News From the Auto Industry

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.