DETROIT, April 23 (Reuters) – General Motors Co
posted a smaller-than-expected quarterly profit on Thursday as
weakness in South America and Russia hurt demand and the
company’s tax rate was higher than expected, sending shares down
“Clearly the macro environment in South America, and it’s
primarily Brazil, deteriorated versus even where we thought it
was going to be,” Chief Financial Officer Chuck Stevens told
reporters at the company’s Detroit headquarters.
DETROIT (Reuters) – U.S. vehicle safety regulators said
Thursday they could reopen an investigation into whether Fiat
Chrysler Automobiles needs to take more action to reduce the
risk of gas tank fires in older Jeep sport utilities.
“All options are available to us to address” the issue of
fires in Fiat Chrysler Automobiles’ older
Jeep SUVs, a National Highway Transportation Administration
official said Thursday. The official was echoing remarks made by
NHTSA administrator Mark Rosekind during an appearance in New
York on Thursday.
DETROIT (Reuters) – U.S. safety regulators on Thursday warned millions of owners of older model vehicles in “Rust Belt” states to get their brake systems checked for corrosion, a warning that stems from a long-running investigation of complaints about General Motors Co trucks and SUVs.
The “Rust Belt” includes about half of the 50 U.S. states. It is where salt is used to melt snow and ice on roads, which can increase the chance of corrosion on cars and trucks over time.
NEW YORK (Reuters) – The world’s biggest automakers increasingly are making money by producing luxury models and reaping profits in China and North America, management consulting firm McKinsey & Co said in a report issued on Wednesday.
McKinsey’s findings dovetail with comments by industry executives this week at the annual New York Auto Show. They say they are bullish on the luxury business in China and on the U.S. market because of its strong demand for SUVs and trucks.
DETROIT (Reuters) – Ford Motor Co (F.N: Quote, Profile, Research, Stock Buzz) Chief Executive Officer Mark Fields made $18.6 million in salary and other compensation last year, below the $23.2 million that predecessor Alan Mulally received in 2013, the company said on Friday.
Last year’s compensation for Fields, 54, was for half the year as CEO and half as chief operating officer. For 2013, he made $10.2 million as COO.
DETROIT (Reuters) – The United Auto Workers union on Wednesday said getting raises for workers at the Detroit automakers will be a top priority in contract talks this summer, but more jobs and production are shifting to U.S. plants without unions and Mexico.
In the next six years, Mexico’s auto production will rise to more than a quarter of the North American market, according to industry consultant IHS Inc.
DETROIT, March 24 (Reuters) – An attempt to strengthen the
United Auto Workers union’s stand against a two-tiered wage
structure at the Detroit Three automakers failed on Tuesday, but
the debate over the pay gap between newly hired auto workers and
veterans is not over.
UAW leaders are meeting in downtown Detroit this week to map
out bargaining strategy for this summer’s contract talks with
General Motors Co, Ford Motor Co and Fiat Chrysler
Automobiles . About 800 UAW members are
debating points in a 72-page outline of the union’s main goals
in the talks.
DETROIT (Reuters) – General Motors Co (GM.N: Quote, Profile, Research, Stock Buzz) and Ford Motor Co (F.N: Quote, Profile, Research, Stock Buzz) have much higher labor costs than their cross-town rival Fiat Chrysler, according to a new study released just ahead of a meeting of United Auto Workers officials as they prepare for contract talks with the Detroit Three.
GM’s (GM.N: Quote, Profile, Research, Stock Buzz) U.S. auto workers on average earn about 21 percent more in wages and benefits than their counterparts at Fiat Chrysler Automobiles (FCAU.N: Quote, Profile, Research, Stock Buzz) (FCHA.MI: Quote, Profile, Research, Stock Buzz), reflecting the much higher percentage of lower-paid, entry-level workers at FCA, according to a study of 2014 labor costs by the Center for Automotive Research (CAR).
DETROIT (Reuters) – Nissan Motor Co (7201.T: Quote, Profile, Research, Stock Buzz) expanded the North American recall of its top-selling Altima sedan to about 878,000 vehicles because a secondary hood latch may fail and cause the hood to fly up while the car is in motion, according to a company filing with U.S. safety regulators.
A secondary latch is meant to keep the hood down if the primary latch is not engaged. But Nissan said that in model years 2013 to 2015 Altima sedans made from March 6, 2012 to Dec. 31, 2014, the secondary latch may not hold.
DETROIT (Reuters) – General Motors Co’s (GM.N: Quote, Profile, Research, Stock Buzz) decision to shutter a car factory in Indonesia comes as global automakers rethink the timing and scope of investments in emerging markets once touted as engines of growth.
Global automakers poured billions into Brazil, Russia, India, China and other emerging markets during the past few years. For now, some key emerging markets are a drag on sales and profits.