Chrysler Pacifica Base Sport Utility 4-door on 2040-cars

Auto blog

Auto investor Kirk Kerkorian dead at 98

Kirk Kerkorian, among the most talked-about investors in the American auto industry in recent memory, died at the age of 98 in Los Angeles on Monday, June 15. The billionaire ran the investment company Tracinda Corp. and was the largest shareholder in MGM Resorts International. Kerkorian attempted to use his power as a well-financed investor to push the auto industry in some fascinating ways. In 2006, he used his nearly 10-percent stake in General Motors to push a merger with the Renault-Nissan Alliance. The deal made it as far as discussions, but eventually fell through. Kerkorian also attempted to purchase Chrysler - twice. According to Automotive News, the first effort came in 1995 with a $22.8-billion offer for the automaker, and soon after it failed the company merged with Daimler. Then in 2007, Kerkorian was back with a bid for $4.5 billion, but things eventually fell to Cerberus. The billionaire finished the trifecta by buying up $1 billion in Ford stock in 2008 to make Kerkorian the single largest investor in the company. However, the situation didn't last long, and by the end of that year, he had unloaded the shares. According to Automotive News, Kerkorian was ranked by Forbes as the world's 41st richest man in 2008 with a net worth of $16 billion. News Source: Automotive News - sub. req.Image Credit: Joe Cavaretta / AP Photo Celebrities Earnings/Financials Chrysler Ford GM obituary

Pickup prices rising at 2x industry average

We've said it before, but bears repeating: Pickup trucks are the financial engines of America's automakers. Good thing, then, that the segment is in rude health - in fact, Automotive News is suggesting that pickup truck sales are arguably healthier than they were pre-recession, even though the segment's volume is still significantly down from where it was before the bottom fell out of the US economy. That's because per-unit profits on full-size trucks are skyrocketing, outpacing the industry's average price increases by more than double since 2005. According to data from Edmunds, the average transaction price of a full-size pickup is now $39,915 - a heady increase over the $31,059 average price in 2005 - a gain of over 8 percent after inflation is factored in.
Just how important are trucks to automakers' bottom lines? Automotive News quotes a Morgan Stanley analyst as saying the Ford F-Series is responsible for 90 percent of the company's 2012 profits, and General Motors isn't far behind, with the Chevrolet Silverado and GMC Sierra twins chipping in about two-thirds of the automaker's earnings.
Automotive News points out that Detroit's automakers now have the money to invest in modernizing their full-size truck offerings, in part because they don't have the same overhead and legacy costs that pushed General Motors and Chrysler into bankruptcy. Certainly, the pickup segment has seen a lot of innovations as of late, including turbocharged V6s, coil-spring rear suspensions and active aero. Those improvements in important areas like fuel economy and ride comfort have given existing pickup buyers new reasons to upgrade. In addition, automakers are piling on the tech and luxury goodies, creating more and more high-content, high-profit models like the Ford F-150 King Ranch, Ram 1500 Laramie Longhorn and Chevrolet Silverado High Country (shown).

Marchionne hopes Apple will partner with Fiat

Apple wants to make a car. Fiat already makes cars. Therefore, Apple and Fiat should partner to make an Apple Car. Makes sense, right? Clearly, it's not quite that easy, but FCA chief Sergio Marchionne hopes that Cupertino will consider Fiat a worthy candidate for partnership, assuming, of course, that Apple follows through with its overtures into the automobile industry. Marchionne is, according to Bloomberg, a self-proclaimed "Apple freak" who owns every kind of product Apple makes. He suggests that he understands the tech company's needs and wants. "Apple has a language, and you have to be able to speak that language," said Marchionne. "Usually the industry comes into that dialogue with a high degree of arrogance as we know how to make cars. That's not very helpful as their syntax is worth more than our ability to build cars." By "syntax," we assume Marchionne means Apple's sleek and modern design language more than the code behind its software. It's interesting to note that the FCA CEO seems to indicate that Apple would bring more to any partnership than the automaker would. Fair or not, we'd wager that more buyers would care about a potential Apple Car's design and branding than would be concerned with which automaker helped assembled it. A partnership with Apple may be exactly the kind of cure that the FCA CEO believes ails the auto industry. After finding it impossible to further pursue industry consolidation, a tie-up with the massive tech industry, particularly Apple, could generate some much-needed positive cash flow. At present, though, it's all just conjecture – Apple hasn't offered any hints as to the true nature of its so-called Project Titan automotive project, and doesn't seem likely to anytime soon. Related Video: