Your 2010 GM product lineup
General Motors created the concept of producing a new line of cars each year, back when the company ruled the industry. While the idea of rolling out totally revamped products has evolved, the manufacturers do try to offer something new each year even if many models feature just minor changes. So it’s interesting to see what GM is offering in the midst of battle for survival.
Here’s the latest from GM:
GM will focus on four brands — Buick, Cadillac, Chevrolet and GMC — that combine leading-edge design, technology, engineering excellence and quality, backed by the most comprehensive customer care package in the industry.
For those brands, GM will introduce six all-new, car and crossover models, including the Buick LaCrosse luxury sedan; the Cadillac SRX crossover and Cadillac CTS Sport Wagon; the Chevrolet Camaro sports coupe and Chevrolet Equinox compact SUV; and the GMC Terrain compact SUV. In addition, Chevrolet’s iconic nameplate, Corvette, adds the Grand Sport, one of the most recognized names from Corvette’s illustrious racing heritage.
Additionally, the Pontiac Vibe will be available as a 2010 model; the Pontiac G6 will be available only for fleet customers.We have further streamlined the product guide by offering only a list of “What’s New” for certain carryover models, rather than a full news release. Full news releases have been included for newer models. Specifications and photos are available for each vehicle plus Fleet & Commercial and GM Powertrain. Video is also included in certain vehicle sections and the GM Powertrain section. There is no embargo date for any of the material.
More here.
Meanwhile, What I Learned Today put a pencil to paper and determined that each of us has invested $362 in GM. Unfortunately, GM will need to grow to a market cap of $83 billion before we break even. Unfortunately, that’s nearly 50 percent higher than the company’s all-time peak worth, and more than 10 times its current value.
Don Mecoy
Business Writer
A new business risk: Piracy
Michelle Leder, in her Footnoted blog, unearths a new twist on public companies’ reporting of potential risks. It be pirates! Tidewater has mentioned piracy in 10 separate SEC filings, Leder reported. And Freeseas mentioned it just a few days ago:
In addition, detention of any of our vessels, hijacking as a result of an act of piracy against our vessels, or an increase in cost, or unavailability, of insurance for our vessels, could have a material adverse impact on our business, financial condition, results of operations and ability to pay dividends in the future.
Avast, ye investors. Take notice!
Don Mecoy
Business Writer
Free floating anxiety — the good kind
As we prepare for Wednesday’s Free Float day at Sonic, a few pointers for someone who survived and enjoyed the 2007 promotion. There will be tremendous traffic at your local Sonic. (Oklahoma City-based Sonic plans to give away about 3.5 million of the treats). The event lasts from 8 p.m. until at least midnight, so a later arrival might find less traffic. The floats are pretty small at just 10 ounces. The tray our floats arrived upon was awash in root beer, and the cups were a little sticky.
However, the stuff is free — no purchase necessary. It does taste good. In 2007, parking bays opened up pretty quickly as folks tended to leave as soon as their orders arrived. And the overworked car hops were in good spirits, and gladly provided extra napkins. I probably won’t participate again unless I can round up a minivan full of kids, which is what I did last time.
Beginning Thursday, Sonic will offer a free large drink with the order of any combo meal.
Don Mecoy
Business Writer
GM leaving the Dow
After 83 years, General Motors is getting kicked off the Dow Jones Industrial Average. Here are a few other things that happened the last time GM was not a member of the Dow:
–Benito Mussolini takes dictatorial power in Italy.
–The New Yorker publishes its first issue.
–Calvin Coolidge becomes first president to have inauguration speech broadcast on radio.
–”The Great Gatsby” is published.
–John Scopes is fined $100 after being found guilty of teaching evolution in Dayton, Tenn.
–New York Giants join National Football League.
–Adolph Hitler publishes “Mein Kampf.”
GM was founded in 1908 and grew to be the world’s largest corporation, topping out with a market cap of $50 billion in 2000. Currently that figure is hovering around $500 million. It’s a long way from the old saw: “As GM goes, so goes the nation.”
Meanwhile, Citigroup Inc. also is leaving the Dow 30. The new companies that will join the Dow next week include The Travelers Cos. Inc. (TRV) and Cisco Systems Inc. (CSCO).
“The parlous state of GM has left us with no choice but to remove it from The Dow. A bankruptcy filing immediately disqualifies a stock regardless of a company’s history or its role as a cultural icon,” said Robert Thomson, managing editor of The Wall Street Journal and editor-in-chief for all of Dow Jones. “We were reluctant to remove Citigroup at the height of the financial frenzy, but it is clear that the bank is in the midst of a substantial restructuring which will see the government with a large and ongoing stake. We genuinely hope that once the bank has refashioned itself that we will again be able to consider it for inclusion – Citigroup is a renowned institution, not only in this country, but around the world.”
Don Mecoy
Business Writer
McDonald’s meat, straight from the OKC
Ed Sanchez, president of Oklahoma City-based Lopez Foods.
Lopez Foods, a longtime provider of meat to McDonald’s, also has been a fixture in Oklahoma City for years. The company produced a video showing the inner workings of its plant. While watching chunks of meat become ground beef isn’t the most appetizing experiences, the place does appear to be very clean — tidier than most McDonald’s stores that I’ve been in.
Lopez Foods also supplies the Canadian bacon that McDonald’s uses in its Egg McMuffins. And here’s how an Egg McMuffin is created. I have to admit that I’ve never tasted one (are the yolks supposed to be broken or not?) The McDonald’s Web site also answers submitted questions about its offerings, including some sarcastic ones. My favorite question: “What is Chicken McNuggets?”
McDonald’s response:
Chicken McNuggets® are made with white meat chicken, lightly coated in a tempura batter to ensure that they are crispy on the outside, and juicy and tender in the inside.
They also address the eternal question of which came first, the Egg McMuffin or the Chicken McNugget? (It was the Egg McMuffin, by 10 years).
Don Mecoy
Business Writer
Tronox vs. Kerr-McGee Corp.
Tronox’s largest titanium dioxide plant is in Hamilton, Miss. PROVIDED BY TRONOX INC.
An example of the lively language included in the document:
Kerr-McGee devised a two-step fraudulent scheme to escape its toxic past and attempt to place its valuable oil and gas assets safely beyond the reach of the EPA, tort claimants, and other creditors.
The document is 50 pages, but is full of juicy details.
Click here to read it. (It’s a pdf file)
Don Mecoy
Business Writer
Yahoo shutting down Geocities
This isn’t necessarily surprising news. But it does seem like a good time to recall how much Yahoo spent to buy Geocities in 1999.
It was $3.6 billion.
From the Jan. 28, 1999 CNN story:
Based on Yahoo!’s closing stock price of $335.875 on Wednesday, the transaction is valued at roughly $3.57 billion, a hefty premium over GeoCities’ market capitalization of $2.3 billion.
Don Mecoy
Business Writer
Markets closed for Good Friday
Most markets, including the major stock exchanges, will be closed on Friday. Here’s a list of market holidays from NYSE.
-
–New Year’s Day
–Martin Luther King, Jr. Day
–Washington’s Birthday/Presidents’ Day*
–Good Friday
–Memorial Day
–Independence Day
–Labor Day
–Thanksgiving Day**
–Christmas**
* Washington’s Birthday was first declared a federal holiday by an 1879 act of Congress. The Monday Holiday Law, enacted in 1968, shifted the date of the commemoration of Washington’s Birthday from February 22 to the third Monday in February, but neither that law nor any subsequent law changed the name of the holiday from Washington’s Birthday to President’s Day.
Although the third Monday in February has become popularly known as President’s Day, the NYSE’s designation of Washington’s Birthday as an Exchange holiday (Rule 51) follows the form of the federal holiday outlined above (section 6103(a) of title 5 of the United States Code).
**The NYSE Trading Floor will close early on Friday, November 27, 2009 (the day after Thanksgiving) and Thursday, December 24, 2009 . The Trading Floor will close at 1:00 p.m. Crossing Session I order entry will begin at 1:15 p.m. with order executions at 1:30 p.m., and Crossing Sessions II orders will be accepted beginning at 1:00 p.m. for continuous executions until 1:30 p.m. on these dates.
Don Mecoy
Business Writer
2001 AIG commercial
When you look up “irony” on the Internet, this is what should appear.
Don Mecoy
Business Writer
Here’s some outrage we can believe in
Kenneth Lewis, Bank of America chairman, CEO and president.
This, I think, is exactly the kind of action that many Americans have been asking for as the government spends ever-more of our tax dollars to prop up flailing U.S. corporations. It may be a cheap political stunt, but it reflects the anger that is simmering among taxpayers.
This letter to Kenneth D. Lewis, chairman, chief executive officer and president of Bank of America Corp is signed by New York Attorney Gen. Andrew Cuomo and Barney Frank, chairman of the U.S. House Financial Services Committee:
Dear Mr. Lewis:
We write to demand on behalf of taxpayers that Bank of America immediately disclose individual bonus data for all individuals at Merrill Lynch and Bank of America who received 2008 bonus awards of $1 million or more.
We believe that as a matter of transparency and disclosure, taxpayers have a right to know where their tax dollars go once received by TARP recipients. Accordingly, all TARP recipient institutions should disclose individualized executive bonus information to taxpayers.
As you know, late last year Merrill Lynch moved up its planned date to allocate bonuses and then richly rewarded many of its executives. Merill Lynch did this knowing full well that they were going to suffer huge losses for the fourth quarter and the year. At the time of the bonus awards, Merrill was in the process of being acquired by Bank of America, a TARP recipient. Moreover, Merrill Lynch also knew at the time that they had received a credit line of billions of dollars in TARP funds.
As a result of Merrill’s huge losses, taxpayers were forced to help Bank of America acquire Merrill by providing billions of additional TARP funds as well as insurance against losses from Merrill’s toxic portfolio. In short, the combined Bank of America-Merrill Lynch entity received $45 billion in taxpayer funds as well as $188 milllion in taxpayer-funded insurance.
Despite this massive infusion of taxpayer money, Merrill Lynch paid out bonuses totaling approximately $3.6 billion and Bank of America distributed a pool of more than $3.3 billion.
Taxpayers who are footing the bill obviously demand accountability and want to know who received these funds and why.
Our mutual goal is to stabilize and enhance our country’s financial institutions and system. The taxpayers of this country have given mightily to that cause. They deserve to know where their money is going and how it is being spent. Furthermore, we all agree that trust and confidence in our financial system must be restored. Transparency and disclosure are the building blocks of that trust and confidence.
Your refusal to reveal compensation information fuels distrust and cynicism at a most sensitive time.
Very truly yours,
Andrew Cuomo
Attorney General of State of New York
Barney Frank
Chairman, House Financial Service Committee, U.S. House of Representatives
cc: Bank of America Board of Directors
Don Mecoy
Business Writer
