“Survey: Crisis prompts car execs to rethink business priorities - Detroit News” plus 4 more

Survey: Crisis prompts car execs to rethink business priorities - Detroit News
Ford's Volvo sale likely later in 2009, Sweden says - Korea Herald
S. Korean car maker seeks buyers - United Press International
Giving back: Young Eagles - Detroit Free Press
Macomb County news briefs: Hazardous waste drive is Aug. 22 - Detroit Free Press

Survey: Crisis prompts car execs to rethink business priorities - Detroit News

Posted: 08 Aug 2009 10:12 PM PDT

Bryce G. Hoffman / The Detroit News

A survey of automotive industry executives from around the world shows that the current economic crisis has prompted most to seriously rethink their business priorities and put financial stability ahead of near-term profits.

According Ernst & Young, 61 percent of those surveyed said they are conducting a top-down review of current cash management and cash flows. The same percentage said they are reviewing all of their debt covenants and closely monitoring their company's compliance with them.

However, the survey also found that 30 percent said they plan to increase their spending on research and development over the next 12 months.

"The global economic crisis has caused worldwide setbacks, and as a result many companies in 2009 are balancing liquidity and cost management with the need to invest in new products," said Mike Hanley, leader of Ernst & Young's global automotive practice. "Companies must adapt to this new economic environment and work strategically to identify opportunities to run their businesses more efficiently, grow and remain competitive."

Ford Motor Co. Chief Financial Officer Lewis Booth said as much in his speech to industry leaders at the Management Briefing Seminars in Traverse City last week, where Ernst & Young presented the results of its survey of managers at 30 leading automotive companies.

"As we reduce costs, manage cash and increasingly leverage our 'One Ford' global product plan, our critical priority is protecting and enhancing our new vehicle pipeline," Booth said. "In the worst of economic times, we are taking the actions necessary not only to strengthen Ford's business but also to deliver world-class levels of product freshness globally."

Some 43 percent of executives surveyed said they plan to diversify their product offerings or introduce new product lines over the next 12 months, while 39 percent said they plan to sell off poorly performing or "non-core" assets.

And while the global economic crisis has prompted some automakers to slow down efforts to expand into emerging markets like Russia and India, 39 percent of respondents said their companies still plan to do so within the next year.

A third said they are working to accelerate product development and shorten their time to market. A third also said they are pursuing strategic alliances without auto companies as a way to accomplish their product goals while reducing costs.

"While respondents were troubled by the impact the downturn has had on their businesses, continued investment in R&D demonstrates their resilient focus on the vehicles of tomorrow," Hanley said.

That is partly being driven by tough new fuel-economy and emissions requirements in the United States and Europe.

The study also revealed that 43 percent of executives are considering alternative sources of funding, including selling off assets.

Ford Motor Co. has already sold its three British luxury brands -- Aston Martin, Jaguar and Land Rover -- and is looking for a buyer for its Swedish brand, Volvo. It also has sold part of its stake in Japan's Mazda Motor Corp.

General Motors Co. is shopping its Hummer brand and is in active negotiations to sell its German brand, Opel. It also is selling its Saturn brand to the Penske Automotive Group.

The Chrysler Group LLC initially planned to sell its top-of-the-line Viper to another company, but has since reconsidered.

Not surprisingly, Ernst & Young found that the auto industries' woes have had the biggest impact on human resources, with operations and information technology coming in second and third.

bhoffman@detnews.com (313) 222-2443

This posting includes an audio/video/photo media file: Download Now

Ford's Volvo sale likely later in 2009, Sweden says - Korea Herald

Posted: 09 Aug 2009 12:35 AM PDT

Ford Motor Co. is likely to complete the sale of its Volvo Cars unit in the latter part of this year, Swedish Industry Ministry State Secretary Joeran Haegglund said.

Sweden's government is in contacts with Ford, Haegglund said by telephone today, declining to name any suitors for Gothenburg, Sweden-based Volvo Cars. Ford isn't in the same rush to dispose of the unit as General Motors Co. is with its proposed sale of Saab Automobile, Haegglund said.

Ford, the only U.S. automaker to decline taking a federal bailout, and Detroit-based GM are divesting their Swedish units to focus on fewer brands amid the worst recession since the Great Depression. Chinese carmaker Geely Automotive Holdings Ltd. wants to buy a majority of Volvo with an unidentified Swedish investor, possibly including state pension funds, and let Ford keep a stake, Dagens Industri newspaper reported yesterday, without saying where it got the information.

"We're in touch with Ford and note all rumors," Haegglund said.

"Ford has a slower pace than GM and Saab and we expect a sale will be completed in the latter part of the year."

Haegglund said it would be "strange" to assume that one of the state pension funds may participate. Sweden's government has said repeatedly since Volvo and Trollhaettan-based Saab have been on the market that it won't buy its domestic carmakers.

GM is also selling the Opel and Vauxhall brands in Europe, as well as the Hummer and Saturn divisions in the U.S., to shrink operations in an effort to end $88 billion in losses since 2004. Saab's car registrations in Europe dropped 63 percent in June. Volvo's sales in the region fell 14 percent.

Dearborn, Michigan-based Ford said yesterday that it's accelerating model introductions in an effort to boost sales while sharing parts between North American and European models to reduce engineering costs.

"We're right in the middle of the sale process" for Volvo, Ford Chief Financial Officer Lewis Booth said in an interview yesterday, declining to identify bidders or comment on details of the talks. "We're going to continue the sale process."

GM is in talks on selling Saab to Koenigsegg Automotive AB, a sports-car manufacturer with headquarters in the Swedish town of Aengelholm. Talks on disposing of Ruesselsheim, Germany-based Opel will need more time as the U.S. carmaker seeks to resolve "difficulties" with a joint bid from Magna International Inc. and OAO Sberbank, John Smith, GM's chief negotiator, said. (Bloomberg)

2009.08.10

This posting includes an audio/video/photo media file: Download Now

S. Korean car maker seeks buyers - United Press International

Posted: 08 Aug 2009 11:52 PM PDT

SOULD, South Korea, Aug. 9 (UPI) -- The court-appointed manager of a South Korean car maker announced Saturday it was seeking buyers after a crippling strike that lasted more than two months.

The walkout at Ssangyong Motor Corp. ended Thursday. Police said Saturday they were pursuing criminal charges against some employees involved in the strike, Yonhap News Agency reported.

The company declared bankruptcy in February and planned to lay off more than one-third of its labor force.

"Ssangyong Motor could possibly pursue its sale if any financial or strategic investors emerge, whether at home or abroad," said the manager, Park Young-tae. "No particular company has been tapped yet, but we expect a few firms to express interest in the near future."

A Chinese company, Shanghai Automotive, which owns a 51 percent share in Ssangyong, lost control with the bankruptcy filing.

Analysts told Yonhap three South Korean companies, as well as companies in China and India, have shown interest in Ssangyong.

During the strike, workers barricaded themselves in the paint shop of a Ssangyong plant near Seoul and said they would not leave until they were guaranteed continued employment.

The company's sales in the first six months of the year were down almost 75 percent from the same period last year.

This posting includes an audio/video/photo media file: Download Now

Giving back: Young Eagles - Detroit Free Press

Posted: 09 Aug 2009 12:14 AM PDT

TODAY'S SUBJECT: One-of-a-kind Ford Mustang brings $250,000 at youth charity auction.

THE CAUSE: The Experimental Aircraft Association's Young Eagles organization provides education and experiences that prepare young people to become the engineers, pilots and innovators of tomorrow. Young Eagles has provided free introductory flights to nearly 1.3 million young people since 1992, while also teaching the value of hard work, personal responsibility, and enhanced math and science skills.

BACKGROUND: Ford Motor Co. produced an aviation-themed vehicle called the Ford Mustang AV-X10 Dearborn Doll sold at auction to support EAA Young Eagles. The donation was part of Ford's participation as exclusive automotive sponsor of EAA AirVenture Oshkosh 2009, which concluded Aug. 2 in Oshkosh, Wis. Ford's historical connection to aviation dates to the company's beginnings in 1903, the same year as the Wright brothers' historic flight, and includes a period in which Ford was the world's largest aircraft manufacturer.

RESULTS: The sale of the Dearborn Doll raised $250,000 at the Gathering of Eagles auction July 30. Ford also donated a 2010 Mustang GT, which raised nearly $120,000 more for the charity in a raffle.

ON GIVING: "The response to the Mustang AV-X10 has been remarkable," said Edsel B. Ford II, a member of Ford's board of directors. "The Ford team was committed to delivering an extraordinary vehicle to EAA's Gathering of Eagles to support the education and experiences the Young Eagles make possible for tomorrow's aviation leaders. We are pleased to see the hard work of the team generate significant funding for this tremendous youth organization."

INFORMATION: For more information on EAA Young Eagles, visit http://youngeagles.org.

Giving Back recognizes philanthropy and volunteerism in the Michigan business community. To nominate your company, boss, colleague or employee, e-mail Randy Essex, ressex@freepress.com.

This posting includes an audio/video/photo media file: Download Now

Macomb County news briefs: Hazardous waste drive is Aug. 22 - Detroit Free Press

Posted: 09 Aug 2009 12:35 AM PDT

Macomb County residents can drop off unwanted household chemicals, automotive products and medication during a household hazardous waste collection from 8 a.m. to 1 p.m. Aug. 22 at Washington Township's offices, 57900 Van Dyke, north of 26 Mile.

Pesticides, herbicides, motor oil and oil filters, gasoline, battery acid and fluids, pool cleaners, compact fluorescent lamps, oil-based paints and solvents are some of the items that will be accepted. Medication, including narcotics, will be accepted but pills must be removed from bottles and placed in a clear plastic bag.

The following items will not be accepted: smoke detectors, latex paint, explosives, batteries, ammunition, computers and computer parts and accessories.

The county health department is holding the collection.

STERLING HEIGHTS: City to sell vacant parcel to car dealership

The City Council has agreed to sell a vacant city-owned property on Van Dyke to Sterling Heights Dodge Inc. for $117,500. The dealership plans to turn the site into additional parking.

The 1.08-acre parcel is between 17 Mile and 18 Mile roads. It is north of Belle Tire, 39999 Van Dyke. The dealership is at 40111 Van Dyke.

Sterling Heights Dodge had been negotiating with Belle Tire because it thought Belle Tire owned the property. It was recently discovered that the city owns the site.

The city assessor valued the property for sale purposes at $117,900. Sterling Heights Dodge offered to buy it for $117,500. Money from the sale will be put into a park improvement account to help fund future parks and recreation projects.

This posting includes an audio/video/photo media file: Download Now