Features
Feb. 9, 2009 – Finance Digest
GE Money and Suzuki offer financing
GE Money, a division of GE Capital, and American Suzuki Motor Corp. announced a multi-year agreement to provide consumer financing for Suzuki’s motorcycles, ATVs and scooters.
The Suzuki Installment Finance program, managed by GE Money’s Sales Finance unit, offers consumers a way to finance Suzuki powersports products.
“Working with GE Money to provide a comprehensive installment loan financing program is a vital part of our growth and customer satisfaction strategy,” said Dirk Gould, sales support and finance manager for American Suzuki. “GE Money’s long-held reputation of excellence complements our commitment to our dealers and consumers. We are pleased to work with them in offering such a convenient, cost-effective powersports financing program.”
“Suzuki owners can take advantage of a financing program created specifically for powersports, making budgeting and paying for these purchases easier and more convenient than ever before,” said Greg Pierce, vice president and general manager of powersports, GE Money – Sales Finance.
Ducati Motor Holding names board of
Director’s President
Gabriele Del Torchio has been appointed president of the board of directors for Ducati Motor Holding. The new board was announced during the Ducati Motor Holding shareholders’ meeting on Jan. 15.
Besides Del Torchio being named president, Claudio Domenicali has been nominated as a member of the board. The board also agreed the new president, Del Torchio, will undertake the role of CEO of the company.
Other members of the new board are Mauro Benetton, Massimo Bergami, Carlo Umberto Bonomi, Marco Giovannini, Roberto Maestroni, Antonio Perricone, Dante Razzano and Ulrich Weiss.
Motorcycle distributor enters into $1 million loan
Power Sports Factory, an importer and distributor of motorbikes, has secured a $1 million line of credit, according to a press release.
On Jan. 9, the company entered into a revolving credit loan with a private investment company, Crossroads Debt LLC.
Further details of the facility can be found in the company’s current report on Form 8-K filed at www.sec.gov.
“We are very pleased to have entered into this relationship with a supportive industry partner like Crossroads, especially in the current economic environment,” said Shawn Landgraf, Power Sports Factory CEO.
New Jersey-based Power Sports Factory imports, markets and distributes motorbikes principally under the “Andretti” and “Yamati” brands.
GE Money’s full-year profit levels drop
GE Money’s full-year profit dropped 14 percent in 2008 compared to the previous year, according to the company’s recently released financial report.
GE Money did increase its full-year revenue by 1 percent to $25 billion, but its fourth quarter profit shrank 13.6 percent. The division’s overall profit finished at $4.2 billion, according to the full-year report.
GE, as a whole, reported a revenue rise of 6 percent to $183 billion but its earnings fell 19 percent, to $18.1 billion. The company noted it was third highest earnings year in GE history.
“In a very tough environment, we delivered fourth quarter business results in line with expectations we provided in December,” Chairman and CEO Jeff Immelt said in a press release.
“We had several negative impacts to earnings in the quarter, including increased loss reserves, negative marks and impairments. These charges, along with global benefits, generated a tax credit that more than offset our pre-tax loss. We also originated $48 billion of new assets in the quarter at solid margins.
“We expect 2009 to be extremely difficult,” Immelt said. “However, we have taken strong actions to prepare the company, including strengthening cash flow and liquidity; managing costs; taking restructuring charges; intensifying risk mitigation; accelerating cycle of management reviews and protecting revenue.”
AMA welcomes Goman to board of directors
The American Motorcyclist Association (AMA) has announced the results of the election for the AMA board of directors.
Charles Goman, from Winder, Ga., has been elected to represent individual members in the Southeast region. From the South Central region, incumbent Stan Simpson, who ran unopposed, will continue to serve on the board.
Goman has been an AMA member since 1963. He is an active road and dual-sport rider and competes in vintage motocross, cross-country, trials and flat-track. Goman has served as an AMA Congressman and is currently the president of the AMA-chartered Atlanta Motorcycle Club.
Simpson currently serves as the chairman of the AMA Board of Directors. Simpson also sits on the board of directors of the AMA’s Motorcycle Hall of Fame Museum. Simpson is a longtime road rider, off-road rider and racer, and has been an AMA member since 1957.
The AMA board of directors consists of 12 members. Six individual directors represent the general membership in their respective regions. Six corporate directors represent the corporate membership. All directors serve three-year terms. The AMA board of directors meets four times a year.
Goman will be seated at the Friday, Feb. 13, AMA board meeting in Indianapolis. On Saturday, Feb. 14, the corporate membership will hold elections for two corporate directors. For a list of current AMA board members, please go to www.amadirectlink.com/whatis/trustees.asp.
Specialty metal supplier adds to its facility
To position the company for future growth and better meet the needs of existing customers, Lincoln Industries, a supplier of specialty metal products, has completed the largest expansion project in company history.
The new 86,000 square feet of space includes 49,500 square feet of warehouse space, 3,500 square feet of office space and 33,000 square feet for production.
“We broke ground on this new space in 2007 knowing that even with the slowdown in the economy, we have strong plans for new customers and opportunities over the next several years,” said Lincoln Industries President Hank Orme.
“With finished goods in one location, we can continue to provide consistent lead times and quick response times,” Director of Materials Management and Customer Service Bill Ellerbee said. “With the growth Lincoln Industries has seen over the years, it was important to have all product at the main campus.”
This is the second major expansion in the past four years on the company’s 30-acre campus. In 2005, Lincoln Industries added 50,000 square feet for warehouse and manufacturing space.
Lincoln Industries, founded in 1952, serves a number of industries, including powersports, heavy duty trucking, automotive and agriculture. To learn more about Lincoln Industries, visit the Web site at www.lincolnindustries.com.
India’s largest bike maker grows sales in its 4th quarter
Hero Honda Motors, India’s largest motorcycle OEM, reported 9 percent gain in third-quarter profit, according to a Bloomberg.com report.
Net income rose to $61 million in the three months ended Dec. 31, the New Delhi-based company said. Sales grew 4.7 percent.
Hero Honda introduced seven new models in the past quarter to lure buyers as banks curbed loans in India, where most two-wheelers are bought on credit.
