General Motors of Mexico has selected GES Exposition Services to produce its prestigious corporate event for 400 Latin American car dealership representatives this September at Caesar’s Palace.
Vogt said corporations are using more private events such as this to reach important customers and clients.
BNY Financial Corporation is the leading provider of factoring and asset-based lending services in the U.S., Canada, and the U.K. Completion of the proposed transaction, which is targeted to occur by the end of the second quarter, would increase GM’s consolidated financial leverage, in the absence of offsetting actions. Standard & Poor’s believes this acquisition would also increase business risk, since it would represent a significant extension of GMAC’s operations beyond its core automotive finance function and other areas of established expertise. However, amid current highly favorable conditions in the North American automotive market, GM has sufficient leeway to absorb this transaction without immediately calling its ratings into question.
Alcan also has been picked by Ford Motor Co. to furnish sheet aluminum for the deck lids, hoods and fenders of the new sporty-looking Lincoln LS6 and LS8 (DEW98) luxury sedans, which also are due out early in 1999 (AMM, Nov. 26.).
“Companies can deliver highly specific messages to their audience in an effective manner like you would find at a tradeshow,” he said. “However the controlled environment of the corporate event eliminates the clutter of competing companies or messages that you would find at a traditional tradeshow.”
OUTLOOK: NEGATIVE
Notwithstanding diversification efforts at GMAC, GM’s overall financial performance is now much more dependent on the results of its North American automotive operations than previously, given the divestitures in recent years of Delphi, its aerospace and defense unit, and its information processing business. In addition, the aggregate earnings contribution of its international automotive operations is relatively weak at present: although results in Europe have improved in the past several quarters from the sub-par levels of 1997-1998, its Latin American operations have been severely affected by economic turmoil.
According to GM sources here, Alcan has helped develop the hoods and associated tooling for the redesigned Buick LeSabres, Pontiac Bonnevilles and a new car in the Oldsmobile line to replace the Olds 88. GM’s total targeted production volume for the three car lines is 320,000 annually.
The ratings reflect General Motors Corp.’s (GM) above-average business position as the world’s largest automaker and its exceptional financial flexibility. Earnings and cash flow have been generally strong over the past four years, largely reflecting the effectiveness of restructuring measures implemented in North America, as well as robust industry demand. A 53-day work stoppage in North America had a major impact on full-year 1998 financial performance, although profitability rebounded once production resumed. The cost position of GM’s core North American automotive operations has improved significantly since the early 1990s as a result of ongoing efforts to contain material costs, capitalize on component commonalities among vehicles, enhance labor productivity, and lower employment levels. Over time, as existing long-term supply contracts expire, GM’s recently completed spin-off of its internal components group, Delphi Automotive Systems Corp. (Delphi), may result in substantial savings in component sourcing costs and eliminate the competitive disadvantage relatively high degree of vertical integration. Still, GM’s North American unit remains a relatively high-cost producer. Also, the Delphi divestiture could complicate the already difficult relationship with GM’s and Delphi’s principal labor union, the United Auto Workers. Moreover, GM’s market share in North America has continued to erode, although new vehicles launched in recent years have been generally well-received.
