Himanshu Patel Quotes (17 Quotes)

The market is likely to be reassured that management is now putting firmer parameters around 2006 performance.

Analysts said Tuesday that the UAW's decision to offer concessions before its contracts with U.S. automakers expire in 2007 shows the gravity of the automakers' financial situation. GM lost more than 3 billion in the first nine months of this year, and Ford is expected to announce a third-quarter loss on Thursday. Years from now, October 2005 may be looked upon as the month when the relationship between the UAW and the U.S. auto industry began a restructuring, ... This landmark deal may mark a more pragmatic and realistic UAW.

One of the likely sticking points in the pending sale of GMAC may well be resolution on Delphi, further emphasizing GM's interest in avoiding a labor dispute.

The letter suggests that GM is taking a hard-line stance with both Delphi and the UAW, ... As such, we expect the negotiations to go down to the wire, but we still believe an out-of-court restructuring is most likely.

Although such a move has been rumored for some time, the speed of Danas demise will further dampen sentiment toward the auto industry.

The long-term outlook, particularly given end-market strength in the controls business, remains robust.

We see a 2 billion cash injection as meaningful, even in light of GM's robust corporate liquidity. This sale was largely unanticipated by the market.

Beyond guidance for favorable structural cost performance in 2006, and details on material cost savings goals, no specific guidance on the extent or cadence of structural cost savings was given. In addition, the company offered only limited details on the timing of plant actions.

The company's specificity on 2006 cost targets ... is likely to reassure the market, and heightens our belief that the company will see a meaningful earnings rebound in 2006.

While fundamentals are admittedly weak, given the stock's weak recent performance, we are reluctant to get incrementally bearish, particularly ahead of a potential restructuring announcement.

Although we are becoming more upbeat on the pace of restructuring, we worry about Ford North American production outlook, particularly in 2007.

We are not that surprised that the company guided down for the first quarter given their previously announced weak production schedules. However, we are surprised by the magnitude of the first-quarter and 2005 revision, which suggests the further risk to production schedules in future periods.

We think GM will see it as more of an opportunity than a risk to assist in a Delphi bailout, as it will likely be able to extract sizable UAW health care concessions in return,

While tire pricing remains strong, high raw material prices and potentially weak high-margin markets (North American and European replacement truck tire markets) could provide offsets.

timing of this pending divestiture cannot be overlooked.

We continue to believe TRW should benefit from growth in safety content per vehicle, its diverse content profile, and aggressive cost management.

By forcing a health-care inflation cap for salaried workers, GM is bringing forth the issue of similar caps for hourly workers, which our talks with (GM) management suggest is a top priority.