Tagged: auto industry

Toyota suspends some U.S. sales

In an unprecedented industry move, Toyota, the world’s most successful automaker, temporarily suspended U.S. sales of eight models until it figures out a brake-pedal problem that sparked a recall.  Former Ford Motors executive Louis Lataif, long-time dean of the School of Management, says it may help domestic manufacturers, but it premature to read too much into […]

GM board sacks new CEO

Only eight months after General Motors’ new owners — the U.S. government — replaced the old CEO, the GM board canned that CEO  in an effort to accelerate paying back taxpayers for the loans that kept the automaker afloat.  School of Management Dean Lou Lataif, a former Ford Motor Company senior executive, says the moves […]

Auto brand loyality fading

Whereas in the 1980s nearly four in five Americans were repeat buyers of the same brand of automobile, a new survey shows only 20 percent show such loyalty today.  School of Management marketing Professor Shuba Srinivasan, who studies auto-industry marketing, says increased reliance on sales promotions is partly to blame. “Over the last decade, the […]

Auto industry update

The auto industry worldwide continues to struggle.  With Toyota facing its largest losses ever, Akio Toyoda today becomes president of the company founded by his grandfather in 1937.  Meantime, the first beneficiaries (reportedly Ford, Nissan, Tesla) finally are being named today for the loan program created by Congress in 2007 to help auto makers retool […]

New role for U.A.W.

Now the major stakes in both General Motors and Chrysler, the United Auto Workers finds itself in an unusual dual role as both the major labor union in the automotive industry and a part owner.  School of Management economist David Weil, a labor-relations expert, can discuss this dilemma/opportunity. Contact David Weil, 617-353-4615, davweil@bu.edu

GM approaches bankruptcy

With bondholder interest too low, GM won’t proceed with the repurchasing of some $27 billiion of notes it sought, meaning it is on the brink of bankruptcy — which should come next week with the U.S. government winding up owning 70 percent of the automaker.  School of Management Dean Louis Lataif, a former Ford senior executive, […]

Bankruptcy for GM?

Speculation is rampant that the U.S. government will force General Moters into bankruptcy as early as next week.  This comes as the Obama administration plans to lift Chrysler out of bankruptcy, also as soon as next week.  School of Management Dean Louis Lataif, a former Ford senior executive, can offer a big-picture perspective on the […]

“Transfusions don’t stop the bleeding”

In a Reuters commentary, School of Management Dean Louis Lataif argues that bit-by-bit bailouts to the auto industry and its suppliers won’t save the industry.  The former Ford executive says bridge loans to the auto makers would be more effective while efforts are made to deal with falling housing values and toxic mortgage-backed securities – which […]

Bridge Loans to auto makers would work

School of Management Dean Louis Lataif, a former Ford executive, says rather than providing bailout financing to auto-parts suppliers it would be better for the entire industry for the government to provide bridge loans to the auto makers themselves. “The American public is growing increasingly dismayed by ‘bailouts’ and I’m surprised the government continues to […]

Detroit auto makers seek federal bailout

Congress is considering a bailout for the “Big Three” U.S. auto makers. School of Management Dean Lou Lataif, a former Ford senior executive, says if the federal government chooses to become a lender of last resort, its loan could come with conditions: – the government loan takes precedence over all other creditors; – the loan […]