The blog is always grateful for good news, no matter the reason. Thus it welcomes March’s rise in US auto sales to 850k from February’s 615k (black line). The driver for the rise was Toyota’s (red line) record level of price discounts, as it aimed to overcome its disastrous sales slump after the quality problems. […]
Tag Archives | Chrysler
US auto sales last year at 10.4 million were the worst since 1982. Even this figure was slightly artificial, due to the support provided by the $3bn ‘cash for clunkers’ programme in the summer. This impact can be seen in the chart, with total volumes (black line) picking up again in December under the impact […]
The blog is changing its US auto sales chart, now that a year has passed since volumes collapsed last October. Year-on-year % changes become meaningless as a result. Instead, it will now show monthly volumes, on a total US basis (blue line) and for the major producers (dotted lines). Key highlights this month are: • […]
Back in May, the blog suggested that “Chrysler’s bankruptcy marks a ‘tipping point’, when the first major company is finally forced to adjust to a permanently lower level of demand.” Now comes news that Toyota is to follow Chrysler’s lead, and will cut production on a global basis Toyota produced 9.24m autos last year, but […]
Cerberus’ timing was clearly not very good with its Chrysler acquisition in Q3 2007. And Steve Feinberg, Cerberus co-founder, admitted this when he told the New York Times “we were too optimistic on timing. Maybe what we should have done was not bought it.” So far, they have lost $6bn of their original $7.4bn investment. […]
US auto sales have not yet followed the European lead, and shown an increase versus 2008 levels. And they certainly don’t match China’s 17% sales increase in H1. But they were down just 11% in July. And Ford did post its first annual sales gain since November 2007. As the chart shows, all the major […]
The good news from the latest reports on US house prices and auto sales was simple – things have stopped getting worse. US house prices saw “some stabilisation in some regions” according to the S&P/Case Shiller Index for April. Whilst auto sales are clearly bouncing along the bottom, down “only” 29% in June versus May’s […]
More details are now emerging of the US government’s plans for Chrysler. Initially President Obama said he hoped the bankruptcy process would only last 60 days. But according to Bloomberg, the administration now accepts that this period will just cover the “sale of Chrysler’s best assets” to Fiat. Suppliers, including those in the chemical industry, […]
The International eChem team are very experienced in turnarounds and restructurings. We have undertaken these both as employees within our former companies, and then as advisers. This has taught us to be alert for the ‘tipping point’, when a situation begins to change, for better or worse. The blog believes the Chrysler bankruptcy is one […]
Chrysler. Yesterday, Chrysler entered bankruptcy. It will idle most of its US plants during the court proceedings. The government hopes the bankruptcy can be finalised in a “quick visit” of just 30-60 days. But even if this can be achieved, there is little doubt that Chrysler’s suppliers will suffer major write-offs. Bank ‘stress tests’. Widespread […]
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Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry.
The aim of this blog is to share ideas about the influences that may shape the chemical industry over the next 12 – 18 months. It will try to look behind today’s headlines, to understand what may happen next in important issues such oil prices, economic growth and the environment. We may also have some fun, investigating a few of the more offbeat events that take place from time to time. Please do join me and share your thoughts.
Between us, we will hopefully develop useful insights into the key factors that will drive the industry's future performance.