Steel Markets

GM Weathering Recall
Written by Sandy Williams
April 26, 2014
“It’s an understatement to say that the first quarter was challenging for General Motors,” said CEO Mary Barra in GM’s first quarter conference call.
So far, Barra says the negative publicity surrounding the ongoing investigation into the recall of 7 million vehicles with faulty ignition switches has not had any meaningful affect on sales. GM is still targeting a higher market share of the automotive market in North American with launch of new pick-ups and SUVs.
“In the United States we earned record average transaction prices in the quarter, which reflects a significant 5,000 year-over-year increase in full size pick-up ATPs according to JP Power estimates. For our plan we’re selling a much richer mix of crew cab and premium contended truck today than we were just a year ago. We’re also starting to see the benefit of the new heavy duty Chevrolet and GMC pick-ups that launched in the first quarter along with our all new full size SUVs,” said Barra.
Barra says GM will be transparent and accountable regarding the recall.
“I want to begin by stating in no uncertain terms, the ignition switch recall and the factors led up to it are unacceptable to me, to my leadership team and to our Board of Directors. It doesn’t matter if the roots of the issue are more than the decade old. This leadership team is responsible for making things right and we will.”
GM reported net revenue of $37.4 billion for the first quarter, up from $36.9 billion in Q1 2013. Net income to common stockholders was $0.1 billion. Earnings before interest and tax (EBIT) adjusted was $0.5 billion, reduced by $1.3 billion pre-tax recall charge and $0.3 billion in restructuring costs.

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets

Sheet market sources slam tariffs for prolonged demand slump
Tariffs are ultimately to blame for stagnant demand in the hot-rolled coil market, domestic market sources tell SMU.

Week in Review: Sept. 29 -Oct. 3
Let’s take a quick tour of some key stories from SMU in the week of Sept. 29 - Oct. 3.

Hot-rolled coil sources lament stagnant conditions
Participants in the hot-rolled sheet market expressed frustration with the continuing lack of demand this week.

Plate market sources critique mill hikes amid current market conditions
Following spot market plate price increase notices issued by domestic mills this past week, participants are contemplating the rationale behind the increases and whether they will stick. Some sources anticipate that current market conditions will shift in November and believe the increases may set a new "pricing floor."

ITC’s final ruling: Dumped, subsidized CORE imports are harming domestic market
The US International Trade Commission (ITC) finds that corrosion resistant steel (CORE) imports from 10 countries have caused material damage to domestic product producers, according to the ITC’s statement.