Autoblog

GM says Facebook ads not effective, pulls campaign ahead of IPO

Chris Shunk — Wed, 16 May 2012 10:27:00 EST

The Internets are buzzing over the upcoming initial public offering of Facebook, but General Motors doesn't seem all that impressed. The Huffington Post reports that The General has pulled its Facebook ad campaigns just days before the social media site is scheduled to officially hit the stock market.

The pricey ad buy reportedly wasn't paying sufficient dividends for GM, which spends billions of dollars on advertising every year. GM Spokesperson Pat Morrissey confirmed that Facebook was being reassessed, but added that the automaker routinely reviews where it is spending its ad dollars. Morrissey then added that GM is looking for effectiveness when it doles out marketing cash, which doesn't bode well for Facebook's ability to draw clicks.

If GM's decision sounds at all irrational, the statistics seem to show that Facebook isn't exactly an ad-click magnet. A recent CNBC poll showed that 50 percent of all Facebook users never click on any ads, and only 12 percent of those polled feel comfortable purchasing anything through Facebook. Google appears to be more effective at attracting clicks, as The Wall Street Journal cites a click-rate that is seven times that of Facebook.

Regardless of GM's decision to break up with Facebook, we're guessing that the news probably won't drown out much of the anticipation for the IPO. After all, it isn't every day that an Internet site with 900 million mostly addicted users goes public.

GM says Facebook ads not effective, pulls campaign ahead of IPO originally appeared on Autoblog on Wed, 16 May 2012 10:27:00 EST. Please see our terms for use of feeds.

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GM stock price leads to greater estimate of losses on bailouts

Jeff Sabatini — Wed, 01 Feb 2012 09:59:00 EST

Filed under: Government/Legal, GM, Earnings/Financials

The "Government Motors" crowd isn't going to be happy about this: The Detroit News is reporting that the U.S. Treasury now says it has lost an extra $170 million in the auto industry bailout. The culprit? The declining price of General Motors stock.

According to the report, GM's stock crested at $37.23, but is down 35 percent from that level today. The Treasury Department based its calculations on a $21.29 value from November 30, 2011. The government's share of GM was initially 61 percent, but has been reduced to 26.5 percent. The News says that the lower stock price has kept the government from selling its remaining 500 million shares.

While political opponents of the Obama administration will no doubt jump all over this report, the final cost of the bailout is still looking like it will be far less than originally thought. According to the report, the $44 billion estimate was reduced to $30 billion in December 2009, and this most recent estimate puts the total sum at $23.77 billion.

Matthew Anderson, a Treasury spokesman, was quoted as saying: "The auto industry rescue helped save one million jobs and is still projected to cost dramatically less than many had expected during the crisis."

GM stock price leads to greater estimate of losses on bailouts originally appeared on Autoblog on Wed, 01 Feb 2012 09:59:00 EST. Please see our terms for use of feeds.

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GM leads worst performing auto stocks of 2011

Jonathon Ramsey — Tue, 03 Jan 2012 10:29:00 EST

Filed under: GM, Earnings/Financials

In spite of General Motors standing poised to retake the top sales spot, Chevrolet perhaps breaking its all-time sales record, and an anticipated Buick and two new Cadillac models coming, GM's stock price got beat like a goat in 2011. On January 2, 2011 the stock traded at $37.06, on January 2, 2012, it hovered a few dimes above $20, making GM the worst-performing auto-industry stock of 2011: with a 46.1-percent drop, it edged out Cooper Tire (-41.7), TRW Automotive (-40) and Ford (-37.3).

The Motley Fool suggests the decline could be due to the Treasury's ownership of hundreds of millions of shares, keeping investors wary about buying. Europe is also considered a sore spot, with GM's operations on The Continent still in the red and there being no clear plan to turn that around (particularly with the Euro threatening to implode).

However, there is most likely more to it than that: many investors likely remaining unsure about company fundamentals, and they are likely concerned that GM (like Ford) is rated just below investment-grade by Moody's rating service, which keeps some large institutional investors out of the pool. The good news for 2012: The General' stock is trading at five times less than earnings and the outlook from all observers is uniformly positive.

GM leads worst performing auto stocks of 2011 originally appeared on Autoblog on Tue, 03 Jan 2012 10:29:00 EST. Please see our terms for use of feeds.

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Report: Harley-Davidson issuing stock dividend

Zach Bowman — Sat, 18 Sep 2010 11:08:00 EST

Filed under: Motorcycle

Despite its recent financial woes and a bout with organized labor, Harley-Davidson is actually paying out dividends this quarter. If you happen to own some of the company's common stock, you can expect to see a check in the mail for around ten cents a share. That's not exactly money to retire on, but hey, last time we checked, no one turns down a free dime. As of this writing, Harley-Davidson, Inc. (HOG, NYSE) is trading at around $28.45 per share.

H-D recently went through a number of significant changes. After rumors spread that Harley-Davidson planned to leave Wisconsin in favor of greener labor pastures, the company's unionized workforce renegotiated for terms that ensured the bike maker would stay up north for at least another seven years. Likewise, Harley sent its longtime advertising agency, Carmichael Lynch, packing.

[Source: Asphalt and Rubber]

Report: Harley-Davidson issuing stock dividend originally appeared on Autoblog on Sat, 18 Sep 2010 11:08:00 EST. Please see our terms for use of feeds.

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REPORT: Spyker stock soars on word of Saab sale reconsideration

Jonny Lieberman — Mon, 21 Dec 2009 14:01:00 EST

Filed under: Europe, GM, Saab, Earnings/Financials, Spyker

Here's the skinny: Saab isn't totally dead yet. As the weekend showed, there's (a little) hope for both Saab and its Dutch suitor, Spyker. As our man Ramsey laid out yesterday, Spyker submitted a renewed eleven-point plan to General Motors that they (Spyker) hopes will allow them to take ownership of the deeply troubled brand. And yes, being pronounced dead four days ago counts as "deeply troubled." As Swedish Prime Minister Fredrik Reinfeldt pointed out, all this dead/not dead uncertainty has been throwing Saab employees, "between hope and despair."

Meanwhile, a (perhaps) unintended consequence of Spyker's eleventh hour rebid is that their stock has soared up 23.5 percent. Now, as some of you well know, Spyker isn't very big. They sold just forty-three cars last year and their market cap was just 26.6 million euros before the stock shot up. Still, if Spyker plays their cards right, this spike in value could have long term benefits, but only if they secure a deal for Saab.

Says one anonymous analyst to Reuters, "The stock's value is close to nothing but if they succeed to buy Saab, invest, and turn the company around then the shares can become valuable." Trouble is, GM only has until 5:00 pm EST today to sell Saab. For we're not sure why, but Spyker is making this a very limited time offer. If we had to guess, it's in order to force a deal. For its part, General Motors is "reviewing several new expressions of interest" for Saab, one of which according to Saabs United is Merbanco.

Should the Spyker deal (and all other deals) fall through, 3,400 Swedish workers will lose their jobs, and the 1,100 Saab dealerships worldwide will be forced to shutter. The Swedish government is in crisis talks with Saab officials right now should such a worst case scenario transpire. As for now, the Saab remains the same - i.e. mostly dead. One last thing, here's an interesting reflection on the demise of Saab by AB pal Jack Baruth.

[Sources: Reuters; Saabs United; Speed:Sport:Life | Image: Gabriel Bouys/AFP/Getty]

REPORT: Spyker stock soars on word of Saab sale reconsideration originally appeared on Autoblog on Mon, 21 Dec 2009 14:01:00 EST. Please see our terms for use of feeds.

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GM to follow Ford and restructure its restructuring

Michael Harley — Thu, 29 May 2008 13:59:00 EST

Filed under: Plants/Manufacturing, GM, UAW/Unions

Following a slew of labor problems including the American Axle strike that cost an estimated $2 billion, General Motors is restructuring to accommodate the declining U.S. auto market. Following the lead of Ford and Chrysler, the move will likely include further cost cutting and layoffs, as production of thirsty truck and sport-utility vehicles is wound down to make room for more fuel efficient vehicles. Information is sketchy at this stage, but plan on learning the details when the restructuring is officially announced at the company's annual meeting on June 3. With its stock closing Tuesday at its lowest level in more than two decades and thousands of jobs at stake, GM had better get this next move right.

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

GM to follow Ford and restructure its restructuring originally appeared on Autoblog on Thu, 29 May 2008 13:59:00 EST. Please see our terms for use of feeds.

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Ford cuts dividends, reduces board member fees

Stuart Waterman — Thu, 13 Jul 2006 20:56:00 EST

Filed under: Ford, Earnings/Financials

Ford Motor announced Thursday that it is cutting its dividend in half, and reducing the fees paid to board members. While chief executive Bill Ford Jr. stated that the move was intended to strengthen the company's liquidity position during its ongoing restructuring, analysts believe the measure is largely symbolic.

The cut to the quarterly dividend (from ten cents per share to five cents) will save the company about $373 million annually, certainly enough to keep the Autoblog staff in the style to which we would all like to become accustomed, but a drop in the bucket for Ford. The symbolism comes in the impact of the lowered dividend on the Ford family - unlike previous dividend reductions, Thursday's move includes the company's Class B shares, largely held by Ford family members. For his part, Bill Ford Jr. has already cut off his own compensation until such time as the automotive operation returns to profitability.

Ford shares lost 4.65 percent Thursday, bringing the stock's year to date decline to about 14 percent.

[Source: Reuters, Ford]

Ford cuts dividends, reduces board member fees originally appeared on Autoblog on Thu, 13 Jul 2006 20:56:00 EST. Please see our terms for use of feeds.

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