Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/www.autoblog.com/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2009 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Tata looking to raise £1 billion to keep Jaguar, Land Rover going]]>http://www.autoblog.com/2009/05/11/tata-looking-to-raise-1-billion-to-keep-jaguar-land-rover-goin/http://www.autoblog.com/2009/05/11/tata-looking-to-raise-1-billion-to-keep-jaguar-land-rover-goin/http://www.autoblog.com/2009/05/11/tata-looking-to-raise-1-billion-to-keep-jaguar-land-rover-goin/#commentsFiled under: , , ,



We don't know how many times through the millennia one gentleman has told another, "Be careful with her - she's beautiful, but she's expensive." We would like to know if Alan Mullaly offered that warning to Ratan Tata (above) before the latter bought Jaguar and Land Rover (JLR). As with the Blue Oval before it, Tata Motors is about to throw billions at the English luxury marques and it is looking for help doing it.

Tata wanted the British government to guarantee a £340 million loan ($515M USD) Tata received from the European Investment Board. The government refused to underwrite the entire amount, and it was written that the government additionally wanted Tata to invest up to another £400M ($605M) in JLR (on top of the £900M ($1.36B) Tata pitched in last summer) and put £50M ($76B) on the table before it would underwrite anything. The government is also said to have wanted veto power on top executive choices and labor plans.

Those talks, unsurprisingly, went nowhere. Now Tata is looking to banks for £1 billion ($1.5B) in cash and underwriting help. Citigroup is has begun the search for lenders to provide the money by September, which everyone expects to come with heavy-duty interest rates. With the state of the market and Tata's other recent purchases, 2009 is shaping up as an expensive year for the Indian company.

[Source: Global Motors | Image: Sajjad Hussain/AFP/Getty]

Tata looking to raise £1 billion to keep Jaguar, Land Rover going originally appeared on Autoblog on Mon, 11 May 2009 13:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>financesjaguarland roverLandRoverratan tataRatanTatatataukMon, 11 May 2009 13:30:00 EST<![CDATA[F1 teams spent over $3 billion, Toyota the most]]>http://www.autoblog.com/2008/09/22/f1-teams-to-spent-over-3-billion-toyota-the-most/http://www.autoblog.com/2008/09/22/f1-teams-to-spent-over-3-billion-toyota-the-most/http://www.autoblog.com/2008/09/22/f1-teams-to-spent-over-3-billion-toyota-the-most/#commentsFiled under: , , , ,

While we knew Formula 1 racing was an expensive venture, leave it to the 2008/2009 edition of Formula Money to spell-out the jaw-dropping finances for us. According to their latest guide, the supporting cast will shell out over $3 billion this year in team resources -- with Toyota dropping more than $445 million of it alone. McLaren is a close second at $433 million, while Ferrari rounds out the top three with $414 million coming out of pocket. If you take a look at team resources divided by points scored, each point cost Ferrari $1.9 million in 2007 (while each point cost Honda a staggering $57.2 million during the same period!). With the financial markets around the world roiled in turmoil, many are wondering when the F1 budgets are going to feel the pinch... Thanks for the tip, Keith!

[Source: F1 Fanatic]

F1 teams spent over $3 billion, Toyota the most originally appeared on Autoblog on Mon, 22 Sep 2008 17:32:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>budgetF1F1 GuideF1GuideFerrariFerrari F1FerrariF1financesFormula 1Formula MoneyFormula1FormulaMoneyHonda F1HondaF1Season budgetSeasonBudgetSpendingToyota F1ToyotaF1Mon, 22 Sep 2008 17:32:00 EST<![CDATA[Chrysler Financial turns the screws on dealers]]>http://www.autoblog.com/2008/09/08/chrysler-financial-turns-the-screws-on-dealers/http://www.autoblog.com/2008/09/08/chrysler-financial-turns-the-screws-on-dealers/http://www.autoblog.com/2008/09/08/chrysler-financial-turns-the-screws-on-dealers/#commentsFiled under: , , ,

It's not getting any easier to be a Chrysler-Dodge-Jeep dealer. Last month, when Chrysler Financial asked banks and investors to renew their $30 billion line of credit, they came up about $6 billion short. To make matters worse, the investors forced the automaker to follow much tighter financial guidelines (including a requirement to get out of leasing). Now, the cash shortfall is forcing the financial division to significantly turn up the heat on their retailers. Over the next few months, the financial arm will jack up dealer floorplan interest rates, and levy hefty fees for vehicles that sit unsold on dealer lots. With sales way down (in August, Chrysler's sales fell a sickening 34.5 percent -- the steepest decline of any major manufacturer), cash-strapped dealers are obviously unhappy with the news. Many fear this may signal the start of a new retailer initiative to limit vehicle inventory, hurting sales even further. As expected in this industry, bad news for retailers often means good news for consumers. With the new fees on the horizon, dealers will be offering significant incentives to dump inventory over the next few months.

[Source: Automotive News, subs. req'd]

Chrysler Financial turns the screws on dealers originally appeared on Autoblog on Mon, 08 Sep 2008 18:32:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bankingChrysler FinanicalChryslerFinanicalDodgefeesFinancesFinancialfloor plan interestfloorplanFloorPlanInterestincentiveinterestJeepratesMon, 08 Sep 2008 18:32:00 EST<![CDATA[Analyst: GM 'In a battle for their life']]>http://www.autoblog.com/2008/08/04/analyst-gm-in-a-battle-for-their-life/http://www.autoblog.com/2008/08/04/analyst-gm-in-a-battle-for-their-life/http://www.autoblog.com/2008/08/04/analyst-gm-in-a-battle-for-their-life/#commentsFiled under: , ,

According to the Center of Automotive Research (CAR), General Motors is the trauma patient with doctors gathered around the gurney giving their all to save it -- and just outside the ER doors, nurses are holding back concerned parties and shouting "It's better that you don't see!" CAR Chairman Dave Cole says it comes down to revenue, and with GM's $15.5 billion Q2 loss, revenue is down by $10 billion vs. Q2 of 2007.

Cole says "Revenue is a measure of the business going forward." We think that's a bit overstated, and that revenue is more accurately a measure of business just transacted. True, multi-billion dollar losses and revenue decreases don't make the best stories, but did anyone really expect it to be cotton candy canes as the world's -- possibly -- largest automaker transfers nearly its entire product lineup from trucks to cars and crossovers?

Admittedly, GM has nothing but an indefinitely long fight-to-the-death cage match ahead of it. The product turnaround probably won't be completed in Q3. And, as GM's CFO said, it's "going to have to grow the business" in addition to making cost cutting moves like shuttering four truck plants by 2010. But we figure there's probably quite a bit more life left in little boy blue than some give it credit for.

[Source: Auto News, sub req'd]

Analyst: GM 'In a battle for their life' originally appeared on Autoblog on Mon, 04 Aug 2008 10:59:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>financesfinancialsgeneral motorsGeneralMotorsgmMon, 04 Aug 2008 10:59:00 EST<![CDATA[Chrysler Financial scores $24B line of credit]]>http://www.autoblog.com/2008/08/04/chrysler-financial-scores-24b-line-of-credit/http://www.autoblog.com/2008/08/04/chrysler-financial-scores-24b-line-of-credit/http://www.autoblog.com/2008/08/04/chrysler-financial-scores-24b-line-of-credit/#commentsFiled under: ,

It's up and down, but nowhere near out for Chrysler, LLC. The Big Three's smallest sibling says that it's ahead of internal estimates and has posted earnings in excess of one billion for the first half of '08. True, the company also posted a $510 million loss in Q1 according to minority shareholder Daimler. And since Chrysler is privately held, it doesn't need to tell anyone whether these earnings put it in the red or black.

But whatever's on the books was good enough to convince lenders to grant Chrysler's financial arm a $24 billion line of credit. Said a Chrysler spokesman, the money will be used to "support our dealers and their retail customers." The pentastar just got out of the leasing business, so the influx of credit will keep the financial arm doing what it needs to do as all those remaining lease vehicles come back with empty tanks and bottomed-out residuals. And believe it or not, those are all good things.

[Source: Detroit News]

Chrysler Financial scores $24B line of credit originally appeared on Autoblog on Mon, 04 Aug 2008 10:32:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>chryslerchrysler financialchrysler llcChryslerFinancialChryslerLlcearningsfinancefinancesfinancialsline of creditLineOfCreditMon, 04 Aug 2008 10:32:00 EST<![CDATA[Running of the bull: Lamborghini quadruples its first-half profit]]>http://www.autoblog.com/2007/08/01/running-of-the-bull-lamborghini-quadruples-its-first-half-profi/http://www.autoblog.com/2007/08/01/running-of-the-bull-lamborghini-quadruples-its-first-half-profi/http://www.autoblog.com/2007/08/01/running-of-the-bull-lamborghini-quadruples-its-first-half-profi/#commentsFiled under: , , ,

A little bit ago, Stephan Winkleman was declaring that, as far as Lamborghini goes, "the results will speak for themselves." Now, he is proved right. These are the kinds of black and white numbers -- especially black -- that any business salivates at the chance to tell analysts: in all of 2006 Lamborghini made 18.1 million euros in pre-tax profit; in the first half of 2007, it has already posted a pre-tax profit of 26.4 million euros. That compares to a 6.9 million euro pre-tax profit in the first half of 2006.

Lamborghini sold more than 2,000 cars for the first time in its history in 2006. So far this year it has bested deliveries by 30%, selling 1,239 cars, and raised revenue by 61% to 253 million euros. Increased brand awareness -- via espresso makers and Batman Begins -- and a young model lineup have been attributed as causes. Nevertheless, we're sure that building the fastest, most comfortable, most reliable, and among the most beautiful cars the Sant' Agata maker has ever created could account for the flush results as well.

[Source: Auto News, sub req'd]

Running of the bull: Lamborghini quadruples its first-half profit originally appeared on Autoblog on Wed, 01 Aug 2007 19:27:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>earningsfinanceslamborghiniprofitquarterly resultsQuarterlyResultsstatementsWed, 01 Aug 2007 19:27:00 EST<![CDATA[We can't count: GM admits internal accounting is off]]>http://www.autoblog.com/2007/03/15/we-cant-count-gm-admits-internal-accounting-is-off/http://www.autoblog.com/2007/03/15/we-cant-count-gm-admits-internal-accounting-is-off/http://www.autoblog.com/2007/03/15/we-cant-count-gm-admits-internal-accounting-is-off/#commentsFiled under: ,

If you pay attention to the Business section of the newspaper, then you're no doubt aware of how many public companies have been restating their earnings as of late. You can thank the Sarbanes-Oxley Act of 2002 for that, which was passed in the wake of accounting scandals at such companies as Enron, WorldCom and Tyco. General Motors has restated its earnings in the recent past, and in its annual 10-K report of results for 2006 revealed that its ability to effectively and accurately report its finances is inadequate.

This might sound like a shocker, that a company doesn't have the resources to accurately report its numbers to shareholders and the public, but Sarbanes-Oxley changed the accounting game in a big way and major corporations are still trying to catch up to its requirements. GM has vowed to address the problem by hiring six new accounting officers and restructuring its accounting and tax departments. Throwing bodies at the problem is really the only solution, as it's a practical impossibility in many cases for a company as large as GM to keep track of every single penny on its balance sheet. Nevertheless, it's required to at least try and that's what it's doing. Don't expect accounting errors to go away overnight, however. As long as the automaker is forthcoming about errors and moves to correct them quickly, however, these snafus aren't likely to affect its stock price or image with investors.

[Source: Money.cnn.com]

We can't count: GM admits internal accounting is off originally appeared on Autoblog on Thu, 15 Mar 2007 15:58:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>accountingaccounting errorsAccountingErrorsbalance sheetBalanceSheetfinancesSarbanes-OxleyThu, 15 Mar 2007 15:58:00 EST<![CDATA[Mitsubishi to seek compensation from DCX for SMART ForFour cancellation]]>http://www.autoblog.com/2006/03/30/mitsubishi-to-seek-compensation-from-dcx-for-smart-forfour-cance/http://www.autoblog.com/2006/03/30/mitsubishi-to-seek-compensation-from-dcx-for-smart-forfour-cance/http://www.autoblog.com/2006/03/30/mitsubishi-to-seek-compensation-from-dcx-for-smart-forfour-cance/#commentsFiled under: , , , ,

Following DaimlerChrysler's announcement that it will be stopping production of the SMART ForFour sedan, partner Mitsubishi Motors Corp. has stated it will end production at the company's Netherlands plant as well. The Japanese automaker still plans to manufacturer engines for DCX's SMART two-seaters.

Both companies have not yet determined when will be the last day of production. The Nihon Keizai Shimbun states, though, that Mitsubishi will be seeking financial compensation for DCX's abrupt termination of their partnership in the ForFour.

[Source: Nihon Keizai Shimbun via AFX News Limited via Forbes]

Mitsubishi to seek compensation from DCX for SMART ForFour cancellation originally appeared on Autoblog on Thu, 30 Mar 2006 17:34:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>enginesfinancesNetherlandsproductionThu, 30 Mar 2006 17:34:00 EST<![CDATA[ZAP zips Smart car sales up to a record month]]>http://www.autoblog.com/2006/03/30/zap-zips-smart-car-sales-up-to-a-record-month/http://www.autoblog.com/2006/03/30/zap-zips-smart-car-sales-up-to-a-record-month/http://www.autoblog.com/2006/03/30/zap-zips-smart-car-sales-up-to-a-record-month/#commentsFiled under: , ,

On Tuesday, ZAP, makers of the micro Smart Cars (not to be confused with the smart cars by DaimlerChrysler) posted sales totaling $2.3 million since inception according to the company. Said Steve Schneider, ZAP CEO, "The purpose of this announcement is to let the world know that we are executing on our business plan."

The 2005 Smart Car can be found in the U.S. states of Arizona, Florida, New Hampshire, Nevada, Pennsylvania, and Washington. Other news on ZAP, such as its Obvio! (pictured) and Xebra micro vehicles, can be found here and here on Autoblog.


[Source: PR Newswire via Automotive.com]

ZAP zips Smart car sales up to a record month originally appeared on Autoblog on Thu, 30 Mar 2006 10:04:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>financesmicro carsminicarssmart carsZAPThu, 30 Mar 2006 10:04:00 EST