Auto

Economy
1:00 am
Thu April 14, 2011

Home foreclosures inched higher in Michigan last month

(photo by Steve Carmody/Michigan Radio)

The number of home foreclosures in Michigan inched higher last month. One in every 311 homes in Michigan received a foreclosure noticed in March. The number of foreclosures was up about 4 percent from February.

Michigan had the nation’s fifth highest home foreclosure rate in March, behind Nevada, Arizona, California and Utah.     

Daren Bloomquist with Realty Trac says mortgage holders are starting to send more initial foreclosure notices and repossess more homes in Michigan. Bloomquist says an improving economy is the only way to reduce future foreclosure notices in Michigan. 

 “The more the economy improves and jobs improve during the next couple months the less we’ll see that huge spike in foreclosure numbers down the road.”  

While March’s foreclosure numbers rose slightly, overall Michigan’s home foreclosure numbers declined during the first three months of the year.

Economy
2:27 pm
Wed April 13, 2011

Michigan's jobless rate held steady in March

Khalilshah Flickr

One in 10 people in Michigan are out of work and looking for a job. The state's March unemployment rate was 10.3 percent. That's almost unchanged from the February rate of 10.4 percent. But it's a full three points below the March 2010 rate of 13.3 percent.

Michigan added 79,000 jobs over the past year, mostly in temporary help, IT, and the auto in industry.

Improvements in the unemployment rate have been modest so far this year, but reflect real job gains and not people leaving the workforce.

Business
1:40 pm
Wed April 13, 2011

Sites chosen for new wind farms in Thumb area

Three new wind farms are expected to generate enough power for 100,000 homes in the Thumb region.

Michigan’s thumb region will soon be dotted with new wind farms.  DTE Energy says the project will cost about $225 million.

The 50 wind turbines to be built in Huron and Sanilac counties should generate enough energy to power about 100,000 homes.

DTE's Scott Simons says while two West Michigan lawmakers recently opposed building  wind farms in the Great Lakes, the Thumb plan has Lansing’s stamp of approval.

"I would think the legislature is behind these kinds of projects, and we're going full steam ahead toward meeting the renewable energy goals that have been set by the Legislature," Simons says.

 DTE customers will pay for the wind farms with a small surcharge on their monthly bills.

Auto/Economy
6:06 pm
Tue April 12, 2011

Detroit 3 ready to hire - but not at previous level

The Detroit Three are poised to create new auto jobs for the first time in years.  But an expert at the Center for Automotive Research warns that auto manufacturing jobs will never recover to their former levels. 

Ford, GM, and Chrysler closed a lot of plants over the past ten years, so many of the remaining plants are working at full capacity as new car sales improve. 

Sean McAlinden is an economist with the Center for Automotive Research .

"Almost the last layoff at GM and Ford have been recalled," says McAlinden, "so any additional production through the summer requires new hiring."

McAlinden says the Detroit Three will likely hire 35,000 people in the next five years.  

But that’s only about a third of the people who lost jobs with the companies in the past few years.   

McAlinden says auto jobs will plateau after 2015, which is why Michigan still needs to diversify its economy.

Read more
Auto/Economy
11:17 am
Tue April 12, 2011

Fiat meets another benchmark - increases stake in Chrysler to 30%

You can buy the Fiat 500 in the U.S. More access to the U.S. market was one reason Fiat took over Chrysler.
Fiat USA

During the U.S. government led bailout in 2009, Fiat took over management control of Chrysler and was given a 20% stake in the company.

The government said Fiat's stake in Chrysler could increase to as much as 35% so long as they met three milestones.

Now, the Italian company now controls 30% of Chrysler after meeting the second milestone set forth by the U.S. government.

From the Detroit News:

Fiat SpA announced today it has increased its share in partner Chrysler Group LLC to 30 percent effective immediately.

The additional 5 percent stake is triggered automatically with Fiat's completion of the second of three performance-related conditions.

The first, achieved in January, was awarded for Chrysler's assembly in Dundee of a fuel-efficient Fiat engine.

The second condition was that the Italian automaker help Chrysler generate cumulative revenue of $1.5 billion outside North America and use Fiat's dealer network in Latin America to distribute Chrysler vehicles.

The third milestone, according to the Globe and Mail, is the development of a 40 mpg Dodge car built on a Fiat platform.

Once that milestone is reached, Fiat could solidify its ownership of Chrysler. From the Globe and Mail:

Dodge is developing a compact car on a Fiat platform that will reach 40 miles per gallon, which would satisfy the third test set by Treasury in 2009.

Mr. Marchionne told analysts on a conference call in October that he expected Fiat would meet all of the Treasury’s hurdles by the end of 2011.

The indications of progress are significant because the sooner Fiat can raise its Chrysler stake to 35 per cent, the quicker it could exercise an option to take majority ownership of the U.S. automaker.

The Detroit News reports that the current ownership of Chrysler breaks down this way:

  1. 59.2% - United Auto Workers retiree health care trust
  2. 30% - Fiat
  3. 8.6% - U.S. government
  4. 2.2% - Canada and Ontario governments combined
Detroit
11:12 am
Tue April 12, 2011

Detroit mayor warns a state takeover is "inevitable" without union concessions

Detroit mayor Dave Bing dleivers his budget proposal to the city council
(courtesy City of Detroit)

Detroit’s mayor says the city’s unions will have to give big contract concessions or the city of Detroit may end up in the hands of a state appointed Emergency Financial Manager. Mayor Dave Bing outlined his budget plan to the city council this morning.

Bing says pension and health care costs threaten to force the city into insolvency.  

“If we are unable or unwilling to make these changes, an Emergency Financial Manager will be appointed by the state to make them for us.  It’s that simple.”  

The city is facing a $155 million budget deficit. The mayor says that could grow to over a billion dollars in five years, unless deep cuts are made now. 

Michigan’s new Emergency Financial Manager law gives the state appointed administrator broad powers to throw out union contracts and make budget decisions.

Auto/Economy
6:49 pm
Mon April 11, 2011

Toyota tells dealers to plan for inventory shortfalls - and workers to plan for extra days off

Toyota will shut down its U.S. factories five extra days this spring because of parts shortages – and warns its American dealers to expect inventory shortfalls this summer. 

Rick Hodges is General Manager of Victory Toyota in Canton, Michigan.   It’s bad news, especially in the wake of last year’s recall crisis. 

"When the weather breaks, March all the way through August is normally when we’re going to sell 2/3 of all of our vehicles," says Hodges, "And it’s going to hurt our sales, sure."

Read more
Auto/Economy
6:44 pm
Mon April 11, 2011

Fiat to acquire another stake in Chrysler this week

Fiat could increase its ownership stake in Chrysler this week. 

Eventually, Fiat hopes to own a majority of the Detroit automaker. 

In 2009, the federal government agreed to give Fiat 20% of Chrysler in return for taking over management of the Detroit automaker.  The deal also set up incremental steps by which Fiat could reach 51%.    

Fiat CEO Sergio Marchionne says he expects Fiat’s stake to grow to 30% this week, after meeting a requirement to increase sales of Chrysler vehicles outside North America.  

Auto/Economy
2:21 pm
Mon April 11, 2011

Fiat looks to increasing stake in Chrysler

Fiat CEO Sergio Marchionne talks to reporters at January's North American Intl Auto Show in Detroit
(photo by Steve Carmody/Michigan Radio)

Fiat CEO Sergio Marchionne says the Italian auto maker will increase its stake in Chrysler in the coming days.  Fiat currently controls about 25% of the Detroit auto company.  The Wall Street Journal reports Marchionne plans to add another 5%. 

Read more
Auto/Economy
1:54 pm
Mon April 11, 2011

What effect will rising gas prices have on Michiganders?

Robert Couse-Baker Flickr

If you seek rising gas prices, look about you.

Gas prices in Michigan have ticked up over the course of this past week, an increase of 11 cents, bringing the statewide average up to $3.86.

But what will the effect on Michigan drivers be?

Mantill Williams, a spokesperson for the American Public Transportation Authority, says there is a tipping point at which people begin to consider changing their driving habits.

From ABC News:

Read more
Economy
1:49 pm
Mon April 11, 2011

Flint - Comeback City?

Downtown Flint, Michigan
(photo by Steve Carmody/Michigan Radio)

An influencial business forecasting company has named Flint as one of 13 "Comeback Cities" in 2011.  Kiplinger.com ranks Flint along side other American cities that weathered the economic recession that are poised to make a big comeback this year.   

Read more
Auto/Economy
12:10 pm
Mon April 11, 2011

Automakers face engineer shortage

The auto industry is looking for more engineers.
Michael Gil wikimedia commons

Last year, many automakers brought in profits and announced that they would open up new factories and add new jobs.

But the industry is adding new jobs at a time when qualified candidates are hard to come by.

David Shepardson wrote about the shortage in the Detroit News today:

Read more
Auto/Economy
12:00 pm
Mon April 11, 2011

Average gas price in Michigan is $3.86 per gallon

Michigan gas prices have been on the rise for 8 weeks straight
Futureatlast.com creativie commons

The average cost of gas in Michigan is $3.86. That’s nearly $1.00 more than it was this time last year.

Nancy Cain is a spokesperson for Triple-A Michigan. She says generally prices don’t go up this much so early into spring, "but this is our 8th weekly increase, and we’re seeing prices just going up."

Cain says the price at the pump follows the crude oil price, which she says is "topping $111-$112 a barrel. So that’s up to a 2.5-year high."

Read more
Economy
9:09 am
Mon April 11, 2011

Affordable housing conference opens in Lansing

More than 15 hundred people will meet in Lansing this week to discuss Michigan’s affordable housing needs. 

Jess Sobol is the director of operations in the Community Development division within the Michigan Housing Development Authority.  He says this week’s conference will give people from the non-profit and for-profit worlds a chance to meet and discuss ways of reclaiming ‘sustainable’ communities. 

Economy
9:05 am
Mon April 11, 2011

Ann Arbor economic development leaders want to keep Borders HQ

Economic development leaders in Ann Arbor are hoping Borders Books will find a new home for its headquarters in city where the company started. 

Four decades ago, Borders started as bookstore in Ann Arbor.  With the big box bookstore chain now in bankruptcy protection, Borders executives are planning to move out of their Ann Arbor headquarters. 

But where?   As part of the company’s bankruptcy plan, Borders is looking for less expensive office space to rent. 

Read more
Economy
12:11 pm
Fri April 8, 2011

The return of luxury retail

Originally published on Fri April 8, 2011 1:10 pm

Consumers spent more on retail goods in the first quarter than they did during the same time last year. That's despite higher gas prices, bad weather and a late Easter holiday.

Luxury retailers were the winners.

Retail analyst Marshal Cohen says the recession has left the consumer with "frugal fatigue."

"We're tired of being so frugal with what we're spending and at the least expensive place," he says.

A bunch retailers released their first quarter numbers this week.

Read more
Economy
4:11 pm
Thu April 7, 2011

Report: Need for food assistance up, even as unemployment dips

qmnonic flickr

A new report says the need for food assistance in Michigan is still on the rise, even as unemployment declines.

Judy Putnam is with the Michigan League for Human Services, which conducts the quarterly economic report. She says money for food assistance comes from the federal government, and is money well spent.

“This is money that’s spent in local grocery stores, so it doesn’t go into a black hole, it actually goes into the local economies. It’s really considered one of the most effective economic stimulants that you can find. You get a lot of bang for the buck.”

Putnam says if the state eliminates the Earned Income Tax Credit for working poor families, that could create more need for food assistance in the coming years. 

business
3:21 pm
Thu April 7, 2011

Quicken Loans closes deal on downtown Detroit building

Courtesy Quicken Loans

Quicken Loans has completed the purchase of the 14-story Chase Tower in downtown Detroit. The deal will allow the company to move the remainder of its workforce from the suburbs to downtown Detroit.

When the move is complete, about 4,000 employees of Quicken and its related companies will work downtown.

The Chase Tower sits just south of the Compuware Building on the other side of Campus Martius Park, where Quicken moved about 1,700 of its employees last year.

The move downtown is part of Quicken founder Dan Gilbert’s plan to help turn lower Woodward Avenue into a mecca for high-tech, Internet-based businesses.

Quicken is the nation’s largest online mortgage lender.

Plans for the Chase Tower include retail space on the first floor, and room for tenants who fit into Gilbert’s plan for a downtown Detroit technology hub.

Economy
11:02 am
Thu April 7, 2011

Happy 'Tax Freedom Day' Michigan

(photo by Steve Carmody/Michigan Radio)

Today is Michigan’s Tax Freedom Day. It’s the day when the average Michigander will have earned enough money to pay their local, state and federal taxes for the year.  That’s three weeks earlier than it used to be mainly because people are earning less money because of the recession. 

Kail Padgitt is with the Tax Foundation, which produces the annual Tax Freedom Day list. He says Michigan’s local and state taxes are higher than most other states.

 “But when we look at federal taxes…Michigan actually paid  a little less in federal taxes due to the (state’s) high unemployment...leading to lower income taxes …federal income taxes.”

Padgitt says as the nation’s economy improves, special federal tax breaks expire and more Michiganders find work, Michigan’s tax freedom day will shift back to the end of April or maybe the beginning of May.

Pages