GM announces $1.2 billion deal with Ford
The Detroit Free Press /Associated Press Detroit Free Public Press /AP Detroit Free General Motors has announced a $1 billion deal to buy the auto magazine subscription service and a $3 billion deal for automotive magazine subscription site the Automobile Magazine.
The deal was announced Tuesday by GM Chief Executive Officer Mary Barra at a news conference in Detroit.
It includes a $500 million cash infusion for the two companies.
The Detroit News reported earlier this month that the two sides were close to a deal.
The purchase is the largest ever for an automotive publisher.
It comes as GM struggles to deal with the fallout from the recalls of more than 100,000 cars, including the Chevy Cobalt, GMC Sierra and Saturn Ion.
“The sale of the Automotive Magazine is a significant strategic investment for GM,” Barra said at the news conference.
Barra added that the company plans to focus on the digital side of its business with an investment in new and upcoming products. “
We believe Automobile is the most comprehensive automotive content on the market and we are excited about its future.”
Barra added that the company plans to focus on the digital side of its business with an investment in new and upcoming products.
“Our goal is to accelerate our digital transformation as part of our plan to expand into new verticals,” Barras said.
The GM deal comes as the company is facing growing pressure over the recall of more that 100,0000 vehicles, including vehicles built in 2015 and later models, that were manufactured by Ford and General Motors.
The automaker has already recalled more than 7 million vehicles from the United States and around the world.
“I am proud to announce that we have reached a strategic agreement to acquire Automobile magazine,” Ford Motor Co. CEO Mary Barras, left, said Tuesday, Aug. 26, 2018, during a news event at the company’s plant in Toledo, Ohio.
“This deal builds on the momentum we’ve been building since the recall.
Automobile will continue its commitment to the company, the company culture and our customers.”
The Automobile Group, the largest owner of magazines in the U.S., has more than 200 magazines, including Auto, Car, Car and Automobile, which it acquired in 2000.
Automobiles are among the biggest advertisers in the country, with more than 40 percent of U.N. ad spending in 2018, according to Nielsen Media Research.
Ford has about $3.3 billion in annual advertising revenue.
In 2018, it launched the new Automobile News Service, which provides in-depth coverage of Ford and GM cars.
The Automotive News Service will focus on topics such as safety, sustainability and technology.
The magazine is owned by the Automobiles Alliance, a trade group for automakers.
The agreement with GM comes as Ford is under fire for a recall of nearly 20,000 vehicles.
The company announced Wednesday that it will start recalling vehicles that have been affected by a recall last week that led to the recall by American Honda Motor Co., Chrysler Group LLC and Toyota Motor Corp. The recall affected approximately 11 million vehicles.
“These recalls have resulted in the loss of millions of vehicles and billions of dollars in cost,” Ford said in a statement.
“As we begin to recover from these recalls, we will do everything we can to ensure the safety of our customers and to make sure that every vehicle we sell is safe to drive.”
The automakers plan to use its own software to monitor for potential problems in its cars and track any recalls.
“When a car is recalled, we don’t know exactly what happened,” Ford Chief Financial Officer Rob Manfred said in an interview with CNBC.
“So when we do find that something is wrong, we do an extensive investigation.
We go out and inspect, we talk to the people involved, we conduct independent testing and we send a team to check on the vehicles and we fix them up.”
In the last few weeks, the U-Haul Truck Company, the parent company of the UHaul service company, announced that it would be joining forces with Ford and its suppliers to build and operate a new truck with a hybrid drivetrain.
The UHauns first trucks are expected to be available in 2019.
Automotive Industry analyst Mike Lofgren of MoffettNathanson said in February that the companies’ deal would have been a “huge deal” for both automakers.
“It’s a big deal for the auto industry,” Lofberg said.
“They’re going to be competing with each other to get these customers, which are going to create huge demand for both brands.”
Automobile’s deal comes after the automaker announced a buyout of auto services firm Hootsuite earlier this year.
The $1 million deal with HootSuite will see the automakers acquire the company for an undisclosed sum, the companies said.
A number of other auto brands also have been looking to acquire magazines.
The Chicago Tribune reported earlier in August that the