Auto

Economy
10:03 am
Mon June 13, 2011

Private-sector partners give $3 million for Michigan tourism ads

A screen capture of a Pure Michigan commercial.
michigan.org

 LANSING, Mich. (AP) - The state's popular Pure Michigan tourism campaign has gotten a $3 million boost from private-sector partners to support advertising this year.

The Travel Michigan Ad Partnership Program announced Monday that the contributions from 28 communities and destinations in Michigan are double those from 2010. The Michigan Economic Development Corp. is matching those contributions.

Mackinac Island, The Henry Ford in Dearborn and Traverse City are national sponsors, each contributing $500,000 toward the Pure Michigan national campaign. Travel Michigan says the money means ads will be able to run longer on cable television networks nationwide.

Pure Michigan campaigns promote the state's beaches, golf courses and other destinations to potential tourists.

Auto/Economy
2:36 pm
Fri June 10, 2011

Toyota expects fiscal year profit to fall 31 percent

TOKYO (AP) - Toyota says its profit for the fiscal year through March 2012 will fall 31 percent to 280 billion yen ($3.5 billion) in an outlook that underlines a robust recovery in the latter half of the fiscal year from the damage of an earthquake and tsunami.

Toyota Motor Corp. made the announcement Friday. It had not given an earnings forecast earlier because of uncertainties in its production outlook after the disasters on March 11 wiped out key parts suppliers in northeastern Japan.

Last month, it said January-March quarterly profit crumpled more than 75 percent because of the parts shortage that is hurting production.

Economy
2:15 pm
Fri June 10, 2011

It takes a village... and $226,920 to raise a child

Every year, the U.S. Department of Agriculture releases its estimate of how much it costs to raise a child from birth to seventeen years of age.

Here's what they found for their latest Expenditures on Children by Families report:

A middle-income family with a child born in 2010 can expect to spend about $226,920 ($286,860 if projected inflation costs are factored in) for food, shelter, and other necessities to raise that child over the next 17 years.

It represents a 2% increase from 2009, and the report also notes that, naturally, the more money you make, the more you spend on your child:

  • A family earning less than $57,600 per year can expect to spend a total of $163,440 (in 2010 dollars) on a child from birth through high school.
  • Similarly, parents with an income between $57,600 and $99,730 can expect to spend $226,920;
  • and a family earning more than $99,730 can expect to spend $377,040.

Housing accounts for 31% of the cost for raising a child for a family with a middle income.

The USDA first released this report in 1960 when a middle-income family could have expected to spend $25,230 to raise a child (or $185,856 in 2010 dollars).

Auto/Economy
6:25 pm
Thu June 9, 2011

Ford to boost production capacity for hybrids and plug-ins

Another American car company is betting that its U.S. customers want more hybrid cars. 

Ford Motor Company says it will hire more than 200 people to meet the increased demand for electrified cars.   

Earlier this year, General Motors  boosted production plans for the Volt by 30% for next year. 

Now, Ford plans a similar increase in its capacity to build hybrid and plug-in hybrid cars, including a new car called the C-Max. 

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Auto/Economy
3:57 pm
Thu June 9, 2011

Political Roundup: Auto industry bailout & Mitt Romney (audio)

Chrysler repaid $7.6 billion to the U. S. and Canadian governments back in May.

Recently, General Motors announced the addition of 2,500 jobs to its Hamtramck plant and plans to invest $130 million in a new data center in Warren, Michigan.

Michigan Radio's Jenn White helps us get a look at the political implications of the automotive industry’s progress.  She spoke with Susan Demas, political analyst for Michigan Information and Research Service and Ken Sikkema, former Republican state Senate Majority Leader and senior policy fellow at Public Sector Consultants.

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Changing Gears
3:17 pm
Thu June 9, 2011

Midwest manufacturing bouncing back

Midwest manufacturers heard good news about U.S. trade at a conference in Chicago.

A record number of exports are helping to shrink the trade deficit, and conference organizers are optimistic about the future of Midwest manufacturing.

Economist Bill Strauss, with the Federal Reserve Bank of Chicago, likes to use a tennis ball as an analogy to explain what’s going on in manufacturing.

"The sectors that fall the hardest tend to bounce back the strongest," said Strauss. "And we are definitely seeing that with regard to manufacturing where it was automotive and it was primary metals that fell the most during the downturn and they are coming back the strongest at this point."

This morning, Strauss and others told the  Chicago Council on Global Affairs they’re optimistic. They point to data like a 7 percent increase in manufacturing over the past 22 months.

Now for the bad news.

That doesn’t translate into more jobs, because manufacturers have gotten better at producing more with less people.

Economy
3:14 pm
Thu June 9, 2011

Gasoline stations accused of price fixing

Pain in the gas tank
(photo by Steve Carmody/Michigan Radio)

Five Detroit area gasoline station owners have been charged with price fixing.   The five gas stations are located in Madison Heights and are within 2 miles of each other. 

Michigan Attorney General Bill Schuette says an inside source claims the gas station operators agreed to keep their prices within a penny of one another on at least five days in February and early March of this year. 

Schuette says there is a difference between watching your competitors’ prices and colluding to keep everyone’s prices high. 

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Auto/Economy
2:24 pm
Thu June 9, 2011

It's small biz versus gardeners in Detroit's Cass Corridor

Canine to Five wants to expand into the lots adjacent to its current building, a site community gardeners have long beautified.
Sarah Hulett Michigan Radio

Liz Blondy opened Canine to Five – a dog daycare – on Cass Avenue six years ago. It’s a location few entrepreneurs have dared stake a claim, but Blondy has been successful. So successful, she wants to buy the two city-owned lots adjacent to her business, and expand. Trouble is, that’s the site of a beloved community garden that’s been there longer than her business.

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Auto/Economy
2:06 pm
Thu June 9, 2011

Was Mitt Romney wrong about the auto industry?

Republican presidential hopeful Mitt Romney has been criticized for his views on the auto bailouts.
Matthew Reichibach Flickr

Mitt Romney's visit to Michigan has sparked a debate over his views on the federal bailouts of the auto industry.

Democrats have been working to make political hay out of statements Romney made prior to, and after the restructuring of GM and Chrysler under Chapter 11 bankruptcy - restructuring that was made possible with loans from the U.S. and Canadian governments.

On his Facebook page, Congressman John Dingell said he "hopes Governor Romney has answers for Michigan's working families he abandoned two years ago when the American auto industry was in its worst crisis ever."

In 2008, Romney wrote an opinion piece in the New York Times titled "Let Detroit Go Bankrupt."

Two and half years later, with Chrysler and GM rising from the ashes, the title of his opinion piece makes it look as though he was wrong.

The Democratic Party put out this video attacking Republicans, including Romney, for their stance on the auto industry bailouts. The title of Romney's opinion piece is heavily featured in the video - (the video includes a soundtrack with dark, foreboding music for the Republicans, and happy music for the Democrats).

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Economy
1:01 am
Thu June 9, 2011

Home sale prices may be stabilizing (but not in Detroit)

But at what price?
(photo by Steve Carmody/Michigan Radio)

There's positive news about the nation's home prices, but that's not  the case in Detroit.  Data released by Clear Capital today suggests home sale prices nationally may be stabilizing.  Home prices lost ground through the winter months, and the latest data shows prices dropped by 2.3% in May.  

But the good news is prices being paid for repossessed homes nationally actually increased last month.   Foreclosed homes have been dragging down home sale prices, but that might be changing. 

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Ford, GM future bright
5:19 pm
Tue June 7, 2011

GM, Ford tell stakeholders that future is bright

Both Ford and General Motors today predicted they will expand their global presence, despite rising energy and commodity prices. 

GM held its first public stockholders meeting in Detroit – and Ford held its annual Investors Meeting in New York. 

GM CEO Dan Akerson told stockholders to consider the company a long-term investment, not short-term.  GM stock has lost a fair bit of value since the IPO in November.    

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Auto/Economy
1:01 pm
Tue June 7, 2011

Raising Gas Taxes

Yesterday, as the congressman from New York was going through his excruciating televised confession, someone called to ask me, “why don’t we have any good sex scandals in Michigan?”

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Auto/Economy
11:51 am
Tue June 7, 2011

GM Chief concerned about the economy, and Ford looks to Asia

 The CEO of General Motors, Dan Akerson, told reporters today that he's concerned about the "jobless economic recovery" and high federal deficits.

From the Associated Press:

The CEO told reporters before the company's stockholders meeting Tuesday that the government should have a 10-year plan to cut its roughly $14 trillion deficit. He says that would bring much needed stability to markets.

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General Motors Invest in Warren
10:45 am
Tue June 7, 2011

GM to build high-tech computer command center in Warren

General Motors will invest 130-million dollars in a new high-tech computer command center in Warren. 

The announcement follows a string of other investments by GM in North America. 

GM says the high performance computers at the new command center in Warren will help the company keep pace with the increasingly complex computer simulations required to build cars. 

It will also allow the company to keep its own data and customer data more securely.   

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Auto
10:11 am
Tue June 7, 2011

Drivers have big impact on gas mileage

Poor driving, a trunk full of junk, and flags on the roof can adversely affect your miles-per-gallon.
Chevrolet

When it comes to fuel economy, Roger Clark says, "how you drive matters."

Roger is a fuel economy expert with Chevrolet. He has a few tips for getting more miles per gallon without buying a new car. We tested his driving style against Monte Doran’s, also with Chevy. Roger and Monte drove matching Chevy Cruzes and took identical routes. Both did a little highway and a little city driving on a weekday around 5pm. Roger followed his own fuel saving tips and Monte did exactly the opposite.

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Auto/Economy
12:29 pm
Mon June 6, 2011

Leaks and outages bump up Michigan gas prices

ExxonMobil in Joliet, Il. is one of three refineries in the Great Lakes region that had unexpected problems in the last two weeks.
User: yooperann Flickr

Gas prices in Michigan are up 17 cents per gallon even though oil prices fell below $100 a barrel Monday.

Patrick DeHaan is with gasbuddy.com. He says gas prices in the Great Lakes region are between 30 and 60 cents higher than the national average.

“A rash of refinery and pipeline problems is leading prices higher as already tight gasoline supply becomes even tighter with these refinery and pipeline outages that we’ve seen in the last two weeks.”

Three refineries in Illinois and two crude suppliers to the Great Lakes region had unexpected problems, including power outages and leaks.

DeHaan expects Michigan gas prices will go back down in the next couple of weeks.

Emily Fox- Michigan Radio Newsroom

Economy
10:11 am
Mon June 6, 2011

Dow Chemical to form carbon fiber joint venture

NEW YORK (AP) - Dow Chemical Co. says its European subsidiary has agreed to form a joint venture with Turkey's Aksa Akrilik Kimya Sanayii to make carbon fibers.

Strong and lightweight, carbon-fiber based materials are in demand for use in alternative energy projects like wind power.

They're also used in vehicle and infrastructure products. Dow is based in Midland, Mich.

Economy
11:12 am
Sat June 4, 2011

Any Way You Stack It, $14.3 Trillion Is A Mind-Bender

Stacked in dollar bills, the U.S. debt would stretch to the moon and back — twice. How can a brain deal with such big numbers?
iStockphoto.com

Originally published on Sat June 4, 2011 7:23 am

The U.S. government is $14.3 trillion in debt. When we first neared the trillion-dollar mark in 1981, President Ronald Reagan said that the height of our debt amounted to a stack of $1,000 bills about 67 miles high. That's somewhere in the thermosphere.

Today, that pile of $1,000 bills would be floating in space, more than 900 miles above the Earth. There aren't any $1,000 bills in circulation anymore, so here's an astronomical analogy about today's debt: If you stack up 14.3 trillion dollar bills, the pile would stretch to the moon and back twice.

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History
4:30 pm
Fri June 3, 2011

Historical: Union power, past and present (audio)

Seventy years ago, Ford Motor Company recognized the UAW.  Ford was the last major automaker to recognize the union, and that decision marked the starting point of the union’s “Golden Age.”

In this interview, Michigan Radio's Jenn White talks with Jack Lessenberry, Michigan Radio’s political analyst about unions past and present. And what lessons can be learned from those "golden years."

In 1941, the UAW signed contracts with General Motors and Chrysler, but Henry Ford remained opposed to unionization. After several days of strikes Ford gave in and soon after the first contracts took effect.

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Auto/Economy
2:17 pm
Fri June 3, 2011

Pres. Obama marks the end of government ownership of Chrysler

Pres. Barack Obama addresses auto workers at a Chrysler assembly plant in Toledo, Ohio
(photo by Bridget Bodnar/Michigan Radio)

President Obama congratulated a crowd of Chrysler auto workers today in Toledo for their hard work as he stood surrounded by an assembly line of Jeeps. He stressed the importance of the 2008 bailout of Chrysler and G-M to the rest of the auto industry, including Ford:

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