Category Archives: economy

PBGC Sues Bendix for Pension Debt from Plant Closing

Posted on 28 October 2011 by Ken Zino

The action against German-owned Bendix is the first time PBGC has had to go to court to compel a company to cover pension obligations from a plant closing. Continue reading →

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Chrysler Group Reports Q3 Net Income of $212 Million

Posted on 27 October 2011 by Ken Zino

Chrysler results stand in contrast to Ford Motor, which yesterday reported third quarter 2011 net income of $1.6 billion, or 41 cents per share, a decrease of $38 million, or 2 cents per share, versus third quarter 2010 on revenue of $33.1 billion, an increase of $4.1 billion from Q3 2010. Ford Q3 2011 pre-tax operating profit was $1.9 billion, or 46 cents per share, with an operating margin of 4.8%. Chrysler remains the smallest and weakest of the Detroit Three with limited international operations. Still, Chrysler is clearly on the mend. Continue reading →

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Chrysler UAW Contract Ratified by Rank and File

Posted on 26 October 2011 by Ken Zino

As was the case with newly ratified UAW contracts at GM and Ford, a large part of the Chrysler UAW deal – in this case, $3.4 billion of claimed new investment of $4.5 billion – was part of previously announced business plans after Chrysler emerged from a controversial taxpayer-supported bankruptcy and reorganization in 2009. Continue reading →

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Ford Q3 Income, Profits Down as Volume Increases. No Dividend Yet, But Sooner Rather than Later Promised

Posted on 26 October 2011 by Ken Zino

Ford continues to struggle globally by posting losses in moribund European economies, and – surprisingly – the growth markets of Asia Pacific and Africa. North America, where Japanese competitors have been out of the market since the March earthquake and tsunami disrupted production, and South America reported pre-tax profits for the third quarter. Continue reading →

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Honda Closed, Toyota Cuts Japan Production from Thailand Floods. After Effects Continue to Worsen for Japanese Makers

Posted on 25 October 2011 by Ken Zino

Honda Automobile Thailand – HATC – continues to be shut down since October 4th because of the Thailand floods. “Due to the inability to access its facility in, Ayutthaya , HATC does not currently have a clear outlook for when production will resume.

Toyota Motor Corporation has also “adjusted” production in Japan this week due to Thailand parts shortages at least through Friday, as the after affects of the Thailand Floods – responsible for at least 300 deaths – continue to grow. Continue reading →

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All Honda Plants at Full Production Post Earthquake

Posted on 24 October 2011 by Ken Zino

Honda Manufacturing of Indiana, HMIN, today began a second production shift for the first time, which increases output at the plant to its full annual capacity and adds approximately 1,000 new associates to Honda’s operations in Indiana. HMIN opened in 2008 just as the global auto markets were collapsing due to the financial crisis caused by the reckless practices of Wall Street firms, banks and rating agencies. Continue reading →

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Standard & Poor’s Raises Ford Motor to Highest Junk Level, Credit Watch Removed after No Cost Increase UAW Contract

Posted on 23 October 2011 by Ken Zino

Standard & Poor’s Ratings Services has raised its corporate credit rating on Ford Motor and Ford Motor Credit to ‘BB+’ from ‘BB-‘. This is just one notch below investment grade. Ford bonds have been appropriately rated as “junk” since 2005, … Continue reading →

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Ford Common Stock Dividend Coming Next Year?

Posted on 20 October 2011 by Ken Zino

Ford previously maintained it would not restore the divided until it achieved an investment-grade rating, CFO Lewis Booth said, omitting that a dividend payment was forbidden under covenants for previously issued bonds that kept it out of bankruptcy during the Great Recession. Those bonds presumably have been or will be paid off. Ford still has $14 billion in debt according to its latest SEC filing. Continue reading →

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NADA Chairman Announces New Economic Study about Automakers Forcing New Car Dealership Improvements

Posted on 20 October 2011 by Ken Zino

“Each year dealers collectively invest billions of dollars in facility upgrades, much of it mandated by the auto manufacturers,” said Stephen W. Wade, chairman of the National Automobile Dealers Association while speaking to the Automotive Press Association in Detroit. In normal times this would be a classic dealer versus automaker squabble. However, with consumers strapped, long term unemployment at record Great Depression highs and the economic recovery tenuous at best – if it is occurring at all – the affordability of new vehicles is at stake.

Continue reading →

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Thailand Floods – Worst in 50 Years – latest Tragedy to Hurt Auto Industry as Honda, Toyota and Ford Production Disrupted

Posted on 20 October 2011 by Ken Zino

Thailand has been inundated by floods, the worst it’s estimated in at least 50 years. Aside from the real human tragedy, once again the auto industry is negatively affected since Thailand has an annual vehicle production capacity of almost 2 million units, extensive exports, as well as numerous component parts manufacturing operations. The disruptions will also have some unknown effects on production in other countries, which will become clearer during the next few weeks. Continue reading →

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General Motors China Sales Top 2 Million. Again!

Posted on 18 October 2011 by Ken Zino

For the second time in its history, General Motors has sold more than 2 million vehicles in China in a calendar year, reaching the milestone this week. China has been GM’s largest market for the past two years where it is the Number One automaker. GM is on track to sell 5 million vehicles in China by 2015. And it might just be a question of time before Chinese companies mount a takeover of GM via its publically traded stock, and move GM headquarters to Shanghai, where GM China already has substantial space in a huge office tower. Continue reading →

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EU Car Sales Still trending Down for Fourth Straight Year

Posted on 18 October 2011 by Ken Zino

During the first nine months of 2011, 10,121,423 new cars were registered in the region, or 1.1% less than in the same period a year ago. Fiat, the owner of Chrysler, Ford and General Motors are all struggling to keep their European operations viable as all are losing market share. Continue reading →

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U.S. Budget Deficit Officially at $1.299 Trillion in FY 2011

Posted on 17 October 2011 by Ken Zino

The so-called Super Committee is already gridlocked over how to decrease the budget deficit, and that very likely means nothing will be done about the deficit until after the 2012 elections as both parties in a dysfunctional Washington maneuver for election advantages. Continue reading →

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President Obama and South Korean President Lee Defend Korean FTA at a Michigan General Motors Small Car Plant

Posted on 14 October 2011 by Ken Zino

President Barack Obama and South Korean President Lee Myung-bak toured the General Motors Orion Assembly Plant on Friday and spoke to several hundred workers and guests in support of the pending U.S-South Korean Free Trade Agreement. The rally came as U.S. long term unemployment remain at record post Great Depression levels. Korea is the fifth largest producer and fourth largest exporter of motor vehicles in the world, and – up to now – its car market has been closed. Continue reading →

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More Jobs to China as GM Will Develop a New Global Engine Family with SAIC and Pan Asian Technical Center

Posted on 12 October 2011 by Ken Zino

General Motors will develop an all-new global family of small-displacement “Ecotec” gasoline engines over the next several years in China in conjunction with the Shanghai Automotive Industry Corp. (SAIC), Shanghai General Motors (SGM) and the Pan Asia Technical Automotive Center (PATAC). Continue reading →

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