Strong Forecast For November New-Car Sales

General Motors Renaissance Center

General Motors Outshines Competitors with Enticing Offers; Small, Mid-Size Cars Compete for Attention

IRVINE, Calif., Nov. 26, 2013 /PRNewswire/ -- New-vehicle sales are expected to improve 3.6 percent year-over-year in November to a total of nearly 1.19 million units, according to Kelley Blue Bookwww.kbb.com, the leading provider of new and used car information.  Fears of a vehicle sale hangover following the government shutdown in October turned out to be largely overblown as consumers showed no hesitation heading out to the dealership in November.

"Although sales are only expected to rise approximately 3.6 percent from last year, it should be noted that sales were especially strong in November 2012, as consumers on the East Coast returned to the dealership to replace a vehicle or make a purchase that was delayed due to Superstorm Sandy," said Alec Gutierrez, senior analyst for Kelley Blue Book.  "Sales in November tend to be heavily skewed toward the end of the month because of Black Friday sales events, such as General Motors' current supplier pricing promotion and deals on Ford models, so sales could surpass current expectations if the available deals are especially enticing."

Key Highlights for Estimated November 2013 Sales Forecast:

• In November, new light-vehicle sales, including fleet, are expected to hit 1,185,000 units, up 3.6 percent from November 2012 and down 1.7 percent from October 2013.
• The seasonally adjusted annual rate (SAAR) for November 2013 is estimated to be 15.6 million, up from 15.3 million in November 2012 and up from 15.2 million in October 2013.
• Retail sales are expected to account for 83 percent of volume in November 2013.

General Motors to Show Greatest Gains in November 2013

General Motors is expected to receive a strong push in November, thanks to high demand for a host of redesigned models across its product portfolio.
"The Chevrolet Silverado and GMC Sierra should have solid growth, as demand for pickups continues with the strength in the real estate market," said Gutierrez.  "Solid gains also are expected for Cadillac and Buick, as consumers continue to look to the new Cadillac ATS, XTS and Buick Encore as legitimate competitors to traditional luxury players, such as BMW and Mercedes-Benz."
Further aiding the manufacturer's performance this month will be Black Friday deals, which will allow consumers to receive employee pricing for a variety of General Motors' vehicles.

Trucks and Small Crossovers Continue to Lead Gains, Small and Mid-Size Cars Compete for Attention
Continuing the trend through the remainder of 2013, crossover and full-size pickup trucks will be the two top performing segments in November.

"We expect the small crossover segment to improve by more than 20 percent, thanks to solid demand for segment mainstays, such as the Ford Escape and Honda CR-V, as well as the Toyota RAV4, which was just recently redesigned," said Gutierrez.  "Full-size trucks will improve 8.1 percent, below the more than 20 percent growth that was the norm through most of the year.  The slowdown in the growth of the truck segment comes as no surprise as we are now at a point where we are comparing to sales in late 2012, when the acceleration in pickup truck sales really began."

Although significant growth is expected in the truck and crossover segments, sales of mid-size cars and compact cars have slowed.

Compact cars have seen relatively steady sales volume lately, likely due to decreasing fuel prices.  This is a segment that may be close to equilibrium in terms of market share, and with so many strong performers in segment, such as the redesigned Toyota Corolla, Honda Civic and Ford Focus, consumers will have plenty of opportunities for a great deal.
Mid-size sedan sales have slowed due to a number of factors, including competition with small crossovers.

There has been a tremendous amount of cross shopping between these two segments, which has slowed the pace of growth in the mid-size segment.  This is another segment that presents a tremendous opportunity for many consumers, especially with heated competition of compelling products and pricing wars between the Toyota Camry, Honda Accord and Ford Fusion.

###

Restore The Roar: Manufacturing Renaissance, a five-part ebook series, is available wherever ebooks are sold, including Amazon, Barnes & Noble, and iTunes.

Last Chance Mile: The Reinvention of an American Community tells the story of how the people of Grand Rapids created a cluster of prosperity, the Medical Mile, while the rest of Michigan was collapsing around them.

Last Chance Mile is available wherever books are sold online, as well as on the shelves of Barnes & Noble-Woodland Mall, Schuler Books & Music-28th Street and West Coast Coffee on Monroe Center, Grand Rapids.

For more of Rod Kackley's work, please download his free app that is available for iOS and Android devices or to go to www.rodkackley.com.

American Axle & Manufacturing Turnaround: Bust To Boom

DETROIT, Nov. 1, 2013 /PRNewswire/ -- American Axle & Manufacturing Holdings, Inc. (AAM), which is traded as AXL on the NYSE, today reported its financial results for the third quarter 2013. 

Third Quarter 2013 Results

• Third quarter 2013 sales of $820.8 million, up 16.8% on a year-over-year basis
• Non-GM sales grew 18.1% on a year-over-year basis to $234.7 million
• Gross profit of $125.3 million, or 15.3% of sales
• Operating income of $67.5 million, or 8.2% of sales
• Net income of $31.6 million, or $0.41 per share
• EBITDA (earnings before interest, taxes, depreciation and amortization) of $113.4 million or approximately 13.8% of sales

AAM's net income in the third quarter of 2013 was $31.6 million, or $0.41 per share.  This compares to a net loss of $8.1 million, or $0.11 per share in the third quarter of 2012.

In the third quarter of 2013, AAM's results reflect the impact of a net charge of $5.3 million related to the acceleration of expense for stock-based compensation and other benefits earned and vested due to the passing of our Co-Founder and Executive Chairman of the Board of Directors.  AAM's third quarter of 2013 results also include a charge of approximately$0.5 million for the proposed settlement of a National Labor Relations Board proceeding related to the closure of our Detroit Manufacturing Complex and Cheektowaga Manufacturing Facility in 2012.

In the third quarter of 2012, AAM's results reflected the impact of $10.1 million (or $0.14 per share) of debt refinancing and redemption cost and $3.2 million (or $0.04 per share) of restructuring costs related to the closure of our Detroit Manufacturing Complex and Cheektowaga Manufacturing Facility.

Net sales in the third quarter of 2013 increased approximately 16.8% on a year-over-year basis to $820.8 million as compared to $702.9 million in the third quarter of 2012.  Non-GM sales were up 18.1% in the quarter to $234.7 million as compared to $198.8 million in the third quarter of 2012.

AAM's net sales in the first nine months of 2013 increased over 8.0% to $2.38 billion as compared to $2.19 billion in the first nine months of 2012.  Non-GM sales in the first nine months of 2013 increased approximately 9.9% on a year-over-year basis to $646.6 million as compared to $588.5 million in the first nine months of 2012.

AAM's content-per-vehicle is measured by the dollar value of its product sales supporting our customers' North American light truck and SUV programs. In the third quarter of 2013, AAM's content-per-vehicle increased to $1,560 as compared to$1,466 in the third quarter of 2012 and $1,554 in the second quarter of 2013.

AAM's gross profit in the third quarter of 2013 increased 38.1% on a year-over-year basis to $125.3 million as compared to $90.7 million in the third quarter of 2012.  Gross margin was 15.3% in the third quarter of 2013 as compared to 12.9% in the third quarter of 2012.

AAM's gross profit for the first nine months of 2013 increased 11.4% on a year-over-year basis to $351.8 million as compared to $315.7 million in the first nine months of 2012.  

Gross margin was 14.8% in the first nine months of 2013 as compared to 14.4% in the first nine months of 2012.

AAM's SG&A expense in the third quarter of 2013 was $57.8 million, or 7.0% of sales, as compared to $60.6 million, or 8.6% of sales, in the third quarter of 2012.  AAM's R&D expense in the third quarter of 2013 was $23.6 million as compared to $31.4 million in the third quarter of 2012.

In the first nine months of 2013, AAM's SG&A expense was $177.9 million, approximately the same as the first nine months of 2012.  AAM's R&D expense decreased $10.9 million in the first nine months of 2013 on a year-over-year basis to $79.4 million as compared to $90.3 million in the first nine months of 2012. 

In the third quarter of 2013, AAM's operating income more than doubled to $67.5 million as compared to $30.1 million in the third quarter of 2012.  Operating margin was 8.2% in the third quarter of 2013 as compared to 4.3% in the third quarter of 2012.

AAM's operating income in the first nine months of 2013 increased 26.2% to $173.9 million as compared to $137.8 millionin the first nine months of 2012.  Operating margin was 7.3% in the first nine months of 2013 as compared to 6.3% in the first nine months of 2012.

In the third quarter of 2013, AAM's net income was $31.6 million or $0.41 per share.   This compares to a net loss of $8.1 million or $0.11 per share in the third quarter of 2012.

AAM defines EBITDA to be earnings before interest, taxes, depreciation and amortization.  In the third quarter of 2013, AAM's EBITDA was $113.4 million or 13.8% of sales.  In the first nine months of 2013, AAM's EBITDA was $291.1 millionor 12.3% of sales. 

AAM defines free cash flow to be net cash provided by (used in) operating activities less capital expenditures net of proceeds from the sale of property, plant and equipment and the sale-leaseback of equipment.

Net cash provided by operating activities for the third quarter of 2013 was $69.1 million. Capital spending, net of proceeds from the sale of property, plant and equipment and the sale-leaseback of equipment, for the third quarter of 2013 was$48.3 million.  Reflecting the impact of this activity, AAM generated free cash flow of $20.8 million for the third quarter of 2013.  

Net cash provided by operating activities for the first nine months of 2013 was $102.3 million. Capital spending, net of proceeds from the sale of property, plant and equipment and the sale-leaseback of equipment, for the first nine months of 2013 was $148.9 million.  Reflecting the impact of this activity, AAM's free cash flow was a use of $46.6 million in the first nine months of 2013.  

Last Chance Mile: The Reinvention of an American Community tells the the stories of the people of Grand Rapids who changed the way the world sees their community while the rest of Michigan was collapsing around them.

Last Chance Mile: The Reinvention of an American Community is available wherever books are sold including Barnes & Noble-Woodland Mall, Schuler Books & Music-28th Street and West Coast Coffee-Monroe Center Grand Rapids.

Last Chance Mile is also available wherever books are sold online including Abbott Press.

For an autographed hardcover or softcover edition, please go to www.rodkackley.com and click the Add To Cart button on the Welcome Page.

Detroit Three Automakers Report Strong October 2013, Chrysler has best October since Great Recession

General Motors Renaissance Center

General Motors Co. (NYSE: GM) dealers delivered 226,402 vehicles in the United States in October, up 16 percent versus a year ago. Retail sales were also up 16 percent and fleet sales were up 14 percent.

“Chevrolet, Cadillac and Buick-GMC all performed well in the month, and the sales tempo really picked up after the government shutdown ended,” said Kurt McNeil, vice president, U.S. sales operations. “We are particularly pleased with our truck momentum. Chevrolet and GMC have the newest and best light duty trucks, sales are accelerating and we are gearing up for the second, third and fourth phases of our strategic truck plan.”

Ford Motor Company's (NYSE: F) October U.S. total sales of 191,985 vehicles rose 14 percent over a year ago. Retail sales are up 15 percent, at 142,487 vehicles. It is the company's best October retail sales performance since 2004.

Gains were broad-based, with passenger cars up 19 percent, utilities up 9 percent, and trucks up 14 percent. Ford Fusion and Fiesta posted best-ever October sales, and F-Series again topped 60,000 sales.

"October was simply an outstanding retail performance, as consumers continued to choose Ford for great fuel efficiency, styling and value at all levels of the market," said John Felice, vice president, U.S. marketing, sales and service. "The combination of great new products, such as Fusion and Escape, along with the strength of our dealers helped us achieve our best October retail sales month since 2004.”

Chrysler Group LLC today reported U.S. sales of 140,083 units, an 11 percent increase compared with sales in October 2012 (126,185 units), and the group's best October sales since 2007.

The Chrysler, Jeep®, Dodge and Ram Truck brands each posted year-over-year sales gains in October compared with the same month a year ago. The Ram Truck brand's 22 percent increase was the largest sales gain of any Chrysler Group brand during the month. Chrysler Group extended its streak of year-over-year sales gains to 43-consecutive months in October. 

"After a choppy start to the beginning of the month, Chrysler Group sales accelerated in the second half of the month with renewed consumer confidence and the launch of our all-new Jeep Cherokee," said Reid Bigland, Head of U.S. Sales. "Following a meticulous focus on quality, our new Jeep Cherokee began shipping to dealers and quickly selling which helped us to achieve our 43rd-consecutive month of year-over-year sales increases."

Restore The Roar: Manufacturing Renaissance, an ebook series beginning with The Great Collapse is now available through Amazon and wherever ebooks are sold. It also forms the foundation for Rod Kackley's novel-in-progress, Blue Collar, the stories of Baby Boomers who vow to break out of the twilight of their own mediocrity.