Correspondent, Detroit
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Jul 24, 2014

Ford’s profit tops expectations, recall-hit GM misses

DETROIT, July 24 (Reuters) – Ford Motor Co one-upped
its larger rival General Motors Co in the second quarter,
showing a profit in Europe for the first time in three years
while GM was weighed down by recall-related costs in the United
States.

Ford managed to eke out stronger earnings that sent its
shares higher on Thursday, while GM shares fell 5 percent even
though both automakers had good quarters in North America and
poor results in South America.

Jul 24, 2014
Jul 24, 2014

GM’s profit falls on recall costs, victims’ compensation fund

DETROIT (Reuters) – General Motors Co (GM.N: Quote, Profile, Research, Stock Buzz) reported a much lower second-quarter profit on Thursday due to numerous recalls and the expected cost of at least $400 million for a compensation fund for those killed or injured by a defective ignition switch linked to at least 13 deaths.

GM also reiterated that it expected a moderately improved operating profit this year and that its future recall costs would be slightly higher than historic rates.

Jul 23, 2014
Jul 23, 2014

GM’s Chevrolet jersey sponsorship of Manchester United debuts in U.S.

DETROIT, July 23 (Reuters) – One bad season for Manchester United has not shaken General Motors Co’s belief in its $559 million sponsorship deal with the English soccer club as GM’s global mainstream auto brand, Chevrolet, will debut as the jersey sponsor in a match on Wednesday night.

Criticized by some experts in the sponsorship industry as a massive overpay, GM’s seven-year deal officially kicks in when United, majority owned by the American Glazer family and listed on the New York Stock Exchange, plays Major League Soccer team Los Angeles Galaxy at the Rose Bowl in Pasadena outside Los Angeles.

Jul 17, 2014
Jul 17, 2014

GM legal department comes under fire at Senate hearing

WASHINGTON (Reuters) – General Motors’ (GM.N: Quote, Profile, Research, Stock Buzz) legal department came under fire in a Senate hearing on Thursday, as lawmakers questioned why the automaker took more than 10 years to recall cars with ignition switch flaws while its lawyers worked on numerous cases involving deaths or injury caused by the malfunctioning switch.

Senator Claire McCaskill, chairwoman of the Senate Commerce subcommittee, questioned why GM’s general counsel, Michael Millikin, kept his job after a company review released last month criticized lower-level lawyers for not escalating the safety issue.

Jul 17, 2014
Jul 16, 2014

GM pushes new strategy as Chinese tastes shift to family vehicles

SHANGHAI/DETROIT, July 17 (Reuters) – General Motors Co
is responding to surging Chinese demand for large family
vehicles, a trend likely to deepen as Beijing eases its
one-child policy, by redesigning its distribution network to
speed up sales of its Baojun family range.

Sales in China of family-sized multipurpose vehicles or
MPVs, surged 55 percent during the first half, far outpacing the
8.4 percent growth in the overall auto market.

Jul 16, 2014
    • About Ben

      "Ben Klayman is based in Detroit and in April was named leader of the global automotive team for Reuters. Previously, Ben covered the business of sports as well as consumer and retail for three years and led the manufacturing/housing team for four years. He also covered the telecommunications sector for three years. He joined Reuters in Detroit in 1998 to cover autos. Prior to joining Reuters, he worked at a series of daily newspapers in Ohio and Maryland. Ben graduated from Washington University in St. Louis in 1989 with a bachelor's degree in English literature."
      Joined Reuters:
      1998
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