Category Archives: economy

India to be Third Largest Auto Market behind China and U.S.

India will become the world’s third largest light vehicle market by the end of the decade behind China and the U.S., according to a new study. However, India won’t be as profitable as the other two. That prediction comes after India eclipsed France, the United Kingdom and Italy to become the sixth-largest global auto market in the world last year. Continue reading

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Toyota Predicts 31% Profit Dip in Fiscal Year from Earthquake

The longer term issues facing Toyota are recovering lost market share and the unprecedented strength of the Japanese Yen caused by massive inflows of cash as export oriented Japanese companies attempt to recover from earthquake losses. Continue reading

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BMW Group to Invest $811 Million in UK to Make Next Mini

The UK is the BMW Group’s fourth-largest single market in the world for sales, behind Germany, the U.S. and China, with sales in 2010 of 154,750. BMW, Mini and Rolls-Royce vehicles. Continue reading

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OPEC to Keep Oil Production Even. Prices Likely to Stay High as U.S. Economic Recovery Stalls and Unemployment Grows

OPEC’s decision to keep oil production levels constant is the latest setback for the stumbling U.S. economy. Since there has been no change in the way oil is produced or traded – as a fungible commodity – there is no reason speculators cannot keep oil prices moving up toward the record $147 a barrel that it hit in July of 2008. In fact, some analysts warn oil prices won’t stop there this time. Continue reading

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Akerson Praises GM at Annual Meeting as Stock Languishes

The weaknesses at GM remain in its sales of traditional trucks, with a 110 days supply of full size pickups; it’s heavy use of incentives, which remain higher than the industry average, (but are lower than the levels that drove it into bankruptcy); and gaps in updating the product line because of delayed programs at the end of the last decade when cash was short. Continue reading

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Washington Dithers as Unemployment Increases Again

There aren’t enough jobs to reemploy U.S. citizens who want to go back to work, let alone absorb new graduates as tax payers into the economy. The real rate of unemployment is much higher – some critics have at more than 18%. Continue reading

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Korean Automakers Post Huge U.S. Sales Gains as Disputed Free Trade Agreement Heads for Congressional Approval

Some of the biggest sales gains in May were posted by Korean automakers Hyundai (up 20.7% versus a year ago) and Kia (up 53.4%). Combined, the two Korean automakers sold more than 100,000 vehicles for the month. Korea is the fifth largest producer and fourth largest exporter of motor vehicles in the world.

However, Korea ranks at the very bottom — 30 out of 30 among the largest automotive markets — for auto market access. The average among major developed economies is 40% market penetration by imported automobiles, but in Korea, the total of import vehicles from all global manufacturers in all countries entering the Korean market is around 3.6%. This is about 40,000 vehicles in a market that buys roughly one million vehicles annually. Continue reading

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Japanese U.S. May Sales Plunge as Inventories Evaporate. Toyota, Nissan and Honda Decline in Earthquake Aftershocks

Toyota, Nissan and Honda – the Japanese Big Three – all saw U.S. sales plummet in May as a combination of their limited inventories because of the production disruptions from the Japan earthquake and the decreased marketing activities that followed took a huge bite out of sales. Continue reading

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Ford May Sales Flat in U.S. as Retail Sales Rise 5%

Ford Motor Company sales in May were 192,102, the same as one year ago as the economy stalled. Retail sales were up 5% and fleet sales were down 8%. Year-to-date, total Ford Motor sales were 878,600, up 12%. Continue reading

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Consumer Confidence Declines as Economic Woes Continue

The Conference Board Consumer Confidence Index decreased in May and now stands at 60.8 (1985=100), down from 66.0 in April. The bad news follows last week’s U.S. unemployment report that says that first time jobless claims soared to 425,000, which means that there is virtually no hiring occurring in the economy as unemployment officially hovers at 9%. The real rate of unemployment is much higher. The latest survey does not bode well for the U.S. auto industry, which is expected to report steep May sales declines tomorrow. Continue reading

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Japan Auto Production, Exports off More than 60% in April

The economic destruction is mounting. The total value of automobiles exported for April 2011 was $5,913.446 million – $2,696.405 million for vehicles and $3,217.041 million for parts. This is a decrease of $5,523.561 million or 48 % as compared with $11,437.007 million recorded for the same month of the previous year. Continue reading

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GM Adding 2,500 Jobs in Michigan to Build Malibu, Impala

General Motors said today that it is adding two shifts and about 2,500 hourly and salaried jobs at the Detroit-Hamtramck assembly plant to build the new Chevrolet Malibu mid-size sedan and the next-generation Impala large sedan. Continue reading

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Chrysler Pays Back Taxpayers. Fiat Now Firmly in Control

The historic bailout differs this time around in what’s left and more importantly who owns it – along with the familiar, nagging question, can Chrysler make it? The new Chrysler Group is now firmly, irrevocably in the hands of Fiat, an Italian multinational firm, which has a global fight in front if it as it too competes to survive in an automobile business dominated by much stronger competitors. Continue reading

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Chrysler to Pay off $7.5 Billion in U.S., Canadian Bailout Loans

It is primarily the interest on government loans – $1.23 billion – that prevented Chrysler from earning a profit during 2010 and resulted in an overall loss for the year of $652 million. So decreasing interest rates should improve earnings, a necessary precursor for the public offering of Chrysler stock later this year or early next. Continue reading

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U.S. May Vehicle Sales Dropping. SAAR Under 10 Million?

Returning to historical annual selling rates of 15 to 17 million units experienced during much of the last decade appears to be a long way into the future. Continue reading

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