Earnings/Financials auto news

Official: Blue Oval no longer in hock as Ford credit rating upgraded

Moody's upgraded Ford's credit rating to investment grade today, the final step for the company to be able to reclaim its Blue Oval. Ford had offered its globally recognized trademark as part of a 2006 loan package. According to the Detroit Free Press, the collateralized logo and the rest of Fod's assets and intellectual property would not return to the automaker until it achieved an investment-grade credit rating with at least two of the three major agencies. Last month, Ford's credit was upgraded by Fitch.

At the time the loan was issued, the move was viewed as bold and risky, as Ford literally bet the farm that it could pay back the $23.5 billion. But as it turned out, the automaker's head start on restructuring allowed it to weather the financial crisis and resultant industry downturn in 2008 without declaring bankruptcy and needing government intervention like its cross-town rivals.

The upgrade from Moody's is said to potentially help Ford by lowering its borrowing costs, and certainly having its assets back should allow everyone in Dearborn to sleep peacefully tonight.

Scroll down to read Ford's official statement.

Continue reading Blue Oval no longer in hock as Ford credit rating upgraded

Study: BMW named most valuable car brand

BMW had last finished atop the rankings in 2010, according to the report, with Toyota taking the crown from 2006-2009. The highest-ranked American brand was Ford at seventh, trailing sixth-place Volkswagen. The top ten was filled out by Audi, Hyundai and Lexus. Toyota's drop was attributed to its production interruptions due to the natural disasters that affected all of the Japanese automakers last year, according to AN.

BMW's win among auto manufacturers was only enough to place it 23rd in the overall brand ranking, with an estimated brand value of $24.6 billion. Apple, the overall winner, according to the report, had a $182.9 billion valuation, ahead of IBM ($116 billion) and Google ($107.9 billion). Toyota's valuation was $21.8 billion, with Mercedes-Benz and Honda far behind at $16.1 billion and $12.7 billion respectively. No other carmaker had a valuation over $10 billion.

Report: Car Wars report predicts Hyundai, Kia will lose market share

The annual "Car Wars" report by Merrill Lynch analyst John Murphy predicts that, despite their seizing of U.S. market share over the last few tumultuous years, Korean brands Hyundai and Kia will give it all back and then some to companies like Ford, General Motors and Toyota by 2016.

Murphy bases his predictions not on tea leaves or crystal balls, but rather the rate at which automakers launch new products. Ford will replace 26 percent of its product line over the next four years, a number that represents 46 percent of its volume, while General Motors will replace 25 percent and Toyota 24 percent. On account of these new product launches, Murphy says Ford can expect to add 0.8 percentage points of market share, General Motors will recover 0.5 points and Toyota will add another 0.3 points.

Other automakers that won't be so aggressive in turning over their lineups with new models include Chrysler, Honda, Nissan and the European brands, which Murphy surmises will all remain flat in terms of market share.

Hyundai and Kia, meanwhile, will be introducing fewer new models than the rest and therefore, Murphy predicts, will see a 0.5 decline in U.S. market share.

Of course, these are all just predictions and can be blown to bits with the next unforeseen economic crisis or natural disaster, just like the last three years were. And there are other factors that might affect market share for each automaker during the next three years, including the availability of raw materials, exchange rates, union contracts, recalls and a million another minor things that might grow to become big things, not the least of which is consumers deciding they actually like all those new products being launched.

Report: Pininfarina turns first net profit since 2004

Automotive News reports Pininfarina projects it will turn a profit for 2012, thanks in part to debt restructuring. The Italian design studio hasn't seen a profit in eight years, but signed a deal in April to restructure $182.6 million in debt. The move effectively stretched the studio's repayment deadline from 2015 to 2018. At the same time, Pininfarina announced it will likely see an operating loss this year, but a one-time gain of $57.6 million will result in the net profit. Last year, the company lost $8.3 million in the first quarter, though that figure has dropped to just under $4 million during Q1 2012.

Pininfarina also saw its net revenue increase by $2.9 million. The company designs vehicles for manufacturers the world over, including makes like Ferrari, Maserati, Rolls-Royce and Cadillac, though CEO Silvio Pietro Angori recently announced China is set to become the studio's largest market this year. That title was previously held by Germany.

Official: Lola files for bankruptcy

Lola may not be a name recognized by the average consumer, but racing fans will know it well. The British concern has built and continues to build race cars that have spanned an enormous variety of series and disciplines since its founding in 1958, including (but not limited to) Formula One, Le Mans, CART and just about every formula feeder series you could think of, including Formula Two, Formula 3, Formula 3000, Formula 5000 and A1GP. Now, unfortunately, the company is filing for bankruptcy protection.

The reasons are pretty simple: too many expenses and not enough revenue, although tax credits it was due from the British government are also said to be partially to blame. As a result, the outfit responsible for - among numerous other accolades - five LMP2 titles at Le Mans since 2000 alone is entering financial administration as it seeks new investors.

Along with it, Lola Cars is taking Lola Composites, however the effect this might have on its concerns in defense and aerospace (among other areas) remains to be seen. As is the future of the SP/300.R track car which Lola builds for Caterham, or the countless racing teams that continue to count on Lola to build and support their sports prototypes. But with so many racing programs at stake, we can hardly imagine the company's considerable capabilities and expertise will go unclaimed for long. Scroll down for the official announcement.

Continue reading Lola files for bankruptcy

Report: A123 Systems posts $125 million net loss

As you may recall, A123 Systems provides battery packs for companies like Fisker. The extended-range EV manufacturer recently reported issues with the supplier's products, but A123 says it has determined the cause of the defective cells and is working to make sure the failures don't reoccur.

The report also suggests A123 Systems will lower its revenue forecast for the year to $145 million to $175 million. The company originally projected it would generate between $230 million and $300 million.

Report: Auto sales credited with half of U.S. economic growth

The auto industry has long been a cyclical business, and though this last trough was a deep one, the coming boom has economists excited. According to Bloomberg, the auto industry's comeback contributed fully half of the 2.2 percent national economic growth in the first quarter of this year. Auto sales are on target to top 14 million vehicles this year, the best pace in four years.

Production is up at all three domestic carmakers, which has a ripple effect throughout the economy. Bloomberg cites Chad Moutray, chief economist of the National Association of Manufacturers, who estimates that every dollar spent on a new vehicle leads to an addition $2.02 in economic activity. The industry's share of gross domestic product for the quarter was 2.8 percent, which is nearly as high as it was in 2007, before the economic crisis that devastated the industry, according to the report.

Yet despite the rise in fortunes for carmakers, stock prices have yet to follow suit. A key automotive index is up just 1.5 percent so far this year, but is down 31 percent in the past 12 months, according to the report. The U.S. Treasury Department recently indicated that because of lagging stock prices, it would not be divesting its share of General Motors stock anytime soon.

Official: Montezemolo confirms new Ferrari Enzo hybrid by year's end

Business has been good for Ferrari. Thanks in no small part to expanding its activities in developing markets, the racing team turned automaker raked in 556 million euros in revenues to generate 42.1 million euros in profit in the first quarter of this year alone - an increase of 13.2 and 17.2 percent, respectively. Those figures are driven by increased sales that amounted to 1,733 units produced and delivered in the first quarter out of an exciting model range that includes the 458 Italia and Spider, the recently revised California, the innovative FF and the brand-new F12 Berlinetta. But the House that Enzo built is not about to stop there.

Buried deep within the company's financial report (which you can delve into after below the fold should you be so inclined) comes confirmation direct from the company's affable chairman (and possible next Italian prime minister) Luca di Montezemolo: "At the end of the year, we'll also be unveiling the new Enzo, a limited series model and our first ever hybrid car."

So there we have it, straight from the proverbial lion's mouth and in no uncertain terms. Before we flip the calendar to 2013, we'll have the latest in the long line of earth-shattering supercars that started with the 288 GTO, continued with the legendary F40, through the open-top F50 and on to the radical Enzo. And yes, it will be a hybrid, coupling an electric motor to a revised version of the V12 in the new F12 Berlinetta, as Ferrari revealed at the Beijing Motor Show.

Continue reading Montezemolo confirms new Ferrari Enzo hybrid by year's end

Digging Deeper: April 2012 sales figures

April showers may result in May's flowers, but it didn't result in great car sales numbers.

Overall, sales in April only climbed 2.3 percent compared to April 2011, leaving some carmakers and observers scratching their head. Of course, the raw numbers, as provided by AutoData Corp., also note that there were three fewer selling days due to that occasional month with five Sundays in it. Imagine the pain people paid on the 1st and 15th had to endure?

So the numbers may not be as bad as a first glance might suggest, and in my opinion, the slow pace of growth is better for automakers. Rather than big ups and downs that leave dealerships empty of popular vehicles and overstocked with others, a steady mild increase means it's easier to match production to demand.

But there are plenty of outliers in the pages of spreadsheets when you look inside the numbers. So here are the 10 things I think I know about the auto industry based on April's sales.

Continue reading Digging Deeper: April 2012 sales figures

Video: Obama's latest campaign ads highlight auto recovery

As expected, the so-called auto bailout of 2009 has become a major talking point in the run-up to the 2012 Presidential Election. Somewhat surprisingly, however, both sides of the aisle are taking credit for the success seen by General Motors and Chrysler since the two automakers were pushed through a structured bankruptcy process.

Presumptive Republican nominee Mitt Romney has said he deserves "a lot of credit" for the resuscitation of the auto industry due to his suggestion of a managed bankruptcy of the two automakers. President Obama, on the other hand, points out that Romney was very vocal in his opposition to the auto bailout, frequently citing the editorial he wrote for the New York Times in 2009 titled "Let Detroit Go Bankrupt," in which he said the auto industry was "virtually guaranteed" to fail if Obama's bailout proceeded.

Building on previous advertisements highlighting the auto bailout of 2009, the Obama campaign has released two new videos touting the success of the automakers since the dark days of bankruptcy. Scroll down below to watch the videos for yourself.

Continue reading Obama's latest campaign ads highlight auto recovery