Jackson Automotive Case Study

 New-Car Dealers account for an estimated 30% of all units sold in a given

Upon returning from his annual two-week vacation in early July of 2002, the treasurer of the Spring Valley Forest Products Corporation, a Mr. Fred Firr, found the firm's audited balance sheet as of June 30 on his desk. Close scrutiny of the company's financial condition as reported in this document suggested to Mr. Firr that the cash flow picture for the enterprise was deteriorating. In times gone by, the firm had been able to maintain sizeable cash balances in its bank of account, Tippecanoe Trust Company, during the major portion of the fiscal year, and had found only modest seasonal borrowings necessary. Recently, however, a lengthening of credit terms to customers necessitated by intense

In late 2008, General Motors was in financial distress due to some major financial liabilities. These included

When a company decides to pay dividends, it has to be careful on how much it will be given to the shareholders. It is of no use to pay shareholders dividends

The main concern is that the company would have a lot of debt if they have to borrow money from the bank, continue to pay Charlie Carlton’s parents, and pay off the $1 million debt to Mr. Miller.

Ideas introduced in the article assist in understanding Ford’s current situation. Ford reported sharp falls in U.S. auto sales in May 2008. Sales of its most profitable pickups and SUVs suffered the most (“US Auto Sales Slide”). Some of the main

Prior to the Federal Deposit Insurance Act (FDIA) of 1950, federal regulators could take only one of two approaches for dealing with an insolvent corporation: force permanent closure of the firm, or encourage other firms to purchase the dissolved one. The FDIA made it possible for the government to provide assistance to firms through loans and asset acquisition until they recovered and performed better. As this third option involves the directing of public money into salvaging private corporations, its application has been a matter susceptible to great contention since the act’s creation.

The company lost money almost every year since its leveraged buyout by Coniston Partners in 1989. The income generated was not sufficient to service the interest expenses of the company which stood at $2.62B in 1996. From Exhibit 1, we can say that interest coverage ratio computed as EBIT / Interest Expense was 1.31 in 1989 and has been decreasing over years and currently stands at 0.59. This raises a question of how the company can meet its interest payments without raising cash or selling assets.

The company currently faces serious financial challenges. It was struggling with declining sales and increasing costs. Since 2004, revenues had fallen by more than 40% while costs especially for employees health insurance, maintenance, and utilities climbed. Credits and loans had been borrowed to

Premier Auto provides a wide variety of services as a local business. They tint windows in automotive applications as well as commercial and residential. This particular service they offer is very beneficial to potential customers because of the benefits received from window tint. Some of these benefits include protection from UVA & UVB rays, privacy, and safety protection. The other aspect of the business is used car sales with available in house financing on most vehicles on the lot. The window tinting section of the business opened in its current location of Albemarle NC in 2006. Previously there were 2 other locations, one being in Concord NC and one in Salisbury NC. With the opening of the Albemarle location, the company decided to shut

Toyota Motor Manufacturing, U.S.A. (TMM) is deviating from the standard assembly line principle of jidoka in an attempt to avoid expenses incurred from stopping the production line for seat quality defects. This deviation has contributed to the inability to identify the root cause of the problem, which has led to decreased run ratios on the line and an excess of defective automobiles in the overflow lot for multiple days. If this problem isn’t fixed quickly, an increased amount of waste will continue to be incurred and customer value will be threatened.

Forwarded here with a term paper report on “General Motors Bankruptcy” submitted by Siddharth Dixit Enrollment No A7004611108 student of

The automotive industry is widespread globally with a wide range of organizations involved in the following: development, marketing, manufacturing, designing, and sales. This analysis will take a further look at automakers in the industry, more specifically General Motors (GM), Volkswagen (VLKAY, Honda, Nissan, Toyota. Beginning around the 1890s, the automotive industry has evolved and undergone shift changes in consumer trends, product development, marketing, and industry competition shifts. Some of the major changes have been the result of: Regulatory, Safety, Economy, Reliability, and Environmental.

Chrysler is the largest automobile manufacture in the United States. In the recent years, the company is facing many obstacles. Chrysler established a poor business strategy and lack of innovation that resulted in financial problems. From a strategic management view, they were more unsettled than any other automakers. Their business strategy was focusing on SUV and trucks in an economy where gas prices were high and consumers were looking for more fuel efficient vehicles. Another poor business strategy was the historic May 1998, merger deal with a German automobile Daimler-Benz AG (Daimler) It was called the “marriage of equals” (Garsten, 2000). The mergers have failed to achieve the expected results. At the time of the merger, Chrysler was the most profitable and cost efficient carmaker and Daimler was known as the luxury carmaker. Daimler relied heavy on quality and Chrysler was prone toward cost effective vehicles. Culture crash also failed because there were a

"The mission statement up to the year 2020 is clearly defined: the BMW Group is the world 's leading provider of premium products and premium services for individual mobility."