Correspondent, Detroit
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May 13, 2014

Automakers mull aid to art museum in Detroit bankruptcy

DETROIT (Reuters) – Detroit’s three automakers are mulling a request by the city’s art museum to help it raise money for a key component of Detroit’s plan to restructure its debt and exit bankruptcy, representatives of the companies said on Tuesday.

Under an $816 million so-called grand bargain, the Detroit Institute of Arts (DIA) would contribute $100 million to ease pension cuts on the city’s retirees and avoid a sale of art works to pay city creditors. The rest of the money would come from philanthropic foundations and the state of Michigan, where a $350 million contribution over 20 years or a $195 million lump sum payment needs legislative approval.

May 8, 2014

Tesla outlook disappoints some on Wall St, shares drop 7 pct

DETROIT, May 7 (Reuters) – Tesla Motors Inc, led by
billionaire Elon Musk, on Wednesday offered an outlook for the
second quarter that disappointed some investors, sending shares
of the electric car maker down more than 7 percent in
after-hours trading.

Tesla posted a higher-than-expected first-quarter operating
profit and said its operating automotive gross margins in the
current quarter would increase slightly. S&P Capital IQ analyst
Efraim Levy called the outlook a disappointment, saying
investors had hoped for something better.

Apr 30, 2014
Apr 25, 2014

UAW Vice President Joe Ashton nominated to GM’s board

DETROIT, April 25 (Reuters) – United Auto Workers Vice
President Joe Ashton has been nominated to General Motors Co’s
board as the representative for the healthcare trust for
retired GM workers, the company said in a filing with the U.S.
Securities and Exchange Commission on Friday.

GM also reiterated that Chief Executive Officer Mary Barra,
who is grappling with a massive recall of vehicles with ignition
switches linked to at least 13 deaths, would receive more than
$14 million in cash and stock this year.

Apr 25, 2014

Ford profit driven down by North America, warranty costs

DETROIT (Reuters) – Ford Motor Co (F.N: Quote, Profile, Research) posted a lower-than-expected first-quarter profit on Friday as the No. 2 U.S. automaker saw $400 million (237 million pounds) in higher warranty costs in North America, sending shares down 3.4 percent.

The company also saw incentives in North America rise in the quarter due to heavy competition and an aging lineup of vehicles it will address with the launch of 16 new models in the region this year.

Apr 25, 2014

Ford posts weaker-than-expected profit as warranty costs rise

DETROIT (Reuters) – Ford Motor Co posted lower-than-expected first-quarter profit on Friday as the No. 2 U.S. automaker saw higher warranty costs in North America for older vehicles by $400 million.

The company affirmed its forecast for pretax profit for 2014, a year in which it is launching a record 23 new vehicles globally. It also said it is amending and extending its revolving credit facility.

Apr 24, 2014

GM posts lower profit after recall; outlook for rest of year trimmed

DETROIT (Reuters) – General Motors Co’s (GM.N: Quote, Profile, Research) first-quarter profit tumbled 88 percent on Thursday due to the massive recall for defective ignition switches, and shares fell 1.3 percent after the company said expectations for the rest of the year must be trimmed.

While the company’s results topped expectations on strong pricing for its redesigned pickup trucks in North America, it did not raise its full-year outlook by a corresponding amount.

Apr 24, 2014

GM posts lower profit after recall; core outlook on target

DETROIT (Reuters) – General Motors Co (GM.N: Quote, Profile, Research) 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 and improvement overseas.

The company said its core operating outlook remained on target for the year, relieving investors who bid up the stock by 3 percent.

Apr 24, 2014

GM posts lower profit after recall; truck pricing strong

DETROIT (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.

The quarter included a previously disclosed charge of $1.3 billion for the recall, and Chief Financial Officer Chuck Stevens said it was too early to predict whether GM would take more charges. He also said it was still studying its options for the victims of the faulty switches. The faulty switches are linked to at least 13 deaths.

Apr 23, 2014

Top GM engineer to leave in post-recall reorganization

DETROIT (Reuters) – General Motors’ top engineering executive, a longtime colleague and key lieutenant of Chief Executive Mary Barra, is retiring in the automaker’s highest profile executive change since the massive recall of vehicles with defective ignition switches linked to at least 13 deaths.

John Calabrese has worked with Barra in various roles over the past 15 years and has been GM vice president of global engineering for the last three years.

    • 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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