Former Chrysler CEO Lee Iacocca's greatest accomplishments, from the Mustang to the minivan - Fox Business

Legendary automotive executive Lee Iacocca died on Tuesday at the age of 94.

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The son of Italian immigrants, Iacocca reached a level of celebrity matched by few auto moguls.

During the peak of his popularity in the '80s, he was famous for his TV ads and catchy tagline: "If you can find a better car, buy it!" He also wrote two best-selling books and was courted as a presidential candidate.

Though he is known for his successes, he also suffered failures, including being fired from his position as Ford president in 1978. However, he soon went on to Chrysler, where he helped save the automaker as it was drowning in debt.

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In the wake of the auto icon’s death, here are a few of Iacocca’s greatest accomplishments.

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He made the Ford Mustang popular

Iacocca’s first burst of fame came with the debut of the Mustang.

In 1960 at the age of 35, Iacocca was the vice president and general manager of the Ford division.

Four year later, when the Mustang was released in 1964, he had convinced his superiors that Ford needed the affordable, stylish coupe to take advantage of the growing youth market.

He broke from tradition by launching the car in April rather than the fall. Ford invited reporters to a 70-car Mustang rally from New York to Dearborn, which generated huge publicity. The car made the covers of TIME and Newsweek the same week.

Six years later, he was named Ford president and immediately undertook an organizational restructuring to cut costs as the company struggled with foreign competition and rising gas prices.

“Lee Iacocca was truly bigger than life and he left an indelible mark on Ford, the auto industry and our country," Bill Ford, chairman of Ford Motor said upon Iacocca's passing. "Lee played a central role in the creation of Mustang.”

He helped save Chrysler in the 1980s

Though Iacocca was fired from Ford in 1978, he was strongly courted by Chrysler and helped cement its turnaround in the 1980s.

In 1979, Chrysler was floundering in $5 billion of debt. It had a bloated manufacturing system that was turning out gas-guzzlers that the public didn't want.

When the banks turned him down, Iacocca and the United Auto Workers union helped persuade the government to approve $1.5 billion in loan guarantees that kept the No. 3 domestic automaker afloat.

Bud Liebler, Chrysler’s former spokesman said Iacocca is the last of an era of brash, charismatic executives who could produce results.

"Lee made money. He went to Washington and made all these crazy promises, then he delivered on them," Liebler said.

Iacocca wrung wage concessions from the union, closed or consolidated 20 plants, laid off thousands of workers and introduced new cars. In TV commercials, he admitted Chrysler's mistakes but insisted the company had changed.

The strategy worked. The bland, basic Dodge Aries and Plymouth Reliant were affordable, fuel-efficient and had room for six. In 1981, they captured 20 percent of the market for compact cars. In 1983, Chrysler paid back its government loans, with interest, 7 years early.

He introduced the minivan

In 1984, just after the automaker paid back its government loans, Iacocca introduced the wildly successful Dodge Caravan and Plymouth Voyager minivans and created a new market.

Bob Lutz, Chrysler’s former head of product development and Iacocca’s colleague, told CNBC that the minivan is what saved the company, even though they had colleagues who opposed the idea.

“Lee kept saying, 'It will work, it will work,'”  Lutz told the outlet. “So we transformed the plant in St. Louis and once it was up and running, we sold out of production almost immediately. Lee was right.”

He bought American Motors

Even though Chrysler was out of debt and seemed stable, Iacocca decided to purchase American Motors in 1987.

Although the $1.5 billion acquisition was criticized at the time, AMC's Jeep brand has become a gold mine for now Fiat Chrysler Automobiles as demand for SUVs surged.

“Lee was an intelligent risk-taker,” Lutz told CNBC. “Look at the decision to buy American Motors. If we had not done that deal, Chrysler never would have acquired the Jeep brand, which would go on to become a big part of Chrysler’s success.”

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He headed a campaign to restore the Statue of Liberty and Ellis Island

In 1982, Iacocca was chosen by then-President Ronald Reagan to lead the Statue of Liberty-Ellis Island Foundation, which oversaw the renovation of the statue and the reopening of Ellis Island as a museum of immigration.

He said he accepted the position as a way to honor his parents, who were Italian immigrants, according to Reuters.The foundation raised more than $350 million, which was more than double its initial goal, the outlet reported.

The statue renovation was completed in 1986 and the museum on Ellis Island was opened in 1990.

FOX Business’ Ken Martin and The Associated Press contributed to this article.

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2019-07-03 16:00:28Z
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S&P 500 opens at record high on rising rate cut hopes - Investing.com

By Shreyashi Sanyal

(Reuters) - The S&P 500 index hit a record high on Wednesday, led by defensive sectors, as bets of an interest rate cut rose on fears of a slowing global economy due to simmering trade tensions.

The benchmark U.S. 10-year Treasury yields () slipped to their lowest since November 2016, while euro zone yields tumbled to record lows on bets the European Central Bank's next chief would stay a dovish course.

The defensive utilities (), real estate () and consumer staples () rose the most among the 11 major S&P sectors as the falling bond yields made stocks that pay high dividends more attractive.

"With the overhang of further tariffs on Chinese imports paused and the chances of a rate cut from the Fed getting higher, more investors are getting comfortable to invest bigger in equities," said Shawn Gibson, chief investment officer at asset management firm Liquid Strategies.

Traders bet for about a 25% chance the Federal Reserve would cut borrowing costs by half a percentage point at its July 30-31 policy meeting, compared with 20% late on Monday.

Bets that the central bank would cut rates to preserve a decade-long U.S. expansion helped the S&P 500 and the Dow Jones indexes post their best June performance in decades.

The healthcare sector () gained 0.38%, the biggest boost to the S&P 500, helped by gains in Johnson & Johnson, UnitedHealth Group Inc (N:) and Merck & Co Inc (N:).

The financial sector () was flat, while bank stocks , which tend to benefit from a higher interest rate environment, fell 0.37%.

Trading volumes are expected to be thin due to shortened trading hours on Wednesday ahead of the July Fourth holiday.

The Dow Jones Industrial Average () rose 50.82 points, or 0.19%, to 26,837.5 and the S&P 500 () gained 7.38 points, or 0.25%, to 2,980.39.

The Nasdaq Composite () added 22.90 points, or 0.28%, to 8,131.99.

The ADP National Employment Report, often considered a precursor to the Labor Department's more comprehensive monthly non-farm payrolls data due on Friday, showed U.S. private employers added 102,000 jobs in June, well below economists' expectations.

Another set of data showed the U.S. trade deficit jumped to a five-month high in May as imports of goods increased and new orders for U.S.-made goods fell for a second straight month May while shipments barely rose.

Among stocks, Symantec Corp (O:) surged 14.5%, the most on the S&P, after sources told Reuters that chipmaker Broadcom Inc (O:) is in advanced talks to buy the cybersecurity firm. Broadcom fell 3.6%.

Tesla Inc (O:) rose 6.4% after the electric carmaker set a record for quarterly vehicle deliveries in a triumphant response to months of questions about demand for its luxury electric cars.

Advancing issues outnumbered decliners by a 2.01-to-1 ratio on the NYSE and by a 1.40-to-1 ratio on the Nasdaq.

The S&P index recorded 53 new 52-week highs and no new low, while the Nasdaq recorded 59 new highs and 22 new lows.

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https://www.investing.com/news/stock-market-news/futures-eke-out-gains-as-bond-yields-tumble-on-growth-fears-1914418

2019-07-03 14:42:00Z
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Walmart's e-commerce biz is reportedly racking up $1 billion in losses and that's only one problem it has - CNBC

Marc Lore, head of Walmart's U.S. e-commerce business, and Doug McMillon, CEO of Walmart.

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Walmart's attempt to catch up with Amazon comes at a huge cost — and it's stirring up hard feelings within the company.

While Walmart has been making investments — like buying Jet.com for $3.3 billion — to try to compete with Jeff Bezos' behemoth, it's been a drag on the big-box business' profitability. So much so that Walmart is now projecting losses of over $1 billion for its U.S. e-commerce division, helmed by Marc Lore, this year, on sales of between $21 billion and $22 billion, according to a report by Vox, citing discussions with multiple sources familiar with those financials.

Walmart didn't immediately respond to CNBC's request for comment on this story.

Frustration has been growing within Walmart as these losses on Lore's team mount, the report said. And now the company is reportedly pressuring Lore's team to sell off some of the digitally native brands it's acquired in an attempt to amass more inventory and gain the expertise of younger, e-commerce leaders. Citing discussions with people familiar, Vox said Walmart has discussed in recent months selling menswear brand Bonobos and women's clothing retailer Modcloth.

Walmart will reportedly likely sell ModCloth this year, for less than its purchase price. It reportedly still plans to hang onto Bonobos.

Vox reported Bonobos, Modcloth and plus-sized fashion brand Eloquii — which it bought last year — are still unprofitable.

And the report said Walmart won't make any more acquisitions of digitally native brands for at least the next year, citing three sources, "barring an incredible acquisition opportunity that is just too good to pass up." Instead, it said the retailer will lean more into incubating its own brands, like it did in creating mattress brand Allswell.

Walmart had previously said it anticipated losses stemming from its e-commerce operations would increase in 2019.

The company also recently announced a major overhaul at Jet, taking steps to more fully integrate the e-commerce platform into its own business. As part of the changes, Jet president Simon Belsham is expected to leave the company in August, with that role dissolving entirely.

Meanwhile, tensions have reportedly been rising between Lore and the CEO of Walmart U.S., Greg Foran, who runs the retailer's bricks-and-mortar stores.

Foran would like for Walmart to put more resources toward cutting prices of items, not building digital brands, Vox reported. The report said Foran is also increasingly frustrated that Lore is getting credit for growing Walmart's online grocery business, which is really more reliant on stores.

This all calls into question just how much longer Lore will be at Walmart.

The e-commerce chief told CNBC in February 2018 he was "absolutely not" leaving the company and that things were "just getting started." That was after rumors started to swirl that he was considering departing. When Lore joined Walmart from the Jet acquisition, he agreed to stay on for five years, through the fall of 2021.

Walmart shares were down less than 1% Wednesday morning. The stock has rallied 19.4% this year, while Amazon shares are up 29%.

Read the full piece from Vox here.

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https://www.cnbc.com/2019/07/03/walmarts-e-commerce-business-on-track-to-lose-over-1-billion.html

2019-07-03 14:32:42Z
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Walmart's e-commerce biz is reportedly racking up $1 billion in losses and that's only one problem it has - CNBC

Marc Lore, head of Walmart's U.S. e-commerce business, and Doug McMillon, CEO of Walmart.

Getty Images

Walmart's attempt to catch up with Amazon comes at a huge cost — and it's stirring up hard feelings within the company.

While Walmart has been making investments — like buying Jet.com for $3.3 billion — to try to compete with Jeff Bezos' behemoth, it's been a drag on the big-box business' profitability. So much so that Walmart is now projecting losses of over $1 billion for its U.S. e-commerce division, helmed by Marc Lore, this year, on sales of between $21 billion and $22 billion, according to a report by Vox, citing discussions with multiple sources familiar with those financials.

Walmart didn't immediately respond to CNBC's request for comment on this story.

Frustration has been growing within Walmart as these losses on Lore's team mount, the report said. And now the company is reportedly pressuring Lore's team to sell off some of the digitally native brands it's acquired in an attempt to amass more inventory and gain the expertise of younger, e-commerce leaders. Citing discussions with people familiar, Vox said Walmart has discussed in recent months selling menswear brand Bonobos and women's clothing retailer Modcloth.

Walmart will reportedly likely sell ModCloth this year, for less than its purchase price. It reportedly still plans to hang onto Bonobos.

Vox reported Bonobos, Modcloth and plus-sized fashion brand Eloquii — which it bought last year — are still unprofitable.

And the report said Walmart won't make any more acquisitions of digitally native brands for at least the next year, citing three sources, "barring an incredible acquisition opportunity that is just too good to pass up." Instead, it said the retailer will lean more into incubating its own brands, like it did in creating mattress brand Allswell.

Walmart had previously said it anticipated losses stemming from its e-commerce operations would increase in 2019.

The company also recently announced a major overhaul at Jet, taking steps to more fully integrate the e-commerce platform into its own business. As part of the changes, Jet president Simon Belsham is expected to leave the company in August, with that role dissolving entirely.

Meanwhile, tensions have reportedly been rising between Lore and the CEO of Walmart U.S., Greg Foran, who runs the retailer's bricks-and-mortar stores.

Foran would like for Walmart to put more resources toward cutting prices of items, not building digital brands, Vox reported. The report said Foran is also increasingly frustrated that Lore is getting credit for growing Walmart's online grocery business, which is really more reliant on stores.

This all calls into question just how much longer Lore will be at Walmart.

The e-commerce chief told CNBC in February 2018 he was "absolutely not" leaving the company and that things were "just getting started." That was after rumors started to swirl that he was considering departing. When Lore joined Walmart from the Jet acquisition, he agreed to stay on for five years, through the fall of 2021.

Walmart shares were down less than 1% Wednesday morning. The stock has rallied 19.4% this year, while Amazon shares are up 29%.

Read the full piece from Vox here.

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https://www.cnbc.com/2019/07/03/walmarts-e-commerce-business-on-track-to-lose-over-1-billion.html

2019-07-03 14:12:59Z
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HP, Dell, Microsoft, and Amazon look to move some hardware production out of China - The Verge

HP, Dell, Microsoft, and Amazon are the latest companies to consider moving some of their hardware production out of China in light of the ongoing trade war with the US. Nikkei reports that HP and Dell are both looking to move up to 30 percent of their laptop production out of the country, Microsoft may move some Xbox production, and Amazon could move some production of its Kindles and Echo speakers. Acer and Asustek are also exploring production outside of China, according to the report.

The potential moves are all in response to a trade war that has seen the US put a 25 percent tariff on $200 billion worth of goods. While the technology industry has largely remained unscathed, new tariffs could soon extend the fees to laptops, smartphones, and game consoles, adding significant costs that could result in higher prices for consumers and slimmer margins for manufacturers.

These four companies aren’t the only large tech names looking to shift their manufacturing. Nikkei previously reported that Apple is looking at moving up to 30 percent of its hardware production out of China, The Wall Street Journal said that Nintendo might move some Switch production, and Bloomberg said that Google has moved some production of Nest products. Most companies are still looking to keep hardware production in Southeast Asia, with manufacturing moving to a number of countries.

Hardware production has long been centered on China where production costs are cheaper, components of the tech supply chain are concentrated, and manufacturers have increasingly specialized in making cutting-edge tech. That’s been the status quo for two decades, but the tariff situation is quickly showing how tenuous the situation is, with the ongoing trade dispute potentially driving up costs across the industry and companies having no easy way out.

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https://www.theverge.com/2019/7/3/20680789/hp-dell-microsoft-amazon-hardware-production-move-china-trade-war

2019-07-03 13:06:33Z
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​'I agreed my turn is over': Canopy's Bruce Linton stepping down - BNNBloomberg.ca

Lee Iacocca, auto industry icon credited with saving Chrysler from bankruptcy, dead at 94 - Financial Post