Lending to automobile dealerships presents several credit risk management issues for lenders. Large dealer groups have greater dollar exposure and complexity due to operating multiple franchises across various regions. Small dealers may offer better returns but also have vulnerabilities due to sole ownership and reliance on local markets. When evaluating loans, lenders must consider factors like a dealership's financial controls, ownership structure, management experience, product mix, and regional economic conditions to determine viability. Close scrutiny is important as the auto industry continues consolidating.
Lending To Automobile Dealers Credit Risk Issueserikday
Lending to auto dealerships presents several credit risk management issues for lenders. Large dealer groups have greater dollar exposure and complexity due to operating multiple franchises across various regions. Small dealers may offer better returns but also have vulnerabilities due to sole ownership and reliance on local markets. When evaluating loans, lenders must consider factors like a dealer's financial controls, ownership structure, management experience, product mix, and regional economic exposure to understand the risks. Ongoing changes in the auto industry also impact dealers through issues such as high inventory, lower margins, and consolidation trends.
Get In The Drivers Seat Of Lending To Automobile Dealershipserikday
This article discusses key issues for lenders to consider when lending to automobile dealerships. It outlines the types of financing requests dealerships typically make, including floorplan financing, mortgages, and working capital loans. It also discusses important factors for lenders to evaluate such as the dealership ownership structure, franchise mix, processing days, advance rates and collateral requirements. The article emphasizes the importance of understanding the dealership's operations, financials, ownership, and managing credit risks when lending to automobile dealerships.
The document discusses the history of incentive use in the automotive industry from the 1990s to present. It notes that incentive spending grew dramatically from the mid-1990s to 2004, helping new vehicle sales reach record highs but also depressing used vehicle prices. Manufacturers began reducing incentive use in the mid-2000s in response to negative impacts on used vehicle values. Incentive spending has declined since but risks rising again with increased production capacity if sales growth levels off.
General Motors Workout Case Jan Adriaanse 2009 Insoljanadriaanse
General Motors is facing severe financial difficulties due to the economic downturn and shrinking auto sales. GM requested a restructuring plan from a specialized firm to negotiate with stakeholders. The plan must critically review GM's current ideas, provide a long-term viability plan including an operational turnaround, negotiate a step-by-step stakeholder plan, and advise on a Chapter 11 reorganization or out-of-court workout. Limited data was available due to time constraints, requiring a "quick and dirty" preliminary plan to share with major stakeholders that afternoon.
Ford has reported an uptick in sales despite current industry trends of uncertainty. While the auto industry has shown signs of recovery since the government bailouts, experts believe that car ownership may have peaked in wealthy countries like the US. Long-term factors like high fuel/insurance costs, increased urbanization, and changing social trends among youth suggest that both car ownership levels and miles driven will not continue to grow at historical rates and may start to decline.
International marketing strategies of foreign companies in the United States are discussed. Japanese companies like Toyota and Sony faced challenges from American competitors but responded strategically through legal challenges and emphasis on quality. Toyota surpassed General Motors in the US through lower costs, higher quality, and focus on customer satisfaction. South Korean companies Samsung and LG also focus on innovative products and flooding the market.
Lending To Automobile Dealers Credit Risk Issueserikday
Lending to auto dealerships presents several credit risk management issues for lenders. Large dealer groups have greater dollar exposure and complexity due to operating multiple franchises across various regions. Small dealers may offer better returns but also have vulnerabilities due to sole ownership and reliance on local markets. When evaluating loans, lenders must consider factors like a dealer's financial controls, ownership structure, management experience, product mix, and regional economic exposure to understand the risks. Ongoing changes in the auto industry also impact dealers through issues such as high inventory, lower margins, and consolidation trends.
Get In The Drivers Seat Of Lending To Automobile Dealershipserikday
This article discusses key issues for lenders to consider when lending to automobile dealerships. It outlines the types of financing requests dealerships typically make, including floorplan financing, mortgages, and working capital loans. It also discusses important factors for lenders to evaluate such as the dealership ownership structure, franchise mix, processing days, advance rates and collateral requirements. The article emphasizes the importance of understanding the dealership's operations, financials, ownership, and managing credit risks when lending to automobile dealerships.
The document discusses the history of incentive use in the automotive industry from the 1990s to present. It notes that incentive spending grew dramatically from the mid-1990s to 2004, helping new vehicle sales reach record highs but also depressing used vehicle prices. Manufacturers began reducing incentive use in the mid-2000s in response to negative impacts on used vehicle values. Incentive spending has declined since but risks rising again with increased production capacity if sales growth levels off.
General Motors Workout Case Jan Adriaanse 2009 Insoljanadriaanse
General Motors is facing severe financial difficulties due to the economic downturn and shrinking auto sales. GM requested a restructuring plan from a specialized firm to negotiate with stakeholders. The plan must critically review GM's current ideas, provide a long-term viability plan including an operational turnaround, negotiate a step-by-step stakeholder plan, and advise on a Chapter 11 reorganization or out-of-court workout. Limited data was available due to time constraints, requiring a "quick and dirty" preliminary plan to share with major stakeholders that afternoon.
Ford has reported an uptick in sales despite current industry trends of uncertainty. While the auto industry has shown signs of recovery since the government bailouts, experts believe that car ownership may have peaked in wealthy countries like the US. Long-term factors like high fuel/insurance costs, increased urbanization, and changing social trends among youth suggest that both car ownership levels and miles driven will not continue to grow at historical rates and may start to decline.
International marketing strategies of foreign companies in the United States are discussed. Japanese companies like Toyota and Sony faced challenges from American competitors but responded strategically through legal challenges and emphasis on quality. Toyota surpassed General Motors in the US through lower costs, higher quality, and focus on customer satisfaction. South Korean companies Samsung and LG also focus on innovative products and flooding the market.
1) The 2008-2010 automotive crisis was caused by a global financial downturn that weakened the industry and made trucks and SUVs less profitable.
2) High healthcare costs, the credit crunch, and demand for more efficient vehicles also contributed to the industry's problems.
3) The crisis forced GM and Chrysler to restructure through bankruptcy, closing plants and reducing costs. This made them more competitive.
The document analyzes Under Armour (UA) stock. It finds that UA has high revenue growth but low profit margins due to high costs. A DuPont analysis shows UA has a lower return on equity than competitors like Nike and Lululemon. Additionally, UA has a high price-to-earnings ratio, signaling it may be overvalued relative to growth. The document recommends selling UA stock.
This paper analyzes the financial health and default risk of three automotive companies - Volkswagen, Ford, and GM - using contingent claims analysis and calculates their distance-to-default. GM had the highest debt levels and was at the highest risk of default, while Volkswagen had the lowest debt and was the healthiest. However, the market volatility during the analysis period made distance-to-default estimates inconsistent. Government support has kept GM and the industry from widespread defaults despite many companies' weak fundamental positions.
The document discusses the steps for an apparel retail company to access the US market. It begins with background on trade agreements lowering barriers and increasing US consumer demand for imported apparel. It then discusses 4 steps:
1) Analyzing the large and growing US GDP indicating purchasing power.
2) Noting US investment in infrastructure like roads important for transporting goods from Mexico.
3) The large and competitive US apparel industry worth $342B by 2016, with strategies like niche marketing important.
4) Understanding the stable political environment and diverse cultural influences in the US which allow foreign investment.
Potential benefits of the US market include its large population offering a ready market, growing e-commerce
The document discusses strategies for marketing during an economic recession. It suggests that reducing marketing budgets can be a "false economy" as it may slow a brand's growth and require more spending to regain lost market share after the recession. It recommends maintaining communication with consumers to sustain brand relationships. It also notes opportunities in recessions like cheaper media costs allowing for higher share of voice, which can translate to increased market share for brands who invest while competitors cut back.
The document summarizes Jordan Rohan's thoughts on recent macroeconomic trends and the digital media industry:
1) The global economic recession is having widespread negative impacts, including falling public market valuations, tight credit, real estate price declines, and rising unemployment.
2) Within digital media, portals are declining while social media grows, but monetization remains a challenge. Ad networks have proliferated but face issues around oversupply and consolidation may be needed.
3) Predictions for 2009 include Google continuing to gain share, potential acquisition targets, and an upturn in stock prices after the first quarter.
This document analyzes the potential impacts of President Trump's policies on General Motors. It first provides an overview of Trump's presidency and some of his key policies, such as renegotiating NAFTA, imposing border taxes, and lowering corporate taxes. It then analyzes the automotive industry and how Trump's policies could affect Porter's five forces. Finally, it assesses General Motors specifically and how political risks from Trump's policies could impact the company's financial forecasts and valuation. The overall recommendation is to weak hold or moderately sell GM stock due to risks from political unpredictability under President Trump.
Automakers like GM, Ford and Chrysler have struggled with having too many dealerships, supporting over 15,000 dealers nationwide. This is expensive, costing the automakers over $400 extra per vehicle. Consolidating brands and closing underperforming dealerships could save billions. Successful examples like Mercedes reduced dealers in the 1990s from over 400 to 310, increasing average annual sales per dealership from 144 to over 600 and boosting overall sales and profits. Experts say the Detroit automakers need to aggressively cut their dealer networks by around 40% to improve sales and profits.
General Motors announced plans to eliminate 25,000 manufacturing jobs in the US by 2008 in order to cut costs by $2.5 billion annually. This would reduce GM's hourly workforce by 23% as the company struggles with declining market share and $1.3 billion in losses in the first quarter of 2005. In addition to job cuts, GM is demanding concessions from the UAW to cut healthcare costs for workers and retirees as one of its biggest expenses is healthcare. Analysts are skeptical that these cuts will be enough to address GM's deep-rooted problems as its market share, profitability and stock value continue to lag behind competitors like Toyota.
This white paper summarizes current trends in mergers and acquisitions (M&As) within the residential real estate brokerage industry. It notes that M&A activity declined significantly from 2006-2010 due to the housing market downturn. The paper predicts a slow recovery in both housing and M&As from 2010-2012. Key factors that will impact M&As include available capital for deals, management talent needed to integrate acquisitions, and personal/emotional issues for sellers considering a sale. Buyer valuations of firms are affected by competition, sales professional retention, and deal structure/terms will be less favorable if the price is higher.
The document discusses insurance industry leaders' predictions for 2009 in light of the financial crisis. They predict:
- Sales will be flat or increase slightly while profits will be lower. Term and Medicare products may see increases while variable products will be weak.
- The financial crisis will lead to some industry consolidation and lower earnings. It may cause companies to rethink product guarantees. Insurers will focus on restoring consumer confidence.
- Products with guarantees like universal life and fixed annuities will perform better as consumers seek stability. Variable products may slow as markets remain volatile. Insurers will focus on hedging risks from guarantees in variable annuities.
AMCON Distributing Co. is undervalued based on various valuation methodologies. It has reduced debt significantly over the past four years through paying down its credit facility. AMCON has a strong market presence distributing products to over 4,300 retail outlets across 18 states. The company is led by an experienced management team that has improved operations and financial position. However, AMCON operates on thin margins in a competitive industry and remains dependent on its credit facility.
The document discusses how marketers should rethink their strategies in response to the changing economic conditions of the current recession. It suggests that marketers should:
1) Rethink their assumptions about historically profitable customer segments, markets, and advertising vehicles, as economic impacts are affecting these in unexpected ways.
2) Focus on emerging pockets of customer profitability rather than past expectations.
3) Prioritize the most effective marketing and sales approaches for reaching profitable customers in the current environment.
Ford's US retail market share dropped nearly 1 percentage point in 2007, losing about half of an assembly plant's production. Meanwhile, Toyota and Honda gained market share while GM stabilized. The article discusses Ford, GM, Toyota, and Honda's US retail market shares in 2007 and notes that Detroit automakers captured less than half of the US car and truck market for the second year in a row. It also summarizes comments from an industry analyst praising GM's performance at stabilizing its retail share.
The document discusses forecasts for the insurance industry in 2010 from various industry leaders. They predict modest growth in life insurance sales of 3-5% but flat or negative growth for annuities and profits. Products with guarantees will be strongest. Consolidation may continue due to economic challenges including low interest rates and investment losses. The outlook is cautiously optimistic but the recovery will be gradual.
This document provides an analysis of Dow Jones & Company. It recommends buying Dow Jones stock, assigning it an intrinsic value of $44.82 based on a three-stage cash flow model, providing a 13% margin of safety from the current market price of $39.63. It then discusses challenges facing Dow Jones, including deteriorating performance at its Telerate division, shareholder pressure for improved returns, and secular growth in its business publishing unit.
This document provides an analysis of Walmart's financial ratios from 2013 to 2014 based on information from their annual reports. It finds that most of Walmart's profitability and stability ratios declined over this period, indicating weaker performance. Specifically, return on equity and net profit margin decreased, while debt and expenses rose. Based on this trend and Walmart's P/E ratio of 15 years, the document recommends against investing in Walmart as its financial position may continue to weaken.
The document provides an executive summary of franchise sales and locations for 2007 compared to 2006. Some of the key findings include:
- Worldwide franchise sales increased 4.76% to $443.8 billion in 2007 from $423.6 billion in 2006.
- The number of total operating locations decreased slightly by 0.38% while international locations grew by 2.08%.
- Convenience stores like 7-Eleven, Circle K, and ampm saw strong sales growth, buoyed by high gas prices.
- Casual dining restaurants also fared well and added new chains to the top 200 list, with many showing substantial growth.
- Hotels performed well despite the slowing economy
The Most Powerful Online Tool For Influencing B2 B Technology BuyersMarCom Ink
The document discusses the powerful online tool of industry peer blogs for influencing B2B technology buyers. It provides examples of how one company used peer blogs to drive a 30% product trial conversion rate through tactics like offering valuable content to bloggers, building personal relationships, providing reciprocal links, and rewarding top performers. However, 90% of marketers make the mistake of engaging bloggers through self-promotional comments that lack value and annoy readers. A survey found that while RSS feeds are important to technology buyers, 70% of B2B tech companies do not use them at all.
The document summarizes the new features and capabilities of Norton 360 v3.0, Norton Utilities, and Norton Internet Security for Mac. Key highlights include Norton 360's one-minute installation time, improved performance and reduced system resource usage, Norton Insight's new security model, and Norton Safe Web for website ratings. Norton Utilities focuses on improving performance, stability, and privacy. Norton Internet Security for Mac provides antivirus, firewall, and identity protection for Mac users.
1) The 2008-2010 automotive crisis was caused by a global financial downturn that weakened the industry and made trucks and SUVs less profitable.
2) High healthcare costs, the credit crunch, and demand for more efficient vehicles also contributed to the industry's problems.
3) The crisis forced GM and Chrysler to restructure through bankruptcy, closing plants and reducing costs. This made them more competitive.
The document analyzes Under Armour (UA) stock. It finds that UA has high revenue growth but low profit margins due to high costs. A DuPont analysis shows UA has a lower return on equity than competitors like Nike and Lululemon. Additionally, UA has a high price-to-earnings ratio, signaling it may be overvalued relative to growth. The document recommends selling UA stock.
This paper analyzes the financial health and default risk of three automotive companies - Volkswagen, Ford, and GM - using contingent claims analysis and calculates their distance-to-default. GM had the highest debt levels and was at the highest risk of default, while Volkswagen had the lowest debt and was the healthiest. However, the market volatility during the analysis period made distance-to-default estimates inconsistent. Government support has kept GM and the industry from widespread defaults despite many companies' weak fundamental positions.
The document discusses the steps for an apparel retail company to access the US market. It begins with background on trade agreements lowering barriers and increasing US consumer demand for imported apparel. It then discusses 4 steps:
1) Analyzing the large and growing US GDP indicating purchasing power.
2) Noting US investment in infrastructure like roads important for transporting goods from Mexico.
3) The large and competitive US apparel industry worth $342B by 2016, with strategies like niche marketing important.
4) Understanding the stable political environment and diverse cultural influences in the US which allow foreign investment.
Potential benefits of the US market include its large population offering a ready market, growing e-commerce
The document discusses strategies for marketing during an economic recession. It suggests that reducing marketing budgets can be a "false economy" as it may slow a brand's growth and require more spending to regain lost market share after the recession. It recommends maintaining communication with consumers to sustain brand relationships. It also notes opportunities in recessions like cheaper media costs allowing for higher share of voice, which can translate to increased market share for brands who invest while competitors cut back.
The document summarizes Jordan Rohan's thoughts on recent macroeconomic trends and the digital media industry:
1) The global economic recession is having widespread negative impacts, including falling public market valuations, tight credit, real estate price declines, and rising unemployment.
2) Within digital media, portals are declining while social media grows, but monetization remains a challenge. Ad networks have proliferated but face issues around oversupply and consolidation may be needed.
3) Predictions for 2009 include Google continuing to gain share, potential acquisition targets, and an upturn in stock prices after the first quarter.
This document analyzes the potential impacts of President Trump's policies on General Motors. It first provides an overview of Trump's presidency and some of his key policies, such as renegotiating NAFTA, imposing border taxes, and lowering corporate taxes. It then analyzes the automotive industry and how Trump's policies could affect Porter's five forces. Finally, it assesses General Motors specifically and how political risks from Trump's policies could impact the company's financial forecasts and valuation. The overall recommendation is to weak hold or moderately sell GM stock due to risks from political unpredictability under President Trump.
Automakers like GM, Ford and Chrysler have struggled with having too many dealerships, supporting over 15,000 dealers nationwide. This is expensive, costing the automakers over $400 extra per vehicle. Consolidating brands and closing underperforming dealerships could save billions. Successful examples like Mercedes reduced dealers in the 1990s from over 400 to 310, increasing average annual sales per dealership from 144 to over 600 and boosting overall sales and profits. Experts say the Detroit automakers need to aggressively cut their dealer networks by around 40% to improve sales and profits.
General Motors announced plans to eliminate 25,000 manufacturing jobs in the US by 2008 in order to cut costs by $2.5 billion annually. This would reduce GM's hourly workforce by 23% as the company struggles with declining market share and $1.3 billion in losses in the first quarter of 2005. In addition to job cuts, GM is demanding concessions from the UAW to cut healthcare costs for workers and retirees as one of its biggest expenses is healthcare. Analysts are skeptical that these cuts will be enough to address GM's deep-rooted problems as its market share, profitability and stock value continue to lag behind competitors like Toyota.
This white paper summarizes current trends in mergers and acquisitions (M&As) within the residential real estate brokerage industry. It notes that M&A activity declined significantly from 2006-2010 due to the housing market downturn. The paper predicts a slow recovery in both housing and M&As from 2010-2012. Key factors that will impact M&As include available capital for deals, management talent needed to integrate acquisitions, and personal/emotional issues for sellers considering a sale. Buyer valuations of firms are affected by competition, sales professional retention, and deal structure/terms will be less favorable if the price is higher.
The document discusses insurance industry leaders' predictions for 2009 in light of the financial crisis. They predict:
- Sales will be flat or increase slightly while profits will be lower. Term and Medicare products may see increases while variable products will be weak.
- The financial crisis will lead to some industry consolidation and lower earnings. It may cause companies to rethink product guarantees. Insurers will focus on restoring consumer confidence.
- Products with guarantees like universal life and fixed annuities will perform better as consumers seek stability. Variable products may slow as markets remain volatile. Insurers will focus on hedging risks from guarantees in variable annuities.
AMCON Distributing Co. is undervalued based on various valuation methodologies. It has reduced debt significantly over the past four years through paying down its credit facility. AMCON has a strong market presence distributing products to over 4,300 retail outlets across 18 states. The company is led by an experienced management team that has improved operations and financial position. However, AMCON operates on thin margins in a competitive industry and remains dependent on its credit facility.
The document discusses how marketers should rethink their strategies in response to the changing economic conditions of the current recession. It suggests that marketers should:
1) Rethink their assumptions about historically profitable customer segments, markets, and advertising vehicles, as economic impacts are affecting these in unexpected ways.
2) Focus on emerging pockets of customer profitability rather than past expectations.
3) Prioritize the most effective marketing and sales approaches for reaching profitable customers in the current environment.
Ford's US retail market share dropped nearly 1 percentage point in 2007, losing about half of an assembly plant's production. Meanwhile, Toyota and Honda gained market share while GM stabilized. The article discusses Ford, GM, Toyota, and Honda's US retail market shares in 2007 and notes that Detroit automakers captured less than half of the US car and truck market for the second year in a row. It also summarizes comments from an industry analyst praising GM's performance at stabilizing its retail share.
The document discusses forecasts for the insurance industry in 2010 from various industry leaders. They predict modest growth in life insurance sales of 3-5% but flat or negative growth for annuities and profits. Products with guarantees will be strongest. Consolidation may continue due to economic challenges including low interest rates and investment losses. The outlook is cautiously optimistic but the recovery will be gradual.
This document provides an analysis of Dow Jones & Company. It recommends buying Dow Jones stock, assigning it an intrinsic value of $44.82 based on a three-stage cash flow model, providing a 13% margin of safety from the current market price of $39.63. It then discusses challenges facing Dow Jones, including deteriorating performance at its Telerate division, shareholder pressure for improved returns, and secular growth in its business publishing unit.
This document provides an analysis of Walmart's financial ratios from 2013 to 2014 based on information from their annual reports. It finds that most of Walmart's profitability and stability ratios declined over this period, indicating weaker performance. Specifically, return on equity and net profit margin decreased, while debt and expenses rose. Based on this trend and Walmart's P/E ratio of 15 years, the document recommends against investing in Walmart as its financial position may continue to weaken.
The document provides an executive summary of franchise sales and locations for 2007 compared to 2006. Some of the key findings include:
- Worldwide franchise sales increased 4.76% to $443.8 billion in 2007 from $423.6 billion in 2006.
- The number of total operating locations decreased slightly by 0.38% while international locations grew by 2.08%.
- Convenience stores like 7-Eleven, Circle K, and ampm saw strong sales growth, buoyed by high gas prices.
- Casual dining restaurants also fared well and added new chains to the top 200 list, with many showing substantial growth.
- Hotels performed well despite the slowing economy
The Most Powerful Online Tool For Influencing B2 B Technology BuyersMarCom Ink
The document discusses the powerful online tool of industry peer blogs for influencing B2B technology buyers. It provides examples of how one company used peer blogs to drive a 30% product trial conversion rate through tactics like offering valuable content to bloggers, building personal relationships, providing reciprocal links, and rewarding top performers. However, 90% of marketers make the mistake of engaging bloggers through self-promotional comments that lack value and annoy readers. A survey found that while RSS feeds are important to technology buyers, 70% of B2B tech companies do not use them at all.
The document summarizes the new features and capabilities of Norton 360 v3.0, Norton Utilities, and Norton Internet Security for Mac. Key highlights include Norton 360's one-minute installation time, improved performance and reduced system resource usage, Norton Insight's new security model, and Norton Safe Web for website ratings. Norton Utilities focuses on improving performance, stability, and privacy. Norton Internet Security for Mac provides antivirus, firewall, and identity protection for Mac users.
The document discusses how digital technologies have changed literary scholarship and textual analysis. It notes that scholars no longer need physical books to analyze other texts and can now access digitized texts, facsimiles, and critical editions online. Digital environments allow for participatory and spatial experiences of literature beyond traditional print. Texts can now be manipulated, searched, visualized and transformed using tools like word clouds, text analysis programs, and digital archives. This represents a shift to a database-driven culture for literary works.
The Open Source Professor: Teaching, Research, and Transparencysamplereality
What happens when the scholarship of teaching meets Web 2.0? Professor Sample argues the ideal result is the open source professor, a teacher and scholar who applies the tenets of the open source software community to his or her own professional life. This means sharing, conversation, collaboration, and reflection at every step in the teaching and research process, not just with the final product. Technology plays a key role in making open source professing possible, and Professor Sample will discuss the philosophical and practical implications of such a transparent approach to pedagogy and scholarship, as well as possible pitfalls for untenured faculty.
Judy Dandridge has worked as a mail carrier for 20 years, delivering mail long distances to rural customers. She gets up at 3:30 am and starts work at 5:00 am, driving about 75 miles each day before finishing at 2:00 pm. After work, she enjoys gardening with her husband Jim, who works at a grocery store. They have two teenage children and take family trips, having recently visited Los Angeles for 10 days and planning a trip to Florida next month for a wedding anniversary party.
Judy Dandridge has worked as a mail carrier for 20 years, delivering mail long distances to rural customers. She gets up at 3:30 am and starts work at 5:00 am, driving about 75 miles each day before finishing at 2:00 pm. After work, she enjoys gardening with her husband Jim, who works at a grocery store. They have two teenage children and take family trips, having recently visited Los Angeles for 10 days and planning a trip to Florida next month for a wedding anniversary party.
The document summarizes the history and details of Coca-Cola. It describes how Coca-Cola was invented in 1886 by John Pemberton and acquired its name in 1892. It discusses the formula change controversy in 1985 and notes the formula remains a trade secret. The document also lists different types of Coca-Cola including variations like Cherry, Vanilla, and Zero which has no sugar. Finally, it provides information about the Coca-Cola Museum in Las Vegas which gets over 1.3 million visitors annually.
How B2B Technology Companies Effectively Syndicate White Papers for Lead Gene...MarCom Ink
Compel technology buyers to contact your software, hardware, or IT services company by using these strategies, tips, and resources for syndicating white papers
Alfresco is an open source electronic content management system that was created by former Documentum developers. It offers capabilities for electronic content management, web content management, and digital image management. Alfresco integrates with Microsoft Office and provides features like versioning, check-in/check-out, workflows, and organizing content into spaces. It also offers web content publishing and digital image management capabilities. The document discusses considering a switch from SharePoint to Alfresco due to Alfresco being open source and not proprietary like SharePoint.
The document discusses key concepts around social networks and online communities. It provides definitions for social networks and online communities, explaining their differences and strengths. It lists common types of members in social networks, from Creators to Inactive users. Success factors for social networks are identified as Remuneration, Influence, Belonging, and Significance. Examples of social networks like Barack2.0 and WIND are discussed. The document emphasizes connecting with users, engaging them, and communicating consistently and positively.
This document describes a process that uses random numbers and timing to determine branching paths. It reads a switch state variable and the weight of that variable to determine the probability for branching, guided by random numbers and timing.
See the Roland Berger Strategy Consultants (http://www.rolandberger.us/) 2014 study on The Next Challenge Of The US Auto Industry.
http://tinyurl.com/NPAutomotive
http://www.linkedin.com/in/TonyLy
https://www.facebook.com/MechanicalMarketer
This document discusses General Motors' potential expansion into the Chinese automotive market. It notes that GM has faced financial struggles in recent years. While fixing its domestic operations will be challenging, expanding further into China's rapidly growing car market could provide a sustainable source of future profits. GM already has a strong presence and early mover advantage in China through various joint ventures. To maintain its position, the document recommends GM target middle class buyers, luxury consumers, and commercial vehicle purchasers by broadening its product lineup and providing complementary automotive services and driver education.
WHAT IS THE COX AUTOMOTIVE INSIGHT REPORT?
How will the new and used car markets perform during the rest of this year? What will become the future fuel of choice? What are the barriers as we drive towards Mobility as a Service (MaaS)?
In this first annual Insight Report from Cox Automotive and Grant Thornton, we go beyond the headlines to provide our view on the future of our market, and what it means for us all.
This document provides a summary of a case study on General Motors from 2005. It discusses GM's losses in the first two quarters of 2005 due to issues in North America operations. To address this, GM adopted a strategy of offering employee discounts to boost sales by 47% and increase its market share. The document also provides overviews of GM's products, mission, vision, history, current situation, organizational structure, financial analysis, SWOT analysis, competitor analysis, and recommendations.
- General Motors is a large multinational automaker founded in 1908 that currently employs 266,000 people worldwide and sells vehicles in over 200 countries. However, falling car sales and increased competition have created problems for the company.
- A SWOT analysis identified strengths like brand recognition but also weaknesses such as a decline in market share and high costs. Opportunities include focusing on more fuel-efficient vehicles, but threats include intense competition and volatility in fuel prices.
- Proposed changes to the marketing mix include cutting brands to focus on Cadillac and Chevrolet, launching more fuel-efficient vehicles, adjusting pricing to be more rational, reducing dealerships to 3,000, and promoting a "green" image to
GEICO's brand marketing plan focuses on increasing its market share through new customer acquisition. It recommends GEICO increase its marketing budget and allocate more funds towards advertising. Additionally, GEICO should focus its messaging on customer service and financial strength to appeal to consumers in the current economy. GEICO needs to target new customer segments and cross-sell existing customers to drive continued growth.
The annual percentage of conglomerate mergers was higher than horizontal or vertical mergers from 1980 to 2000, ranging from 50-80%. There was no significant change until 2000. After 2000, the percentages of the different merger types changed significantly due to industry changes. After 2005, all mergers were conglomerate mergers. The percentage of mergers occurring outside the industry has consistently been around 70-80% since 1979, while within industry mergers have been 20-30%.
Vehicle Equity - Managing The Risk AheadStradablog
- Used vehicle depreciation is forecast to increase from an estimated 14% in 2015 to an average of 18% in 2016-2017, as used vehicle supply grows and credit conditions tighten.
- Faster depreciation will delay the time it takes for borrowers to reach positive equity on their vehicle loans. It could also prolong the time before consumers purchase another vehicle.
- A vehicle's expected equity position over the loan term can help predict the likelihood of default, with negative equity correlating to higher default risk. Lenders can use tools like the Vehicle Risk Score to group vehicles by their future equity and risk profiles.
The survey of auto executives found that over 90% viewed the state of the U.S. automotive industry as better than the previous year due to a return to fundamentals. While projected auto sales of 13.7 million for 2012 are below pre-crisis levels, executives are optimistic that restructuring has improved profitability even at lower volumes. The survey also showed uncertainty around emerging technologies and the need to strengthen global supply chains to prepare for potential disruptions.
Automotive lenders are increasingly offering subprime auto loans again as credit-challenged consumers' access to credit expands. Some analysts believe this trend will continue to boost auto sales as the recession's effects gradually fade. However, lenders must ensure loan quality is maintained, as aggressive subprime lending practices could lead to increased defaults if borrowers' ability to pay is overestimated. Adopting GPS tracking systems allows lenders to better monitor collateral, identify poorly performing loans, and take precautions to safeguard against future economic turbulence.
The document discusses trends in the aftermarket industry in 2011. It notes that while economic conditions mirrored 2008 in some ways, consumer behavior differed as more consumers turned to do-it-for-me repairs out of necessity. The document reviews key economic indicators like GDP, miles driven, unemployment, and consumer credit that are impacting the aftermarket. It indicates that most factors are trending negative which has caused aftermarket sales to be lower than projected. It also discusses how consumers are keeping their vehicles longer, expanding the age range considered the "sweet spot" for aftermarket sales beyond 10 years old.
FIU CFA Research Challenge Report - 2013-2014Camilo Parra
AutoNation is recommended as a buy with a target price of $52.26 per share. AutoNation is the largest automotive retailer in the US, with a 29.7% market share of new vehicle sales. Strong revenue growth in recent years is expected to continue as the economy further recovers and AutoNation capitalizes on its large sales network and effective management. The main risks are economic slowdowns that could impact sales and the high debt level taken on for expansion.
GM announced its global vehicle sales for 2008. While sales declined 11% from 2007 due to economic pressures, emerging markets helped offset declines in North America and Europe. GM sold over 8.35 million vehicles globally in 2008, with sales up 3% in Asia Pacific and Latin America. Emerging markets like China, India, Brazil, and Russia experienced strong growth. GM remains focused on these growth opportunities around the world.
The document discusses risks in the motor finance sector in both the UK and US that are similar to risks that contributed to the sub-prime mortgage crisis in 2008. It notes rising consumer lending and bad debt, loosening underwriting standards, and concerns about declining residual vehicle values. Regulators in both countries are increasing their scrutiny of motor finance markets and practices related to customer treatment and securitization. The risks discussed could constrain future sales growth and liquidity if auto ABS demand declines. Firms are advised to strengthen risk controls and governance and prepare for potential regulatory actions and collections challenges.
Why Car Sales Will Rise in 2010 CommentaryRalph Paglia
The document summarizes that auto sales and production have sharply declined recently but are near their bottom. It projects that both will increase substantially in the next two years, with sales returning to 15.9 million annually by the end of 2010, representing a 75% increase from current levels. Excess auto inventories held by dealers will also decline back to normal levels as sales increase and production is adjusted upwards accordingly, signaling a strong economic rebound in the second half of 2009 or sooner.
The global automotive industry is facing severe challenges due to the financial crisis. Consumer demand for cars has dropped sharply around the world. Automakers like GM, Ford, Chrysler, and Toyota have posted major losses. However, the crisis also provides an opportunity for innovation and collaboration. Automakers need to shift from competition to cooperation through partnerships and alliances to share costs of R&D, production facilities, and regulatory approval. Financial restructuring and lean manufacturing will also be needed to reduce business risks and costs. Governments are assisting the struggling industry to prevent economic damage.
General Motors AnalysisGeneral Motors AnalysisTeam 7Li.docxhanneloremccaffery
This document provides an analysis of General Motors and the automobile manufacturing industry. It summarizes key details about GM's industry classification and SIC codes. It also analyzes the industry structure based on 10 items from an IBISWorld report, including that the industry is mature with moderate competition and barriers to entry. External drivers for the industry are discussed, along with current performance, outlook, supply chain, demand determinants, products/services, basis of competition, and major players. Toyota, GM, and Ford have the largest market shares, comprising about 45% total.
Similar to Lending To Automobile Dealers Credit Risk Issues (19)
2. Lending to Automobile Dealerships
Outlook report reveal that from 1982 to around 1991, sumers. Unlike the beginning of the current economic
new vehicle sales expanded or shrank in correlation to cycle, they can no longer take on more debt. So con-
housing starts and existing home sales. With a predicted sumption can only increase as long as their income
growth rate of 1-1.5% per year, the number of house- grows. On the other hand, corporate America is begin-
holds could grow 14%—by 12 million—in the next 10 ning to feel wage pressures due to a decline in the
years. This correlation would seem to indicate that skilled labor pool, so many professionals are starting to
although the number of vehicles per household has see real wage increases from higher demand. This fact,
begun to taper off from its post-World War II highs, the in conjunction with unprecedented manufacturer incen-
number of vehicles per household still could grow 9% in tives, may help to explain why new vehicle sales are
the next 10 years. However, from 1992 to today, still projected to see their fifth straight year of more than
N.A.D.A. data show that housing starts and existing 15 million units sold in the U.S.
home sales growth surpassed gains made by the auto
industry. This can mean either that cyclical sales swings Inventory levels. Another issue facing auto makers is
of the past have finally flattened to high inventory levels, but this
predictable levels or that consumer IN 1991, OFF -LEASE VEHICLES should start to ease over the next
preference has changed and people few years. Two of the Big Three
no longer feel the need to buy a AMOUNTED TO JUST 3.5% OF have closed plants or announced
new vehicle every few years. THE USED VEHICLE MARKET. that they will close them. A year
ago, there were more than a million
Auto leasing. Automobile leas- BY 1997, OFF -LEASE VEHICLES vehicles of over capacity in North
ing now accounts for more than America; in the next two years, it
EXPANDED TO 7.2%. FURTHER
60% of the average dealership’s should drop to 250,000 units. Most
new vehicle sales. Because the cus- EXPANSION IS EXPECTED BY over capacity, however, is in trucks,
tomer is forced to re-lease or pur- which is a growing segment as evi-
THE END OF 1998.
chase a vehicle at the end of the denced by the popularity of sport
lease, dealers now are better able to utilities.
predict sales volumes. In 1988, the average auto loan was
56 months; this has since fallen to 53 months—a direct Despite unknown volatility in the marketplace,
result of more people leasing their vehicles. This enor- Americans still love their cars. With that said, macro
mous lease market is creating other issues, such as what economic considerations can and should be taken into
to do with all the vehicles coming off-lease and what their account when lending to automobile dealerships, but it
effect is on the used car market. In 1991, off-lease vehi- is as important to understand how the automobile mar-
cles amounted to just 3.5% of the used vehicle market. ket has changed to evolve with this dynamic economy.
By 1997, off-lease vehicles expanded to 7.2%. Further
expansion is expected by the end of 1998. The market for Evolution and Trends
used vehicles in the U.S. still overshadows the new vehi- The automobile industry—manufacturers and deal-
cle market. There are roughly 39 million used vehicles erships alike—is rapidly adjusting to meet consumer
sold in the U.S. each year. However, so many nearly new demands and sustain profitability in this somewhat
vehicles coming back to the market will likely drag down cloudy economy. A dip in a particular product line or
prices of new cars. That could have an adverse impact on market share is sure to bring on customer rebates to
dealer profits, but should prove favorable for the con- prop sales back up to predictable levels. Additionally,
sumer. manufacturer-to-dealer incentives have evolved as a
subsidy to sustain franchise profitability. This is a direct
Percent of disposable income. Americans are spend- result of shrinking margins at both the
ing less of their disposable income on new vehicles. In manufacturer and dealership level.
1997, the percentage of GDP allocated towards the pur- Manufacturers have had to retool
chase of a new vehicle fell to 3.8%, down from the tra- engineering processes, cut costs,
ditional average of around 4.2%. One reason for the and make less money per car to
decline is the high debt rate facing many American con- continue the earnings growth
83
3. Lending to Automobile Dealerships
expected by Wall Street. In turn, dealers are seeing their with a particular relationship. It is apparent that vehicle
profits erode from 12% mark-up to closer to 5% per sales will continue to be a prominent force in the U.S.
new vehicle. They, too, must retool processes and cut economy, but who they are and how they are to be sold
costs to make this strategy work. is the underlying question that will become clearer as the
Dealerships now are faced with economic consolidation trend matures.
Darwinism in this highly competitive market. This is Lenders should realize that this is a dynamic market
evidenced by the shrinkage of new car franchises over facing many risks. As a result, past loans made on bor-
the past two decades. Data from N.A.D.A.’s industry derline deals or lack of prudent credit standards will
outlook report indicate that the number of new vehicle soon come to surface if your borrowers are faced with
franchises has dropped from 30,100 in 1972 to just over many of the issues discussed above. Despite a healthy
19,500 in 1998. This consolidation trend indicates that economy and a high profile industry, the car business is
fewer dealerships are actually selling more vehicles. going through some changes.
Unprofitable or ill-equipped dealerships are giving Their industry focus has historically helped dedicat-
way to those better suited to oper- ed auto-finance companies to be
ate in today’s environment. Stand- DEALERSHIPS NOW ARE better equipped to understand these
alone or small franchise dealer- issues. However, the banking
FACED WITH ECONOMIC
ships are facing enormous pres- industry still represents a signifi-
sures from larger mega-dealers able D A R W I N I S M I N T H I S H I G H L Y cant portion of lenders in the auto-
to undercut prices due to motive segment and, as a result,
economies of scale. Depending on C O M P E T I T I V E M A R K E T. must be able to comprehend this
the market, it may just be a matter T H I S I S E V I D E N C E D BY T H E information in order to make sound
of time before outside forces push credit decisions going forward.
a dealer into dissolving the fran- S H R I N K A G E O F N E W CAR Lenders who have not been
chise or becoming acquired by a F R A N C H I S E S O V E R T H E PAST
through a downturn in the economy
large dealer group. For example, may not have exercised prudent
how can a small dealer with one or T W O D E C A D E S. lending techniques when structur-
two franchises that generate annual ing loans. In this highly competi-
revenues of $25 million to $50 mil- tive environment, it is important to
lion compete with the likes of Republic Industries, Inc. understand how a dealership or dealer group fits into the
whose 211 dealerships and 296 franchises posted rev- overall equation of the industry. This will assist a lender
enues exceeding $5.49 billion in 1997? in structuring the financing request according to the
According to a survey taken by Ward’s Dealer risks associated with a particular transaction.
Business magazine in its September 1998 issue, dealers Commercial lending today has become more of an art
are frightened of the cloudy future that lies ahead. than a science because of the enormous amount of variables
Larger dealer groups, such as Republic Industries, Inc., that go into putting a deal together. Loan structure, prof-
are quickly penetrating major metropolitan market seg- itability, balance sheet ratios, geographic location, product
ments and mid-size cities with clusters of same-brand lines, ownership and management experience, as well as the
dealers. This trend, still in its infancy, is beginning to guarantor’s secondary financial support, are just a few of
take its effect on the profit and loss statement for many the items that go into determining the viability of lending to
smaller dealers. According to the survey, many dealers automobile dealers.
felt that the one obvious solution for dealer survival in Credit Risks Associated with Dealerships
this era of consolidation, aside from selling out, is to Mega and public dealers. Diversification and
pool together to remain competitive. What that means, economies of scale are positive attributes for larger deal-
however, no one is sure. er groups, however, credit risk is greater due to high dol-
lar exposure, concentration issues, and the sheer com-
Lending Issues plexity of dealing with multiple entities. Credit facilities
Understanding the changes in the automotive sector can also take on many forms. Many large dealer groups
and how it is and will continue to affect dealerships will are opting to forgo traditional floor plan lending for larg-
better prepare a lender for the various risks associated er credit lines utilized for numerous business needs such
84 The Journal of Lending & Credit Risk Management December 1998
4. Lending to Automobile Dealerships
as inventory financing, working capital, and acquisition entity under a holding company? Does each dealer-
capital. These types of credit facilities require careful ship stand on its own in terms of cash or is there a
structuring in terms of financial covenants at the group sweep account utilized? How are earnings treat-
and individual dealership level, limitation on usage of ed—left in the store or paid out in management
funds, loan-to-value guidelines, and specific criteria fees? Again, these questions will help the lender
regarding the acquisition of dealers. understand how cash is flowing through the system
To better understand these larger dealers and their and provide a comfort level on how business is
associated capital requirements, a lender should meet being conducted.
the key players to get a sense of overall business strate-
gy and raise some high-level questions, such as: • How does this dealer group differentiate itself from
others? Many large mega dealers essentially focus
• How many and what type of franchises? This is on similar strategies that involve certain regional
important in determining the dealer group’s partic- focus, but the varying factors usually include how
ular dependency upon domes- management and personnel issues
tics or imports and, more LOAN STRUCTURE, PROFITABILITY, are handled or how acquisitions are
specifically, upon franchises structured. If it’s a public dealer
that may be experiencing some BALANCE SHEET RATIOS, group, determine whether there are
problems in the marketplace. GEOGRAPHIC LOCATION , PRODUCT
stock options given to the previous
owner and any time restrictions. Is
• What is the current and/or LINES, OWNERSHIP AND the same crew continuing to oper-
planned geographic structure? ate the dealership or will new per-
MANAGEMENT EXPERIENCE, AS
This will assist a lender in sonnel be hired? This is important
understanding the dealer WELL AS THE GUARANTOR ’S because many dealer principals
group’s economic exposure in have simply cashed out but remain
SECONDARY FINANCIAL SUPPORT,
specific regions, its underlying in the store. As such, motivation to
customer base, and competi- ARE JUST A FEW OF THE ITEMS operate successfully can deteriorate
tive pressures. if the right incentives are not
THAT GO INTO DETERMINING THE
implemented. Also, what is the
• What type of management and VIABILITY OF LENDING TO AUTO- group’s purchase policy/formula
financial controls are in place? for acquiring additional dealers?
MOBILE DEALERS.
The key here is to determine Many groups, quick to keep pace
whether the group is managed with other industry giants, can and
from a centralized, regional, or individual dealer- have paid too much. This can cause some capital-
ship level. As groups become larger, it becomes cru- ization issues and degrade the balance sheet if over-
cial for the lender to implement controls that can looked.
quickly identify internal weaknesses, determine Keep in mind that these simply are high-level ques-
capital requirements, and manage cash flow. Cash tions that should be addressed prior to going into all the
flow is especially important due to the high sales due diligence that’s necessary in making a sound credit
volume and low margin strategy utilized to remain decision.
competitive and retain customers. Reporting con-
trols are key in maintaining financial consistency Small dealers. Small mom & pop dealerships,
and accuracy of bookkeeping. And management depending on their operating performance, product
controls should be in place to maintain focus and lines, and competitive market pressures, can offer a bet-
accountability at each dealership, as well as compe- ter return while minimizing dollar exposure. However,
tency of management at the executive level. understanding the following issues is
paramount in making a
• How does the business operate? The point of this sound lending decision.
question is to understand the organizational struc-
ture. For example, is each dealership a separate • Smaller dealers have credibility
85
5. Lending to Automobile Dealerships
simply because they’ve been in business for a long considered because many long-time small dealer-
time, are socially committed to the local communi- ship owners are at retirement age. Hopefully, family
ty, and have a demonstrated track record of prof- members who have been working in various capaci-
itability. This, however, does not ensure continual ties at the dealership are prepared to take over, but
success. Similar questions to those for mega dealers this may not always be the case. This is also anoth-
should be raised, but smaller dealerships need fur- er reason for a large number of dealers selling out
ther consideration. Added emphasis must be placed to larger groups.
on small dealers’ operating efficiencies and fixed
operations in light of their uncertain futures from Conclusion
consolidation price pressures, eroding margins on Considering the magnitude of this industry and the
new vehicles, and the negative effect of off-lease rapid changes its undergoing, good lenders must contin-
vehicles on margins in what was once considered ually educate themselves in many capacities.
one of the dealer’s more prof- Understanding car dealers is just
itable departments. one component. The lender must
SMALL MOM & POP be aware of what’s going on with
• As margins decline to sustain the manufactures, auto auctions, as
DEALERSHIPS, DEPENDING
sales volume, smaller dealers well as consumer debt related to
with above-average fixed costs ON THEIR OPERATING the auto business. This is a large
will begin to see their break- cycle that is all interconnected.
PERFORMANCE , PRODUCT
even point pushed up further. Comprehending the macro
Having strong absorption from LINES , A N D COMPETITIVE economics of the industry is just
fixed operations, which is very half the battle. Above all, the
important in offsetting expo- M A R K E T P R E S S U R E S, C A N lender needs to have a solid
sure to sales fluctuations, is OFFER A BETTER RETURN understanding of the type of deal-
one of the more important ership and how it conducts busi-
ingredients in sustaining suc- WHILE MINIMIZING ness. Lending to automobile deal-
cessful operations for a small D O L L A R E X P O S U R E.
erships can be both risky and
dealer. Many customers still rewarding, so the lender is advised
prefer the personal attention to maintain prudent credit stan-
from a smaller dealer when it comes to servicing dards and price accordingly. This will prove beneficial
their vehicle. However, much of this back-end busi- in the long run.
ness is correlated to customer retention and sales
growth on the front end of the business. If competi- References
tive pressures begin to depress front-end sales
Industry Outlook Report, N.A.D.A., September 1998.
growth, service and parts business will usually
decline over time. Ward’s Dealer Business, September 1998.
• As noted above, operating efficiencies are crucial
for smaller dealers. Because the span of control
requires less personnel, smaller dealerships should
have an active dealer principal who plays many
roles. This will alleviate the need for unwarranted
management levels and the extra overhead. While
smaller dealers must consider many other items,
keeping costs down in this low-margin era will
become even more important in sustaining prof-
itability.
• Additionally, succession plan issues also need to be
86 The Journal of Lending & Credit Risk Management December 1998