New culture at Chrysler?

Add comment August 31st, 2009

I’ve never worked in an assembly plant and have only been inside the Belvidere plant once so I’m not sure how much has changed under Fiat or how the workers are handling it.

According to a story in Motor Trend, Fiat is banking on improved efficiency to make Chrysler relevant again.I’m not sure how much this can help in Belvidere, which annually scores very high in the J.D. Power rankings for compact car plants.

Cerberus hurt by ‘bad bet’

Add comment August 31st, 2009

The Wall Street Journal, citing unnamed sources, reported that clients have pulled out more than $5.5 billion out of hedge funds run by Cerberus Capital Management LP.

The funds have taken heavy losses because of Cerberus’ investments in Chrysler and GMAC. Those investments were wiped out when Chrysler declared bankruptcy and needed a federal bailout.

Belvidere assembly featured in this little ditty

Add comment August 28th, 2009

A musically inclined auto worker who was transferred to the Belvidere assembly plant features the plant in a song and video on Youtube.

I’m not a big country music fan, but “West of Chicago” is pretty good.

The worker is Dennis Maxwell. He’s not listed. I’d love to talk to him so if anyone has a number please pass it along.

Corporate profits show very slight improvement

Add comment August 27th, 2009

Fifty-six of the fifty-nine companies on the Star 60 stock index that are expected to report earnings this quarter have done so and 16 reported increased profits — or in the cases of three, less losses — than the same quarter of the year before.

Normally, considering net incomes of the 40 companies were worse than 2008, this would be a bad statistic. But the fact 16 have improved with three still to report means the Star 60 already has topped the second quarter reporting period when just 12 companies released improved net incomes.

In fact, the fact that more companies had earnings growth this quarter snapped a five-quarter streak of fewer companies reporting positive results. In the first quarter of 2008, 36 companies reported positive results. That fell to 33 in the second quarter, 32 in the third and 25 in the final three months of 2008.

This year, 15 had growing net incomes in the first quarter reporting period and then it fell to 12 in April, May and June.

Corporate profits are a major indicator for the economy because once net incomes start rising, companies should begin hiring again.

Unfortunately, the gains from the 16 positive companies this quarter came as much from cost-cutting than from an improving economy. Eight of the 16 companies, Wal-Mart, Hormel Foods, Sara Lee Corp., Dean Foods Corp., AMCORE Financial, Newell Rubbermaid, Valspar Corp. and Ford Motor Co., reported that revenues declined from 2008, with Dean, AMCORE, Newell, Valspar and Ford all reporting sales falling more than 10 percent.

Italy-based Fiat is on the Star 60, which tracks publicly traded companies important to the local economy, but it is not required to report quarterly earnings.

Dodge Caliber, Jeep Patriot on a good top 10 list

Add comment August 26th, 2009

The Dodge Caliber and Jeep Patriot were among the 10 most bought vehicles in the Cash For Clunkers program, according to an analysis by Edmunds.com.

Automotive News reported the list and also how it differs from the U.S. Department of Transportation’s list of most purchased cars list. The DOT’s list broke vehicles down by drivetrain so the front-wheel drive Ford Focus is No. 3 on its list and the Caliber and Patriot don’t show up at all. The Edmunds.com list treats all the variations as one model and the Focus moves up to No. 2 and the Caliber comes in at No. 7 and the Patriot at No. 8.

The Caliber and Patriot are assembled at Chrysler’s Belvidere assembly plant along with the Jeep Compass.

The Edmunds.com statistics come from dealers and represent about 30 percent of all U.S. dealers.

This is Edmunds.com’s list of 10 most popular buys in the C-F-C program.

1. Ford Escape

2. Ford Focus

3. Honda Civic

4. Ford F-150

5. Toyota Corolla

6. Toyota Camry

7. Dodge Caliber

8. Jeep Patriot

9. Honda CR-V

10. Chevy Silverado

Gambino only local representative on list of 500 largest real estate companies

Add comment August 25th, 2009

Rockford’s Gambino Realtors was the only Rock River Valley real estate company to make an annual list of the 500 largest real estate companies in the United States.

Gambino ranked 337th in number of sides sold in 2008 in the Real Trends 500. Every transaction has two sides, a buyer and a seller, and if a company represented both in the deal then it would be credited with two sides.

Gambino also cracked the top 500 in volume, which is hard for local real estate companies to do since our housing market is among the most affordable in the nation. Gambino had a sales volume of $149.3 million in 2008, which put them at No. 498.

Real Trends Magazine compiles and publishes the list annually. The 2007 ranking, which was based off 2006 numbers, the height of the real estate boom, featured five Rock River Valley companies in the top 500 in sides (Dickerson & Nieman, Century 21 Country North, Coldwell Banker Premier, Whitehead Inc. and Gambino) and another on the up-and-comers list (RE/MAX Property Source).

Of course, the ranking is based on self-reported figures so it’s likely that several local companies did not send in figures for this year’s ranking. Two years ago, Dickerson & Nieman Realtors cracked the top 200 with 3,034 sides in 2006. We are checking on which companies did send in its numbers.

Even Gambino’s solid year illustrates how tough the market has gotten for companies. Gambino has submitted its results every year this decade and its 2008 sides were its lowest total yet. In 2005, the company reported 1,975 sides. Yet, Gambino’s ranking at No. 337 is its highest ranking showing that although the market was tough last year, it was much tougher in other parts of the country.

End near for Caliber line?

Add comment August 24th, 2009

The latest BusinessWeek magazine has a profile of Fiat-Chrysler Chief Executive Officer Sergio Marchionne. In it, the magazine writes that perhaps his biggest challenge will be “replacing misfires such as the Sebring sedan, Jeep Compass, and Dodge Caliber — with the kind of mass-market vehicles that will make or break Chrysler.”

Of course, the Compass and Caliber are assembled in Belvidere along with the Jeep Patriot.What will happen to these vehicles and, more importantly, what products will replace those models in Belvidere is the next big question facing workers and the businesses that rely on those workers.

According to BusinessWeek, those decisions will be made soon. The writer cites a Chrysler executive who expects Marchionne to approve a five-year product plan this month.

Challenging times

Add comment August 20th, 2009

The declining real estate market had people up in arms over tax assessments in 2008. Take a look at these numbers.

Assessment challenges in Winnebago County

2000: 755

2001: 1,396

2002: 1,376

2003: 1,823 (general assessment year)

2004: 1,057

2005: 1,055

2006: 905

2007: 1,996 (general assessment year)

2008: 2,716

The numbers are just as stark in Boone County.

2000: 17

2001: 58

2002: 53

2003: 134 (general assessment year)

2004: 61

2005: 70

2006: 205

2007: 201 (general assessment year)

2008: 559

Of course, the market has declined much more in 2009 so officials are expecting even more challenges this year. If you are considering challenging your assessment, remember that your house’s value is being based on what it was worth on Jan. 1, 2009, so you need to consider the housing markets of 2006, 2007 and 2008 and not what’s happening in 2009.

Money Magazine looking for auto industry stories

Add comment August 18th, 2009

According to a poster on UAWTalk.com, George Mannes, Money Magazine’s “The Answer Guy,” is looking to do a story on how auto industry families are coping in this historic downturn.

Mannes also writes for TheStreet.com, and is a former business and technology reporter for the New York Daily News.

Of course, this area is fertile ground for families caught in the buyout/layoff deluge. In 2006, we had more than 7,500 people working at the General Motors plant in Janesville, Wis., and Chrysler’s Belvidere assembly plant.

Janesville was closed earlier this year and Chrysler is down to one shift with about 1,700 workers.

I’m interested in talking to “life after Chrysler” people — former assembly plant workers who took the buyout and moved into other careers.

If you are one of these people and wouldn’t mind talking, email me at agary@rrstar.com.

Star 60 keeps monthly momentum going

Add comment August 4th, 2009

The Register Star’s Star 60 stock index, which tracks publicly traded companies important to the local economy, recorded a monthly gain for the fourth time in five months since bottoming out in February.

Still, the manufacturing-heavy index finished July down 20.9 percent from July 2008, the 10th straight month it was off more than 20 percent from the same month of the year before.

In July, the Register made one change to the index. Monsanto Co., which bought out DeKalb Genetics in the late 1990s, was dropped from the list because the company no longer has a corporate presence in DeKalb.

In its place, TreeHouse Foods Inc. was added. Based in Westchester, TreeHouse is the parent company of Bay Valley Foods. Bay Valley has a plant in Pecatonica where workers produce nondairy creamer and is building a distribution center in Rochelle.