Investor Warren Buffett buys 10 million shares of GM
Legendary investor Warren Buffett's Berkshire Hathaway disclosed today that it had acquired 10 million shares of General Motors' common stock.
Berkshire Hathaway purchased 10 million shares for a total investment of $256.6 million. Those shares were worth $214.2 million when the market closed today.
It was not immediately clear whether Buffett himself was involved in the investment, or whether it was made by one of his associates.
Buffett is known for making big bets on companies he views as undervalued, although the GM investment would be on the smaller side for the Nebraskan investor nicknamed the "Oracle of Omaha."
"It confirms the investment thesis that we've had on GM," Morningstar analyst Richard Hilgert said. "We definitely see some value there, just as Mr. Buffett does, and hopefully this will draw a little more attention to the stock from investors."
GM's stock, which fell less than 1% today to close at $21.42, rose nearly 4% in after-hours trading.
GM spokesman Jim Cain declined to comment, saying the automaker typically does not discuss specific investors.
GM shares were priced at $33 during the company's initial public offering in November 2010.
UBS Investment Bank analyst Colin Langan said in a research note Monday that he still recommends buying GM shares with a price target of $30.
A Berkshire spokeswoman was not immediately available to comment.
Holden export announcement imminent
Holden is expected to confirm "very soon" it will begin exporting thousands of Commodores to the US from 2013.
Holden’s worst kept secret – that it will [URL="http://news.drive.com.au/drive/motor-news/odds-firm-on-commodore-export-program-20120426-1xmem.html"]begin exporting Commodores to the United States next year – is about to be officially confirmed.
Industry insiders have told Drive a major announcement from Holden is expected "very soon", with one outlet predicting an announcement will be made on Friday. The maker is expected to confirm that the Commodore will be exported to the US where it will be sold as a [URL="http://news.drive.com.au/drive/motor-news/holdens-ss-badge-registered-in-us-20120420-1xbdy.html"]Chevrolet SS, or SuperSport.
The export deal is expected to be worth hundreds of millions of dollars and form the basis for a crucial new V8-powered performance model for Chevrolet. It could also expand to involve ute and sportwagon variants.
The major export announcement will be welcome news for Holden executives and politicians who have borne the brunt of criticism of continued government handouts to the car industry, which openly admits it would not survive without such financial assistance.
The new Chevrolet SS Performance - as the exported Commodore is likely to be known - will also form the basis for Chevrolet's Nascar race car from 2013, which is currently undergoing testing and is expected to be revealed later this year.
Chevrolet is keen to better align the model it races in the hugely popular Nascar race series with a performance model it sells on the road; the current Impala that is marketed through Nascar is a volume-selling family vehicle rather than a performance car.
Longer term, recent rumours suggest the Commodore and the Chevrolet equivalent could ultimately be produced in North America and exported back to Australia as part of a major restructure of Holden's local operations as GM shifts its production focus to global vehicles rather than unique models for individual markets.
Tellingly, when recently committing to more than $1 billion of investment in local manufacturing chairman and managing director Mike Devereux shied away from questions about what cars it would produce locally from about 2017, when the soon-to-be-updated VF Commodore is expected to finish.
Holden is also playing its cards super close to its chest, preferring to leave people guessing as to whether or not the Commodore is dead - partly because it likely hasn’t finalised long term details of its local operations.
Holden is believed to have pulled forward the imminent export announcement of the Commodore export program due to numerous leaks and well-informed rumours, including one from GM's own telematics system known as OnStar; its website recently - and briefly - announced a new "2013 SS Performance" model.
Despite being the face of Chevrolet's Nasar challenger, the V8-only Commodore-based model is expected to be relatively low volume - and much fewer than the 50,000-odd Pontiacs predicted as part of the previous Commodore export deal.
The car that will be exported will be based on the new VF Commodore that will get revised front and rear styling, updated engines and a lighter body that utilises more lightweight aluminium.
The Chevrolet version will obviously wear the brand’s bowtie badge and sport mild styling tweaks - as well as having the steering wheel on the left-hand side.
The genesis of the VF Commodore export program is believed to have been put in place by former Holden boss and now chief of General Motors' North American operations, Mark Reuss.
Reuss recently told Drive that large cars have a long term future and were a crucial part of GM's global mix.
Holden is already exporting the longer, more spacious Commodore-based Caprice sedan to the US where it is sold as police and detective cars, known as PPV, or Police Patrol Vehicle.
But sales have been sluggish as police remain loyal to the ageing - and now discontinued - Ford Crown Victoria, with some dealers now selling the police-ready vehicles directly to private buyers as near-new used vehicles.
Between 2007 and 2009 Holden also exported the Commodore to the US where it was sold as a Pontiac G8.
But the program was killed off when the Global Financial Crisis took hold, ultimately leading to GM's bankruptcy and the axing of the once popular Pontiac brand.
Seventy Holden cars with latest automotive technology provided
Twenty-one teams taking part in over 60 road rescue scenarios
Holden has donated 70 cars to the Australasian Road Rescue Organisation (ARRO) to help hone the emergency response skills of hundreds of road rescue workers from around the world taking part in the annual training event.
The vehicles, previously used by Holden for engineering evaluation and not for public sale, include a range of Holden vehicles and body styles such as Commodore, Caprice Cruze and Captiva.
Each vehicle will be used by ARRO to provide crash scenarios for participants in the 2012 Australasian Rescue Challenge in Hobart, from 26 to 29 April 2012.
Teams will take part in simulated emergency situations all designed to improve their emergency response skills including rescue and medical treatment for injured motor vehicle occupants.
Director of Government Relations and Internal Communications, Matt Hobbs said Holden was very proud of its long-term association with ARRO.
"As we all know, refreshing the skills of the road rescue teams with the latest technology is critical. That's why over the last 12 years Holden has donated nearly 1000 vehicles, giving the emergency services access to the most recent models out on the road," Mr Hobbs said.
"We believe that safety on our roads comes down to four factors; safe driving, safe cars, safe roads and the everyday heroes who have been trained to save lives.
"It is the outstanding work of these men and women that goes a long way towards reducing the road toll and it's great for Holden to play a role in their training."
Holden Specialist Engineer, Derek Scott, will also be on hand to give expert advice on the latest vehicle safety systems. He will observe teams participating in crash scenarios to provide valuable feedback to the Holden Safety Engineering group.
Executive Officer of ARRO, Paul Jerome said Holden's involvement was a vital component to the success of the training event.
"Holden's support of this program gives our road rescue teams the valuable opportunity to get real hands on experience using new vehicles with the latest automotive technology. There is no other manufacturer in the world that provides this level of support, with both vehicles and technical expertise," said Mr Jerome.
"The end result means the teams are better equipped with outstanding skills and techniques, which can make the difference at a real life accident scene.
ARRO:
ARRO is the peak body in Australasia for the development and exchange of information, knowledge and skills in road rescue. Its membership includes individuals and organisations in the emergency services such as fire services, state emergency services and ambulance services.
Holden:
The history of Holden dates back to 1856 when it started as a saddlery business in South Australia. Today, Holden is one of only seven fully-integrated global General Motors operations that designs, builds and sells vehicles for Australia and the world.
[LEFT][color=#000000][font=Arial]CARMAKER Holden may be hatching a plan to bring back the legendary Torana.
Wheels magazine says the idea of a new mid-sized, real-wheel-drive that captures the same spirit as its namesake, is germinating deep within the company as Holden contemplates the longer-term outlook for its manufacturing operations.
The magazine says while the company recognises that its future lies with building front-wheel-drive vehicles, it is also conscious of its sporting, rear-drive heritage.
It believes the concept of a new Torana lies in a localised version of a US model, the Chevrolet Code 130R, which was shown as a concept at the Detroit motor show in January.
While not yet approved for production, the Chevrolet is based around the idea of a compact rear-wheel-drive coupe with a four-cylinder, turbocharged engine that could also have enough room under the bonnet to take a V6 or even a V8.
If the car is approved for the US, the chances of it also coming to Australia are good, Wheels says.
The idea also has some support within the company with General Motors executive director of international operations Mike Simcoe enthusiastic about the prospect.
"Would I like to have a compact rear-wheel-drive performance coupe like that in any portfolio? Yes," Mr Simcoe told Wheels.
"Given that Australians - and particularly Australians who buy Holdens - are essentially enthusiasts and they enjoy driving agility and the character of rear-wheel-drive, then it makes sense."
Mr Simcoe also appears keen about the idea of calling it a Torana, saying it would be doing all the same things that the original Toranas did back in the 1970s.
At the same time the man who was the design chief at Holden when the VT and VE Commodores were developed is also cautious.
He told Wheels that the worst thing a carmaker could do was devalue a heritage badge by sticking it on an unworthy car.
"But judging by what we know so far, Code 130R doesn't fall into that category," the magazine said.
This is not just another photo of a camouflaged car, it's next year's new Holden Commodore – to be known as the VF Commodore - and the images reveal more than you might expect.
Spy photos published in Wheels magazine show us for the first time the next Commodore will be an update of the current car - not an all-new model.
When the VE Commodore was released in 2006 the then boss of Holden Denny Mooney said the VE generation was expected to run "five maybe six years" before being replaced with a cleansheet design.
But a sequence of significant events has since conspired against the Commodore, making the current generation destined to be one of the longest-running models in Commodore history, and possibly the last as we know it.
The global financial crisis, the bankruptcy and restructure of General Motors, the axing of the Commodore,s US export program and the continuing decline in large-car sales globally mean Holden has not been able to justify investment in big changes.
Although the VE has had a number of minor updates since it was released, it will be seven years old before it is replaced by the VF Commodore in 2013 as a 2014 "model-year" - and even then the only visual changes to the body will be at the front and rear.
Significantly, the core of the car - the doors and roof - will remain unchanged. Even the mirror housings are the same as before.
By comparison, it took just five years for similar sheetmetal changes on the previous generation Commodore, when the model switched from VX to VY in 2002, with a new front and rear-end appearance. And even that car got new mirrors.
Given that the visual changes are relatively minor, Holden is taking extraordinary lengths to ensure the appearance of the next Commodore remains under wraps - even as the car undergoes stability control testing on ice roads in far away Sweden.
Holden has fitted hand-made temporary headlights and tail-lights under the camouflage of this test mule to keep fans guessing.
However, Holden is also working on changes beneath the surface that will trim weight from the next Commodore and save fuel.
The former Federal Minister for Industry, Kim Carr, and Holden boss Mike Devereux revealed last year the VF Commodore will use aluminium for panels such as the bonnet, said to trim 8kg. The magazine also reports that other structural changes will trim a further 30kg from the car.
Photos show Holden has taken some of the bulge out of the Commodore's wheel arches to help it slip through the air more efficiently at freeway speeds.
Last year Devereux said the next Commodore would sip about 10 per cent less fuel than current levels, which would edge consumption close to or below 8L/100km, similar to today's medium-sized sedans and compact soft-roaders.
Meantime Drive understands the next Commodore will also embrace a new electronics system that controls most functions in the car, bringing the Commodore in line with other models in the GM world and opening the vehicle up to new technology such as centre-mounted airbags, a self-parking system and digital radio.
The next Commodore is also understood to be central to reviving Holden’s US export hopes.
Last month, Chevrolet announced it would enter a new model in next year's Nascar racing series, and that it would have a rear-drive sports sedan in showrooms to coincide with the campaign.
The statement prompted speculation the likely candidate for this car would be the Commodore, badged there as a Chevrolet.
The former boss of Holden Mark Reuss, now in charge of GM in North America, told Drive last year: "Somewhere along the way you'll get a pretty big Commodore change and if we did (revive the Commodore export program to North America) we would integrate it with those changes."
[/CENTER]
