Toyota Agrees to Resolve Loss Litigation and 4 Auto Stocks Making Headlines Now
General Motors Company (NYSE:GM): Auto analysts continue to show concern regarding the “Fiscal Cliff’s” effect on auto sales in 2013, but it also continues to see an increase in pickup sales, according to Detroit News, citing a note from J.P. Morngan (NYSE:JPM) analyst, Ryan Brinkman. J.P. Morgan still recommends General Motors (NYSE:GM) and Ford (NYSE:F), according to the paper.
Toyota Motor Corporation (NYSE:TM) North America has agreed to resolve economic loss litigation in the U.S. that is related to previous recalls. With the approval of the economic loss settlement, Toyota will release its new customer-support program providing prospective supplemental coverage for particular vehicle components and should retrofit more non-hybrid vehicle models subject to the floor mat recall with a free brake override system that will add more confidence. Toyota intends to offer cash payments to eligible customers who either sold or turned-in their leased vehicles during 2009-2010, along with additional specified persons, and to eligible current owners and lessees not offered a free brake override system. Toyota intends to take a one-time, $1.1 billion pre-tax charge against earnings as a means to cover the estimated costs of the economic loss settlement and possible resolution costs of civil litigation brought in California by the District Attorney of Orange County and an investigation by a multi-state group of Attorneys General stemming from previous recalls.
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Honda Motor Co., Ltd. (NYSE:HMC) intends to voluntarily recall nearly 19,500 all-terrain vehicles in the U.S. as a result of a crash hazard, which comes after a smaller recall of the ATVs in February, according to the the U.S. Consumer Product Safety Commission, reports the Wall Street Journal.
Tesla Motors, Inc. (NASDAQ:TSLA) range-extending Supercharger recharging stations opened up on the East Coast, enabling Boston to Washington, D.C. travel, The New York Times reports.
A123 Systems, Inc. (NASDAQ:AONE): A senior Wanxiang Group executive stressed that A123 Systems Inc, which is now the focus of a US political storm after the Chinese firm won an auction for the electric car battery maker, would operate as an American company, as those who are close to the deal claim that they believe national security concerns continue to be overblown. China’s most prominent auto parts maker beat out rivals with a $257 million bid for the bankrupt pioneer of electric car batteries. However, though the takeover received court approval, it must still be cleared by the US Committee on Foreign Investment.
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