Category Archives: economy

EU Pols Say Tough New CO2 Limits Will Create Auto Jobs

As part of the proposal adopted yesterday by the European Commission to limit drastically CO2 emissions from cars and light commercial vehicles, there were claims made that it makes economic sense. Continue reading

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More Jobs to Asia as Private Equity Owned Stant Buys Pyongsan

H.I.G. Capital, a private equity firm that owns Stant Corporation, says Stant has acquired a majority interest in Pyongsan-FT. The new manufacturing company will be renamed Stant Korea Corporation. The JV will produce fuel filler tubes in South Korea for the Korean and Asian markets. Continue reading

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Ford Motor Company Declares $0.05 Q3 Dividend

The move comes as Ford shares are trading just above $9 a share, down from a 52 week high of $13.44. On an annualized basis, this represents a return of about 2%, which makes Ford look like a relative bargain in a market awash in Federal Reserve printed dollars and, as a result, record low interest rates for speculators and borrowers. Continue reading

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European Makers Squeal Over Tough CO2 Targets Just Announced

It is not clear if the European auto industry has the political influence to modify the regulations in the face of strong and apparently growing (at least among regulators and some political parties) green sentiment in Europe. Continue reading

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June Auto Sales Soar with Mixed Results for Detroit Three

Sales of new cars and light trucks in June increased 22% from the same period a year ago, as the auto industry delivered almost 1.3 million vehicles for the month. On a seasonally adjusted annual basis or SAAR, this meant that the industry-selling rate continues to be more than 14 million units for five of the six months of 2012, resulting in sales of more than 7.2 million vehicles year-to-date. The slowly recovering auto market presented mixed but arguably positive results for the Detroit Three. Continue reading

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Louis Dreyfus Energy Pays $4 Million for ‘Stealing’ Natural Gas

Louis Dreyfus Energy Services has paid the United States $4,084,000 to settle allegations that it violated the False Claims Act by failing to pay money owed on natural gas acquired from the Department of the Interior, which is to say U.S. taxpayers. Continue reading

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Blower Bentley Sets £4.5 Million Auction Record

Sir Henry ‘Tim’ Birkin’s 4.5-liter supercharged Bentley race car sold for £4.5 million when auctioned at the Goodwood Festival of Speed. In March 1932, Birkin set a record 137.96 mph at the Brooklands in the United Kingdom. Continue reading

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Automakers Protest EU Korean FTA Deal is One Sided

European automakers are protesting that EU-South Korea FTA one year later has resulted in massive increases for Korean exports of passenger cars, yet only relatively modest gains for the EU auto industry. The European Automobile Manufacturers Association (ACEA) took the opportunity of the first anniversary of the Korean FTA coming on 1 July to draw attention to what it called an “unbalanced situation.” Continue reading

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Treasury and Education Departments Tout Higher Education

A new report released today by the U.S. Department of the Treasury with the U.S. Department of Education looks at the economic case for higher education. The election year maneuvering comes as President Obama calls on Congress to keep interest rates low for the 7.4 million borrowers who are expected to take out subsidized Federal student loans next year. Federal financial aid now represents 55% of all financial aid to undergraduates at two- and four-year institutions. Auto companies are struggling to hire engineers, particularly in electronics and telematics fields. Continue reading

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June U.S. Auto Sales to Increase by 15% to 11.9 m SAAR

June new-vehicle retail sales in the U.S. are projected to come in at 994,800 units, which represent a seasonally adjusted annualized rate or SAAR of 11.9 million units. Volume is expected to increase 15%, compared with June 2011, after adjusting for one additional selling day this month. While still far below the level of sales pre-Great Recession, total light-vehicle sales are forecasted at 14.5 million units with retail sales at 11.6 million units. Continue reading

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Japanese Vehicle Production Declines for First Time in 2 Years

Motor vehicle production in 2011 in Japan decreased for the first time in two years, totaling 8.40 million units because of the earthquake and resulting tsunami. This was a decrease of 12.8% from the 2010, according to JAMA. Continue reading

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EU Car Sales Down 8.7% in May. Eight Straight Months of Drops

New passenger car sales in the EU declined 8.7% in May to 1,106,845. It was the eighth consecutive month of sales declines, according to ACEA, the automakers association. Five months into the year, new registrations amounted to 5,442,326 units or 7.7% less than in the same period last year as the EU is headed for its fifth straight year of car sales declines with unemployment at depression levels. Continue reading

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Some Saab Assets Sold to a New Electric Vehicle Company

National Electric Vehicle Sweden AB (NEVS), a new firm established to purchase bankrupt Saab, and the receivers of Saab today signed a purchase agreement that covers some of the assets of Saab Automobile AB, Saab Automobile Powertrain AB and Saab Automobile Tools AB. The selling price was not disclosed. The company will establish a new automobile venture in Trollhättan, dedicated to the development and manufacturing of electric vehicles (EVs). The intellectual property rights for the aging 9-3, introduced in 1992, were part of a deal that includes all outstanding shares in the company that owns the Saab Automobile facilities in Trollhättan, Sweden. Continue reading

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DOE Gives Delphi $3.7m in Taxpayer Funds for Laser Tooling

Delphi Automotive (NYSE: DLPH) announced today that the company has been awarded a $3.7 million grant from the U.S. Department of Energy (DOE) to develop an energy-efficient method for micro-machining complex shapes. Using laser technology, the new manufacturing process will enable enhanced production in Delphi’s gasoline direct injection (GDi) fuel injectors. The Obama Administration’s DOE grants are politically contentious in this election year. Continue reading

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Treasury to Sell Preferred Bank Stock Acquired Under TARP

The U.S. Department of the Treasury announced today that it is starting secondary public offerings of the preferred stock it holds in seven so-called CPP institutions (Capital Purchase Program under TARP). The Troubled Assets Relief Program, which injected huge amounts of taxpayer cash into U.S. banks, was sold to the American public as a way to encourage banks to lend money to free up the frozen capital markets. From October 2008 through December 2009, Treasury invested almost $205 billion in 707 financial institutions as part of the federal government’s efforts to help stabilize U.S. financial markets and the economy.

However, some the banks used part of the funds to pay huge executive bonuses, repurchase stock and pay dividends, according to the Government Accountability Office. Now GAO concerns are being raised about the health of the banks remaining in the program. Continue reading

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