Category Archives: economy

Big Oil has Big Day in U.S. Senate as Tax Breaks are Intact

Energy industry tax breaks will not however go away as a contentious political issue anytime soon with a soaring U.S. budget deficit that now requires borrowing 41 cents of every dollar spent, and gasoline prices at $4-$5 a gallon making voters angry. Continue reading

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Tougher Vehicle Economy Standards to Save Billions in Costs?

Pressure or advocacy groups rarely – if ever – acknowledge that higher fuel economy standards are controversial, and they usually don’t explore the soundness of their assumptions. (Ever see a California Air Resources Board assessment of the cost of its aborted electric vehicle mandate of the 1990s?) Continue reading

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Volkswagen Group Sales Rise 13.9% Through April

VW is now growing faster than the overall global auto market, which increased 8% during the same period. If the sales trend holds VW will surpass Toyota in global sales this year as Japan’s largest automaker continues to struggle with production disruptions caused by the Japan earthquake. Continue reading

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Toyota to Increase North American Production in June

Toyota Motor Engineering & Manufacturing North America (TEMA) said it will increase production this June to about 70% of normal levels, up from 30% in May as a result of parts shortages caused by the Japan earthquake.

Models returning to 100% production in June are Avalon, Camry, Corolla, Highlander, Matrix, Sequoia, Sienna and Venza. Continue reading

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Toyota Posts Fiscal Year Profit of $5 Billion, but Q4 Dives

Toyota Motor Corporation (TMC) today announced that net revenues for the fiscal year ended 31 March 31 2011 were 18.993 trillion yen, an increase of 0.2% compared to the previous fiscal year as Japan’s largest automaker continues to struggle to return to pre-2008 levels of return. TMC operating income increased from 147.5 billion yen to 468.2 billion yen, while net income increased from 209.4 billion yen to 408.1 billion yen, or $5.1 billion. Continue reading

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CAR on U.S. Economy Impact of GM’s Plant Investments

In an analysis of General Motors’ newly announced plant investments, the Center for Automotive Research (CAR) today said that more than 28,000 jobs will be retained or created, and will contribute almost $2.9 billion to the U.S. Gross Domestic Product. Continue reading

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GM to Invest $2 Billion in U.S. Plants, Depending on Tax Breaks

Critics, of course, say the cost per job – when you total all the loans and tax breaks – is exorbitant, especially since what is mostly going on these days is the retention of existing jobs long after jobs move South to non-union transplants. Continue reading

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Buick Sales in China Surpass 3 Million

Shanghai GM builds, imports and sells Buick, Cadillac and Chevrolet products in China, the worlds’ largest auto market. In 2010, Shanghai GM became China’s first automaker to sell 1 million vehicles in a single year. Continue reading

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Unemployment Insurance Claims Rise for Fourth Straight Week

This is a clear sign that the U.S. economy is not creating jobs as both political parties maneuver for advantage in the upcoming presidential election with no apparent desire to address current economic problems. Continue reading

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Chrysler Group Credit Ratings Remain at Junk Level with Latest Standard & Poor’s and Moody’s Investor Assessments

Standard & Poor’s Ratings Services said today that it assigned its preliminary “B+” corporate credit rating to Chrysler Group LLC. The rating outlook for what remain “junk bonds” for posing significant financial risk. The outlook is stable, though.

Concurrently Moody’s Investor Services assigned Chrysler a “B2” rating, also a junk rating or non-investment grade. Continue reading

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2012 Honda CRV Delayed at Least One Month in U.S. New 2012 Civic Scarce Through September. Both Were Best Sellers

Two of the immediate Honda causalities are the all new 2012 Civic and CRV – both among the best selling vehicles in the United States. Continue reading

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Chrysler Posts First Profit Since 2009 Taxpayer Bailout

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 $652 million. Chrysler has announced that it intends to pay back those loans by June of this year by refinancing them through a combination of bonds and debt in private equity placements. Continue reading

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Treasury Secretary Defends $80 Billion Auto Bailout, Says 90,000 Jobs Added in Strongest Growth Period in Decade

“For the first time since 2004, all three American automakers have an operating profit. And since GM and Chrysler emerged from bankruptcy in June 2009, the industry has added nearly 90,000 jobs—the strongest period of job growth in more than 10 years,” Geithner said. Continue reading

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Toyota March Production Drops 31% Globally, 62% in Japan

Toyota Motor Corporation (TMC) said that production at its Japanese and overseas factories dropped 31% in March, the month of the devastating Japan earthquake and tsunami. In Japan the impact was far worse as production dropped 62% for the month. … Continue reading

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Ford Motor Nets $2.6 Billion in Q1 on $33 Billion Revenue

Ford Motor Company (NYSE: F) today reported first quarter 2011 net income of $2.6 billion, or 61 cents per share, an increase of $466 million, or 11 cents per share, from first quarter 2010 as the global auto industry continued … Continue reading

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