AD #2423 – U.S. & Mexico Reach Trade Deal, Toyota Makes Uber Investment, Waymo Sets Up Chinese Subsidiary

August 28th, 2018 at 11:27am

Runtime: 5:33

0:26 U.S. & Mexico Reach Trade Deal
1:03 Toyota & Uber to Collaborate on Autonomy
1:44 Former FCA Labor Negotiator Going to Jail
2:33 Waymo Sets Up Chinese Subsidiary
3:06 Didi Halts Ride-Hailing Services
4:00 Nissan’s 1st Chinese EV Starts Production
4:34 Ford Creates New Customer Focused Organization

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23 Comments to “AD #2423 – U.S. & Mexico Reach Trade Deal, Toyota Makes Uber Investment, Waymo Sets Up Chinese Subsidiary”

  1. Kit Gerhart Says:

    It seems to me that Trump’s announcement of a trade “deal” with Mexico, but not Canada, was mainly a diversion from his spitting in the face of a recently deceased national hero he didn’t like. We’ll see how the “deal” turns out in the end, but initial reports are that it is, in fact, no big deal.

    https://www.bloomberg.com/view/articles/2018-08-28/trump-s-mexico-trade-deal-looks-like-a-lemon

  2. Larry D. Says:

    1 The deal is not in quotes, and has nothing to do with McCain, and was probably not even negotiated by Trump himself. The provisions seem quite reasonable and Canada will probably sign a similar deal.

  3. GM Veteran Says:

    Funny, Ford’s new Enterprise Product Line Management teams sound just like brand teams. Hopefully this is not another layer of management added to the organization. This should replace the brand teams they have now.

  4. Larry D. Says:

    PS the best analysis of the deal is the reaction of the markets, where people vote with their wallets. There are too many ‘op ed’ writers that look they are in Junior High and know as much (or as little). And from overseas, where I don’t follow US affairs too close, I just logged in my Fidelity account (both retirement savings and regular investments) and the market reaction was stellar, one of my portfolio of US and foreign mutual funds’ best days in recent memory.

  5. Larry D. Says:

    3 I would not count on Ford doing anything sensible as long as the current pitiful team of Hackett (who “led” Steelcase out of US manufacturing) Farley the Cheerleader, and Dewine who really looks a few pennies short of a quid (not that Farley looks smarter), and above all Bill Ford, call the shots.

  6. Frederick Schmidt Says:

    2,4,5 correct!

  7. WineGeek Says:

    Anyone who thinks that Trump is smart enough to negotiate anything but a crooked real estate deal in NY is deluding themselves. Market ups and downs are not caused by reality only the hype that the traders seem to relish, look at Tesla is it really worth the stock price? I also will take all the ups I can get in my 401K, but I am also ready for the down that will inevitably come.

  8. Danny Turnpaugh Says:

    It’s nice how someone can get there thoughts on the president in here about a deceased national hero. There are places that are appropriate for political views.

  9. Buzzerd Says:

    @4 I’m no expert but I suspect the markets are happy to see a deal signed, any deal. They want stability, the details are secondary. If you can keep Trump occupied in front of the T.V. ( not that difficult I suspect)the Canadian deal should be made also.

  10. DanaPointJohn Says:

    For Trump to crow that NAFTA is dead is just another delusional fantasy of his completely not supported by fact. This “deal” with Mexico is tentative, and is merely an adjustment that any president could have negotiated.

  11. Larry D. Says:

    7 it is not just Tesla, there is a ton of companies that, sometimes for decades, appeared to be ridiculously high. I am a cheapskate and bargain hunter and never owned any of them directly, but boy oh boy am I glad my 401k Mutual Funds did!!!

    These are the leaders of today, from Microsoft and Amgen and Biogen and Amazon and dozens more. Every one of them has been extremely [pricey for decades, and many did not make a dime, also for decades. Look at Amazon.

    So why is this happening? Most people do not understand what the stock price represents. it does NOT represent the assets of the company, or last year’s sales of profits. It represents Investors Expectations, I repeat, Expectations, for its Future, I repeat, FUTURE, Profits.

  12. Drew Says:

    @7 – I wholeheartedly agree. Wall Street makes its money via the ups and downs of stock/bond prices. They will give any reason for the ups and downs, no matter how disconnected from real facts of cause-and-effect relationships.

    Auto OEMs and suppliers have plans/strategies and capital outlays that engulf 4-8 years. Aside from the competitive effect of alternative investments into other business sectors, auto stocks should not vary as much as they do in the short to mid term. But Wall Street fabricates rationales to get investors to sell and buy. We are all be served when we ignore their noise.

  13. Larry D. Says:

    8 I Agree, let’s try to keep politics and Washington out of here.

  14. Larry D. Says:

    12 What happened to GM and Chrysler’s ‘plans’ that ‘engulf 4-8 years’ in 2008?

    How come they went belly up and investors lost every penny they foolishly invested in these companies, who have been losing home games for 50 years to the imports?

  15. Kit Gerhart Says:

    Sorry about kind of starting a “politics” discussion, but it’s sometimes hard not to.

    Most of my investments are in mutual funds, as I figure “professionals” are a lot better at this stuff than I am. There are ups and downs with my accounts, but overall, they have been consistently up for the last 9 or 10 years.

    Of the few individual stocks I have, I have done less well. Years ago, I thought Ford stock was a good deal at ~$10. Now 15-20 years later, it is at ~$10.

  16. A Canadian Says:

    The ‘deal’ is not a deal yet. It is only a preliminary outline, approved by the outgoing lame duck president of Mexico. Trump has claimed credit for a non-event, but the outline described may eventually lead to an actual deal. Maybe he can claim credit again if/when that ever happens.

  17. Drew Says:

    @ 14 – The auto business is very capital-intensive. When the capital markets dried up from the sham “derivative” mortgage collapse (caused by Wall Street and the Clinton administration), GM and Chrysler could stop burning through cash. Not GM’s or Chrysler’s fault.

    Investors lost every penny because the Obama administration turned bankruptcy laws upside down. Normally, bond and preferred stock holders are amongst the 1st creditors to claim assets. But Lietner & Co. essentially gave the assets to the UAW (preserving the UAW’s pension fund and other UAW benefits). I know this is a big simplification, but I don’t want to bore you with the other tragic details.

  18. Kit Gerhart Says:

    16 I lucked out in selling my GM stock well before “stuff happened.” The good thing that came of everything, is that hundreds of thousands of GM, Chrysler, and supplier jobs were saved. Also, I was able to buy a new Corvette in 2015. Things would have been much worse for years, if GM and Chrysler had just shut down.

  19. Drew Says:

    Kit, I am not complaining about GM and Chrysler being saved. But I do complain about the politics that protected some parties and left others to suffer.

  20. Kit Gerhart Says:

    I’m one of the salary retirees who “lost” more than similar age union workers. I’m not too bitter, though, because the union had a contract, and I just had promises from. GM, and then Delphi by the time I retired.

    As far as protections for investors, I don’t know much, except I’m glad I sold the GM and Delphi stock in my 401k when it still had value.

  21. Larry D. Says:

    18 we’ll never know but it is generally true that competition makes industry much healthier than bailouts. I mentioned the GM and Chrysler bankruptcies because there are some comments that allege that Tesla is also close to bankruptcy, which was never the case.

    BTW what was the attraction of owning these stocks? With Ford, the family makes shareholders second class citizens by retaining the voting majority while they own a tiny % of the shares. With GM and Chrysler, they were really weak.

  22. Kit Gerhart Says:

    I had the GM and Delphi stock because the company made extra contributions if we bought stock through our 401k. I bought the small amount of Ford, mainly because a friend who seemed “in the know” recommended it.

  23. Kit Gerhart Says:

    Also, I have some Daimler stock, the result of having inherited some Chrysler stock from my father.