AI
Tuesday, December 23, 2008 3:03:50 PM
Bush just want to buy time
so auto collapse within his term won't be hightlighted in history book,
The president will provide carmakers with $13.4 billion now and another $4 billion in February if necessary. The money will come from the Troubled Asset Relief Program, which Congress approved in October to help ailing financial institutions.
General Motors will get $4 billion immediately and another $5.4 billion on Jan. 16. Chrysler will get $4 billion right away. The remaining $4 billion is to go to GM on Feb. 17, once restructuring plans are presented and Congress agrees.
http://www.miamiherald.com/news/politics/AP/story/820187.html
Bush's auto bailout requires wage concessions
The last point made congressional compromise talks implode last week. Senate Republican negotiators demanded that the United Auto Workers accept the same compensation as non-union autoworkers by the end of 2009; the union and Democrats wanted a 2011 target. A White House fact sheet Friday said that negotiators should aim for Dec. 31, 2009.
Obama, whose administration will have the authority to renegotiate the loan terms, also will have to face difficult choices about how to restructure three very different companies.
http://www.miamiherald.com/news/politics/AP/story/820187.html
Even Toyota can't escape this auto fallout tsunami:
First Loss in 70 Years
Toyota Motor Corp. forecast its first annual operating loss since 1938, a dramatic indicator that the troubles roiling the auto industry extend beyond the U.S. and are taking a toll on even the strongest car makers.
Toyota, the world's largest auto company by sales, still expects to report a small net profit for the fiscal year ending March 31. But it forecast a consolidated operating loss of 150 billion yen, or about $1.7 billion, amid falling demand in the U.S., Europe, Japan and other major markets, as well as a strengthening of the yen.
The declines are now hitting auto companies' bottom lines. Honda Motor Co., which like Toyota has been one of the industry's steadiest profit-producers, last week slashed its earnings outlook, saying it now expects net profit of 185 billion yen in the year ending March 31, down from a previous forecast of 550 billion yen. The forecast implies a significant loss in its fiscal second half because it made 370 billion yen in the first half.
In South Korea, meanwhile, Hyundai Motor Co. and Kia Motors Corp. cut their joint 2008 sales forecast Monday by 12.5% and froze managers' pay.
In keeping with its corporate culture, Toyota hasn't laid off workers but instead has them make improvements to their work areas and attend seminars aimed at boosting their skills.
http://online.wsj.com/article/SB122992788012825897.html?mod=todays_us_page_one
so auto collapse within his term won't be hightlighted in history book,
The president will provide carmakers with $13.4 billion now and another $4 billion in February if necessary. The money will come from the Troubled Asset Relief Program, which Congress approved in October to help ailing financial institutions.
General Motors will get $4 billion immediately and another $5.4 billion on Jan. 16. Chrysler will get $4 billion right away. The remaining $4 billion is to go to GM on Feb. 17, once restructuring plans are presented and Congress agrees.
http://www.miamiherald.com/news/politics/AP/story/820187.html
Bush's auto bailout requires wage concessions
The last point made congressional compromise talks implode last week. Senate Republican negotiators demanded that the United Auto Workers accept the same compensation as non-union autoworkers by the end of 2009; the union and Democrats wanted a 2011 target. A White House fact sheet Friday said that negotiators should aim for Dec. 31, 2009.
Obama, whose administration will have the authority to renegotiate the loan terms, also will have to face difficult choices about how to restructure three very different companies.
http://www.miamiherald.com/news/politics/AP/story/820187.html
Even Toyota can't escape this auto fallout tsunami:
First Loss in 70 Years
Toyota Motor Corp. forecast its first annual operating loss since 1938, a dramatic indicator that the troubles roiling the auto industry extend beyond the U.S. and are taking a toll on even the strongest car makers.
Toyota, the world's largest auto company by sales, still expects to report a small net profit for the fiscal year ending March 31. But it forecast a consolidated operating loss of 150 billion yen, or about $1.7 billion, amid falling demand in the U.S., Europe, Japan and other major markets, as well as a strengthening of the yen.
The declines are now hitting auto companies' bottom lines. Honda Motor Co., which like Toyota has been one of the industry's steadiest profit-producers, last week slashed its earnings outlook, saying it now expects net profit of 185 billion yen in the year ending March 31, down from a previous forecast of 550 billion yen. The forecast implies a significant loss in its fiscal second half because it made 370 billion yen in the first half.
In South Korea, meanwhile, Hyundai Motor Co. and Kia Motors Corp. cut their joint 2008 sales forecast Monday by 12.5% and froze managers' pay.
In keeping with its corporate culture, Toyota hasn't laid off workers but instead has them make improvements to their work areas and attend seminars aimed at boosting their skills.
http://online.wsj.com/article/SB122992788012825897.html?mod=todays_us_page_one
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