Category Archives: economy

The Latest Safety Problem – Deferred Auto Maintenance?

The latest pernicious problem of the flagging U.S. economy comes in the guise of drivers who deferred auto maintenance at the potential cost of their safety. According to a new survey, 40% of respondents who are involved in repair decisions said they are postponing car maintenance or repairs on their primary vehicle. Continue reading

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GM China Advanced Technical Center Nears Completion

GM intends to use Chinese battery suppliers in future electric vehicles – the latest setback for beleaguered U.S. workers who are facing grim employment prospects in the moribund U.S. economy. This is no longer a blue-collar or solely a UAW problem. College level white collar engineering jobs are at stake in advanced technologies touted by politicians as the key to returning the U.S. to global competitiveness. Continue reading

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Saab Files for Bankruptcy. It’s All Over Except for Mourning

The end of Saab was practically assured last Saturday when General Motors reiterated a long-standing position against Saab transferring GM intellectual property to the Chinese and having Chinese companies build a rebadged Cadillac SRX as a Saab in China. GM is the largest automaker in China, albeit with communist government dictated partners. Continue reading

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European Auto Sales Drop Continues Unchecked in November

Counter intuitively the Eurozone crisis is producing calls for austerity, instead stimulus plans that would increase tax revenues and employment from all industries, including auto manufacturing and sales. The automobile industry in Europe provides employment for more than 2.3 million workers and supports another 10 million jobs in related industries. Annually, automakers invest more than €30 billion in R&D, which makes it the largest private investor in R&D in Europe. Europe’s increasing instability poses risks for European, as well as the global economy. It could even affect the outcome of the U.S. presidential election next year. Continue reading

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New Compact Acura ILX to be Built in Indiana by Honda

This means Acura ILX will be Acura’s first-ever hybrid model, as well as the first Acura model to be produced in Greensburg, Indiana, which also builds the new 2012 Civic model. The plant recently added nearly 1,000 associates to support the move to two-shift production, which started on Oct. 24, 2011, doubling the plant’s capacity to 200,000 vehicles per year. In what is a major public relations error, Honda did not even release a teaser photo of the ILX. Continue reading

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Toyota Cuts 2012 Forecast as Yen and Thailand Floods Hurt

Toyota Motor Corporation today drastically cut its fiscal year 2012 forecast based on the ongoing negative effects of the strong Yen and the production disruptions caused by the Thailand floods. As a result, Toyota has revised down its 2012 full year profit forecast by -¥250 billion to ¥200 billion. Continue reading

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The Secret of Future Success for Ex Auto Plants is Location

The study is the latest example of how devastating the collapse of the automobile industry is to the economies of local communities, many of them now with grim futures. Simply put, the best outcome for a community is to keep auto plants operating. The lack of a U.S. industrial policy – alone among all other industrialized nations and clearly a problem in the view of critics of multinational corporations – is not addressed in the study. Continue reading

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Ford Family and Other Shareholders to Receive Dividends

Ford still remains heavily in debt – at $12.7 billion. However, Ford decreased automotive debt by $1.3 billion in the third quarter of this year, including payment of the remaining $1.8 billion balance of secured Term Loan debt, which was offset partially by an increase in controversial taxpayer-subsidized low-cost loans from the Department of Energy to support advanced technology under the guise of retooling existing plants. Continue reading

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Gulf after BP Deepwater Horizon Oil Spill Needs Help

The plan calls for stopping wetland development, reducing the flow of nutrients from farming, and working with individual states to develop or implement coastal improvement plans. Continue reading

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Toyota to Export U.S. Built Camry to South Korea

The Camry mid-size sedans will be made at Toyota’s manufacturing plant in Georgetown, Kentucky, which is Toyota’s largest manufacturing facility outside of Japan. The strong Japanese Yen is causing Toyota to increase production out of its home country. Whether a U.S. made Camry is any more suited for the Korean market given Japan’s troubled relations with Korea is debatable. Continue reading

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Toyota Motor November Sales Up 7% as Inventories Build

Toyota Motor has now returned near the sales levels it had in Q1 before the tragic Japan earthquake disrupted production for months. With the auto industry monthly sales running at the highest rates since August of 2009 when taxpayer subsidies boosted sales under the Cash for Clunkers program, Toyota seems ideally positioned top be back to full strength by early next year. As it is now Toyota has about a 14% market share in the U.S. even though year-to-date total sales are off a whopping 20%, at 1,384,558 vehicles. Continue reading

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Honda Claims it will lead in Fuel Economy in All Classes within Three Years. New EVs and Hybrids Coming

The program is called “Earth Dreams Technology,” in a rough translation. It is actually a series of efficiency measures for engines, and transmissions, as well as electric-powered motors using existing or emerging technologies. Variable valve timing, direct injection, the Atkinson cycle, hybrid vehicles, turbocharging and friction reduction enhancements are part of the plan. Continue reading

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American Airlines Files for Bankruptcy – Pensions Threatened?

American Airlines has four traditional pension plans that cover almost 130,000 participants. As of today, the plans collectively had only about $8.3 billion in assets to cover about $18.5 billion in benefits, according to the Pension Benefit Guaranty Corporation. If American Airlines were to end their plans, the agency would be responsible for paying about $17 billion in benefits; about $1 billion in benefits would be lost. Continue reading

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Toyota Moves East out of Euro Zone to Build Next Corolla

Neither country uses the Euro, which is crumbling in value as Eurozone crisis continues to increase, while EU leaders bicker over what steps to take about unsustainable, Greek, Italian and Spanish debt. So far the Greek and Italian governments have fallen, and serious questions are being raised about the political stability of the Spanish and French Governments. Continue reading

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Chevrolet Volt Earns 5 Stars in Euro NCAP with No Battery Fires. GM Announces Volt Export Plans to China Next Year

At the same time the National Highway Traffic safety Administration was preparing to announce that a formal investigation had begun over Chevrolet Volt battery fires, the European New Car Assessment Program (Euro NCAP) released its latest results, which gave the Opel Ampera a top 5-star rating. The Ampera is a virtual clone of the Chevrolet Volt.

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