US car giant General Motors (GM) said it would run out of cash in the first half of 2009 if economic and market conditions did not improve. This follows the announcement that third quarter losses hit £2.66bn. (more…)

Tracinda, the investment vehicle of Kirk Kerkorian, looks to increase its stake in Ford from 4.7% to 5.6% and has offered $8.50 per share for 20 million shares. Tracinda has been steadily building its stake in Ford as it believes the company’s turnaround plan is on track to deliver positive results. A plan that included the sale of Jaguar and Land Rover to Tata in a deal worth £1.15bn

Pendragon, the UK car dealership, has reported used car sales are up 2% on this time last year, although new car sales are down 4%. The 2% increase means that Pendragon expects full year results to come in towards the top end of analysts expectations. The credit crunch and falling house prices have not yet had a knock on effect to the care market, however it is unclear whether this will carry through the rest of the year. Therefore future trading conditions are said to be uncertain.

Ford has finally sold Jaguar and Land Rover to Tata in a deal worth £1.15bn. Land Rover has remained profitable throughout its ownership by Ford, however Jaguar has never made a positive return on investment. The proceeds amount to about half of what Ford paid for the marques, suggesting the purchase was not the best move Ford ever made. Ford will now focus on its currently loss-making business in the US. (more…)