Investors are beginning to show renewed interest in the automotive industry
By Andrew C., 30 Aug, 2010. 0 Comments
For the past few months, the automotive industry suffered from near-frozen credit markets, bankruptcies and plunging stock prices. But now, it is reported that investors are starting to show renewed interest in the industry.
Last month, Ford Motor Co. and three publicly traded suppliers have raised or announced plans to raise more than $2 billion by issuing new shares of common stock and bond debt. Analysts say that this move indicates that the worst is behind us. Continued after the jump!
Meanwhile, American Axle & Manufacturing Holdings Inc. announced plans last week to raise about $100 million by selling 14 million shares of new common stock and about $400 million from a private sale of senior secured notes.
And a few weeks ago, TRW Automotive Holdings Corp. raised $493 million through two bond sales. On Nov. 24, emissions control supplier Tenneco Inc. said it had raised $187 million by selling new common stock.
On Dec. 4, Ford, which incidentally is the only U.S. automaker that didn't seek a government-financed bailout and bankruptcy, announced plans to raise $1 billion in cash by issuing new shares of common stock. Analysts say that these activities during 2009 are positive signs for the automotive sector.
[via autonews - sub. required]
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