GM changes top manager in performance division
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From: Edgewater, Chicago, IL
GM changes top manager in performance division
-- DETROIT-General Motors is shuffling top management in its performance division as it pushes to reorganize product development on a global scale. Mark Reuss, 42, handed over the reigns of the performance division to 25-year GM veteran Bob Kruse, 49, effective Oct. 1. Kruse retains his position as executive director of GM North America vehicle integration.
Reuss replaces Matt Tsien, 45, as executive director of GM North America vehicle systems and a 25-year GM veteran. Tsien is now executive director for global central engineering.
Reuss, who has worked for GM since 1983, had been executive director of GM's performance division since 2002.
"Mark has a completely new job," says GM spokesman Tom Wilkinson. "His responsibilities now concern the development of the vehicle systems such as body chassis, interiors, electronic controls and software."
Wilkinson says GM made the changes to position the three in areas of "critical development" as GM works toward global product development.
Last edited by stangg172004; Oct 5, 2005 at 06:01 PM.
I feel the need...
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From: Motown
GM Sells Entire Stake in Fuji Heavy to Toyota, Market (Update5)
2005-10-05 07:36 (New York)
(Adds GM's first-half loss in 3rd paragraph)
By Kae Inoue and Naoko Fujimura
Oct. 5 (Bloomberg) -- General Motors Corp., the world's
largest carmaker, agreed to sell its entire stake in Fuji Heavy
Industries Ltd. for about $740 million as the U.S. company
struggles with rising losses and the threat of a lower credit
rating.
Toyota, GM's biggest competitor, will pay about $315
million in cash for 68 million shares, or 8.7 percent, of the
maker of Subaru-brand cars, GM said in a statement on PRN
newswire. GM will sell 11.4 percent of Fuji Heavy, worth about
$422 million at today's closing share price, on the market.
GM is raising cash after posting $1.4 billion in losses in
the first half, losing its investment grade rating in May and as
its largest supplier, Delphi Corp., asks for help to stave off
bankruptcy. The company faces further losses as consumers opt
for vehicles from Toyota, whose market value is worth more than
GM, Ford Motor Co. and DaimlerChrysler AG combined.
``It's surprising how fast GM is selling off the family
silver,'' said Graeme Maxton, a director of the Economist
Intelligence Unit in Hong Kong. ``It rings alarm bells.''
GM owns 157 million shares, or about a 20 percent stake, in
Fuji Heavy. GM also owns a 20 percent stake in Suzuki Motor Corp.
and a 8.4 percent stake in Isuzu Motors Ltd. Both companies
declined to comment.
GM said it will restate second-quarter earnings to reflect
a reduction of between $700 million and $800 million in the
value of its holdings in Fuji Heavy. It expects the sale to be
completed in the fourth quarter.
Fuji's Technology
A stake in Fuji Heavy will give Toyota access to the
company's technology for batteries which can be used in hybrid
gasoline-electric cars. Toyota aims to boost production of
hybrids to 1 million by the early part of next decade. It sold
134,700 hybrids last year.
Toyota and Fuji Heavy plan to cooperate in ``vehicle
development and production'', Toyota Executive Vice President
Mitsuo Kinoshita said. Toyota will use Fuji Heavy's ``various
advanced technologies,'' he said, declining to elaborate, adding
Toyota has no plans to increase its stake.
Hybrids such as Toyota's Prius and Honda's Civic are
equipped with nickel hydride batteries made by Panasonic EV
Energy Co. Fuji Heavy's Chief Executive Officer Kyoji Takenaka
has said his company's manganese lithium-ion batteries last
longer than Panasonic's nickel hydride batteries and handle
temperature extremes better.
Win-Win
``Toyota is not the kind of company that will buy shares
without a business purpose,'' said Atsushi Osa, who helps manage
$110 billion at Sumitomo Mitsui Asset Management Co. in Tokyo.
``It will gain from investing in Fuji Heavy if it gets
technology that it doesn't have such as Fuji Heavy's batteries
for hybrids and airplane technology.''
Tighter government restrictions on vehicle emissions and
higher fuel prices are boosting demand for hybrids. Toyota has
sold a record 106,978 hybrids in the U.S. so far this year, more
than the 2004 total for all carmakers.
``The alliance will be a win-win for Toyota and Fuji
Heavy,'' said Koji Endo, an analyst at Credit Suisse First
Boston in Tokyo. ``Toyota and Subaru buyers don't overlap, so
it's one of the best matches.''
Fuji Heavy said it will buy back about 90 million of its
shares on the market, paying as much as 57.6 billion yen and
hold them as treasury stock. It will buy its shares on the
market on Oct. 6, 7 and 11, it said in a statement. Toyota will
pay about 520 yen a share for its stake in Fuji Heavy.
Fuji Heavy said it will have a one-time charge of 5 billion
yen from canceling the development of a cross-over vehicle with
GM's Saab unit. Fuji Heavy lowered its earnings outlook for the
full year to a profit of 12 billion yen from an earlier forecast
of a 15 billion yen profit.
Not Enough Projects
``We've had a good partnership,'' said Troy Clarke,
president of GM Asia Pacific in a statement. ``There were not
enough collaborative projects to sustain the alliance.''
GM's shares have fallen 25 percent so far this year and
declined 3.1 percent to $30.08 yesterday in New York. Toyota's
shares have risen 26 percent so far this year and fell 0.9
percent today to 5,250 yen in Tokyo. Fuji Heavy's shares have
risen about 8 percent so far this year and gained 2.3 percent
today to 540 yen.
GM's largest parts supplier, Delphi, may declare bankruptcy
this week, the New York Times reported today. The parts maker is
asking GM, its former parent, for $6 billion in aid, people
familiar with the situation said earlier last week.
Fuji Heavy generates about 90 percent of sales from its
automobile business. The other 10 percent comes from Fuji
Heavy's aircraft, industrial machinery and other units. The
company, set up in 1917 as an aircraft maker, is expanding its
aerospace and aircraft business to supply parts for Boeing Co.'s
new 787 aircraft.
Source: bloomberg.com
So let's see here: GM selling, Toyota buying
....hmmmm, I wonder who is making the right decision.
2005-10-05 07:36 (New York)
(Adds GM's first-half loss in 3rd paragraph)
By Kae Inoue and Naoko Fujimura
Oct. 5 (Bloomberg) -- General Motors Corp., the world's
largest carmaker, agreed to sell its entire stake in Fuji Heavy
Industries Ltd. for about $740 million as the U.S. company
struggles with rising losses and the threat of a lower credit
rating.
Toyota, GM's biggest competitor, will pay about $315
million in cash for 68 million shares, or 8.7 percent, of the
maker of Subaru-brand cars, GM said in a statement on PRN
newswire. GM will sell 11.4 percent of Fuji Heavy, worth about
$422 million at today's closing share price, on the market.
GM is raising cash after posting $1.4 billion in losses in
the first half, losing its investment grade rating in May and as
its largest supplier, Delphi Corp., asks for help to stave off
bankruptcy. The company faces further losses as consumers opt
for vehicles from Toyota, whose market value is worth more than
GM, Ford Motor Co. and DaimlerChrysler AG combined.
``It's surprising how fast GM is selling off the family
silver,'' said Graeme Maxton, a director of the Economist
Intelligence Unit in Hong Kong. ``It rings alarm bells.''
GM owns 157 million shares, or about a 20 percent stake, in
Fuji Heavy. GM also owns a 20 percent stake in Suzuki Motor Corp.
and a 8.4 percent stake in Isuzu Motors Ltd. Both companies
declined to comment.
GM said it will restate second-quarter earnings to reflect
a reduction of between $700 million and $800 million in the
value of its holdings in Fuji Heavy. It expects the sale to be
completed in the fourth quarter.
Fuji's Technology
A stake in Fuji Heavy will give Toyota access to the
company's technology for batteries which can be used in hybrid
gasoline-electric cars. Toyota aims to boost production of
hybrids to 1 million by the early part of next decade. It sold
134,700 hybrids last year.
Toyota and Fuji Heavy plan to cooperate in ``vehicle
development and production'', Toyota Executive Vice President
Mitsuo Kinoshita said. Toyota will use Fuji Heavy's ``various
advanced technologies,'' he said, declining to elaborate, adding
Toyota has no plans to increase its stake.
Hybrids such as Toyota's Prius and Honda's Civic are
equipped with nickel hydride batteries made by Panasonic EV
Energy Co. Fuji Heavy's Chief Executive Officer Kyoji Takenaka
has said his company's manganese lithium-ion batteries last
longer than Panasonic's nickel hydride batteries and handle
temperature extremes better.
Win-Win
``Toyota is not the kind of company that will buy shares
without a business purpose,'' said Atsushi Osa, who helps manage
$110 billion at Sumitomo Mitsui Asset Management Co. in Tokyo.
``It will gain from investing in Fuji Heavy if it gets
technology that it doesn't have such as Fuji Heavy's batteries
for hybrids and airplane technology.''
Tighter government restrictions on vehicle emissions and
higher fuel prices are boosting demand for hybrids. Toyota has
sold a record 106,978 hybrids in the U.S. so far this year, more
than the 2004 total for all carmakers.
``The alliance will be a win-win for Toyota and Fuji
Heavy,'' said Koji Endo, an analyst at Credit Suisse First
Boston in Tokyo. ``Toyota and Subaru buyers don't overlap, so
it's one of the best matches.''
Fuji Heavy said it will buy back about 90 million of its
shares on the market, paying as much as 57.6 billion yen and
hold them as treasury stock. It will buy its shares on the
market on Oct. 6, 7 and 11, it said in a statement. Toyota will
pay about 520 yen a share for its stake in Fuji Heavy.
Fuji Heavy said it will have a one-time charge of 5 billion
yen from canceling the development of a cross-over vehicle with
GM's Saab unit. Fuji Heavy lowered its earnings outlook for the
full year to a profit of 12 billion yen from an earlier forecast
of a 15 billion yen profit.
Not Enough Projects
``We've had a good partnership,'' said Troy Clarke,
president of GM Asia Pacific in a statement. ``There were not
enough collaborative projects to sustain the alliance.''
GM's shares have fallen 25 percent so far this year and
declined 3.1 percent to $30.08 yesterday in New York. Toyota's
shares have risen 26 percent so far this year and fell 0.9
percent today to 5,250 yen in Tokyo. Fuji Heavy's shares have
risen about 8 percent so far this year and gained 2.3 percent
today to 540 yen.
GM's largest parts supplier, Delphi, may declare bankruptcy
this week, the New York Times reported today. The parts maker is
asking GM, its former parent, for $6 billion in aid, people
familiar with the situation said earlier last week.
Fuji Heavy generates about 90 percent of sales from its
automobile business. The other 10 percent comes from Fuji
Heavy's aircraft, industrial machinery and other units. The
company, set up in 1917 as an aircraft maker, is expanding its
aerospace and aircraft business to supply parts for Boeing Co.'s
new 787 aircraft.
Source: bloomberg.com
So let's see here: GM selling, Toyota buying
....hmmmm, I wonder who is making the right decision.
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