Ford’s Federal Loans, GM Negotiating with German Labor Unions
Ford (NYSE:F) – not the usual suspects GM and Chrysler – that tapped federal loan programs to help retool plants and make more efficient vehicles, according to information made public by the DOE. The car maker initially received $5.9 billion in June 2009, and has since drawn down another $4.5 billion to date to help it update 11 plants in five states.
Ford will also reportedly recall more than 244,000 Ford Escape SUVs from model years 2001 and 2002 due to a fire risk, plus nearly 206,000 Freestar and Mercury Monterey minivans from 2004 and 2005 as they risk suddenly losing power.
GM (NYSE:GM) and Germany’s IG Metall labor union are reportedly discussing a deal in which the car marker would transfer some Chevrolet production from South Korea to Europe, and then be given a free hand to to make the cost cuts that could save the Opel brand and remove a major drag on GM’s ops.
Here’s how these two auto makers’ stocks are reacting to the news:
Ford Motor Co. (NYSE:F): F shares recently traded at $11.98, down $0.09, or 0.75%. They have traded in a 52-week range of $9.05 to $18.97. Volume today was 9,235,053 shares versus a 3-month average volume of 58,135,800 shares. The company’s trailing P/E is 7.18, while trailing earnings are $1.67 per share.
General Motors Corporation (NYSE:GM): GM shares recently traded at $24.01, down $0.46, or 1.88%. They have traded in a 52-week range of $19.00 to $38.95. Volume today was 1,669,234 shares versus a 3-month average volume of 12,055,700 shares. The company’s trailing P/E is 5.25, while trailing earnings are $4.57 per share.
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