TCC's Daily Edition: 9/19/01

September 19, 2001

GOVERNMENT, AUTO LEADERS STAGING SUMMIT
New car sales could fall anywhere from 500,000 to 700,000 units short of earlier forecasts, warns J Ferron of PriceWaterhouseCoopers. Other analysts are racing to downgrade their own numbers—which had run as high as 16.5 million—in the wake of September 11th’s terror campaign. Automakers are slowly bringing production schedules back to normal as they adapt to the long lines facing parts trucks at Canadian and Mexican border crossings. But with dealers around the country reporting a sharp plunge in traffic this past week, new production cuts loom increasingly likely. To respond to the potential crisis, industry and government leaders will stage a Detroit summit this morning. U.S. Secretaries Don Evans of Commerce and Elaine Chao of Labor will fly to Detroit for meetings with GM’s Rick Wagoner, Ford’s Bill Ford and the Chrysler Group’s Dieter Zetsche. Also attending the meeting will be UAW President Steve Yokich and a number of senior executives from the industry’s supplier side.
Carmakers Stunned by Attack by Joseph Szczesny (9/17/2001)

 

JAPANESE BIG 3 STOCKS FALL AMID U.S. TRAGEDY
The worldwide repercussions from last week’s terrorist assault on New York’s World Trade Center and the Pentagon in Washington D.C. were in evidence on Japan’s stock exchange. All 11 Japanese carmakers on the exchange saw the price of their shares drop—some by as much as 13.7 percent—in the aftermath of last Tuesday’s tragedy. Investors widely fear that the attacks will dampen North American spending for new vehicles—including Japanese vehicles—thereby drying up the source of 80 to 90 percent of the Asian automakers’ operating profits. A similar depression in stocks was felt across the Atlantic as well, although the dip in European carmaker stocks was less dramatic.

 

SIEMENS BUSINESS UNAFFECTED BY U.S. ATTACKS?
Reuters is reporting that the German parent company of Siemens VDO Automotive, Siemens AG, doesn’t anticipate any economic fallout from last week’s terrorist attacks on New York and Washington D.C. "I don’t see any affects," said Siemens AG Chief Executive Officer Heinrich von Pierer, citing restructuring plans already in place for Siemens’ lagging U.S. business. Industry analysts appear to be backing Von Pierer’s statement, citing restructuring and the broad diversity of Siemens’ operations evidence in the company’s favor. Von Pierer also said that he did not think that the attacks would carry much of a global economic impact.

 

DAEWOO’S PRICE TO GM: $1 BILLION
The slow-moving talks between General Motors Corporation and the creditors of South Korea’s bankrupt-and-begging Daewoo Motor Company may be drawing to a close. As reported yesterday in TCC’s Daily Edition, the word on the street in Seoul is that GM and Daewoo’s handlers will reach an agreement this Friday. The latest word out tells us that Friday is still on and the price being quoted is around $1 billion. For its billion dollars, GM will take over the South Korean automakers overseas operations and two of its three local production facilities.

 

FIAT TO BUY DIESEL ENGINES FROM ISUZU
Japanese manufacturer Isuzu has inked a deal with Italian automaking giant Fiat S.p.A. to supply diesel engines for cars. According to the Japanese newspaper Yomiuri Shimbun, Fiat wants an annual supply of 10,000 3.0-liter V-6 diesels for its Lancia Thesis luxury sedan. With this deal, Isuzu, which is 49-percent owned by General Motors, becomes something of a prime diesel-engine supplier throughout Europe. The company also ships diesels to Renault, Saab and Opel (both owned by GM), as well as to Honda Motor Co. Ltd. in Great Britain for use in Civic models.

 

HONDA TAPS IMPCO FOR ALTERNATIVE-FUEL ENGINES
Alternative-fuel-systems experts at California's IMPCO Technologies, Inc. have struck a deal with Honda Engine to develop and supply super-clean-running modifications for Honda’s fleet of internal-combustion engines worldwide. The engines will be adapted to burn low-pollution alternative fuels such as propane or natural gas. For its part, American Honda has agreed to use IMPCO as its designer and supplier of gaseous-fuel systems for Honda powerplants to be sold specifically in the United States.

 

 

FROM THE SOURCE:

From PR Newswire In light of Ford’s reduced third-quarter production projections, Visteon Corporation says it now expects to post an after-tax Q3 loss of $60-70 million, excluding restructuring charges . . . McLaren Performance Technologies, Inc. has announced that automotive-industry veteran Amherst (Nub) Turner has been appointed to the company's board of directors . . . Delphi Automotive Systems announced today it will supply halfshafts for the all-new 2002 Dodge Ram, which debuts this fall . . . In Italy, Ducati Motor Holding S.p.A. has introduced the Multistrada1000, the first of a new family of motorcycles combining the performance and design of a sportsbike with the flexibility and practicality of an enduro

THE TICKER:

Autoliv (ALV), Closed 16.15, down 0.42

------------------------

ArvinMeritor (ARM), Closed 14.30, down 0.72

------------------------

American Axle (AXL), Closed 12.65, down 1.30

------------------------

Ballard Power Systems (BLDP), Closed 14.55, down 0.63

------------------------

Dana (DCN), Closed 15.37, down 0.02

------------------------

DaimlerChrysler (DCX), Closed 32.68, down 0.59

------------------------

Donnelly (DON), Closed 14.65, down 0.41

------------------------

Delphi Automotive (DPH), Closed 11.49, down 0.01

------------------------

Eaton (ETN), Closed 63.04, down 0.91

------------------------

Ford (F), Closed 16.93, up 0.38

------------------------

General Motors (GM), Closed 44.01, down 0.59

------------------------

Gentex (GNTX), Closed 23.07, up 0.41

------------------------

Goodyear (GT), Closed 19.81, down 0.71

------------------------

Johnson Controls (JCI), Closed 60.74, down 3.59

------------------------

Lear (LEA), Closed 26.56, down 1.43

------------------------

Magna International (MGA), Closed 47.57, down 1.48

------------------------

Nissan (NSANY), Closed 8.75, down 0.94

------------------------

Toyota (TM), Closed 54.50, down 0.25

------------------------

TRW (TRW), Closed 31.80, down 1.10

------------------------

Visteon (VC), Closed 13.62, down 0.51

2019
The Car Connection
See the winners »
2019
The Car Connection
Commenting is closed for this article
 
Ratings and Reviews
Rate and review your car for The Car Connection
Review your car
The Car Connection Daily Headlines
I agree to receive emails from the site. I can withdraw my consent at any time by unsubscribing.
Thank you! Please check your email for confirmation.