Toyota Discusses Recovery and 4 Auto Stocks Making Headlines Now
Ford Motor Co. (NYSE:F): Ford is recalling about 19,000 brand-new Fusion midsize cars to fix defective headlights. It’s the second recall in a week for the Fusion and the sixth recall of a new Ford vehicle in the past five months.
General Motors Company (NYSE:GM): General Motors will build 10 prototypes of a special cycle it helped design for the Achilles Freedom Team of wounded veterans to compete in marathons beginning next year.
Are these stocks a buy or sell? Let us help you decide. Check out our Wall St. Cheat Sheet Stock Picker Newsletter now >>
Toyota Motor Corporation (NYSE:TM): A high-ranking Toyota Motor Corp executive believes that it will take the automaker a year to recover from the effects of a diplomatic row between Japan and China, the Kyodo news agency reported on Friday. Calls for boycotts of Japanese goods in response to a territorial dispute over the Senkaku Islands in the East China Sea took a heavy toll of Toyota’s sales in China, falling 50 percent in September and 44 percent in October. The decline slowed in November, with a 22 percent year-on-year fall to 63,800 vehicles. However, Kyodo said that Hiroji Onishi, senior manager in charge of Toyota’s Chinese operations, gave a grim outlook in a November 26 meeting with the company’s labor union leaders.
Honda Motor Co., Ltd. (NYSE:HMC) has intentions to build three variants of its Fit compact, which includes a sedan version, at its Mexican plant that is currently under construction. The additional two variants are the standard hatchback and a Fit-based crossover, according to an executive who is familiar with the plans. Honda has begun to consider selling all three in the United States, according to the person. The company is convinced that a general shift toward small cars could potentially fuel U.S. demand for a sedan-styled Fit. As of now, Honda sells a Fit-based sedan, called the City, in Asia.
A123 Systems, Inc. (NASDAQ:AONE) has intentions to seek bankruptcy-court approval on Tuesday to sell itself to the winning bidder of an auction that began on Thursday. The government-backed battery maker for electric cars sought Chapter 11 protection in October to deal in hand for selling its automotive-business assets to Milwaukee-based auto-parts manufacturer Johnson Controls Inc. Furthermore, the deal has been included the Michigan factory for which A123 in 2009 has gained almost $250 million in grants from the Department of Energy to construct. However, usually, bankruptcy laws require such deals to be tested at the auction block. A123 interested several bidders prior to Thursday’s auction, which could possibly last over a day considering the complexity of its business.
Don’t Miss: Does Ford Have a Quality Control Problem?