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8 Most Dependable Cars of 2012

Tue, 21 Feb 2012 08:30:00 EST

DETROIT (MainStreet) -- The auto industry is making better vehicles than it has in at least two decades, with Toyota and Ford winning honors for the most-top quality models.

In releasing the results of its 2012 vehicle dependability study, which considered 2009 vehicles, J.D. Power said dependability improved 13% from a year earlier, leading to the lowest problem rate since the inception of the study in 1990, when 1987 vehicles were measured. The Buick Lucerne got the nod as best large car in J.D. Powers' latest reliability rankings. ...

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Alaska's Ayer: Moral CEO Departs While on Top

Fri, 17 Feb 2012 08:50:49 EST

SEATTLE (TheStreet) -- A year ago, Bill Ayer thought he wanted to retire as CEO of Alaska but wanted to be sure he could handle the dramatic downshifting required to leave the perpetually busy job of running an airline.

So "he took a month off to see if he could do it," said Phyllis Campbell, the airline's lead independent director and chairman of Pacific Northwest Markets for JPMorgan Chase, in an interview. "He was testing himself and the company a bit. He kind of checked out -- he took a scuba diving trip.

"It taught him that the company did fine when he was gone, and that he could do other things and enjoy them," Campbell said. She noted that Ayer was not totally out of touch, and did maintain some contact. But after saying for two years that he wanted to step down as CEO, he was more certain after a month away. ...

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GM Shares Gain on Pledge to Stem Europe Losses

Thu, 16 Feb 2012 12:32:44 EST

DETROIT (TheStreet) -- GM shares were rising Thursday as the automaker hinted at strong action in Europe, where it lost $582 million in the fourth quarter.

"We will do what's required to fix this business," says CFO Dan Ammann on the company's earnings call. The full-year loss in Europe totaled $747 million in adjusted earnings before interest and taxes, despite improving by $1.3 billion over 2010. The improvement "did not go far enough," Amman says. GM shares were rising Thursday as the automaker hinted at strong action in Europe, where it lost $582 million in the fourth quarter. ...

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10 Best Used Cars For Under $8,000

Thu, 16 Feb 2012 10:38:27 EST

DETROIT MainStreet) -- Used-car prices are high and trending higher, but bargains do exist.

For instance, the 2002 Infiniti G20 was a luxury car, yet it goes for an average price of $5,965, according to Kelley Blue Book. The car is "a diamond among used-car jewels," says Jason Allan, kbb.com managing editor. It is cheap, he says, because "it wasn't a big car and people are a little afraid to buy something they're not familiar with." Ford's Crown Victoria stands out amid a lot of fuel-efficient small used cars made by Japanese and Korean manufacturers. ...

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Alaska Air Says CEO to Retire, Stock to Split (Update 1)

Thu, 16 Feb 2012 09:41:42 EST

SEATTLE (TheStreet) -- Alaska Air said CEO Bill Ayer, who is 57, will retire in May after 30 years with the carrier.

Ayer spent 10 years as CEO, overseeing a successful turnaround for the West Coast carrier that is now the seventh largest U.S. airline. Alaska had the best share performance among U.S. carriers in 2011. It has leveraged off its dominance at its Seattle hub to become a highly prized partner for various carriers, but has discouraged continuing merger speculation. Alaska Airlines CEO Bill Ayer

Ayer, who will remain chairman, said he will retire at the company's annual meeting on May 15 and be replaced as CEO of Alaska Air Group by President Brad Tilden, who is 51. ...

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GM Misses By a Penny, Takes Hit in Europe

Thu, 16 Feb 2012 08:00:21 EST

DETROIT (TheStreet) -- General Motors missed fourth-quarter earnings estimates by a penny as it lost money in both Europe and South America.

During the quarter, including items, the automaker earned $500 million, or 28 cents a share, including a net loss from special items of 11 cents. Excluding items, the company earned 40 cents a share. Analysts surveyed by Thomson Reuters had estimated 41 cents.

Revenue rose 3% to $38 billion, in line with estimates. ...

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AMR Posts Fourth-Quarter Loss of $209 Million

Wed, 15 Feb 2012 18:01:13 EST

DALLAS (TheStreet) - AMR said Wednesday it lost $209 million in the fourth quarter and $1.1 billion for the year, both periods when most other carriers reported profits.

Excluding items, AMR, which is operating under Chapter 11 bankruptcy protection, the $209 million fourth quarter loss compared with a loss of $69 million in the same quarter a year earlier. The parent company of American Airlines paid $394 million more for fuel than it would have paid at the prices that prevailed a year earlier.

Including items, the loss was $1.1 billion. Special items totaled $768 million, which included $725 million in non-cash charge resulted from writing down the value of aircraft, primarily a $717 million write down for Boeing 757s. The company also recognized $118 million in reorganization items, primarily due to the rejection of 24 leased aircraft, including 20 MD-80s. ...

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GM Investors Await Word on Europe Losses

Wed, 15 Feb 2012 10:58:42 EST

DETROIT (TheStreet) -- As GM prepares to report fourth-quarter earnings Thursday, Europe's problems continue to plague U.S. automakers and spook their investors.

Europe's impact is being overshadowed by continuing gains in the U.S., but GM's European losses and its response to them are expected to shape the market's reception to the company's fourth-quarter report. Analysts surveyed by Thomson Reuters expect earnings of 41 cents, down from 52 cents in the same quarter a year earlier. GM continues to be plagued by weaknesses in the European market.

In midmorning trading Wednesday, GM shares were down 14 cents at $25.26. So far this year, GM shares are up 21%. ...

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JetBlue's Surprise: Florida, Florida, Florida

Tue, 14 Feb 2012 15:49:39 EST

NEW YORK (TheStreet) -- After paying $72 million for eight slot pairs at congested LaGuardia Airport, JetBlue is unexpectedly committing the slots to five Florida destinations.

Florida routes are generally considered to be low-yield routes flown for leisure travelers, who aren't overly choosy as long as they can get low fares. Typically, airlines use high-value, limited access airports such as LaGuardia for markets (such as Boston and Chicago) where business travelers want frequent service and are willing to pay for it. JetBlue plans to use valuable LaGuardia slots to fly leisure routes to Florida, rather than higher-yield business routes.

JetBlue said Monday that, starting June 11, it will add three LaGuardia destinations: Fort Myers, Sarasota and Tampa (twice daily). Additionally, it will add additional flights to Fort Lauderdale, Orlando (twice daily) and West Palm Beach. The carrier already serves all six destinations from Kennedy International Airport. Florida is "where we see the most opportunity and demand," JetBlue spokesman Bryan Baldwin says. ...

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5 Ways Ford Made the 2013 Fusion Sleeker

Tue, 14 Feb 2012 08:45:00 EST

DETROIT TheStreet) -- Not to say the 2012 Fusion has been unsuccessful, but Ford took a new approach to the 2013 version, seeking not only upgraded styling but also improved aerodynamics and fuel efficiency. In 2012, Fusion had a good year, selling 248,067 units, making it Ford's best-selling car. But the brutally competitive midsized sector requires constant updating. Toyota has a new Camry, GM will soon have a new Malibu, Honda unveiled a new Accord at the Detroit Auto Show and Hyundai and Nissan also have popular vehicles.

So every edge counts, particularly the improvement in gas mileage that enhanced aerodynamic engineers will be able to provide.

"When we looked at aerodynamics, we attacked the entire vehicle," says Steve Parks, lead aerodynamics engineer for the Fusion. "We wanted to make sure we were squeezing all the blood we can from the turnip." ...

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6 Secrets of Delta's On-Time Gains

Mon, 13 Feb 2012 07:30:00 EST

ATLANTA (TheStreet) -- For Delta, a 2008 merger with Northwest helped ensure its place among the world's leading airlines.

Unfortunately, it was accompanied by a sharp drop in performance. Delta efficiency fell off after a merger with Northwest, and the airline worked hard to restore its ontime performance.

Before the merger, "both airlines were doing fairly well," says Dave Holtz, vice president of operations control and a 32-year Delta veteran. But complications ensued due to "the complexity of the networks and putting everything together. No matter which way you go with the process, there's a lot of training associated with the new policies of an airline." ...

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3 Terrible Cars We Love Anyway

Fri, 10 Feb 2012 06:00:00 EST

DETROIT MainStreet) -- The world is so big and so full of so many different types of people that even the Chevrolet Vega has its fans.

We know this because we received lots of emails and comments after writing a story last month listing the 10 Worst Cars of All Time, using the top ten from a list of the 100 worst cars compiled by Edmunds.com

GM's Vega, along with the Aztek and Ford's Edsel, are on lists of the 10 worst cars, but they have their loyalists. ...

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Ford Board Has Obama Insurance: Huntsman

Thu, 09 Feb 2012 12:24:56 EST

DETROIT (MainStreet) -- At a time when GM and Chrysler are being lambasted by conservatives as fellow travelers with the Obama administration, Ford is keeping its distance.

On Thursday, Ford said that Jon Huntsman, a prominent Republican who last month dropped out of the race to be the party's presidential nominee, was appointed to its board. Before being a presidential candidate, Jon Huntsman had excellent credentials as a Republican and in China, a growth market for Ford.

On Monday, Chrysler's "Halftime in America" Super Bowl ad, applauded by many, was attacked by some Republicans as being pro-Obama and pro-auto industry bailout. In the ad, actor Clint Eastwood -- certainly no Obama fan -- proclaims that the U.S. should take a lesson from Detroit, which toughed it out and emerged stronger after the recession. ...

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Ford Transition Begins as Two Top Execs Retire

Thu, 09 Feb 2012 10:24:59 EST

DETROIT (TheStreet) -- Two prominent longtime Ford executives, both of whom played key roles in the automaker's turnaround under CEO Alan Mulally, have announced retirements effective April 1.

CFO Lewis Booth, a 34-year veteran of the company, and Derrick Kuzak, group vice president for global product development, a 33-year veteran, will be leaving, Ford said Thursday. Booth healed the company's ailing balance sheet while Kuzak implemented mulally's One Ford plan, overseeing development of a series of products built on global platforms. CFO Lewis Booth, a 34-year veteran, is one of two Ford executives retiring in April.

The turnover is viewed as a sign Ford is assembling the team that will lead Ford after Mulally retires, whenever that is. Mulally turns 67 in August. Booth is 63 and Kuzak is 60. ...

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Chrysler Ad Becomes Political Football

Tue, 07 Feb 2012 15:35:26 EST

DETROIT MainStreet) -- Who would have thought that, as the result of a compelling Super Bowl ad featuring an iconic actor, Chrysler would become a political punching bag?

Surprisingly, after the automaker somehow managed to follow the most talked-about ad of the 2011 Super Bowl by making the most talked-about ad of the 2012 Super Bowl, that is what happened, as some Republicans attacked the ad as promoting President Barack Obama's re-election campaign. An ad featuring Clint Eastwood thrust Chrysler into the world of bitter politics.

"People are always going to spin things for their own benefit," said Rebecca Lindland, director of research for IHS Automotive. "It is absolutely an unintended consequence. But there are often unintended consequences in the world of politics." ...

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