Marcie Belles's Blog – April 2009 Archive (10)

GMAC to Finance Chrysler Vehicles

In his address a few moments ago on the auto industry, President Obama announced that GMAC will handle wholesale and retail financing for Chrysler.

Chrysler Financial would have needed more funds than the administration was willing to shell out to make it a viable entity, Obama said.

I think it’s important to have a single company managing Chrysler floorplans, but do we have to assign a single company to handle retail loans? It seems to me that opportunity should be made… Continue

Added by Marcie Belles on April 30, 2009 at 12:30pm — 6 Comments

Obama Press Conference Live Blog

12:12 p.m. ET: Chrysler and Fiat have formed a partnership that has a strong chance for success. The government will make additional loans to the company, as will the government of Canada.

12:13 p.m. ET: The alliance will give Chrysler a chance to survive and thrive.

12:15 p.m. ET: A group of investment firms and hedge funds were less than cooperative, Obama says.

12:16 p.m. ET: The bankruptcy process will be "quick" and will not "disrupt the lives of people who… Continue

Added by Marcie Belles on April 30, 2009 at 12:00pm — 2 Comments

Weigh In

The government-imposed restructuring deadlines for Chrysler and GM are looming, and vehicle sales are still stalled. We had a bit of good news yesterday when the Conference Board reported a 12-point jump in consumer confidence — the index climbed to the highest level since November.

But what is the outlook for vehicle finance? Will originations start to creep up? Might delinquencies start to level off? Weigh in with your predictions for the upcoming 12-month period by participating… Continue

Added by Marcie Belles on April 29, 2009 at 11:00am — No Comments

PR Blitz

With my head pounding from all the talk about layoffs, shutdowns, stalled sales, and ousted executives, I’ve got a new theory on the way out of this automotive crisis: Hand it over to the people. No, I don’t mean put Joe Consumer in charge of the Auto Task Force or appoint Jane Car-Shopper head of a domestic automaker. What we have to do is get people into dealership showrooms, ready to buy cars.

Duh, that’s obvious, Marcie. If it’s so simple, why hasn’t it worked so far? What we… Continue

Added by Marcie Belles on April 27, 2009 at 1:11pm — 5 Comments

Huntington: Loan Losses Will Peak in 2009

Though some lenders have reported improvement in auto-loan delinquency and loss rates for the first quarter, Huntington Bank’s portfolio worsened slightly.

Thirty-day delinquencies increased to 2.20% of the portfolio, from 2.09% in 4Q08 and 1.45% in 1Q08. Ninety-day delinquencies ticked up to 0.36% from 0.33% in 4Q08 and 0.22% in 1Q08. And chargeoffs climbed to 1.56% from 1.53% and 0.97% in the same two quarters, respectively.

Here’s a chart of chargeoffs and 30- and… Continue

Added by Marcie Belles on April 23, 2009 at 12:59pm — No Comments

Cap One Auto Posts Higher Earnings

Despite a $111.9 million loss, Capital One Financial Corp. saw improvement in its auto finance portfolio in the first quarter.

Cap One Auto Finance earned $71.4 million last quarter — its highest profit since mid-2006 — and the unit was the company’s only lending business to post lower delinquency and chargeoff rates. The improved loan performance comes amid slowing origination volume, which often results in higher — not lower — delinquency rates.

Cap One Auto’s 30-day… Continue

Added by Marcie Belles on April 22, 2009 at 12:05pm — 2 Comments

In Memoriam: Elaine Litwer

We regret to inform you of the untimely passing of Elaine Litwer, president of Bayside, N.Y.-based E.L. Leasing Corp. and legislative coordinator of the National Vehicle Leasing Association.

For more than 25 years Elaine championed the rights of vehicle lessors. In 1982, she became active in her efforts to repeal vicarious-liability provisions, after she paid out $9.2 million in a case involving a lessee. Her activism and numerous visits to Albany, N.Y., finally paid off when… Continue

Added by Marcie Belles on April 20, 2009 at 11:00am — 1 Comment

On Track

Take a look at this neat correlation: vehicle sales tracked against housing starts.

Both ticked up in February, and vehicle sales were up in March, too. Housing-start data for March is due out at the end of April, so we’ll see if it keeps pace.

Added by Marcie Belles on April 14, 2009 at 1:30pm — 2 Comments

The Good and the Bad

Much like the concept of separating good bank assets from toxic ones, General Motors Corp.’s leading bankruptcy plan would break the automaker into two pieces: one comprised of strong assets and the other of the billions of dollars of obligations weighing it down.

The strong assets — including Chevrolet and GM’s Chinese operations — would remain, while the underperforming ones would be wound down in bankruptcy court.

In theory, it’s a good idea. Will it work? I’m not so… Continue

Added by Marcie Belles on April 13, 2009 at 12:24pm — 1 Comment

Cracking the Consumer Confidence Code

For some time, lenders, dealers, and industry experts have been pointing to a lack of consumer confidence as the main culprit for dragging sales. It seems like the way to shore up consumer confidence is to get to the heart of the matter: risk.

Essentially, consumers worry that they might lose their jobs or suffer some other similar financial setback. Who wants to plunk down $25,000 for a new vehicle if they’re concerned they might be unable to repay it? I know I… Continue

Added by Marcie Belles on April 7, 2009 at 5:00pm — No Comments