavily on the automaker’s finances, though this spring’s two-month shutdown of domestic manufacturing and the revenue drop arising from the virus didn’t spell red ink for its all-important North American region. (Read More…)

By on July 30, 2020

ford

Ford Motor Company made many investors happy on Thursday, reporting a less-than-feared loss in the second-quarter of 2020.

Despite the company’s chief financial officer predicting a Q2 loss of $5 billion or more three months ago, the automaker’s actual earnings before interest and taxes was only in the red $1.9 billion — a minor miracle given the stormy backdrop. (Read More…)

By on July 29, 2020

General Motors’ second-quarter earnings report is out, and there’s red ink to report.

Hammered by the coronavirus-related shutdown of its domestic manufacturing facilities and a corresponding sales slide, the automaker reported an $800 million loss in Q2 — a far cry from the rosy, $2.42 billion profit it saw a year earlier.

GM’s cash burn was also a five-alarm affair, but one element of the report was hardly depressing at all: the company’s Chinese sales. (Read More…)

By on June 8, 2020

Herbert Diess Jetta 2017

A report last week in a German publication stated that Volkswagen Group was looking for someone new to take charge of its namesake brand. The new blood would come in the form of Porsche CEO Oliver Blume, sources said.

We’re now hearing there’s an “extraordinary” supervisory board meeting being held at VW today, and that the result could be current brand chief Herbert Diess being bounced from his role. (Read More…)

By on June 3, 2020

Renault — struggling, like all other automakers, from the body blow called COVID-19 — has secured a financial lifeline from an unsurprising source: the French government.

France, which holds a 15 percent stake in the automaker, signed off on a $5.6 billion rainy day fund for the company, guaranteeing 90 percent of the borrowed sum. That takes a fair bit off the heat off. (Read More…)

By on May 19, 2020

mitsubishi

Mitsubishi Motors’ membership in the great Renault-Nissan alliance won’t protect it from economic realities arising from the coronavirus pandemic. On Tuesday, the automaker announced an 89-percent drop in operating profit for the year ended March, with black ink totaling just $119 million.

Rocked by the virus that’s thrown every automaker’s balance sheet into disarray, Mitsubishi scrapped its planned dividend and held back from issuing a projection for the current year. It’s also thinking small. The virus has changed the global landscape, and Mitsubishi says it will have to change to meet the challenge. (Read More…)

By on May 14, 2020

2020 Mazda CX30 Soul Red - Image: Mazda

The fiscal year that wrapped up at the end of March was not a good one for Mazda, the company claims, with profit cut almost in half amid fallout from the coronavirus pandemic. On Thursday, Mazda revealed a full-year operating profit of just $408 million — its lowest showing in 8 years.

Smaller than its Japanese rivals and heavily dependent on the North American consumer, Mazda was hit hard by lockdown orders that dried up sales in the U.S. and Canada in March. (Read More…)

By on May 12, 2020

The ongoing coronavirus pandemic only reared its spiky head at the tail end of the fiscal year, but the disruption to automakers was strongly felt. In a new vehicle market that was largely cooling off, the impact of fewer sales and idled plants was immediate.

That said, the virus didn’t spread the damage evenly. (Read More…)

By on May 12, 2020

Toyota, the automaker that regularly jousts with Volkswagen for the title of World’s Largest Automaker, expects its finances to take a major hit this year. A solid blow, but not a knockdown punch.

With sales down severely and production depressed across the globe, Toyota envisions an 80-percent profit drop for the current fiscal year. (Read More…)

By on May 7, 2020

vw

Hey, things crop up. Little things, like a global pandemic that ground the economy (and vehicle production, and sales) to a halt for two months, can just appear out of the blue and wreak all sorts of havoc.

Because of just such an occurrence, Volkswagen of America’s long-awaited return to black ink will have to wait. (Read More…)

By on April 29, 2020

ford

Call it the coronavirus crash. Ford Motor Company released its first-quarter 2020 financial results late Tuesday, revealing a deep dip into the red as March’s production shutdown and and domestic (and overseas) sales dive ate into earnings.

Free cash flow was negative $2.2 billion last quarter, Ford said, as it reported a net loss of $2 billion. Recall that a big deal was made over the company’s less-than-stellar Q4 2019 earnings report, which carried the weight of recalls and a botched product launch. That report now looks rosy.

As bad as Q1 2020 looks, Ford cautioned investors to brace themselves for an even grimmer Q2. (Read More…)

By on April 28, 2020

Nissan can’t catch a break. Instead of the new decade heralding sunnier skies and calmer seas for a financially compromised Nissan, the first quarter of the year (and counting) brought nothing but grief.

Declining sales and shuttered plants spurred by the coronavirus pandemic further destabilized the automaker’s balance sheet. It was the kind of out-of-the-blue event both beancounters and executives feared, occurring just as the automaker was preparing (hoping?) to exit its present crisis with the help of a new CEO and a new plan.

Clearly, that recovery will have to wait, as analysts are now mentioning 2008 in the same sentence as “Nissan.” (Read More…)

By on April 27, 2020

Image: Mitsubishi

Mitsubishi, the automotive brand TTAC readers can’t get enough of, is going further into money saving mode amid the ongoing coronavirus pandemic.

The automaker announced late last week that it will revisit and revise its 2019 fiscal year financial forecast and rein in its spending, starting with the pay checks it sends to officers and directors. (Read More…)

By on April 27, 2020

 

Ren Cen. GM

Burning through piles of cash as plants sit idle, sales plummet, and the bulk of its vast workforce still demands payment during the virus-borne production shutdown, General Motors is taking new measures to protect its finances.

On Monday, the automaker announced a number of steps designed to anger shareholders in the short term, but a production restart date remains as elusive as before. (Read More…)

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