Toyota

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    With Toyota Gone, California's Loss Is Our Gain

    By , Defense + Tech Specialist, Money Morning • @Robinson_STI -

    It's almost impossible to overstate the significance California has played in making Toyota a U.S. success.

    The Japanese firm set up its headquarters in Hollywood back in 1957. It used its surging popularity in this car-crazy, trendsetting state to become not just a major American nameplate but a dominant global brand.

    No wonder California leaders were so shocked when they recently learned that Toyota is pulling up stakes in the Golden State. Toyota now plans to build a new North American headquarters in Plano, Texas, taking 3,000 jobs with it.

    This surprise decision sparked an intense political debate here in California in which critics accuse the state's leaders of pursuing a political agenda that is clearly anti-business.

    That may very well be true, but behind the scenes there is a much larger dynamic taking place - the rise of a truly global marketplace.

    And it's giving us a beautiful, long-term, market-crushing opportunity... Full Story

    Full Story

Article Index

With Toyota Gone, California's Loss Is Our Gain

By , Defense + Tech Specialist, Money Morning • @Robinson_STI -

It's almost impossible to overstate the significance California has played in making Toyota a U.S. success.

The Japanese firm set up its headquarters in Hollywood back in 1957. It used its surging popularity in this car-crazy, trendsetting state to become not just a major American nameplate but a dominant global brand.

No wonder California leaders were so shocked when they recently learned that Toyota is pulling up stakes in the Golden State. Toyota now plans to build a new North American headquarters in Plano, Texas, taking 3,000 jobs with it.

This surprise decision sparked an intense political debate here in California in which critics accuse the state's leaders of pursuing a political agenda that is clearly anti-business.

That may very well be true, but behind the scenes there is a much larger dynamic taking place - the rise of a truly global marketplace.

And it's giving us a beautiful, long-term, market-crushing opportunity... Full Story

Hot Stocks: Ford Motor Co. (NYSE: F) Takes Pole Position Among Automakers

By , Contributing Writer, Money Morning -

Ford Motor Co. (NYSE: F) yesterday (Tuesday) furthered its lead among U.S. automakers, reporting record-breaking third-quarter profits.

The world's most profitable automaker reported record third-quarter net income of $1.69 billion, up 68% over the same period a year ago. The company also said it is paying down debt faster than planned as new models boost its U.S. market share.

Excluding some items, profit was 48 cents a share, beating the 38-cent average of 12 analysts' estimates compiled by Bloomberg. By comparison, the automaker recorded income of $997 million in last year's third quarter and adjusted per-share profit of 26 cents.

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Toyota Racks Up Recalls as Automakers Adopt More Proactive Safety Stance

By , Associate Editor, Money Morning -

Toyota Motor Corp. (NYSE ADR: TM) added another set of recalls yesterday (Thursday) to its rocky year.

Toyota announced it needed to repair 1.66 million autos worldwide for brake-fluid leak issues. The newest development brings the total number of Toyota vehicles recalled worldwide in the past year to about 14 million. 

The company said it needed to fix rubber seals on about 740,000 vehicles in the United States and 599,000 in Japan, as well as some models in European markets, including Avalon and Lexus sedans and Highlander sport-utility vehicles. A small amount of brake fluid was able to leak from the master cylinder and gradually reduce braking performance and cause a "spongy" feeling in the brakes, according to a company spokesman. Cars affected have had factory-filled brake fluid replaced with brake fluid that is not "genuine" factory fluid.

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General Motors: On the Road to Recovery, but Moving Slowly

By , Money Morning -

General Motors Corp. just logged its first quarterly profit since 2007. The company also claims to have paid back its government loans "in full," and is rumored to be interested in buying back its financing arm.

But the truth of the matter is that GM isn't as far down the path to recovery as it would like the public to believe. The company's strong first quarter was greatly aided by Toyota Motor Corp.'s (NYSE ADR: TM) highly publicized recalls. Its claims that it has paid back government debt have been greatly exaggerated. And the United Automobile Workers (UAW) union is already pushing for restoration of many of the perks that it lost during the auto industry's near collapse.

General Motors reported first-quarter profit of $865 million as its revenue surged 40% to $31.5 billion. That made for the company's first quarterly profit in three years. GM - a company that took millions in taxpayer money to remain viable and came close to running out of money in 2008 - reported free cash flow of $1 billion.

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Government Reports Show Consumer Spending Fueling Economic Recovery

By , Contributing Writer, Money Morning -

A string of government reports show that the American consumer is making more money and spending again, providing impetus for a sustained economic recovery.

Personal income jumped 0.3%, or $32.3 billion, in April following a 0.1% rise the month before. The Commerce Department said individual spending rose 0.6%, or $36 billion, last month, the sixth consecutive month spending has increased. Both figures matched estimates from economists surveyed by Briefing.com.

Consumer spending makes up about 70% of the U.S. economy. Economists are keeping a close eye on income and spending because so far, this has largely been a jobless recovery.

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Buy, Sell or Hold: Ford Motor Co. Is Ready to Haul In a Fortune for Investors

By , Contributing Editor, Money Morning -

Last week the Money Map team got together at the Baltimore Marriott and had a two-day conclave to discuss the market and what we can do to better serve you. We had many productive exchanges about our market views, preferred ways to profit, and other important issues.

Keith Fitz-Gerald, Martin Hutchinson and Shah Gilani all had terrific ideas that I am sure you will be reading about here in Money Morning, as well as in their trading services and in the Money Map Report.

But ultimately, we all see opportunities to make very good money out there.

I saved this one for you: Ford Motor Co. (NYSE: F).

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Hot Stocks: GM's Robert Lutz to Retire

By , Money Morning -

General Motors Co.'s "Maximum Bob" has apparently reached his vanishing point.

General Motors Vice Chairman Robert A. "Bob" Lutz will retire from the embattled carmaker effective May 1, the executive confirmed yesterday (Wednesday). Lutz had been serving as a senior adviser to Edward E. "Ed" Whitacre Jr., GM's chairman and chief executive officer.

The move comes just one day after GM announced another shake-up in the North American unit that's supposed to be heading the company's overhaul.

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Toyota Recall Messages Lost in Translation

By , Contributing Writer, Money Morning -

On the face of it, Toyota Motor Corp.'s (NYSE ADR: TM) recall of more than 8 million vehicles appears to be a serious-yet-simple matter of a carmaker facing up to a long list of manufacturing errors. But an in-depth examination of the case reveals a much deeper cultural disconnect.

Like two people from two distinctly different cultures who find themselves locked in an uneasy marriage, the U.S. consumer and Toyota management are suffering from a failure to communicate.

And unless Toyota very quickly makes an all-out effort to close the communications gap, the Japan-based carmaker could find itself relegated to also-ran status, says Keith Fitz-Gerald, a recognized expert on Asian business who is also the chief investment strategist for Money Morning and The Money Map Report.

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Buy, Sell or Hold: Ford Motor Co.'s (NYSE: F) Turnaround Could Put Investors on the Fast Track to Profit

By , Contributing Editor, Money Morning -

Back on July 28, 2008, I recommended buying a speculative stake in Ford Motor Co. (NYSE: F). The stock has more than doubled in value since then, and I believe it's positioned for even more gains.

Let me tell you why.

Investing in a company as it turns around from a highly distressed situation is one of the most profitable investments one can make.

Many billionaires, like Wilbur Ross and David Tepper of Appaloosa Management LP, are masters of this style of investing. And they have the profits to prove it.

That's why I am always looking for these rare situations, which can play a very important role in a portfolio, even with a small initial investment. And right now there are a few very strong signals that the U.S. auto sector, which was demolished by the financial crisis, is going to bounce back stronger than ever.

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Investment News Briefs

By , Money Morning -

With our investment news briefs, Money Morning provides investors with a quick overview of the most important investing news stories from all around the world.

Kraft Raises Cash Bid for Cadbury; Google Phone Sales Begin; Automakers See Strong U.S. Sales Gains; Whitney Slashes Goldman Forecast; Gulf Infrastructure Gets a Boost; Construction Collapse; IT Obstacle

  • Kraft Foods Inc. (NYSE: KFT) has agreed to sell its DiGiorno and Tombstone pizza brands to Nestle SA (OTC ADR: NSRGY) for $3.7 billion, using all the net proceeds from the sale to boost the cash portion of its offer for Cadbury PLC (NYSE ADR: CBY) . In related news, Warren Buffet's Berkshire Hathaway Inc. (NYSE: BRK.A, BRK.B) voted against Kraft's offer to issue up to 370 million shares for the Cadbury acquisition, saying it would change its vote if the transaction doesn't "destroy value for Kraft shareholders." Berkshire's stake of more than 9% in Kraft makes it the food maker's largest shareholder. Nestle, meanwhile, formally took its name out of the running of any possible bidders for Cadbury in a terse statement.

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Toyota Launches New Model at Home, Plans Expansion into Korean Market

By , Contributing Writer, Money Morning -

Toyota Motor Corp. (ADR NYSE: TM), the world's largest automaker, today (Tuesday) launched efforts to maintain its leadership position by introducing a new hybrid model in Japan and expanding into the Korean market where it will face stiff competition from Hyundai Motor Co. Ltd. (PINK: HYMLF). The announcements came on the heels of a surprise […]

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Investment News Briefs

By , Money Morning -

With our investment news briefs, Money Morning provides investors with a quick overview of the most important investing news stories from all around the world. Treasury Announces More PPIP Investors; Roubini: Market Due For Correction; BofA Planning Emergency CEO Appointment; Goldman Could Fetch $1 Billion From A CIT Bankruptcy; Mazda Raising Money for Hybrids; Nomura […]

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Investment News Briefs

By , Money Morning -

With our investment news briefs, Money Morning provides investors with a quick overview of the most important investing news stories from all around the world. IMF Lowers Global Writedown Estimate; CIT Still Struggling; $1.6 Billion Hong Kong IPO for Wynn Macau; Wal-Mart, Kmart Gunning For Holiday Toy Sales; Toyota Announces Record Recall; BofA Exec Takes […]

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