A123 Bankruptcy Deal Approved and 4 Auto Stocks Drive Forward
Ford Motor Co. (NYSE:F) revealed its redesigned 2014 Fiesta with the face of a Fusion and engine choices that range from a fuel-sipping 1-liter engine to a high-performance Fiesta ST. On Monday, Ford revealed the Fiesta hatchback’s new look before the Los Angeles Auto Show, opening to the media on Wednesday. The Fiesta ST, which set to be released next spring, is a performance package with a new high-output variant of the 1.6-liter four-cylinder EcoBoost turbocharged engine. It has the ability to generate 197 horsepower and 214 pound-feet of torque, which is more than a Mini Cooper S or Chevrolet Sonic RS, as it is able to reach 34 m.p.g.
Toyota Motor Corporation (NYSE:TM) along with Honda has done well in two competing indexes measuring how well new cars are are likely to retain their value. In year two, Toyota and its luxury brand, Lexus, have taken the top two spots in regards to resale value in Kelley Blue Book’s predictions, announced at the Los Angeles Auto Show. Then, Honda and its Acura luxury division have done well in a similar survey given by ALG, also tracking expected car depreciation. Also, considering individual models in various car categories, Honda did well in KBB’s survey of the Honda Fit, Civic, and Accord, all of whom were at the top of their respective categories.
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Honda Motor Co., Ltd.’s (NYSE:HMC) newest product is a new version of the Honda Fit, and it has been marketed toward women. “Female drivers told us they were concerned about the summer sun, as well as getting dry skin from the air conditioning,” stated the car’s designer Eri Tomonari. The company claims that the windshield reduces 99 percent of the UV rays, and the “plasma cluster” AC will not dry skin. Additionally, there are more subtle changes, such as pink features on the dashboard and pink stitching in the seats.
Tesla Motors, Inc. (NASDAQ:TSLA) will increase the price of its award-winning Model S soon. Tesla stated via blog post that a price hike is imminent. The automaker added that more details regarding the changes would be announced in the next two to three weeks. The company added that the price increse wouldn’t include anyone who has already made a reservation for the luxury electric vehicle.
A123 Systems, Inc. (NASDAQ:AONE): A Delaware judge is giving final approval for Chinese auto-parts maker Wangxiang Group to give $50 million in bankruptcy financing for battery maker A123 Systems. A123 is a maker of lithium ion batteries for electric cars, and the company sought bankruptcy protection last month after it had been awarded a $130 million of a $249 million Department of Energy grant. Johnson Controls Inc. has offered $125 million for the automotive assets A123, which Wangxiang is considering as well. Bids are due December 4.