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PSA trims annual net loss to 555 million euros in 2014

PSA/Peugeot-Citroen posted EUR905 million in group operating income in 2014, a reversal from the EUR364 million in losses last year. It also managed to significantly trim its net loss to EUR555 million from EUR2.23 billion in 2013. PSA's vehicle manufacturing division managed to turn around from EUR1.04 billion loss in 2013 to a EUR63 million operating profit in 2014.

The group posted a 1-percent surge in net revenue to EUR53.6 billion in 2014, although its automotive division revenue dropped 0.9 percent to EUR36.1 billion. The carmaker said that favorable changes in the product mix and in prices offset a very negative currency effect.

PSA chief executive Carlos Tavares said in a statement that the results show that the process of rebuilding the group's financial fundamentals is underway, adding that the carmaker is ahead of its reconstruction plan. With the encouraging results, PSA is now expecting to deliver EUR4.2 billion in cumulative operating cash flow by 2017, which is more than double its earlier 2018 target.

Read the entire article PSA trims annual net loss to 555 million euros in 2014

Tesla widens Q4 net losses from $16 million to $108 million

Tesla Motors Inc. saw its net losses widen almost sevenfold in the fourth quarter of 2014 from $16 million to $108 million. The carmaker saw its revenues for the quarter surge 55 percent from $615 million to $957 million. Using the Tesla’s preferred non-GAAP methods, its revenue grew 44 percent to $1.1 billion.

The US-based EV maker built 11,627 vehicles in the fourth quarter on the way to achieving its target of producing 35,000 vehicles for the 2014 calendar year. However, a good number of these vehicles were not delivered to customers by the end 2014, which means Tesla failed to hit its target of delivering 33,000 vehicles for the year.

In a letter to shareholders, Tesla said that deliveries of produced cars were physically impossible due to customers on vacation, severe winter weather and shipping issues. The carmaker expects improvements in production, deliveries and profits in 2015, as the carmaker is set to introduce its newest EV, the Model X, in the third quarter.

Read the entire article Tesla widens Q4 net losses from $16 million to $108 million

Tesla doubles 2nd quarter net loss to $61.9 million due to r&d expenses

Tesla Motors Inc. posted $61.9 million in net loss in the second quarter of 2014, more than doubled the $30.4 million loss it logged in the same period in 2013. The larger loss comes despite Tesla producing and selling record numbers of Model S and logging almost a 90-percent increase in revenue to $769.3 million.

Tesla built 8,763 Model S units and delivered 7,579 of them around the world in the second quarter of the year, and was even “unable to keep pace with increased demand” in North America and Europe.

Tesla said its losses were attributable to r&d expenses that more than doubled to $107.7 million as the carmaker ramp up engineering work on the upcoming Model X crossover bound for production next spring. According to Tesla, operational “alpha” prototypes of the crossover could be ready next week for production design validation.

Read the entire article Tesla doubles 2nd quarter net loss to $61.9 million due to r&d expenses

PSA cuts first-half net losses to 114 million euros

PSA/Peugeot-Citroen managed to cut its net loss in the first half of 2014 to EUR114 million ($153 million) from EUR471 million in the same period in 2013. The French carmaker saw its operating cash flow surge to EUR1.67 billion ($2.23 billion) in the first six months of 2014 from just EUR203 million a year earlier, which could be attributed to a push by chief executive Carlos Tavares to cut vehicle inventories and get rid of supply-chain inefficiencies.

Likewise, its auto division posted its first operating profit in a while at EUR7 million, despite stiff currency headwinds. The auto division’s operating loss in the same period last year was EUR538 million.

Chief Financial Officer Jean Baptiste de Chatillon remarked that PSA’s recovery plan is already producing results on “all fronts," adding that pricing had gotten better.

Read the entire article PSA cuts first-half net losses to 114 million euros

Chrysler Group posted $690 million in net losses in the first quarter of 2014, no thanks to costs associated with its merger with Fiat. Without those two one-time charges, Chrysler would have posted $486 million in net profit in the period, compared to $166 million in net income in. The company posted 23-percent jump in first-quarter revenue to $19 billion.

The carmaker is reiterating its guidance for the full year 2014 of $2.4 billion in profits sans one-time charges on $80 billion in revenues, chief financial officer Richard Palmer said in a conference call with analysts.

According to Chrysler, it took a $504-million charge for eliminating debts tied to a prepayment of its note with the UAW Retiree Health Care Trust. Chrysler also took $672 million charge for commitments it made in a deal that allowed Fiat to take full control of the US carmaker.

Read the entire article Chrysler Group logs $690 million losses in first quarter of 2014

Tesla Motors Inc. logged $49.8 million in net losses in the first quarter, despite producing a record 7,535 Model S electric vehicles, selling 6,457 units, and generating $620 million in revenues. This compares to $11.3 million in net income on $555 million in revenues in the same quarter in 2013.

Tesla actually posted $155 million in gross profit in the period, but had to suffer $44 million in operating losses when its r&d and sales and administrative expenses are taken into account. Tesla chief executive Elon Musk said in a call with analysts that the carmaker has already sold out its second quarter production.

He noted that while in some cases sales means demand, in Tesla’s case sales means deliveries. Tesla employs non-traditional accounting methods outside the generally accepted accounting principles (GAAP). Using those methods, Tesla logged $17 million in profit on $713 million in revenues in the quarter.

Read the entire article Tesla posts $49.8 million net loss in first quarter of 2014

General Motors logged an 86-percent drop in net income in the first quarter of 2014 to $125 million, no thanks several factors including the current recall crisis that started in February. GM posted $1.3 billion in recall-related costs and around $200 million in restructuring costs in on its European operations.

GM also posted $427 million in one-time pretax charge credited to currency fluctuations in Venezuela. GM, however, was able to avoid a loss that analysts had expected and even managed to post its 17th consecutive quarterly profit – thanks to higher transaction prices of its trucks.

GM’s pretax income – which includes recall costs but excludes one-time items – fell 74 percent to $466 million while its revenues surged 1 percent to $37.41 billion. GM chief executive Mary Barra said the setbacks in the first quarter are part of their business.

Read the entire article GM averts first-quarter loss in 2014, logs $125 million in net profit

Ford Motor Co. has reiterated a forecast for a reduced loss in Europe in 2014 and a breakeven in 2015, as the carmaker sees indications of recovery. Vehicles sales in Europe have surged 6.3 percent through February 2014, after dropping to a two-decade low last year. Ford has been capturing share in Europe and in key markets like Germany, COO Mark Fields remarked at the New York Auto Show.

He said that the good news for Ford is that both the market and the carmaker’s performance in the first quarter were growing. Fields said that they are starting to see their turnaround plan be effective.

Field said in a speech officially opening the New York show that Lincoln MKZ mid-size sedan is “starting to resonate” with US consumers, adding that Ford hasn’t changed its recall practices in light of a callback crisis currently being experienced by General Motors over faulty ignition switches.

Read the entire article Ford Europe still expects smaller loss this year and a breakeven in 2015

Tesla Motors Inc. was able to cut its net losses in the fourth quarter of 2013 to $16 million from $90 million a year earlier. The carmaker posted a 43-percent year-on-year rise in fourth-quarter revenues to $615 million and had a 26-percent quarterly jump in non-GAAP revenues during the period of $761 million.

Tesla logged $46 million in profit based on non-GAAP accounting standards during the fourth quarter of 2013, compared to $75 million in losses during the same quarter in 2012.

According to Tesla, it sold 6,892 cars in the fourth quarter and 22,477 in full year 2013. The EV maker built more cars in the fourth quarter than planned, and was able to benefit from lower vehicle costs, mainly via component expense cuts and manufacturing efficiencies.

Read the entire article Tesla narrows net losses for Q4 and full year 2013

Tesla Motors Inc. logged $38 million in net losses and $431 million in revenue in the third quarter of 2013. In the same period in 2012, when the carmaker was just commencing output of the Model S, it posted $111 million in losses and $50 million in revenue. Tesla posted $102 million in gross profit in the third quarter before r&d and sales, general and administrative expenses were counted in.

In terms of non-GAAP figures, Tesla said it logged $16 million in net income on $603 million in revenue for the third quarter, with non-GAAP gross margins pegged at 21 percent.  Tesla’s third-quarter net loss was equivalent to 32 cents a share, while the average estimate of Wall Street analysts was of 11 cents a share in profit on $553 million in sales before special items.

Tesla's non-GAAP accounting excludes non-cash items like: stock-based compensation; the change in fair value related to the company’s warranty liabilities; non-cash interest expense linked to the carmaker’s 1.5 percent convertible senior notes; and one-time expenses associated with the early repayment of Tesla’s Department of Energy loan.

Read the entire article Tesla logs $38 million in net loss in third quarter of 2013

AvtoVAZ, the largest auto manufacturing company in Russia, posted RUR2.6 billion ($80.7 million) in net losses in the first half of 2013, compared to RUR27.4 billion in profits in the same period in 2012. The carmaker’s dismal financial performance in the first six months of 2012 has been attributed to the economic slowdown in Russia, which in effect resulted to the slump in vehicle demand in the carmaker.

New-car sales in Russia have dropped for six straight months. The Association of European Businesses (AEB) lobby group recently revised downward its sales forecast for the full year 2013 to 2.8 million vehicles, reflecting a drop of 5 percent year-on-year. While this year’s first-half net loss came from lower car sales and increased investments in new models, profit in 2012 was heavily boosted by a non-cash gain from discounting the cost of future debt payments.

As a result of lower sales, AvtoVAZ logged a 7-percent fall in revenue year-on-year to RUR83 billion. The Russian carmaker had earlier said that its sales in Russia slid 10 percent in the first half of the year to 226,729 units. Western carmakers like Ford Motor Co., General Motors and Fiat Group have made heavy investments in Russia in the past years, wagering that the vehicle market will surge as owners update their units.

Read the entire article AvtoVAZ logs RUR2.6 billion net loss in first half of 2013

Fiat CEO Sergio Marchionne claims that for every 500e sold, the company loses $10,000 even after all the subsidies. Marchionne disclosed this at his recent speech in Detroit at the Society of Automotive Engineers World Congress. Marchionne had said that to comply with fuel economy regulations, automakers have to concentrate on several alternative fuel technologies.

He said losing this much on a big scale will be “masochism to the extreme.” At the present, new car fleets have to average 28 to 30 mpg. By 2016, cars have to meet an average rating of 35.5 mpg and by 2025, this goes up to 54.5 mpg. Automakers are able to earn government credits when they offer alternative-fuel vehicles like hybrids, plug-in hybrids, and EVs.

However, Marchionne is anxious about the possibility that government incentives for electric vehicles will be considered to be the best alternative-powertrain method. He is urging for “technological neutral” regulation. Initially, the Fiat 500e will be sold in California. It has a starting price of $32,500 before government incentives like $7500 federal tax credits and those given by California and local governments.

Read the entire article Fiat will lose $10,000 for every 500e sold

Volvo Car Corp. is expected to report a huge operating loss in China for 2012 due to weak sales as well as an expensive new plant, according to report by Swedish daily Svenska Dagbladet citing sources. The daily reported that Volvo will post operating losses of between SEK2 billion to SEK4 billion ($308 million to $615 million) in China.

The paper reported that Volvo’s operating earnings in China was heavily hit by the high costs connected to its nearly finished new plant in the Chengdu, China. The carmaker’s operating losses are also attributed to expenses connected to its building up a network of Chinese dealers as well as weak overall sales in the country.

The carmaker’s operating losses in China are highly expected as Volvo succumbed to an 11-percent drop in sales in 2012 and it has been investing heavily to establish its first local production in the country. Volvo has been busy implementing cost reductions and job cuts as it continues to suffer from the current economic crisis in Europe.

Read the entire article Volvo to post huge operating loss in China for 2012

The New York Times article that claimed that Tesla’s Model S sedan fell short of its estimated range cut down the value of its stock market shares by up to $100 million, according to CEO Elon Musk. When interviewed by Betty Liu of Bloomberg, Musk said that the impact of the article that came out on The Times’ website is not trivial.

The article claimed that Model S didn’t meet the claimed 300-mile (483- kilometer) range “under ideal conditions” when it was test-driven in cold weather. On Twitter, Musk referred to the story as “fake.” In a blog on the website, The Times’ public editor noted that there were defects in the story.

Tesla is relying on the Model S to turn a profit this quarter, with the exclusion of several costs. Tesla, which is based in Palo Alto, California, aims to increase Model S output by at least 25% this year. It is also slated to introduce the Model X crossover in 2014. Since Feb. 8 (the day the Times article first came out), Tesla’s shares have dropped 12%, from $39.24 to $34.38.

Read the entire article NY Times Model S review brought Tesla a stock-market value drop of $100 million

Tesla Motors Inc. posted a net loss of $89.9 million in the fourth quarter of 2012, slightly worsening from the net loss of $81.5 million in the same period in 2011. The company, however, posted an almost eight-fold increase in revenues in the fourth quarter of 2012 to $306.3 million from $39.4 million in the same period in 2011.

The jump in revenues was largely due to a huge increase in Model S deliveries in the quarter, during which around 2,400 vehicles were delivered to customers compared to 250 units in the three previous quarters. The carmaker, however, still posted a net loss in the period, no thanks to higher cost from manufacturing and supply chain inefficiencies.

During a quarterly earnings conference call Wednesday, Tesla chief executive Elon Musk said that the carmaker is expecting to post a profit for the first time in the first quarter of 2013, as it strives to cut manufacturing costs and benefits from a backlog of Model S orders.

Read the entire article Tesla posts 4Q net loss of $89.9 million, worse than $81.5 million in 2011

General Motors Co. suffered its 13th straight annual loss in Europe after doubling its pretax losses in the region from $747 million in 2011 to $1.8 billion in 2012. The carmaker’s figures in Europe were well in line with its October 2012 forecast. GM’s continued financial bleeding in Europe underscore the rapid decline in vehicle demand and economic conditions in the region.

GM’s total losses in Europe have amounted to $18 billion since 1999. The worsening economic situation in Europe has forced GM to take a $5.2 billion non-cash impairment on long-held assets. It also forced the carmaker to write down the value of its investment in PSA/Peugeot-Citroen by more than half to around $200 million.

While the carmaker remains positive about its new Opel models like the Mokka and the Adam, its investors were not, as evidenced by the 2.7-percent in its shares. Dan Ammann, GM chief financial officer, told Bloomberg TV Thursday that they expect further deterioration in 2013 in Europe for the auto industry.

Read the entire article GM lost $1.8 billion in Europe in 2012, aims to break even by mid-decade

Ford Motor Co predicted a loss of $2 billion in Europe this year as the industry struggles because of a recession that could bring down industry sales in the region to its lowest in 20 years. On the other hand, Ford expects that it will gain a profit in North America, its most profitable market. However, Ford estimates that it will achieve 10% operating margins in North America, lower than the 10.4% reported in 2012.

The weak outlook dampened its fourth-quarter results, which were higher than forecasted, pulling down its shares by up to 6.5%. At the stock's low point, the decreases eradicated over $3 billion in market value. In a research note, Barclays Capital analyst Brian Johnson wrote that this forecast "undercuts the popular investor thesis that Ford offers significant earnings expansion from a booming U.S. auto market while having 'Europe-proofed' its guidance."

This marks the fourth time in 12 months that Ford lowered its expectations in Europe, demonstrating how hard it is for automakers to foresee and handle the quick decline of sales in the region. Ford thinks that this year, the industry will be able to achieve sales of 13 million to 13.5 million vehicles in Europe. Automotive consultancy IHS Automotive said that the lower end of this range would be the lowest level that Europe has sunk to since 1993.

Read the entire article Ford predicts a $2 billion loss in Europe this year

Although a car should bring profit to every manufacturer, it appears that GM doesn’t follow this rule as the American carmaker is actually losing as much as $49,000 on each Chevrolet Volt it builds. And the bad news continues as Chevrolet Volt lease offers are actually pushing that loss even higher.

The lease offers should bring more customers to Chevrolet showrooms, but according to Reuters, people pay just $5,050 to drive around for two years in a vehicle that cost as much as $89,000 to produce.

As a result, GM is still years away from making any profit on the Volt. What’s more interesting is that other carmakers such as Ford, Honda and others will soon introduce Volt competitors which will bring new technologies at lower costs.

Read the entire article GM losing as much as $49,000 on each Volt it builds

Volvo posted SEK254 million in net losses for the first six months of 2012, in contrast to SEK1.21 billion in net profit for the first half of 2011. The Swedish carmaker’s earnings before interest and tax also dropped to SEK239 million ($35.63 million) in the first half of 2012 from SEK1.53 billion in the same period in 2011.

The carmaker blamed the net loss to lower sales volume in the review period, which dropped 4 percent to 221,309 cars year-on-year.

Volvo chief executive Stefan Jacoby attributed the company’s dismal sales performance to the current financial crisis in the euro zone.  Jacoby quipped that the markets were not what the company originally planned, noting that the southern European crisis is spreading to the north.

Read the entire article Volvo logs SEK254 million net loss for first half of 2012

Ford Motor Co. is conducting a review of all aspects of its business in Europe as the company labels its performance in the region as not acceptable. According to Stuart Rowley, Ford’s controller, the results of the carmaker’s European business for the last 12 months are not acceptable, and the company needs to address that situation.

Rowley said that during the review, the carmaker will address all aspects of its business, including its structural costs, product portfolio and brand. Analysts like Adam Jonas of Morgan Stanley have been suggesting that Ford should shut down at least one factory in Europe in order to cut its excess production capacity in the region. According to Morgan Stanley, Ford is only using 63 percent of its production capacity in Europe.

Ford posted a 57-percent drop in its net income for the second quarter of 2012 to $1.04 billion, no thanks to $404 million in operating losses in the same period in Europe. Rowley, for his part, said that the Ford’s cost in Europe has meant that the company is stuck. He then pointed to Ford’s North American business as a good guide.

Read the entire article Ford readies turnaround plan as it expects over $1 billion loss in Europe