Category Archives: economy

No Jobs Crisis Continues in May as Washington Dithers

The looming choices facing voters are clearly unpalatable. At the top of the ticket, you have the demonstrably job-destroying Harvard-educated Republican party 1 percenter Mitt Romney running against the demonstrably non-job creating Harvard-educated Democratic party 1 percenter Barack Obama. It is time to put the name “somebody else” on all ballots, which if somebody else wins starts another election with the other previously listed candidates disqualified from running again. Continue reading

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EU Commercial Vehicle Sales Drop 12% in April

Unlike the car market in Europe, which is in its fifth straight year of declining sales year-over-year, the commercial vehicle market was posting small gains until about a year ago. The declines since then are an ominous sign that EU economic problems are deepening as voters are turning out existing governments and demanding economic stimulus packages from new or surviving ruling elites. Expanding debt ridden national economies has thus far have been resisted mostly by the German government, which has a relatively stronger economy keeping it in power for the moment. Continue reading

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Chevrolet Colorado Midsized Pickup to be Made in Wentzville as GM Tries to Forget Bankruptcy, Hummer and Shreveport

General Motors broke ground today on a $380 million plant expansion to its Wentzville Assembly facility to build the newly re-designed Chevrolet Colorado midsize pick-up in 2013. In the sad language oft used when describing the floundering U.S. economy, GM said it is “creating or retaining” about 1,260 jobs hourly and salaried jobs. The new Chevrolet Colorado is based on an all-new midsize truck architecture developed by GM do Brasil within GM’s global product development organization. Continue reading

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April EU Cars Sales Down Again as Eurozone Crisis Continues

In April, 1,017,912 new passenger cars were registered in the EU, or 6.9% fewer than in the same month of 2011. For the first four months of the year, new registrations were 7.5% lower in the EU than a year earlier at 4,332,342 units. This means the EU remains on track for the fifth straight year of sales declines, an economic disaster that has potential negative effects on Fiat, Ford Motor and General Motors in North America. Continue reading

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Opel Woes Continue as EU Auto Sales Decline In April. Latest Turnaround Plan Faces Fierce Union Fight over Plant Closings

Worrisome for GM shareholders, including the U.S. taxpayers who still own 32% of the world’s largest, but only marginally profitable, automaker after a $50 billion bailout, Stracke told employees that Opel will stay with existing labor agreements through 2014. With the European auto market headed for its fifth straight year of sales declines and with no upturn predicted for years, it’s impossible to see how Opel will cease being a drag on GM earnings. Continue reading

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Ford Europe Sales Down 10% in April. UK and Eastern EU Up

Like other automakers, Ford is struggling with the contractionist policies of governments in Germany and Brussels, as voter unrest grows with the Depression level economic conditions. Both in April and year-to-date light vehicle sales in the EU are off almost 8%, the fifth straight year of declines. Continue reading

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U.S. Treasury to Sell $5 Billion of AIG Stock. Taxpayers Still Owed $39 Billion from Controversial Bailout of Company

Today’s announcement is part of Treasury’s ongoing efforts to wind down the Troubled Asset Relief Program (TARP). More than 81% ($338 billion) of the $415 billion funds disbursed for TARP have already been recovered to date through repayments and other income – before including any expected proceeds from today’s announcement.

Ideologues will never admit it, but TARP is looking like an effective government intervention in the failed capital markets. Little has been done to make sure that it does not happen again in the view of critics. Continue reading

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April Marks Third Straight Month of Declining U.S. Job Growth as Unemployment Remains at an Official and Understated 8%

The struggling U.S. economy added a measly 115,000 jobs last month, the third straight month of declines in job growth. More than 15 million Americans are unemployed or underemployed. This poor performance comes years after Washington declared the recession caused by the reckless and unpunished practices of Wall Street officially over. Continue reading

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Renault-Nissan Take Control of Russian Automaker Avtovaz

Total auto industry volume in Russia last year was 2.65 million vehicles, including light commercial vehicles. Volume in 2012 is expected to be 2.9 million units. The economy went through a bubble and subsequent collapse a few years back, and Lada has been steadily losing share all through the recession. Continue reading

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Chrysler Execs to Move into Detroit for the First Time

Chrysler is leasing nearly 33,000 square feet of space and, after the space is refurbished, about 70 people will move in. It’s largely a symbolic gesture now, but it’s important for the city of Detroit and the comeback car company that many had left for dead. Continue reading

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Volvo signs MoU with China Development Bank. Plant Next?

In 2011, Volvo sold 449,000 vehicles globally, not enough to finance internally new platforms and or plants, both of which it needs to survive in the global auto business. Continue reading

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Cadillac to Build New XTS in China at Shanghai GM

Cadillac will build the new XTS luxury sedan in China in conjunction with its mandated joint-venture partner Shanghai General Motors (SGM) starting this fall. Cadillac sold a record 30,000 vehicles in China in 2011, compared with 17,000 in 2010 even … Continue reading

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Guangqi Honda to Build a Third Automobile Production Line

During 2011 Honda sold 618,000 cars in China last year, dwarfed by market leader General Motor’s 2.55 million and Volkswagen Group’s 2.26 million. Among the Japanese Big Three, Nissan in China is twice as big as Honda and Toyota is 40% larger in terms of vehicle sales. Continue reading

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Volkswagen Group To Build New Plant in Urumqi China

The Volkswagen Group and China First Automobile Group Corp (FAW) also agreed on plans to extend the FAW-Volkswagen joint venture originally set up in 1991 by another 25 years. In 2011, market leader General Motor’s China sales were at 2.55 million and Volkswagen Group was second at 2.26 million. Continue reading

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Volkswagen Shareholders Approve Dividend Increase

The shareholders at the 52nd Annual General Meeting of Volkswagen Aktiengesellschaft voted by a majority of 99.96% to pay a dividend of €3.00 (previous year: €2.20) per ordinary share and €3.06 (€2.26) per preferred share as recommended by the Board … Continue reading

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