Category Archives: economy

US Population to Grow More Slowly In Future

U.S. population is projected to grow more slowly in future decades than it did in the previous century. A total population of 319 million in 2014 is projected to reach the 400 million in 2051 and 417 million in 2060. Continue reading

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Cheap Oil Good for Automakers?

Spurred by reduced pump prices, U.S. consumer confidence is expected to continue to rise, resulting in a potential shift to larger, more profitable vehicles in the U.S. and Canada since these vehicles will be more affordable to own and the value of fuel economy becomes less important to consumers. Continue reading

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Thanksgiving for Our Tattered Democracy

The most American of holidays, Thanksgiving, has its roots in early 17th century pilgrims – illegal aliens in a sense, as immigrant celebrations of survival because of bountiful – and importantly – shared harvests. Continue reading

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GM Declares 30-Cent Dividend on Common Stock

With GM stock being hammered because of analyst skepticism about short-term improvements possible in Europe, as well as the Russian and South American crisis, and now 24 deaths from ignition switches – all bad for business, the current sell-off of GM presents a challenge to investors. Trading today in the $30-32 per share range the $1.20 annual dividend represents a good return on a stock that analysts said recently could be at $55 in a couple of years with a $42 one-year target. Continue reading

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Income Levels, Poverty Rates Unchanged as U.S. Economy Languishes

“The failure to see any significant reduction in poverty over the last several years is a direct consequence of the continued weakness in the labor market.” Continue reading

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Treasury Secretary Jacob Lew Lies about Lehman Brothers

AutoInformed is disgusted by this blatant election year claim. The lack of government regulation and effective oversight by government agencies caused the ongoing Great Recession. Continue reading

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Kia Motors to Build $1 Billion Plant in Mexico

Kia Motors said today that it has reached an investment agreement with the Mexico government to build a manufacturing plant in Monterrey in the northeastern state of Nuevo León. Construction planned to begin in late September. Continue reading

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GM Q2 Flops with $200 Million Net Income. Stockholders Whacked with $1.2 Billion in Recall Charges

GM is taking a $900 million non-cash pre-tax special charge in Q2 for the estimated costs of future possible recalls for up to the next 10 years on 30 million GM vehicles on the road today. A special charge of $400 million was taken for the GM ignition switch compensation program. GM said this is the best estimate of the amounts that may be paid to claimants. It guess-timated the total cost could increase by approximately $200 million. Continue reading

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Auto Loan Subprime and Prime Losses Increase In May

Losses for U.S. prime auto loan asset backed securities and subprime ABS increased in May but strong used care values propped up the results. Continue reading

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New VW SUV Goes to Chattanooga. UAW forms a Local. Further State Subsidies in Anti-Union South in Doubt?

In a compromise that involves the formation of a UAW local, Volkswagen Group has announced that its new midsize SUV will the built in Chattanooga starting at the end of 2016. The expansion was held up over the lack of a union and a works council structure that exists in every other VW plant in the world. State and local officials – including the Governor and Senior Senator – threatened to withhold subsidies if a union was formed for the expansion that doubles the workforce to 4,000. Continue reading

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AFL-CIO, ETUC Release Principles for TransAtlantic Trade Deal

However, critics say provisions threaten the environment, decrease food safety, allow financial institutions to escape regulation that could prevent another global meltdown, drive down wages, and give up US sovereignty in many legal areas, including labor commitments. In the auto sector, it gives European luxury carmakers a free pass to keep importing cars into the US at a time when more manufacturing jobs are desperately needed. Continue reading

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Giant Sucking Sound – Nissan and Daimler to Build Luxury Cars in Mexico under new Joint Venture

The new plant will be built close to an already existing Nissan plant, and will have an annual capacity of 300,000 vehicles when completely operational. Many of the common platform luxury models – 2017 Infiniti, 2018 Mercedes-Benz – will of course be headed in the U.S. under the job destroying NAFTA deal. Continue reading

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Vehicle Crashes Have $871 Billion Economic and Social Cost

Crashes cost. Moreover, they cost a lot. According to the latest data, it totals to nearly $900 for each person living in the United States. Continue reading

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Toyota Abandoning California for Texas

With an 8.84% corporate tax rate in California, in addition to the highest income tax rates in the U.S. on personal income, there is an economic rationale behind the move. Continue reading

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Ukraine Crisis Hurting Russian Auto Industry. Ruble Down 10%

The Russian auto industry was already in trouble before the Ukraine crisis made things worse. Continue reading

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