Despite Massive Stimulus / Subsidies..... European Car Market Down 17.2% In First Quarter 2009

After the banking crisis now behind us ( sarcasm ) we can shift our focus to the real economy & the insurers ( see Unprecedented stress’ for US life insurers & Option Armageddon with some ugly insurance charts )......The numbers in 2010 will be fun to watch....... So far the European countries have provided more than € 10 billion ( € 5 billion from Germany / thanks to an upcoming election ) in direct cash incentives to support new vehicle sales ( on top of all the cheap state guaranteed financing for their lending arms ) ..... The UK will follow next week ( UPDATE: U.K. Budget Gives Drivers Cash to Scrap Old Cars for New Models ) .... To my knowledge the US has proposed a similar incentive for the 2nd half of 2009.... The spin attempt is more or less the same in every country ..... Because they are concerned about the environment... Biggest side effect is that the money spent on cars cannot be spend on other big ticket items like furnitures etc..... The auto lobbyist here in Europe are even more powerful than banking lobbyist... Respect!

Nachdem überall erklärt wird das die Bankenkrise hinter uns liegt ( Vorsicht Satire ) und wie durch Zauberhand Mrdgewinne generiert werden können wir uns jetzt ja ruhigen Gewissens der Realwirtschaft sowie einigen ausgewählten Versicherern (Unprecedented stress’ for US life insurers & die dazugehörigen Tabellen) widmen.....Ich befürchte nur das sich hier die Probleme nicht durch Bilanzierungsakrobatik ( Versicherungen selbstredend ausgenommen ) und generösen Notenbanken lösen lassen wird....Das der Steuerzahler auch hier der einzige Freund und Helfer ( in Form von Konjunkturprogrammen, Bürgschaften über staatliche Banken, Zuschüsse für Entwicklung neuer Antriebstechniken, noch höherer Förderung von Dienstwagen usw. ) sein wird setze ich nach den Erfahrungen der letzten 6 Monate schon mal als gegeben voraus...... Die 2010er Zahlen werden sicher "lustig" .....Bisher haben die europäischen Staaten insgesamt wohl mehr als 10 Mrd € an baren Kaufanreizen in den Markt gepumpt um die Neuwagenverkäufe künstlich anzuheizen ( zusätzlich zu den eh schon oftmals staatlich garatntierten günstigen Finanzierungen für die jeweiligen Autobanken )..... UK wird wohl nächste Woche nachziehen ( UPDATE:U.K. Budget Gives Drivers Cash to Scrap Old Cars for New Models ) ..... Nach meinem Kenntnisstand werden wohl auch die USA für das 2 Halbjahr ähnliches verkünden.... Die "Verpackung" für diese Subvention ist in fast allen Ländern identisch... Die Sorge um die Umwelt muß auch hier herhalten...... Über die Nebenwirkungen ( Geld fehlt für andere Anschaffungen, Crash nur auf 2010 verschoben usw ) solcher Eingriffe wird besonders in Wahzeiten nicht sonderlich lange nachgedacht... Die Lobbyarbeit der Autoindustrie ist mindestens auf einer Stufe mit denen der Banken... Respekt!

ACEA Brussels, 16/04/2009 - Declining for the eleventh consecutive month, passenger car registrations in Europe* fell by 9.0% in March compared to the same month last year. The result was lifted by the on average 3 more working days across the region and the effect of fleet renewal schemes in a number of countries. Over the first quarter of 2009, the market was down by 17.2% with a total of 3,439,720 new registrations compared to 4,154,778 units in the same period last year.

Western Europe recorded 1,429,445 new passenger car registrations in March (-8.0%). The result was boosted by the 39.9% expansion of the German market, where consumers continued to respond widely to the government’s incentive scheme introduced in January. Such a development underpinned the markets in France (+8.0%) and Italy (+0.2%) as well.

In the UK, where March is usually a strong month, registrations fell by 30.5%, reflecting the overall persisting lack of confidence in the economy. This sentiment also prevailed in Spain (-38.7%). Three months into the year, new registrations were down 16.3% in Europe*. The German market was the only one to post growth (+18.0%). The downturn hit the Spanish (-43.1%) and the British (-29.7%) markets hardest. The Italian and French markets were down 19.1% and -3.9%. Among the smaller markets, Luxemburg (-10.4%), Switzerland (-12.3%), Austria (-12.9%) and Belgium (-15.3%) performed best while Ireland and Iceland posted a decline of 64.9% and 91.3% respectively.

In the new EU Member States, 76,803 new cars were registered in March, or 25.4% less than last year. Poland and the Czech Republic, two of the major markets in the region, posted a growth of 2.5% and 0.9% respectively. Slovakia also recorded a strong increase of 18.2% following the introduction of a car scrapping scheme. Looking at the cumulative figures from January to March, Poland consolidated its position as the largest market with a total of 87,939 new registrations and a 1.3% upturn. Latvia performed worst with a contraction by 77.9%.

> There are clearly winners & losers ( see table page 3&4 NEW PASSENGER CAR REGISTRATIONS BY MANUFACTURER ) Too bad that one of the biggest loosers is one of my "favourites" for the worst management in the industry Daimler ( see I Want My Buyback Back Daimler Update... Buy Sky High & Selling At Record Low To Abu Dhabi )

> Diese Tabelle auf Seite 3&4 zeigt sehr schön das es eindeutige Gewinner und Verlierer gibt NEW PASSENGER CAR REGISTRATIONS BY MANUFACTURER . Dumm, das selbst die Staatszuwendungen einen meiner Langzeitfavoriten ( siehe I Want My Buyback Back Daimler Update... Buy Sky High & Selling At Record Low To Abu Dhabi ) nicht zu helfen scheinen......

I Want My Buyback Back Daimler Update... Buy Sky High & Selling At Record Low To Abu Dhabi

I´m still suffering a flu so the posting will continue to be light but this one is just too good to slip through..... Unfortunately i was spot on in my judgement on the incompetence of Dailmer´s management ( see How Daimler Wasted € 7 Billion On Buybacks In Just 15 Months...... ). Also no surprise to see the media here in Germany applauding the move not mentioning the failure of Zetsche € Co......

Bin gesundheitlich immer noch etwas angeschlagen und werde daher auch diese Woche blogtechnisch etwas kürzertreten. Dieses Meisterstück von Daimler verdient aber zumindest ein paar Minuten Aufmrksamkeit und Häme. Schadenfreude kann selbst ich bei soviel Inkompetenz nicht mehr aufbringen. Leider hatte ich mit meiner Einschätzung ( siehe How Daimler Wasted € 7 Billion On Buybacks In Just 15 Months...... ) Recht und es bleibt zu befürchten das Leute wie Zetsche von den deutschen Medien für diesen "Schachzug" auch noch gefeiert werden ( siehe FT Deutschland , FAZ , Spiegel Experten loben Daimler für Abu-Dhabi-Deal).


Daimler Sells Aabar a 9.1% Stake for $2.7 Billion March 22 (Bloomberg) --

Daimler AG, the world’s second- largest maker of luxury cars, will sell 1.95 billion euros ($2.7 billion) of shares to Abu Dhabi’s Aabar Investments PJSC, raising cash as it grapples with the deepening global recession and gaining a long-term shareholder.

Aabar will buy 96.4 million new Daimler shares for 20.27 euros apiece, the Stuttgart, Germany-based automaker said in a statement today. The price equates to a 5 percent discount to Friday’s close of 21.34 euros.

Now the "glorious" history of buybacks taken from How Daimler Wasted € 7 Billion On Buybacks In Just 15 Months...... JUST BRILLIANT!

Nachfolgend nun die ruhmreiche Auflistung der Aktienrückkäufe ( siehe How Daimler Wasted € 7 Billion On Buybacks In Just 15 Months...... ) Einfach brilliant!

The company started its first share buyback program at the end of August 2007. By March 28, 2008, 99.8 million shares had been bought back for EUR6.2 billion.

Share Buyback based on the Authorization of the 2007 Annual Meeting
Period	No. of Shares Acquired	Average Price (EUR)	Purchased Volume (EUR)
Total	99,768,314	62.11	6,196,752,952.16
March, 2008	27,622,866	53.62	1,481,249,244.31
February 2008	22,185,448	55.69	1,235,524,406.33
December 2007	4,384,000	69.10	302,953,032.70
November 2007	16,366,000	69.05	1,130,005,849.60
October 2007	13,445,000	74.29	998,821,360.14
September 2007	14,390,000	66.72	960,165,710.94
August 2007	1,375,000	64.02	88,033,348.15

In exercise of the authorization granted by the Annual Meeting of April 9, 2008, the decision of the Board of Management allows for the buyback of 10% or approximately 96.4 million of the outstanding shares for a maximum amount of EUR6 billion

Share Buyback based on the Authorization of the 2008 Annual Meeting
Period	No. of Shares Acquired	Average Price (EUR)	Purchased Volume (EUR)
Total	37,283,831	38.86	1,448,922,311.86
Oct 2008	2,283,831	27.88	63,669,232.59
Sep 2008	7,690,000	39.43	303,203,682.07
Aug 2008	6,910,000	40.19	277,696,796.64
Jul 2008	13,850,000	38.14	528,276,120.47
Jun 2008	6,550,000	42.15	276,076,480.09

How Daimler Wasted € 7 Billion On Buybacks In Just 15 Months......

Just brilliant! I have nothing more to add that i havn´t already said at the time when the buybacks were introduced ( see Want My Buyback Back ..."Daimler Edition" & I Want My Buyback Back.....Daimler Is Doubling Down Again). All this has happened at a time when Dailmers net liquidity position ( in part due to the buybacks ) has worsened € 9 billion to almost € 46 billion ( see page 28 in Daimler Q3 Presentaion )

Das Daimlermanagement steht dem von diversen Banken in nichts nach...... Ich habe meinen Kommentaren zu diesem Thema zum Zeitpunkt der Rückkaufankündigung ( siehe Want My Buyback Back ..."Daimler Edition" & I Want My Buyback Back.....Daimler Is Doubling Down Again nichts mehr hinzuzufügen..... Hätte nur zu gerne Unrecht gehabt...... Das alles in einer Zeit während sich auch dank der Rückkäufe die Nettoliquidität binnen der letzten 9 Monate um satte 9 Mrd € auf nunmehr knapp 46 Mrd € verschlechtert hat ( siehe Seite 28 der letzten Daimler Q3 Präsentaion )


Daimler

Due to the current uncertainty in the markets Daimler temporarily suspends the further execution of its share buyback program as of October 24, 2008. Due to the suspension Daimler might not reach its initial target to buy back 10% of the outstanding shares.

I hope you can see the impact of the € 7.5 Billion buyback starting in August 2007.......

Der Effekt des Aktienrpückkaufes von € 7,5 Mrd ist klar zu erkennen, oder?

The company started its first share buyback program at the end of August 2007. By March 28, 2008, 99.8 million shares had been bought back for EUR6.2 billion.

Share Buyback based on the Authorization of the 2007 Annual Meeting
Period	No. of Shares Acquired	Average Price (EUR)	Purchased Volume (EUR)
Total	99,768,314	62.11	6,196,752,952.16
March, 2008	27,622,866	53.62	1,481,249,244.31
February 2008	22,185,448	55.69	1,235,524,406.33
December 2007	4,384,000	69.10	302,953,032.70
November 2007	16,366,000	69.05	1,130,005,849.60
October 2007	13,445,000	74.29	998,821,360.14
September 2007	14,390,000	66.72	960,165,710.94
August 2007	1,375,000	64.02	88,033,348.15

In exercise of the authorization granted by the Annual Meeting of April 9, 2008, the decision of the Board of Management allows for the buyback of 10% or approximately 96.4 million of the outstanding shares for a maximum amount of EUR6 billion

Share Buyback based on the Authorization of the 2008 Annual Meeting
Period	No. of Shares Acquired	Average Price (EUR)	Purchased Volume (EUR)
Total	37,283,831	38.86	1,448,922,311.86
Oct 2008	2,283,831	27.88	63,669,232.59
Sep 2008	7,690,000	39.43	303,203,682.07
Aug 2008	6,910,000	40.19	277,696,796.64
Jul 2008	13,850,000	38.14	528,276,120.47
Jun 2008	6,550,000	42.15	276,076,480.09

I Want My Buyback Back ..."Daimler Edition"

Look at the chart what $ 3.5 billion have done for the stock.... They bought at an average price close to € 70...... This adds up to a loss of € 750.000.0000 in just 6 month..... Needless to say that they bought close to historic highs for the stock and the "return to sharholders" is a whopping negative 21 percent....... With the next € 4 billion now ready to "maximize share holder value" the averaging down can begin.......

Seht Euch den Chart an was satte 3,5 Mrd € zur Performance beigetragen haben....... Daimler hat zum Durchschnittskurs von 70 € zugekauft...... Das ganze sumiert sich binnen 6 Monaten mal eben zu einer Wertvernichtung von 750.0000.000 €...... Überflüssig zu erwähnen das ein Großteil der Käufe nahe der historischen Höchststände der Aktie praktiziert worden ist und die anvisierte Optimierung zugunsten der Aktionäre hat mit minus 21 Prozent nicht ganz die Erwartungen erfüllt....Mit den nächsten 4 Mrd € kann das Verbilligen jetzt ja losgehen........

Share buyback program Daimler

In order to optimize its capital structure, the Group initiated a share buyback program in August 2007. In this context, it was announced that up to €7.5 billion would be applied to buy back nearly 10% of the company’s own shares. By the middle of December 2007, 50 million shares had been acquired for €3.5 billion. These shares were canceled by the end of the year. The share buyback program will be continued today.

At least they hadn´t to issue new debt to finance this "smart" move.....

Immerhin muß Daimler im Gegensatz zu anderen diese Transaktion nicht mit neuen Schulden finanzieren....