It appears that the world is so concerned about the impending collapse of GM and Chrysler and how the U.S. government will act on the matter. Last week, when officials of the federal government said the collapse of the Big 3 is investibale, a mixed reaction came up. Auto makers Toyota and Honda do not favor a Big 3 falldown. Several experts also agreed with Treasury Secretary Henry Paulson that bankruptcy might be the solution.
However, when the government announced that it will shell out some money ($17.4 billion) to save the GM and Chrysler, most of the stock markets today in Asia dipped. It seems that this bailout is not effective anyway in easing the already turbulent global situation. But what is apparent is that the auto industry bailout is not actually what makes the world worry. How the ongoing financial crisis will be solved is the most troubling issue. In fact, how will the U.S. economy recover is the main cause of concern among the businessmen.
Posted by Jones on January 5th, 2009 :: Filed under
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BusinessWeek has just released its list of the world’s most influential companies. What can be seen from this list is that the usually dominant companies such as Procter & Gamble, General Electric and even the once-venerated Lehman Brothers were no longer included. Newcomers like Facebook and Google are noticeable. But what is more noticeable is the inclusion in the list of companies from emerging markets such as China Mobile, Li & Fung Ltd. and Huawei, mostly Chinese companies. Wal-Mart seems to be the best performing company this year, topping BusinessWeek’s list, aside from clinching the No. 1 spot in Fortune’s list for several years already.
The name of the game appears to be changing. The formerly unshakeable and industry-leading firms are slowly bowing down to newcomers with fresher marketing strategies and dynamic management plans.
Posted by Jones on January 1st, 2009 :: Filed under
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General Motors is to announce the release of tis redesigned Chevrolet Equinox. The 2010 Equinox will debut at the North American International Auto Show next month. Well, nothing is quite intriguing about this new product. It just means that GM is still in the business. However, this will certainly give rise to the question, is GM really troubled? The company has been asking for financial aid from the government. The automaker said its financial chest is drained out. But with the release of the new and redesigned Equuinox, GM seems to be still on the right track. So, would it really need financial help from the government? is it really worth to shell out taxpayers’ money to this company?
Posted by Jones on December 26th, 2008 :: Filed under
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After an almost untimely and stunning collapse, Morgan Stanley is finally showing signs of life. With fund infusions coming from the U.S. government through the bailout package and Japan’s Mitsubishi UFJ Financial Group, the American bank is able to buy back its own debts. Such anactivity shows that Morgan Stanley is ready to become an active player in the financial market.
It seems that the bailout plan worked, at least in the case of Morgan Stanley. However, the bailout package should be the last to be approved by the government. In the future, the government should not use the taxpayers’ money to rescue the ailing companies, whose failure were of their own doings. And the lesson that can be learned on this financial crisis is that banks should be more careful in introducing new products. Complex and risky financial products now proved to be unhealthy investments.
Posted by Jones on December 24th, 2008 :: Filed under
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A big blow in the automobile industry has happened. Chrysler announced that it will close down its plants in the United States for at least one month beginning on Friday (December 19). The move would certainly affect the 46,000 employees so the auto maker. This would mean they will have no work beginning Friday until January 19 of next year. While the company said the workers will receive payments, through a mixture of government unemployment benefits and company contributions, the amount will be less than the employee’s monthly salary.
Chrysler is usually stopping its production every year, around Dec. 24 to January 5, but this year’s one-month production stoppage is certainly a cause of concern. The company said they have to lenghten the production stoppage to ease the impact of the credit crunch, which affected the auto maker’s sales records and even the performance of the entire automobile industry.
Posted by Jones on December 21st, 2008 :: Filed under
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The current condition of General Motors, Chrysler and Ford Motors is a cause of concern for the automobile industry. The ailing auto makers are in dire need of help. The so-called Big 3 is currently experiencing internal bleeding due to the slow down in the auto market. The market is shrinking as a result of the current financial crisis that is crippling the economy.
In fact, even its competitors cannot stand the impending collapse of GM. Giant automobile manufacturers such as Toyota Motor, Honda Motors and other auto makers said if the Big 3 will fold down, the automobile industry will be greatly affected. Competition for the already shrinking market will become stiffer as new players will enter the market. The Big 3’s failure will also affect the auto parts suppliers as this will lead to their bankruptcies due to the collapse of their biggest clients, the Big 3.
Posted by Jones on December 20th, 2008 :: Filed under
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A French utility company, EDF, has offered to buy around 49.9% of Constellation Energy for $4.5 billion. The offer by the French company almost already erased MidAmerican Holdings, which is also offering to buy the entire Constellation around the same amount. However, with the French bid, the American company’s bid will surely be rejected.
EDF is a large nuclear operator, if not the largest operator in the world. The offer can be seen as a daring move on the part of the French. It seems that the French company wants to penetrate the U.S. utility market and maintain its status as a dominant nuclear plant operator in the globe. Will this be a prelude to more foreign investors buying up American companies?
Posted by Jones on December 13th, 2008 :: Filed under
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