Dominating the news this morning: GM results:
- US: Despite recalls, GM posts $100m first quarter net profit – Just-auto: Despite suggestions it might even book a loss due to recall costs, General Motors on Thursday said first quarter net income was US$0.1bn ($100m), or $0.06 a share, beating analysts’ estimates by a couple of cents.
- GM profit slashed over recall costs – FT: The ignition switch crisis is taking its toll at the carmaker, which has reported its worst performance since returning to public listing in 2010
- Hammered by Recalls, GM in the Black – Just Barely – thedetroitbureau.com: After writing down $1.3 billion to cover the cost of recalls, GM saw first quarter earnings fall more than 85%,though it was still able to squeak out a modest profit. But what about the longer term? TheDetroitBureau.com looks beyond today’s numbers at what GM faces going forward.
- GM posts lower profit after recall; truck pricing strong – Reuters: General Motors Co said on Thursday that first-quarter profit tumbled 88 percent after a massive recall due to defective ignition switches, but results still topped expectations on strong pricing for its redesigned pickup trucks in North America.
- GM profit plunges on outlays for safety recalls – Automotive News: GM’s first-quarter net income sank 86 percent from a year earlier to $125 million amid heavy costs related to safety recalls of 7 million vehicles.
- US: General Motors’ $10bn profit aspiration fades with recalls – Just-auto: The first quarter costs associated with recalling almost 2.6m cars in the first quarter have ended General Motors’ dream of making a record $10bn profit, a media report said.
In other news:
- JAPAN: Mitsubishi upbeat as full year sales and income grow – Just-auto: Mitsubishi Motors Corporation has forecast continued growth in sales and income for the coming financial year after booking a 15% increase in net sales to JPY2.09 trillion (US$20.4bn) for fiscal 2013/2014.
- Europe “coming back” says automotive supplier body chief – Just-auto: Scandinavian automotive supplier body, FKG, says Europe is “coming back” as fledgling economic recovery across the Continent gathers pace.
- Mitsubishi pays first dividend in 16 years – FT: Japanese carmaker will pay its first dividend in 16 years as a weaker yen helped it post record profits, underlining its return to health
- Mitsubishi posts record annual operating profit – Automotive News: Mitsubishi Motors nearly doubled its operating profit for the year ended March to an all-time high of 123.4 billion yen ($1.2 billion) as a drop in Thai sales was offset by growing sales in most other regions around the world.
- BRAZIL: Ford opens northeast’s first engine plant – Just-auto: After spending BRL400m/US$180m, Ford has just opened the first engine plant in Brazil’s northeast region with capacity for 210,000 engines a year and 300 new jobs.
- Delphi’s 1Q net income up 16% – DetN: Delphi Automotive PLC said Thursday its first-quarter net income rose 16 percent to $320 million, led by strong growth in Asia and North America.
- Strong Won Weighs on Hyundai – WSJ: Hyundai Motor’s first-quarter net profit fell as a stronger South Korean currency hurt its competitiveness in overseas markets.
- Quick news: Volvo V60 Hybrid; Jaguar’s art concepts; Jensen’s first dealer – Autocar:
- Volvo reveals R-Design spec for new V60 Hybrid; Jaguar to show F-type coupé sculpture at art show; Jensen appoints classic car dealer; Land Rover creates bespoke DefenderVolvo has introduced an R-Design specification for the V60 Plug-in Hybrid, bringing with it 18-inch wheels, a sporty front bumper and rear diffuser. Inside, sports seats, pedals, mats and headlining feature. Combined power is 276bhp with 472lb ft of torque, but the car still claims 155.2mpg and 48g/km of CO2.Jaguar will show two art…
- GM earns $125M in 1Q, down 85.5% – DetN: Recalls cost General Motors Co. $1.3 billion in the first quarter, shrinking the automaker’s profit to a slim $125 million, the automaker said Thursday.
- US: Volkswagen leaves representation door open at Chattanooga – Just-auto: Volkswagen is leaving open the door to “representation” for its Tennessee employees following the UAW’s decision to withdraw its appeal with the National Labor Relations Board (NLRB), relating to what it referred to as interference in elections for the automaker’s Chattanooga workers.
- Facelifted Audi S6 spotted ahead of Paris motor show debut – Autocar: Minor style upgrades for hot S6 saloon, including new LED headlights; there will also be performance and economy improvements.
- Coming Product Volley to See Scion Sticking to Its Guns – Wards: 2014 New York International Auto Show Scion could use a recharge to its portfolio. U.S. sales of its products reached 173,034 units in 2006, four years after its launch. Last year Scion sales sputtered to 68,321 vehicles.
- Mercedes-Benz MLC spotted – first pictures – Autocar: Exclusive images of the first development mules for the upcoming MLC, Mercedes’ answer to the BMW X6 which will go on sale next year.
- DealBook: New York Financial Regulator Uses Dodd-Frank to Sue Auto Lender – NY Times: Benjamin M. Lawsky, New York State’s superintendent of financial services, accused the Condor Capital Corporation of siphoning millions of dollars away from borrowers’ accounts.
- Hyundai Q1 profit hit by slow U.S. sales – Automotive News: Hyundai posted first-quarter net profit that was almost identical to a year earlier, as increased sales in China and Korea helped offset weak U.S. demand.
- US: GM starts shipping ignition switch recall parts – Just-auto: General Motors last night said it had shipped thousands of kits consisting of ignition switches, ignition cylinders and key sets for older model small cars subject to a major recall.
- Maruti Suzuki, Mahindra Ratcheting Up India Spending – Wards: While Mahindra has earmarked Rs40 billion next year for facilities and capacity expansion, Maruti Suzuki roughly will match its rival’s 2015 spending level to develop new models and marketing and upgrade R&D facilities. read more
- Fisker to relaunch Karma sports car in 2015 – Autocar: Revitalised Fisker to bring Karma back to market next year alongside new estate version and an entry-level ‘Atlantic’ model.Volvo Increases Capacity in Gothenburg – WSJ: Volvo Car Corp. is increasing the manufacturing capacity at its Swedish production facility in Gothenburg from approximately 200,000 cars a year to around 300,000 a year.
- Swedbank Robur Accepts Volkswagen’s Scania Bid – WSJ: The acceptance by the Scania shareholder makes it likely Volkswagen’s bid for total control of the Swedish truck maker will succeed by Friday’s deadline
- Hyundai Motor first-quarter profit misses estimates, hurt by slow U.S. sales – Reuters: South Korea’s Hyundai Motor missed analyst estimates by posting first-quarter net profit that was almost identical to a year earlier, as lackluster U.S. performance offset increased sales in China and Korea.
- Car culture: America can run fine on fewer horses – DetN: I was a smuggler in’86. That’s when I drove to Mississauga, a large suburb of Toronto where South Korea’s Hyundai had its Canadian headquarters, and borrowed a test car called the Stellar to write a story about this precursor to the successful Sonata.
- Speedy mower literally cuts to the chase – DetN: The aftermarket isn’t limited to souping up cars or motorcycles. It also can work its magic on, well, lawnmowers. Case in point: Project Mean Mower.
- New Mazda 2 spotted ahead of 2015 launch – Autocar: Mazda’s next global car to get Hazumi concept-inspired styling and a frugal range of engines with sub-90g/km CO2 emissions on some models.
- Best car deals: Citroen C4, Range Rover Evoque, Audi A1, Mazda 3 – Autocar:
- The best new car deals and new car leasing deals for this week, including offers on the Citroën C4, Range Rover Evoque, Audi A1, Mazda 3 and VW Tiguan.
- UK car production jumps 12% – FT:A return to full output at some large UK factories drives growth that could see production this year reach its highest since 2004
- House committee planning new GM recall hearing – DetN: The chairman of the House Energy and Commerce Committee says the panel will hold a second hearing on General Motors Co. recall of 2.6 million vehicles for ignition switch failures linked to at least 13 deaths and 32 crashes as it continues to interview witnesses.
- GM to announce 1Q earnings Thursday, with recall costs expected to hurt results – DetN: General Motors Co. will release first-quarter earnings Thursday, with results expected to fall sharply from the same three-month period in 2013 primarily driven by $1.3 billion in recall costs and restructuring expenses overseas.
- DealBook: G.M.’s Bankruptcy Will Probably Shield It From Most New Claims – NY Times: It’s hard to see how a court can allow any claims without altering the basic terms of a 2009 bankruptcy deal, Stephen J. Lubben writes in his In Debt column.
- GM: Thousands of ignition repair kits sent to dealers – DetN: JP Morgan said today it expects General Motors sales to rise slightly in April despite the ignition switch recall crisis. Meanwhile, thousands of ignition repair kits have been sent to dealers to fix the 2.59 million vehicles GM has recalled.
- CPO sales rise 11% in 1st quarter – Automotive News: Industrywide sales of certified used vehicles rose 11 percent in the first quarter from the year-earlier level, with many companies registering double-digit increases.
- Jaguar, Land Rover, Ford gain in blue-sky store values – Automotive News: Jaguar, Land Rover and Ford saw their blue-sky multiples increase in the second half, according to a study by a dealership buy/sell advisory firm. But BMW, Mini, Hyundai, VW and Mazda saw theirs decrease.