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San Diego Auto Show: Downs - Analyst Blog

Zacks Market Commentaries (January 6th, 2009) Writes:

Here we cite the following auto companies: Nissan (NSANY), Honda Motor Co. (HMC), Daimler AG (DAI), Ford Motor Co. (F), Toyota Motors (TM) and General Motors Corp. (GM).

On the flipside of senior equity analyst Paul Raman, CFA's notes on the San Diego Auto Show, we now cast the spotlight toward where auto companies might need to make near-term improvements. Most if not all companies will be looking to make strategic acquisitions and/or joint ventures to increase their global positions.

SUBARU (Forester, Outback, Impreza, Legacy, Tribeca)This company is owned by Fuji Heavy Industries.Overall, this product line has an SUV focus, but vehicles have too much plastic, in our opinion.  Models that should be discontinued - Impreza.

NISSANMurano - Sales are off 10%, but this a 21 MPG vehicle that has 4/5 star safety and a nice interior. It is a crossover and has

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Credit Tightening Continues as Inflation Falls Back Steadily

Edward Hugh (October 18th, 2008) Writes:
Inflation is no loger the greatest threat to the short term health of the Indian economy. The global credit crunch has now taken over poll position on the list of worries which are likely to determine the evolution of policy over at the Reserve Bank of India. India's inflation continues to slow and hit a four-month low at the start of October, giving the central bank room to keep injecting cash into the financial system without fanning prices.Wholesale prices rose 11.44 percent in the week to Oct. 4 from a year earlier after gaining 11.8 percent in the previous week, according to data from the commerce ministry last week.

Weaker price gains and a shortage of money in the banking system have allowed the central bank to shift its focus from fighting inflation to stimulating an already slowing economy.

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Credit Tightening Continues as Inflation Falls Back Steadily

Edward Hugh (October 18th, 2008) Writes:
Inflation is no loger the greatest threat to the short term health of the Indian economy. The global credit crunch has now taken over poll position on the list of worries which are likely to determine the evolution of policy over at the Reserve Bank of India. India's inflation continues to slow and hit a four-month low at the start of October, giving the central bank room to keep injecting cash into the financial system without fanning prices.Wholesale prices rose 11.44 percent in the week to Oct. 4 from a year earlier after gaining 11.8 percent in the previous week, according to data from the commerce ministry last week.

Weaker price gains and a shortage of money in the banking system have allowed the central bank to shift its focus from fighting inflation to stimulating an already slowing economy.

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GM and Ford Choose Different Routes to Return to Profitability

CEO Blogger (October 15th, 2008) Writes:

Shares of Ford Motor Co. (F) and General Motors Corp. (GM) posted gains yesterday (Tuesday) on speculation that consolidation in the U.S. domestic auto industry could be the struggling sector’s saving grace.Over the last three trading sessions, Ford shares are up almost 18%, while GM shares are up over 37% on reports of possible merger talks and asset sales.

GM and Ford Choose Different Routes to Return to Profitability

CEO Blogger (October 15th, 2008) Writes:

Shares of Ford Motor Co. (F) and General Motors Corp. (GM) posted gains yesterday (Tuesday) on speculation that consolidation in the U.S. domestic auto industry could be the struggling sector’s saving grace.Over the last three trading sessions, Ford shares are up almost 18%, while GM shares are up over 37% on reports of possible merger talks and asset sales.

Suntalk-Saver-Callback-Plan

Wayne Koh (September 3rd, 2008) Writes:
Recently, a good buddy of mine introduced me to a callback service which he has been using for a while.I took the "plunge" and downgraded my mobile phone service plan with MobileOne (M1) and picked up one of the callback cards at a mom-and-pop shop. The voice quality is actually not bad, to my surprise. But my main objective is the savings that accompanies the change:-As you can see, the savings of 58.8% is significant. Not only that, the unused talk-time on the callback card can be "rolled over" for 6 months (i.e 424 minutes of talk-time must be consumed within next 6 months, which is not an issue). And the best part is, I still get to send 500 SMSes, same as before, through the lower, cheaper MobileOne plan.To conclude, here are some good and bad sides ...

American Axle Needs Realignment

Zacks Market Commentaries (August 19th, 2008) Writes:

Weak SUV demand is greatly affecting American Axle & Manufacturing Holdings, Inc.’s (AXL) sales. Furthermore, high commodity costs and pricing pressure as well as production cuts by original equipment manufacturers (OEM) such as General Motors (GM) remain causes for concern. Thus, we rate the stock a Sell and set a six-month target price of $4.

The present North American automotive industry conditions characterized by slow car sales, production cuts, excessive inventories, rising commodity costs, and market share losses of leading U.S. automakers, are affecting the company negatively.

Despite the company’s attempts to diversify its customer base, GM still accounts for about 70% of current sales, and is constantly implementing production cuts. To make matters worse for AXL, it is exposed to platforms that have faced the maximum cuts. AXL’s largest vehicle programs -- the GMT800, the GMT360/370, and the Chrysler Group’s Dodge Ram heavy-duty pick-up account for nearly 70% of

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