Join Date: Jun 2001
Location: Catonsville, Md.
Chrysler group unveils 3 products
From Automotive News:
Reuters / June 03, 2004
FRANKFURT -- DaimlerChrysler stock outpaced other automakers' shares on Thursday after an analyst meeting in Detroit, during which the Chrysler group unveiled three products.
"We believe the (analysts) day supports one of the key pillars of our 'overweight' investment thesis for DaimlerChrysler," Morgan Stanley wrote in a note to clients on Thursday.
"Fundamentals of the Chrysler division are turning the corner despite the continued challenges in the U.S. light- vehicle market."
Merrill Lynch analyst Stephen Reitman said in a research note that the Chrysler group showed off for the first time three vehicles set to hit the market in 2005 or 2006.
These were a large Jeep Commander built on the Jeep Grand Cherokee platform due next year, a new C-segment Sebring sedan co-developed with Mitsubishi Motors to be launched in 2006 and a Dodge Charger sedan built on the Chrysler 300 platform.
"All three models seemed attractive and winning," he wrote, but the car maker still faced intense competition from rivals also bent on rolling out new products into a market where generous incentives have become mandatory to sell cars.
Morgan Stanley added that the Chrysler group expected capital spending to remain at, or under, 5 percent of sales.
"This level of spending, while in line with the capex/sales percentage for the group in 2003, is lower than many global competitors and is below the European sector spending range of six to seven percent," the bank wrote.
DaimlerChrysler officials were not immediately available to comment on Wednesday's presentation.
GM raises rebates to $5,000
Reuters / June 02, 2004
DETROIT -- General Motors, raising the ante in Detroit's brutal price war, said on Wednesday it was raising the cash rebates on most of its 2003 and 2004 model year vehicles to $5,000.
The rebates on many of GM cars and trucks, including its popular SUVs, minivans and pickups, had previously been set at $4,500.
GM has called most of the shots in the industry's profit-gouging incentives war since the attacks on Sept. 11, 2001.
GM said its $5,000 cash-back offer, billed as an "owner loyalty program," applied only to current owners of its vehicles. For new customers it said it would continue to offer hefty discounts as well, along with a variety of interest-free loan programs.
GM's cross-town rival Ford Motor Co. said, meanwhile, that its incentives program would remain essentially unchanged this month, following the sweetening of some deals announced in May.
Ford spokesman Jim Cain noted, however, that the No. 2 U.S. automaker was raising the cash rebate on its Freestar minivan by $1,000, setting it at a new high of $5,000 in a bid to increase sales.
The offer applies to customers seeking to finance their vehicle purchase through Ford's finance arm, Ford Credit, but those getting their auto loans elsewhere are eligible for a cash rebate of $4,000, Cain said.
"The minivan market is just brutal," he said. "There's a lot of new entrants in the marketplace."
There was also a similar article in today's Wall Street Journal that was especially impressed with their direction as far as product goes, but did express some doubt as to the 'Germans' managements long term health.
The best part of that article is the raving about the Charger. They said it's hot and will sell like hotcakes. They also seem to think the new Sebring will raise the bar. That's not like the WSJ so I'll
stay guardedly optimistic.
They did say the Charger doesn't look like the 300c; much sleeker.
I'd like to see a picture.