News Archive


Ghosts of past tech IPOs could haunt Snap’s performance


Snap Inc appears set to make a splash next week with the biggest tech stock debut since Facebook Inc, but history suggests investors shut out of the initial public offering would be better off waiting a bit to chase this unicorn on the open market.

Globally, shares of most of the 25 largest technology IPOs have languished in their first 12 months on the public market, with 16 of them notching a hefty decline from their debut day closing price, according to a Reuters analysis of market performance. Eight of the 10 biggest fell by between 25 percent and 71 percent.

Among U.S. tech IPOs, 14 of the 25 biggest fell in their first year, including nine of the 15 to raise at least $1 billion in their listings. Declines ranged from 9 percent to more than 80 percent.

Snap, the company behind the popular Snapchat app, is expected to raise between $2.8 billion and $3.2 billion, which could vault it into the five largest global tech IPOs of all time, according to Thomson Reuters Deals Intelligence data. It would rank third on the U.S.-only list.

Company executives have been on the road for the last week meeting with potential investors, and Thomson Reuters IFR reported on Friday that the deal is oversubscribed, meaning far more fund managers want a slice than can be accommodated. Potential IPO buyers appear willing to look past concerns about the company’s governance and lack of profitability and see it as a vehicle to play a red-hot market for tech stocks, the leading sector so far in 2017.

The deal is expected to price next week, and the stock will start trading on the New York Stock Exchange under the ticker SNAP on March 2.

ROUGH FIRST YEAR

Still, the track record for the largest tech IPOs may be one red flag.

The median year-one performance among the biggest tech debuts globally was a decline of 22.3 percent, with big stumbles among marquee names like Alibaba Group Holding Ltd and Facebook, ranked Nos. 1 and 2 respectively. Each dropped about 30 percent in their first 52 weeks. One did not even survive a year: World Online BV, ranked as the No. 6 tech IPO of all time. The Netherlands-based internet service provider raised $2.8 billion in March 2000, the month marking the peak of the dot-com bubble, and slid 68 percent before being bought by Italy’s Tiscali SpA 10 months later.

The U.S. tech group, which suffered from the inclusion of notable casualties from the internet stock bust of the early 2000s, such as Palm Inc, Viasystems Group, Genuity and Infonet, had a median decline of 17.2 percent in their first year.

And unicorns like Snap are no exception to the rule. The last five tech names in the U.S. top 25 with a pre-IPO valuation north of $1 billion, Groupon Inc, Zynga Inc, Facebook, Twitter Inc and Fitbit Inc, all nosedived in their first year. Only Facebook has since recovered.

Some notable outperformers do dot the list.

Alphabet Inc stands out as the top year-one performer both globally and domestically. Debuting as Google in August 2004, it soared nearly 180 percent in its first year. Next best was German electronics company EPCOS AG, which is now private but gained 140 percent after its October 1999 IPO.

IT GETS BETTER … SOMETIMES

For some of the most prominent names on the list, performance did turn a corner after that dismal first year.

Facebook, which raised $16 billion in May 2012 only to have technical glitches mar its debut on Nasdaq, lost more than half its value in its first four months of trading. But its shares have been off to the races since, surging more than 660 percent from their low-water mark that September to more than 250 percent above the day-one closing price.

Alibaba’s shares, which rose more than 30 percent in their first month only to falter over most of the next two years, are also back in the black, though barely. The stock is up about 9 percent from its closing price on Sept. 19, 2014, having gained nearly 80 percent from its low point a year after the IPO.

By the end of either year five or their latest price, whichever is longer, the biggest U.S. tech IPOs posted a median gain of 29.1 percent.

Globally, however, many were still struggling five years later, with 14 of the top 25 lower. The median performance for that group was a decline of 35 percent.

(Reporting By Dan Burns; Editing by Meredith Mazzilli)

Article source: http://feeds.reuters.com/~r/reuters/businessNews/~3/0m95DMvRZPA/us-snap-ipo-tech-analysis-idUSKBN16328D

Porsche, Audi lift VW to record underlying profit


WOLFSBURG, Germany Record Audi and Porsche sales helped Volkswagen (VOWG_p.DE) swing to a record underlying profit in 2016, although a bigger than expected charge from the diesel emissions scandal meant it missed estimates for its operating profit.

Sales of the German carmaker’s luxury brands lifted underlying operating profit before special items 14 percent to 14.6 billion euros ($15.5 billion) in 2016, after the company reported its biggest ever loss in 2015.

VW forecast broadly stable earnings this year.

Underlying profit was broadly in line with forecasts for the world’s biggest car manufacturer by volume sales, which hiked its dividend more than expected after group sales rose to new highs, with an 8.1 percent jump in fourth quarter deliveries.

Volkswagen (VW) is struggling with the fallout from its admission 17 months ago that it rigged U.S. diesel emissions tests, a scandal that some analysts have estimated may cost it more than $30 billion in fines, compensation and vehicle refits.

VW has since embraced a costly shift to more electric vehicles and last year eclipsed Toyota (7203.T) as the world’s top-selling carmaker with record deliveries of 10.3 million.

ONE-OFF CHARGES

Although group sales fell 4 percent in January on the back of national holidays and a tax hike on small-engine cars in China, its biggest market, VW forecast an underlying operating margin of between 6 and 7 percent for 2017, compared with the 6.7 percent it achieved last year.

But the damage from the emissions cheating affair took its toll, with VW booking bigger-than-expected one-off charges of 7.5 billion euros in 2016, of which 6.4 billion were related to the emissions-test rigging scandal. Analysts had on average forecast the cost would be 4.2 billion euros in total.

Including those charges, VW made a 2016 operating profit of 7.1 billion euros, missing a consensus forecast of 10.5 billion euros but a big swing from a loss of 4.1 billion euros in 2015.

VW’s Chief Executive Matthias Mueller said the carmaker was now well set for the years ahead.

“As the figures show, Volkswagen is very solidly positioned in both operational and financial terms. This makes us optimistic about the future,” he said in VW’s results statement.

The return to profit at group level may help calm tensions in Wolfsburg where labour bosses and VW’s brand management have been sparring over its ability to tackle the high cost base of VW’s German plants, which what analysts and investors say will be key to a further recovery.

VW said it would propose a dividend of 2.06 euros per preferred share, more than the 1.86 euros expected by analysts on average, and 2.00 euros per ordinary share for 2016.

That is up from 0.17 euros and 0.11 euros respectively a year earlier, when VW had to cut the dividend because of the cost of the diesel emissions cheating.

(Writing by Maria Sheahan and Edward Taylor; Editing by Arno Schuetze and Alexander Smith)

Article source: http://feeds.reuters.com/~r/reuters/businessNews/~3/p4j2pO50S3c/us-volkswagen-results-idUSKBN16325H

U.S. new home sales rebound; consumer sentiment dips


WASHINGTON New U.S. single-family home sales rose less than expected in January, likely held back by heavy rains and flooding in California, but continued to point to a strengthening housing market despite higher prices and mortgage rates.

Other data on Friday showed a dip in consumer sentiment this month, though it remained at a level consistent with a healthy pace of consumer spending. The economy has gained momentum, supported by a labor market that is near full employment.

“It is clear that the economy is moving forward solidly. Consumers are confident and are buying homes, but builders are not getting their share of that demand,” said Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pennsylvania.

The Commerce Department said new home sales increased 3.7 percent to a seasonally adjusted annual rate of 555,000 units last month. Economists had forecast single-family home sales, which account for about 9 percent of overall home sales, surging 6.3 percent to a 570,000-unit rate.

New home sales, which are derived from building permits, are volatile on a month-to-month basis and subject to large revisions. Sales were up 5.5 percent compared to January 2016.

Last month, homes sales soared 15.8 percent in the Northeast to their highest level since January 2008. They rose 14.8 percent in the Midwest and advanced 4.3 percent in the South. Sales in the West, which has been hit by extremely rainy weather, fell 4.4 percent.

“The unusually wet winter may have held back sales in January, but sales are still trending higher on a three-month moving average basis,” said Mark Vitner, a senior economist at Wells Fargo Securities in Charlotte, North Carolina.

Data this week showed sales of previously owned homes jumped 3.3 percent to a 10-year high in January. House prices increased 6.2 percent in December from a year ago.

‘SUPPLY-SIDE CHALLENGES’

In a separate report on Friday, the University of Michigan said its consumer sentiment index fell to a reading of 96.3 this month from 98.5 in January. The index had surged in the prior three months after Donald Trump’s presidential election victory.

“With the focus shifting from campaign promises and philosophical goals, consumers may be acknowledging the difficult task ahead for the Trump administration to actually advance his agenda,” said Jim Baird, chief investment officer at Plante Moran Financial Advisors in Kalamazoo, Michigan.

The University of Michigan said February’s consumer sentiment reading suggested a 2.7 percent annualized growth pace in consumer spending this year.

U.S. stocks were trading lower on Friday, with the Dow Jones Industrial Average .DJI on track to snap a 10-day record-setting winning streak. The PHLX housing index .HGX fell marginally. U.S. government bond prices rose, while the dollar .DXY dipped against a basket of currencies.

The housing market has firmed even as the 30-year fixed mortgage rate rose above 4.0 percent, outpacing annual wage growth that has been stuck below 3 percent. The tightening job market is driving the gains in housing.

While the healthy labor market has not unleashed a stronger pace of wage growth, it has improved employment opportunities for young Americans, encouraging them to form their own households. But a shortage of properties available for sale remains an obstacle to a robust housing market.

“Mortgage rates aren’t to blame. A big part of the problem is the supply-side challenges builders are facing, like regulatory burdens, labor shortages and a lack of capital and financing options,” said Jonathan Smoke, an economist at realtor.com in Atlanta.

The inventory of new homes on the market increased 3.5 percent to 265,000 units last month, the highest level since July 2009. New housing stock remains less than half of what it was at its peak during the housing boom in 2006.

At January’s sales pace it would take 5.7 months to clear the supply of houses on the market, which was unchanged from December. A six-month supply is viewed as a healthy balance between supply and demand. The median price for a new home increased 7.5 percent to $312,900 in January from a year ago.

(Reporting by Lucia Mutikani; Editing by Paul Simao)

Article source: http://feeds.reuters.com/~r/reuters/businessNews/~3/V57wlgEpaIg/us-usa-economy-housing-idUSKBN1631S0

J.C. Penney holiday quarter sales drop, to shut 130-140 stores


Department store operator J.C. Penney Co Inc (JCP.N) reported a bigger-than-expected drop in same-store sales for the holiday quarter citing weak demand and competition from online retailers, sending shares down to more than a year low.

The company on Friday also said it would shutter 130-140 underperforming stores over the next few months to focus on more profitable ones.

Penney’s results underscored the brick-and-mortar retail industry’s struggles to overcome a drop in traffic in malls and a shift toward online shopping.

To save cash, retailers have been cutting costs and looking to make more money from their sprawling real estate assets. Rival Macy’s Inc (M.N) said it was closing 100 stores and exploring deals with other retailers to lease parts of its stores.

Penney’s comparable store sales fell 0.7 percent in the fourth quarter ended Jan. 28, steeper than the 0.5 percent drop analysts polled by research firm Consensus Metrix had expected.

The sales drop was the company’s third quarterly decline this year.

Penney also said that increased promotional activity and handing out more coupons weighed on its margins, which fell 1 percentage point to 33.1 percent.

Costs related to rolling out its low-margin appliances business to more stores also hit margins during the quarter.

In contrast Kohl’s Corp (KSS.N) and Nordstrom Inc (JWN.N) managed to keep a grasp on their margins by stocking less and reining back on promotions.

“(Q4) store gross margin was negatively impacted by actions we took with couponing and increased promotional activity… These were poor decisions that will not be repeated,” Chief Executive Marvin Ellison said on a conference call.

Shares of the company, which operates more than 1,000 stores in the United States, fell 10 percent to more than a year low of $6.18 in morning trading on Friday.

STORE CLOSURES

Penney on Friday said the stores being closed represent less than 5 percent of annual sales.

The retailer also said it would sell a supply chain facility in Buena Park, California to “monetize a lucrative real estate asset” and close a distribution center in Lakeland, Florida.

Along with the closures, the company will also offer voluntary retirement for about 6,000 employees in its headquarters, stores and supply chain.

The company expects annual savings of about $200 million from the cost cuts, but would incur a pre-tax charge of about $225 million in the first half of the current year.

(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Sriraj Kalluvila and Shounak Dasgupta)

Article source: http://feeds.reuters.com/~r/reuters/businessNews/~3/86w8UNP4bIU/us-jc-penney-results-idUSKBN1631DB

Kraft’s shock bid triggers Unilever focus on short-term value


Kraft Heinz’s (KHC.O) bid has jolted Unilever (ULVR.L) into focusing more on delivering on its strategy in the short-term, the Anglo-Dutch company’s finance chief said on Friday.

Graeme Pitkethly said Kraft’s offer had highlighted the importance of achieving a balance between long-term sustainable value, which it had prioritized, and short-term delivery.

“This has certainly been a trigger moment for Unilever, and we will not waste it,” he said at the Consumer Analyst Group of New York conference in Boca Raton, Florida, in a presentation streamed on its website.

The U.S. company walked away from a fight with Unilever on Sunday, just two days after its $143 billion bid – and Unilever’s rejection – was made public.

Kraft, which is backed by Warren Buffett and the private equity firm 3G, wanted to buy Unilever as part of its strategy to become a leading consumer goods giant by buying competitors and cutting costs and jobs to drive profits.

The approach caused Unilever, which makes OMO detergent and Magnum ice cream, to announce a far-reaching review on Wednesday, seeking to show shareholders it could realize the value spotted by its rival.

Pitkethly said he believed Unilever could do more to communicate the value buried within its existing plans, while the review would look at options for the group’s portfolio, organization, cost structures, balance sheet and use of cash.

He said Kraft had taken advantage of a recent widening gap between Unilever’s share price and the sector average, caused in part by a weak outlook for markets like India and Brazil.

“The combination of being at the bottom of the emerging market cycle combined with a lack of volume growth in the fourth quarter led to a very weak Unilever share price,” he said.

“Add to this that we were at the bottom of credit cycle and our own strong balance sheet, and you have the opportunity for a leveraged offer.”

Unilever, which has struggled recently amid slowing growth and currency fluctuations, saw its shares tumble 4.5 percent on Jan. 26, its worst day in nearly a year, when the company reported lower-than-expected fourth-quarter sales.

Kraft seized the opportunity to make an approach pitched at $50 a share, representing a premium of 18 percent.

Pitkethly said for most of the last year, a $50-a-share bid would have represented a premium of about 10 percent.

Unilever’s shares jumped to an all-time high of 38.48 pounds when the approach was made public, and they have retained most of that gain, supported by Unilever’s review and an upgrade to its guidance.

The shares were trading up 0.2 percent at 37.73 pounds ($47.14) at 1534 GMT on Friday.

Pitkethly said the bid “substantially undervalued” Unilever, while Kraft’s approach to shareholder value was diametrically opposed to its own.

While Unilever had an “inherently sustainable” model of looking to grow by compounding returns and investment over the long term, Kraft, he said, relied on leverage to generate stronger short-term growth and earnings.

But without the foundation of strong organic growth, Kraft would be dependent on further deals.

“It may be there was a strong strategic rational for Kraft in combining with Unilever, but there was no strategic rationale for Unilever,” he said.

($1 = 0.8004 pounds)

(Reporting by Paul Sandle in London and Siddharth Cavale in Bangaluru; Editing by Kate Holton and Alexander Smith)

Article source: http://feeds.reuters.com/~r/reuters/businessNews/~3/p6qtGn9qUkE/us-unilever-strategy-idUSKBN1631M2

U.S. new home sales rebound; consumer sentiment ebbs


WASHINGTON New U.S. single-family home sales rose less than expected in January, likely hurt by flooding in California, but continued to point to a strengthening housing market despite higher prices and mortgage rates.

Other data on Friday showed a dip in consumer sentiment this month, though it remained at a level consistent with a healthy pace of consumer spending.

The Commerce Department said new home sales increased 3.7 percent to a seasonally adjusted annual rate of 555,000 units last month. Economists had forecast single-family home sales, which account for about 9 percent of overall home sales, surging 6.3 percent to a 570,000-unit rate last month.

New home sales, which are derived from building permits, are volatile on a month-to-month basis and subject to large revisions. Sales were up 5.5 percent compared to January 2016.

Data this week showed sales of previously owned homes jumped 3.3 percent in January to a 10-year high. House prices increased 6.2 percent in December from a year ago.

In a separate report on Friday, the University of Michigan said its consumer sentiment index fell to a reading of 96.3 this month from 98.5 in January. The index had surged in the prior three months following Donald Trump’s victory in the Nov. 8 presidential election.

“Normally, the implication would be that consumers expected Trump’s election to have a positive economic impact,” the University of Michigan said. “That is not the case since the gain represents the result of an unprecedented partisan divergence, with Democrats expecting recession and Republicans expecting robust growth.”

The University of Michigan said February’s consumer sentiment reading suggested a 2.7 percent annualized growth pace in consumer spending this year.

Prices of U.S. government debt edged up after the data. U.S. stocks were trading lower as was the dollar .DXY against a basket of currencies. The PHLX housing index .HGX was down 0.5 percent.

LABOR MARKET BOOST

The housing market strength comes even as the 30-year fixed mortgage rate has risen above 4.0 percent, outpacing annual wage growth that has been stuck below 3 percent. The gains in housing are being driven by a strong labor market which is near full employment.

While the tightening labor market has not unleashed a stronger pace of wage growth, it has improved employment opportunities for young Americans, encouraging them to form their own households. But a shortage of properties available for sale remains an obstacle to a robust housing market.

Last month, new single-family homes sales soared 15.8 percent in the Northeast to their highest level since January 2008. They rose 14.8 percent in the Midwest and advanced 4.3 percent in the South. Sales in the West, which has been hit by unusually wet weather, fell 4.4 percent .

The inventory of new homes on the market increased 3.5 percent to 265,000 units last month. New housing stock remains less than half of what it was at its peak during the housing boom in 2006.

At January’s sales pace it would take 5.7 months to clear the supply of houses on the market, which was unchanged from December.

A six-month supply is viewed as a healthy balance between supply and demand. The median price for a new home increased 7.5 percent to $312,900 in January from a year ago.

(Reporting by Lucia Mutikani; Editing by Paul Simao)

Article source: http://feeds.reuters.com/~r/reuters/businessNews/~3/V57wlgEpaIg/us-usa-economy-housing-idUSKBN1631S0

Wall Street opens lower as energy, finance stocks weigh


U.S. stocks opened lower on Friday, dragged down by a drop in financial and energy stocks and as investors assessed if the “Trump rally” had gone too far too soon.

The SP 500 is up more than 10 percent since the U.S. election, while the Dow notched a record high for a tenth straight session on Thursday, spurred by U.S. President Donald Trump’s promises of tax reforms, reduced regulations and increased infrastructure.

But, with Trump giving scant detail on his plans – including one on Thursday to bring millions of jobs back to the United States – markets have traded in a tight range.

The benchmark SP 500 index has not registered a move of at least one percent in either direction since Dec. 7.

“Investors have embraced this oversimplified fundamental story of Trump’s impact on the financial market and you’re starting to see that narrative unravel a bit,” said Aaron Clark, portfolio manager at GWK Investment Management.

“The market will come to realize that a lot of these pro-growth policies might get pushed to the end of this year or next year and you might have this buyer’s remorse for the market.”

U.S. Treasury Secretary Steven Mnuchin said on Thursday that any policy steps would probably have only a limited impact this year. Investor will likely get more clarity on Trump’s plan on Tuesday, when he addresses a joint session of Congress.

At 9:41 a.m. ET (1441 GMT) the Dow Jones industrial average .DJI was down 47.05 points, or 0.23 percent, at 20,763.27.

The SP 500 .SPX was down 8.6 points, or 0.36 percent, at 2,355.21.

The Nasdaq Composite .IXIC was down 27.24 points, or 0.47 percent, at 5,808.26.

Eight of the 11 major SP sectors were lower, with the financial index’s .SPSY 1.06 percent fall leading the decliners.

Bank of America (BAC.N) fell 1.35 percent and weighed the most on the SP, while Goldman Sachs’ (GS.N) 1.43 percent drop pulled down the Dow.

Oil prices were down about 1 percent after U.S. crude inventories rose for a seventh week, showing the market is still struggling to ease oversupply. [O/R]

Shares of Hewlett Packard Enterprise (HPE.N) fell 8.41 percent to $22.57 after the company cut its full-year profit forecast.

Baidu (BIDU.O) was down 4.32 percent at $176.67 as the internet search giant’s revenue fell for a second straight quarter.

J.C. Penney (JCP.N) fell 4.1 percent to $6.58 after the department store operator reported a bigger-than-expected drop in same-store sales for the holiday quarter.

Declining issues outnumbered advancers on the NYSE by 1,916 to 750. On the Nasdaq, 1,783 issues fell and 535 advanced.

The SP 500 index showed 11 new 52-week highs and one new low, while the Nasdaq recorded 24 new highs and 22 new lows.

(Reporting by Tanya Agrawal; Editing by Savio D’Souza and Sriraj kalluvila)

Article source: http://feeds.reuters.com/~r/reuters/businessNews/~3/G82DmnrFofs/us-usa-stocks-idUSKBN1631DO

On visit to London, Peugeot boss offers reassuring words on Vauxhall plants


LONDON The head of French carmaker PSA (PEUP.PA) played down the threat to British factories when he discussed the potential takeover of GM’s (GM.N) European operations with union officials and politicians in London on Friday.

The British visit was the latest part of a charm offensive by Carlos Tavares, chief executive of Peugeot-maker PSA, after news broke last week that PSA was in talks about a possible purchase of the Opel business.

Germany accounts for about half of Opel’s 38,000 staff, while 4,500 are in Britain where Opel operates as Vauxhall and there are concerns in both countries about the impact of any deal on jobs.

Britain’s business minister Greg Clark said talks with Tavares focused on the firm’s desire to boost output.

“We discussed how PSA’s approach is to increase market share and expand production rather than close plants. I was assured that the commitments to the plants would be honored,” Clark said in a statement.

“There was also recognition that members of the Vauxhall pension fund will be no worse off.”

Tavares said this week that the combined company would aim to sell more than 5 million vehicles annually within “a few years”. PSA and GM Europe delivered 4.3 million vehicles between them last year.

Tavares also delivered a similar message to the Unite union’s General Secretary Len McCluskey on Friday.

“He talked in terms of not being here to shut plants. That’s not his nature,” McCluskey, the head of the country’s biggest union, told reporters, adding the talks were “relatively positive”.

But McCluskey said there remained a lot of issues to discuss, including that of pensions.

The Vauxhall pension scheme has a deficit of up to 1 billion pounds ($1.25 billion) according to a source.

In a statement PSA said Tavares used the meeting to reaffirm “his commitment to conduct this dialogue in accordance with existing agreements and the ethical approach of the PSA Group.”

PSA said this week it would respect existing labor agreements if a deal took place.

Underlining concerns about jobs, Opel’s European works council said it had agreed to open a line of communication with its counterpart at PSA Group.

(Reporting by Costas Pitas; Editing by Keith Weir)

Article source: http://feeds.reuters.com/~r/reuters/businessNews/~3/YYkvkhvUEMo/us-opel-m-a-psa-idUSKBN1631E6

February U.S. auto sales seen up 0.6 percent: JD Power-LMC


U.S. auto sales in February will increase less than 1 percent from a year earlier, even as consumer discounts remain at record levels, industry consultants J.D. Power and LMC Automotive said on Friday.

February U.S. new vehicle sales will be about 1.35 million units, up 0.6 percent from a year earlier, the consultancies said.

The seasonally adjusted annualized rate for the month will be 17.7 million vehicles, up from 17.6 million on the same basis a year earlier.

Retail sales to consumers, which do not include multiple fleet sales to rental agencies, businesses and government, were set to post a 0.4 percent increase in February.

LMC and J.D. Power maintained their 2017 sales forecast of 17.6 million vehicles, an increase of 0.2 percent from 2016.

U.S. sales of new cars and trucks hit a record high of 17.55 million units in 2016.

As the market saturates, automakers have been hiking incentives to entice consumers.

Through the first 12 days of February, industry incentive spending was $3,748 per new vehicle sold, the highest level ever for the month, and up $294 from a year earlier.

Incentives as a percentage of manufacturer’s suggested retail price were at 10.3 percent in February, exceeding the 10 percent level for the first time in the month since 2009, J.D. Power and LMC Automotive said.

“While the retail SAAR remains robust, the elevated levels of incentives remain a fundamental threat to the long-term health of the industry,” said Deirdre Borrego, senior vice president of automotive data and analytics at J.D. Power.

(Reporting by Ankit Ajmera in Bengaluru; Editing by Sriraj Kalluvila)

Article source: http://feeds.reuters.com/~r/reuters/businessNews/~3/mSW6g0F-Y4o/us-usa-autos-idUSKBN1631QG