10 American Companies That Will Disappear in 2011

Here's a list from DailyFinance.com:
Saab USA

Saab has tried to create a renaissance of sorts. The company was sold to Netherlands specialty carmaker Spyker last year. Spyker took an awful risk, particularly in the U.S. -- because Saab is one of the few car firms that did recover when the U.S. car market expanded last year. The total number of cars and light vehicles sold in America in 2010 was up 11% to 11.6 million.

Sales of some niche brands surged. Porsche sales in the U.S. were up 29% to over 29,000. Audi sales rose 22% to over 101,000. But Saab sales collapsed -- falling 37% to 5,445. American car companies have also created new lines of vehicles that have begun to sell well, particularly in the middle market where Saab operates. The Japanese still control the lower-price, high-quality portion of the market. And Korea's Hyundai took share from nearly everyone else last year, as its sales rose over 24% to just above 538,000. There's no room in the American market for tiny operator like Saab.

Office Depot

The company is running third in a three-horse race with Office Max and Staples. Office Depot also has to compete with small business centers in Sam's Clubs and Costcos. The firm operates on razor-thin margins, while managing 1,150 locations -- which are very costly due to employee and real estate expenses. Office Depot is a strong candidate to be taken over by one of its rivals or a broader retail chain like Target.

The market is too competitive for Office Depot to stand on its own. A consolidation in the sector would allow a merged operation to cut thousands of people and close hundreds of locations. Operating margins, then, would not be so modest.

Dean Foods

The maker of dairy products like Land O'Lakes and Silk has struggled as much as any other large public company this year. The costs of raw milk, butterfat, soybeans and sugar have risen sharply. Dean Foods has also been crippled by debt. The firm's shares were down as much as 60% at one point during the last 12 months.

Despite all the bad news, hedge fund investor David Tepper bought a 7.35% stake in the company. Dean Foods shares rose 9% after the announcement. Dean has already sold its yogurt business to Schreiber Foods. And Tepper, one of the cleverest investors on Wall Street, has probably bet the balance of Dean Foods will be sold off in parts. Probably the Fresh Dairy Direct-Morningstar and WhiteWave/Alpro business units would draw the most bidders. Watch for Dean to be broken up, to satisfy debtholders and arge investors.

Frontier Airlines

The carrier is owned by Republic Airways Holdings and was bankrupt when Republic bought it in 2009. Republic recently merged another of its holdings, Midwest Air, into Frontier. Denver-based Frontier is simply too small to compete in the domestic carrier market -- which has become increasingly dominated by large airlines that are growing due to mergers.

Wall Street has also become increasingly worried about Republic's future. Its shares are down 13% over the last quarter, while shares in rival JetBlue are up 9% during the same time frame. Frontier's Milwaukee hub, which serves the East and Midwest, and its Denver hub, which serves the West, the South, and Mexico, would be valuable to a larger carrier. Airline mergers and buyouts like the Continental/United deal and Delta's takeover of Northwest are popular in the industry because they allow for personnel reductions and route cuts -- as well as trimming the number of aircraft that have to be maintained. Two airlines together can have a better margin than separately. Frontier is a buyout target; its brand is not.

Sara Lee

The company that makes Ball Park hot dogs and Jimmy Dean breakfast foods is already being circled by corporations in similar businesses and by private equity firms -- groups interested in breaking Sara Lee up. Apollo Global Management has recently considered a bid. JBS, the Brazilian meat processor, made an offer that was turned down.

Media reports say Sara Lee is in the midst of a plan to separate its coffee and meat businesses. If that happens, the new companies may be named Hillshire Farm and Pickwick Tea. A deal to sell off pieces of the firm will probably happen before midyear.

Borders

The large bookstore chain is almost gone already. The only question remaining is whether it will be dissolved or sold to a related retailer like Barnes & Noble. It appears Borders has little choice other than to go bankrupt, given its debt and cash-flow situation. Two ominous signs for the bookseller: It says it's unable to pay some of its largest publishers for their books.

Border's stock also dropped under $1 a share, a warning sign that the shares could eventually be delisted -- that is, if Borders lasts long enough. The company's 500 locations may have value to a buyer, but its name does not, being associated with little more than failure.

Gateway

Gateway was bought by Taiwanese PC giant Acer in 2007. Acer is currently the No. 3 PC company in the world after Dell and Hewlett-Packard. The buyout was not unlike the one that China-based Lenovo made of the IBM PC division. Lenovo found the IBM brand was useful for marketing in the U.S., but dropped the name in favor of its own. Lenovo saw no reason to support two brands any longer and wanted to be recognized by its corporate name in the U.S. market.

Acer, meanwhile, has become an established brand in the U.S. over the last two years, particularly for its netbooks and notebooks -- while the Gateway brand has faded. Gateway is still a stand-alone corporation but will likely disappear this year.

DollarThrifty

Dollar Thrifty has a tentative deal to be bought by Avis Budget -- but the FTC has not given the transaction final approval. If the buyout closes, then the Avis, Budget, Dollar and Thrifty car rental businesses will all be under one roof. Dollar Thrifty has lost any momentum in its efforts to expand. The company said in December that it would add 31 new franchises in the U.S. It has 1,550 locations in 81 countries worldwide.

Ironically, Dollar Thrifty is itself the result of a merger of two companies. Thrifty was owned by Chrysler and combined with Dollar in 1990. Avis should close its takeover by mid-2011

Answers Corp.

The online search firm's stock is down 40% in five years. Google, in comparison was up nearly 40% during that period. The smaller company had third-quarter revenue of only $4.5 million, which means it barely has a reason to be a public company. Operating income for the quarter was only $379,000, and its total average page views daily are about 14 million.

Answers will likely be sold to a company that could use its technology platform and unique visitor traffic. This might include one of the portals or large online content companies like News Corp. The company's market value is only $65 million, which is pocket change for a really large Web company.

E*Trade

There are too many big discount brokers in the U.S. There have been persistent rumors that E*Trade will be bought by one of its larger competitors --Charles Schwab or TDAmeritrade. The rumors even caused a large move in E*Trade's options early last month. Broker Collins Stewart downgraded E*Trade shares recently, pointing to problems with loan portfolio growth on the banking side of the online brokerage's business.

Wall Street's view of the other two discounters is much more positive. The brokerage business has been ideal for consolidation for years. Full-service brokers went through a large number of mergers and acquisitions in the 1970s, 80s and 90s. The reason for the rollups were compelling then as they are now for E*Trade. There are a number of expensive duplicate functions among these companies -- which include marketing costs, trading platforms and administration. Either Schwab or TDAmeritrade will use those economies of scale to buy E*Trade, the weakest member of the sector.

10 American Companies That Will Disappear in 2011
DOUGLAS MCINTYRE
01/18/11
http://www.dailyfinance.com/story/investing/10-american-companies-that-will-disappear-in-2011/19798647

Saab Distances Itself From G.M.

http://www.nytimes.com/2009/02/21/business/worldbusiness/21saab.html

Saab Distances Itself From G.M.
By CARTER DOUGHERTY and MICHELINE MAYNARD
February 20, 2009

Saab, the Swedish automaker owned by General Motors, filed for bankruptcy protection Friday and asked the Swedish government for help in making it an independent car company again.

But it was unclear whether the government would step in to help Saab, in which G.M. bought a half interest two decades ago and assumed full ownership in the 1990s.

Separately, G.M. said that its German subsidiary, Opel, would need more than the 1.8 billion euros or $2.3 billion in loan guarantees that it had previously discussed with the German government. A reorganization plan for Opel — G.M.’s second-largest brand after Chevrolet — is expected by the end of next week.

G.M. said earlier this week that it wanted to cut Saab loose by 2010, as it tries to restructure. G.M. said in a report to the Treasury Department that it planned to end financial support for Saab by next year.

Saab went to a Swedish court for protection from its creditors, and said the company would — with assistance from the Swedish government — reorganize to pave the way for private investors to buy all or part of the company.

“We explored and will continue to explore all available options for funding and/or selling Saab, and it was determined a formal reorganization would be the best way to create a truly independent entity that is ready for investment,” the managing director of Saab, Jan-Ake Jonsson, said in a statement.

Saab said it would need financing during its three-month restructuring “from both public and private sources” but that the company “would continue to operate as usual.”

But it was unclear exactly what Saab was requesting. Elisabeth Thand Ringqvist, a spokeswoman for the Swedish industry ministry, said Saab would be eligible to receive help through loan guarantees that all Swedish carmakers can access as part of a support package the government approved in December.

“This could be interpreted as the government supporting Saab in the reorganization phase,” said. She added that guarantees for working capital were not on the table.

That is precisely what is at issue in the case of Opel.

Marco Molinari, director for finances at Opel, said in a statement Friday that a change in market conditions meant that the company needed more than the 1.8 billion euros in loan guarantees from the Germany government it had previously requested.

“To put an absolute number out there without having first clarified the contributions of other participants, including shareholders and employees, is not serious,” Mr. Molinari said.

The bailout for Opel is politically contentious in Germany, with politicians calling for strict conditions on the package. Some have even called for Opel to be taken out of American hands, but it is tightly integrated into the G.M. supply and technology chain.

Despite praise for the performance of its cars, Saab has been dogged by losses since 2001. The company lost about 3 billion Swedish kronor, or $343 million, in 2008 and said it would lose a similar amount this year.

Swedish officials have repeatedly resisted efforts to nationalize Saab, which came to life as part of the Svenska Aeroplan, a company founded in 1937 to build military planes. The first Saab cars were built after World War II. A separate company, also called Saab, still makes aircraft.

G.M. bought Saab in the wake of Ford Motor’s purchase of the British luxury car maker Jaguar. Saab, long known for quirky-looking cars with ignition in the floor and a griffin insignia, became a more conventional brand under G.M. It borrowed the underpinnings from some of Opel’s cars for its lineup, which includes sedans, wagons and a sport utility vehicle.

Given its Swedish roots, and ability to maneuver in snow, Saabs have traditionally been popular in the northeastern United States. But Saab is G.M.’s worst-selling brand in the United States, selling 21,383 vehicles in 2008, down 34.7 percent from 2007. Its best selling vehicle is the 9-3, of which G.M. sold just over 10,000 cars last year.

GM Plans to Eliminate Saab, Saturn, Hummer

http://usnews.rankingsandreviews.com/cars-trucks/daily-news/090218-GM-Plans-to-Eliminate-Saab-Saturn-Hummer-and-Shrink-Pontiac/

GM Plans to Eliminate Saab, Saturn, Hummer and Shrink Pontiac
Feb. 18, 2009

Faced with an urgent need to restructure in order to survive, America's largest automaker plans to eliminate three of its brands quickly and shrink a fourth to become a niche brand that will make only a handful of low-volume models.

In a restructuring plan submitted to the federal government yesterday, the automaker announced that it "has committed to focus its resources primarily on its core brands: Chevrolet, Cadillac, Buick and GMC. Of the remaining brands, Pontiac -- which is part of the Buick-Pontiac-GMC retail channel -- will be a highly focused niche brand."

Hummer and Saab, both of which are typically sold through stand-alone dealerships, "are subject to ‘strategic reviews', including their potential sale."

The company plans to make a final decision on whether to sell or eliminate Hummer by the end of March. The Financial Times notes, "GM said that it was still talking to some potential buyers but that, if these negotiations come to naught, the brand will be phased out. Hummer's US sales have plummeted in recent years, but GM has found sizeable markets abroad, including in the Middle East and Russia."

GM is reportedly in negotiations with the Swedish government about the future of Saab. CNN Money reports that GM "said Tuesday its Saab subsidiary could be forced to file for reorganization as early as this month if the U.S. auto maker and the Swedish government can't come to terms on financial support for the unit. GM, as part of a revamped restructuring plan presented to the federal government to qualify for billions of dollars in government aid, said that it has proposed to effectively cap its financial support for Saab, with the Swedish brand becoming an independent entity by the start of 2010."

In both cases, GM hopes to find a buyer for the brands or spin them off into separate companies because closing the brands outright could be much more expensive. Franchise agreements would require GM to buy out Saab and Hummer dealers individually would could cost the company billions. The New York Times notes, "G.M. found out last decade just how expensive it could be to unwind a brand. It spent more than $1 billion to buy out dealers at Oldsmobile, which built its last cars in 2004."

The Saturn brand, meanwhile, will be gradually phased out of existence because that brand's dealerships "have different, easier to cut franchise agreements than other GM brands," according to Motor Trend. GM plans to continue selling the models currently on Saturn dealership lots, but will build no new Saturn models. =

The restructuring plan says that Saturn "will remain in operation through the end of the planned lifecycle for all Saturn products (2010-2011). In the interim, should Saturn retailers as a group or other investors present a plan that would allow a spin off or sale" of the brand, "GM would be open to any such possibility. If a spin off or sale does not occur, it is GM‘s intention to phase out the Saturn brand at the end of the current product lifecycle."

"Dealers will stay open through 2011, but product development overall will cease," according to Kicking Tires. That means 2010 and 2011 Saturn models will just be newly minted versions of what's already available, and they may or may not receive minor updates, like added safety features."

Pontiac, meanwhile, will be reduced to a small brand selling a handful of models though combined Buick/GMC/Pontiac dealerships. The plan does not address which specific Pontiac vehicles will survive, but industry analysts expect to see the brand become a source of performance-oriented cars like the rear-wheel-drive G8 sedan, which cost GM little to develop because they are based on GM models sold in other markets.

The impact of GM's plan on consumers is an evolving story. In the short term, if you're in the market for a new car and interested in something from one of the doomed brands, you should be aware that prices for the vehicles may crash now that their execution is inevitable.

Concept Green Cars

http://autos.yahoo.com/green_center-article_130/

Concept Green Cars

Toyota first demonstrated a futuristic hybrid concept vehicle at the Tokyo Auto Show in 1995. The car, which consisted of an electric motor connected to a regular gasoline engine, was called the Toyota Prius. Hybrid skeptics —both at the show and afterward—are now silent, as cumulative global sales continue to surpass all expectations. Which of today's wild and wacky hi-tech enviro car concepts will become tomorrow's practical fuel-efficient vehicles? Let's take a look at some contenders.

Volvo 3CC

The Volvo 3CC concept car, a rocket-shaped three-seater, can accommodate the full range of power systems, from traditional gasoline and alternative fuels such as ethanol, to hybrid and all electric. Three thousand lithium-ion batteries, just like those used in laptop computers, give it the equivalent of 105 horsepower. The 3CC has the aerodynamics of a two-seat sports car, but can slip a third passenger, or perhaps two children, in a single seat in the back.

Ford Mercury Meta One

The Mercury Meta One combines a hybrid transmission with a twin-turbocharged V-6 diesel engine calibrated to run on a bio-diesel blend (fuel made from natural, renewable sources such as vegetable oils). The combination is designed to produce the power of a V-10, with emission levels clean enough to meet California's Partial Zero Emissions Vehicle (PZEV) requirement. Daihatsu UFE III

Daihatsu, the Japanese car company known for compacts, is on the third generation of the UFE (which stand for Ultra Fuel Economy). This mini-hybrid vehicle can transport three people—one upfront, and two in the back. The hybrid system comprises a 660-cubic centimeter direct-injection gasoline engine, two motors, and a nickel-metal hydride battery. Its estimated fuel economy is 169 miles per gallon.
Nissan Pivo

Nissan has developed a bubble-shaped, three-seater electric car called the Pivo—short for pivot. It runs exclusively on electricity. The cabin sits atop a wheeled platform that can swivel 360 degrees, doing away with the need to reverse when emerging from narrow spaces.

BMW X3

The X3 combines a next-generation direct-injection inline six-cylinder engine with an electric motor—and a supercapacitor instead of the rechargeable batteries most hybrids use. A supercapacitor discharges all of its energy in a quick burst of power. Then, the gasoline engine takes over until the regenerative braking can recharge the supercapacitor for another quick burst. The system provides a modest 20% improvement in fuel economy over current models.

Toyota Volta

The Volta's 3.3-liter V-6 gas engine is located behind the rear axle and isn't connected directly to the wheels. Instead, movement is provided by two electric engines, one per axle, offering the safety benefits of all-wheel drive. But the real gain of packaging a large internal-combustion engine with two electric motors is rip-roaring speed: The 408-horsepower hybrid drive can go from 0 to 60 in 4 seconds.
GM Saab Aero X

The two-seat Saab Aero X doesn't have doors or a fixed windshield. Instead, the entire face of the vehicle opens up. Inside, the Saab Aero X's cockpit completely eliminating conventional dials and buttons. Instead, Saab displays data on glass-like acrylic "clear zones" in graphic 3-D images. The drivetrain is just as innovative as the body design. The Aero X combines turbo-charging and the use of bio-fuel to deliver 400-horsepower performance without burning a drop of petroluem. The V6 engine is fueled entirely by 100% ethanol. This reduces the tank-to-wheel carbon emissions of the vehicle to exactly zero. Can't find pure ethanol? No problem for the Aero X. The engine management system will make adjustments for any gasoline-ethanol blend.
The Volkswagen Chameleon

On the outside, the Volkswagen Chameleon Microbus looks like it rolled right out of the set of a 1960s surfer movie. But times have changed in the world of energy and technology. Volkswagen retrofitted the 1964 Deluxe Microbus for a new generation by installing an all-electric drive powered by lithium polymer batteries. Ten 30-volt batteries under the van’s floor provide a range of about 100 miles. A recharge takes about 6 hours. Surfboards mounted on the roof are lined with flexible solar panels that provide an additional source of energy. The vehicle needs all the energy it can find to power an arsenal of interactive digital cabin features, including imbedded touch-pads and speech activated controls. Don't expect to ever see this vehicle on the road. Volkswagen is using the Chameleon strictly as a marketing tool to showcase a movie-fantasy future of automotive electronics.
The Honda FCX Concept

The Honda FCX Concept uses a secret weapon to deliver more power than its predecessor fuel cell vehicles: gravity. Honda calls it a "3V" system: "Vertical gas flow, vertebral layout, and volume-efficient packaging." In the 3V schema, oxygen and hydrogen flow from the top to the bottom of the fuel cell stack and the fuel cells are arranged vertically in the center tunnel for more efficient packaging of the fuel cells. With these improvements, the FCX fuel-cell car now has a driving range of 354 miles—a 30 percent improvement from the 2005 model—and a maximum speed of 100 miles per hour. The vehicle can driven in temperatures as low as minus 86 degrees Fahrenheit. The super-slick Honda FCX Concept has a long and ultra-low profile that is anything but vertical.
GM Sequel

The Sequel is based on a design that puts all propulsion systems, steering, braking and chassis components packed into the car's 11-inch underbelly. By packing all the functionality into what the company calls a "skateboard" chassis, GM claims they'll have greater freedom for the car's interior and exterior design. GM has been working on the skateboard approach for a number of years, and the Sequel is apparently their breakthrough. With the company's advances in fuel cells, by-wire technology, and wheel hub motors, GM has doubled the range to 300 miles—on its hydrogen supply—and halved the 0-60 times to under ten seconds.