Contributing Member of the Consumer Goods & Services Councils

GLG News by this Author

GLG News is now G+ Insights

G+ is a community for professionals, academics and entrepreneurs to connect through online discussions and in-person meetings. You will continue to see G+ Insights (formerly GLG News) here as well as on the G+ website, where you can share and discuss the G+ Insights you read.

Repair and Replacement Businesses Will Benefit from Consumer Spending for Some Time

May 26, 2009

Analysis of:Wall Street Rebounds on Consumer Confidence Data | news.morningstar.com

The recovery will continue to be slow.  The up tick in consumer confidence is mainly in the repair and replacement sectors.  Big ticket items must wait some time.

GM Dealership Cuts Will Continue

May 22, 2009

Analysis of:GM Slashes Dealers | www.reuters.com

GM's dealers will feel the pain, but it could be worse if the company entered Chapter 11 without the heads up they're giving.  The current sales level cannot support GM's huge dealer body.  It is likely that more dealer reductions are needed. Toyota's dealers are selling more than twice as many vehicles per store than GM.  That is a tremendous competitive edge.

Chinese Company Bid for Opel Would be a Long Shot

May 22, 2009

Analysis of:GM May Get Fourth Bid for Opel From Chinese Bidder | www.bloomberg.com

Chinese auto makers are battling it out in their home country.  It is questionable that they would have the savvy to succeed in Europe. The involvement of various German provincial and federal government bodies will likely have a major impact on the final decision. GM has said that it wants to retain some ownership and cooperation with the new Opel. 

VW Top Management Maneuvers for Control

May 20, 2009

Analysis of:Volkswagen Halts Porsche Merger Talks After Two | www.bloomberg.com

VW and Porsche have it in their own self-interest to find a way to work together.  There will be significant challenges ahead to maintain their brand identities. The current management disagreements seem to be more about who will be in control.

Honda's Strong Brand and Value Drive It Ahead of Chrysler

May 14, 2009

Analysis of:Honda May Pass Chrysler in North America Production | www.bloomberg.com

The results of a strong brand are evident here.  Honda is well known for reliability, quality and economical engine performance as well as clean operation. Honda's growth is due to consistently improving its products.  Their focus is not growth for the sake of growth.  Their growth and overall business performance comes from finding ways to expand the product line by producing multiple models on a single assembly line. Chrysler has consistently offered the lowest value to the consumer.  Hence the consumer does not crave Chrysler products.  Chrysler is the least effective company when they are measured for the number of vehicles per assembly line.  Therefore, they are the least efficient in terms of asset utilization.

GM Bankruptcy Good for

May 7, 2009

Analysis of:GM Bankruptcy Probable as Obama Favors UAW Against Bondholders | www.bloomberg.com

The Chrysler example has shown that bondholders have little chance to gain anything in bankruptcy.    GM bondholders would do well to learn from the Chrysler bondholder's experience.  Bankruptcy (CH 11) is Washington's prescription for fixing the auto companies' aliments, without question.  They key issue becomes one of finding a long term strategy for what has become a highly competitive global business.

Honda Able to Adjust Production Quicker than Competition

May 7, 2009

Analysis of:Honda Advances on Expectations U.S. Vehicle Demand May Recover | www.bloomberg.com

Honda is a car maker with a strong brand image.  In addition, their approach to flexible assembly provides them with a strong advantage.  They can quickly convert from car to CUV production.  They will be able to ramp up production to meet current consumer trends more rapidly than most competitors.

Washington, Stop Pretending You Can Run Business and Lead the Country with an Energy Policy

May 5, 2009

Analysis of:GM Bankruptcy Probable as Obama Favors UAW Against Bondholders | www.bloomberg.com

After the Chrysler filing it was clear that Washington was preparing the same fate for GM. Politically, protecting the unions was predictable. Bottom line, the auto makers have to design, produce and sell what consumers will buy.  Washington wants to force Chrysler to build "fuel efficient" vehicles.  Will the average consumer buy them?  Only if higher fuel prices or consumer tastes shift in that direction.  Washington must consider adopting an energy policy, not dabbling in business.

Opel Important to GM's Future: Critical Decision Pending

May 5, 2009

Analysis of:GM Said to Consider European and Global Proposals for Opel Unit | www.bloomberg.com

GM's future must be by operating as a global company.  The choice of a partner for Opel will be a critical one.  Fiat's vehicles compete with many Opel vehicles.  How does that help Opel and GM? Opel and GM have a long history together.  Some of the new GM vehicles are on platforms designed by Opel.  It is important to GM to keep that knowledge inside the company.  Development of new small cars in the B- and C-classes can be strongly supported by Opel.

US and Chinese Vehicles - Similar But Not So Much

April 29, 2009

Analysis of:China Influence Grows With Car Sales | www.nytimes.com

Auto makers have set up new R&D centers in China over the past few years to take advantage of lower costs.  Successful auto makers will adapt each new model to local market tastes, just as the author states. Local tastes vary from region to region.  Chinese consumer tastes are not likely to show up in cars designed for the US, however.

Porsche and VW: An Alliance or a Dalliance?

April 27, 2009

Analysis of:VW CEO praises Porsche alliance, sees 2009 profit | www.reuters.com

Porsche and VW are two very different companies with two completely different types of customers.  Their management will be heavily challenged to make such a combination work.  VW succeeded in Europe and emerging markets but not in North America.  Their "Beetle" phenomenon is still shown in their US advertising.  The question is, how to take a cult niche car and make it a mass market brand.  Porsche's enthusiast following is typically Premier class.  Yet another puzzle piece that does not seem to fit.  The combination of the two companies seems to prove little else than the controlling German families have plenty of cash to burn.

New Chrysler Board A Given: What About New Competitive Products?

April 22, 2009

Analysis of:Chrysler CEO Says New Board Coming With Fiat Deal | www.nytimes.com

1.  A new board will be a given if there is a Chrysler-Fiat tie up. 2.  What Chrysler needs more than anything else is products that can compete.  Most ratings, including consumer votes by their purchases, indicate that the Chrysler product line is too weak to compete.

Fiat Taking an Opportunistic Approach

April 22, 2009

Analysis of:Fiat CEO: Concessions Or There's No Chrysler Deal | thebulletin.us

1.  Excess industry capacity is leading to extreme cost pressures, including labor costs.  Fiat is being opportunistic. 2. Fiat appears to want to enter the market at a time when there is no dominant company in the US market.  Can they do it right this time?  In the 60's and 70's they tried and failed to hold a position in the US market. 3.  Is Fiat really serious about a Chrysler partnership or will they take advantage of their newly gained knowledge to pick over the remains of Chrysler after a bankruptcy filing?

Previous Page : 1221 to 33 of 33