Auto

Auto/Economy
3:20 pm
Mon December 6, 2010

Gov. Granholm makes announcement in Sterling Heights

Inside Chrysler's Sterling Heights Assembly Plant
Barack Obama's Flickr photostream

Update: 3:20pm:

The Detroit Free Press reports on what we expected from the announcement at Chrysler's Sterling Heights Assembly Plant.

Chrysler will add a second shift in early 2011 of about 900 additional workers. Many of those workers will be workers who are called back from temporary layoff.

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BUSINESS
2:12 pm
Mon December 6, 2010

Borders buying Barnes & Noble? "Bonkers"

Border's shareholders making a quixotic move?
Ildar Sagdejev creative commons

Update: 2:12pm:

Since we posted this story we found this analysis piece by Sarah Weinman of Daily Finance News. She also calls the notion that Borders Books could buy Barnes & Noble a story that has "entertainment value" not much more. Weinman says of Borders Books:

"If a merger was its plan for saving itself, expect B&N's rejection of the deal to accelerate its downward spiral -- an end that, sadly for the publishing industry, is likely to come sooner rather than later."

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BUSINESS
9:52 am
Mon December 6, 2010

Kellogg CEO steps down

Kellogg's is the worlds leading producer of cereal.
Ben Alman creative commons

I just spoke with a food industry analyst who says Kellogg's next CEO will face challenges right from the start. 


 Erin Swanson is a food industry analyst with Morningstar Financial.  She says the challenge is to speed up development of new Kellogg products.



“Kellogg has been challenged over the past several months, or year by intense competitive pressures.”  


 


 


Battle Creek's big employer is undergoing a big change. David Mackay is stepping down as Kelloggs CEO.

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Economy
2:46 pm
Fri December 3, 2010

Legislature approves tax credits for Michigan "Aerotropolis"

The runways at Detroit Metro Airport. Willow Run Airport is nearby creating an opportunity for business incubation.
travelpod.com

The current lame-duck Michigan legislature passed a tax incentive package this morning to encourage the development of a Michigan Aerotropolis. 

So what is it? Here's how the Detroit Region Aerotropolis explains the idea:

An Aerotropolis is an emerging type of urban form comprised of aviation-intensive businesses and those businesses that need to be readily connected to their customers. These businesses, and related enterprises, extend outward from a major airport.

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AUTO SALES
12:50 pm
Fri December 3, 2010

Analyst: Auto sales could reach 17 million by 2015

Car Lot
Lester Graham Michigan Radio

At a presentation to the Automotive Press Association in Detroit yesterday, Michael Robinet, director of global production forecasters at IHS Automotive, said U.S. auto sales could reach 17 million in 4 years. Robinet predicts sales will exceed 12.8 million next year and 16 million in 2013.  As the Detroit Free Press reports

That would be a huge reversal from the historically low sales levels that brought the industry to its knees during the recent recession. The last time industry sales exceeded 17 million was in 2001.

U.S. car sales were up by 17 percent last month. The country's most popular automakers in November were:

  1. General Motors
  2. Ford
  3. Toyota
  4. Honda (American)
  5. Chrysler
Economy
12:13 pm
Fri December 3, 2010

An increase in strikes in the down economy?

Striking workers' sign
Steve Rhodes/Flickr

Michigan Radio has been covering stories from across the state regarding labor and contract disputes. From the strike of the Detroit Symphony Orchestra to the dispute between the City of Flint and its Firefighters Union, it seems that workers and management are having a difficult time finding common ground these days.

So, we wondered, do strikes increase during a down economy?  We assumed they did.  Well, as they say, that's we get for assuming.  As it turns out, the struggling economy may have actually reduced the number of labor disputes resulting in strikes. According to the Bureau of Labor Statistics, there were fewer work stoppages affecting 1,000 or more workers in 2009 than in any other year since 1947, when the collection of this data began.

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Unemployment
8:42 am
Fri December 3, 2010

The end of jobless benefits has many Michigan unemployed saying "Now What?"

One economist says the end of jobless benefits for thousands of Michiganders should not have a big effect on the number of jobs being filled.

 More than 180 thousand people in Michigan will see their unemployment benefits expire between now and April, unless Congress agrees to grant another extension. 

Kenneth Goldstein is with the Conference Board, a business research group.   He says there are few real new job options,  either full or part time for the ‘hard-core’ unemployed.

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Economy
4:38 pm
Thu December 2, 2010

White House pushes Congress for unemployment extension

The White House is ramping up its efforts to get Congress to approve extended unemployment benefits for out-of-work Americans. Michigan's unemployment rate in October was the second-highest in the nation, at 12.8%.

The president's Council of Economic Advisers released a report that touts the need for extending benefits. The report says for the typical person getting unemployment, the benefits make up a third of the household income.  As Presidential adviser Cecilia Rouse noted:

And in those 42% of households where the unemployed person was the sole wage earner, it's about 90 percent of the income. So it's quite an important source of income for these families.

The report says about 620,000 people in Michigan received benefits through October.

Republicans in Congress say the cost of extending the benefits is too high. They want to look at budget cuts and tax cut extensions first.

U.S. and Canada
3:06 pm
Thu December 2, 2010

Effort to OK new Detroit-Windsor bridge fails

(view of Detroit from Windsor, Ontario)
(photo by Steve Carmody/Michigan Radio)

The push to build a new bridge connecting Detroit and Windsor appears dead. 

The Associated Press reports: 

A final effort to pass a measure this year that could have cleared the way for a second bridge connecting Detroit and Canada has failed.

Democrats in the Michigan Senate wanted a vote on the issue Thursday, likely the final day of the Legislature's 2009-10 session. But a motion to discharge the legislation and send it to the Senate floor failed, getting only 11 votes in the 38-seat Senate dominated by Republicans.

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Economy
2:58 pm
Thu December 2, 2010

Michigan economy struggling

A job search workshop
flickr user Daniel Johnson Flickr

We all know Michigan has been going through tough times. An unemployment rate of nearly 13%. Jobless benefits expiring for tens of thousands of people. Deep spending cuts coming to state and local governments.

But it may be tougher than you've thought.

 The Detroit New reports:

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Economy
1:32 pm
Thu December 2, 2010

Michigan's economy stumbled in October

Michigan’s economy stumbled in October. 

Comerica Bank’s monthly gauge of Michigan’s economic activity shows a slight dip in October.   The state’s economy spiked up in September. 

Comerica Bank chief economist Dana Johnson says Michigan’s economy has essentially been flat for the past four months.  Johnson says:

 As has been the case in the national economy over the second half of the year, growth in Michigan has been sluggish and uneven. Looking ahead, the Michigan economy is poised to make modest gains in coming months, against a background of gradually accelerating national growth.

The Michigan Economic Activity Index weighs nine, seasonally-adjusted indicators of real economic activity.

These indicators reflect activity in the construction, manufacturing and service sectors as well as job growth and consumer outlays.

Auto/Economy
12:17 pm
Thu December 2, 2010

GM's Willow Run Plant on the auction block today

The Wilow Run Factory was built in 5 months, and at the height of production during WWII, it was producing one B-24 bomber every hour.
U.S. Army Signal Corps

It was ground zero for the "arsenal of democracy" in the 1940s. Henry Ford built the giant Willow Run factory to manufacture B-24 bombers in World War II. Later GM took over the building making everything from Chevy trucks, the Caprice, the Nova, Corvairs, and transmissions.

Today, the materials inside the plant are being auctioned off as part of the "Old GM's" bankruptcy reorganization (old GM is now known as the Motors Liquidation Company).

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Home Sales
9:05 am
Thu December 2, 2010

Foreclosed home sales slow in Michigan

Fewer people bought formerly foreclosed homes in Michigan in the third quarter of the year. 

Federal home buyer tax credits spurred home sales in Michigan and the rest of the country during the first half of the year.  Daren Bloomquist with Realty Trac says July through September home sales slumped without those incentives.  He says Michigan’s foreclosed home sales dipped 26%.

Bloomquist says:

Some of the sales you would have seen in the third quarter were pushed forward to the second quarter.  So, there was a little artificial inflation in those numbers. These numbers in the third quarter are a little bit lower than normal.

People who bought one of the 95 hundred formerly foreclosed homes that sold in Michigan in the third quarter of the year got a good deal.  The average sale price was about 41% cheaper than similar homes sold at the same time.

City Budgets
8:44 am
Thu December 2, 2010

Pontiac closer to shutting down Police Department

The city of Pontiac is a step closer to shutting down its Police Department
Nikonmania/FLICKR

The city of Pontiac is one step closer to shutting down its Police Department and having the Oakland County Sheriff's Office take over the city's patrols.

Pontiac faces a projected $9 million budget deficit and Michael Stampfler, Pontiac's state-appointed emergency financial manager, has asked the Oakland County Sheriff Department to take over policing the city.

The Detroit Free Press reports:

A committee of the Oakland County Board of Commissioners voted 4-3 Wednesday to approve the $10-million contract. The county's Finance Committee will consider the plan today, and the full board is to vote on it Dec. 9... Undersheriff Mike McCabe said the department is expected to hire more than 60 of the Pontiac department's 70 employees and operate out of the city's headquarters in downtown Pontiac.

If approved, the Oakland County Sheriff Department would takeover on January 1st, 2011.

Auto Sales
2:49 pm
Wed December 1, 2010

Good numbers for U.S. car makers

Auto sales are up
Lester Graham Michigan Radio

Ford sales are up 24%, Chrysler sales are up 17%, and GM's are up  11%. It's been a good news week for the "Big Three" (can we still call them that?). Chrysler and GM also announced they plan to hire more workers in Michigan, and the Brookings Institution says Metro Detroit is recovering.

Here are some figures from a number-laden Detroit News article on auto sales:

  • Sales for Chrysler's Jeep brand were up 58 % for November compared to a year ago
  • Ford's year-to-date sales total 1.74 million vehicles - growing at a pace double the industry average
  • Ford's F-Series trucks were up 26 %
  • GM's big brand Chevrolet was up 18 % for the month compared to a year ago, its sales strengthened by the new compact Cruze and popular Equinox and Silverado
Flint Budget
11:17 am
Wed December 1, 2010

Firefighters reject contract concessions, police sent layoff notices

Flint firefighters reach a tentative agreement with city's emergency manager.
Steve Carmody Michigan Radio

A contract dispute between Flint's mayor and the city's public safety unions escalated Tuesday.



Tuesday, the city of Flint sent layoff notices to 20 police officers. The city and the police unions have not been able to agree on major contract concessions to help reduce a projected budget deficit.


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Nurses vote yes on contract
11:14 am
Wed December 1, 2010

Sparrow Hospital nurses approve new contract

Nurses at Lansing's Sparrow Hospital overwhelmingly approved a new contract with the hospital.

The contract approved Tuesday came after a sometimes contentious negotiations between the two sides.

"There was a very diverse opinion about the details of the contract about what was good and what was bad," says Robert Kolt, a spokesman for the nurses union, "They had to agree...that patient safety was a top priority."

The contract contains a modest wage increase for the nurses and other support staff.

Auto Industry Jobs
5:05 pm
Tue November 30, 2010

Chrysler plans to add 1,000 new jobs

Chrysler headquarters in Auburn Hills, Michigan
flickr user fiatontheweb creative commons

Today executives at General Motors announced they plan to add 1,000 jobs in Michigan.

Now, Chrysler executives have announced they also plan to add 1,000 jobs.

The Wall Street Journal reports:

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Auto Industry Jobs
11:16 am
Tue November 30, 2010

GM to hire 1,000 in MI

General Motors has just announced that it will hire 1,000 engineers to work on battery technology in Michigan. The jobs include helping to develop batteries for hybrid, electric and hydrogen fuel cell vehicles. Most of the jobs will be at a technical center in Warren.

The Detroit Free Press reports the jobs come as GM:

…prepares to deliver the first Chevrolet Volt extended-range electric cars next month… GM plans to build 10,000 Volts by the end of 2011 and at least 45,000 in 2012. Initially, the Volt will sell in California, New York City, Washington, D.C., and Austin, Texas. Next spring, those markets will expand to include Michigan, New Jersey, Connecticut and the rest of New York and Texas. Within a year and a half, GM plans to sell the Volt nationwide.

Unemployment Benefits
8:27 am
Mon November 29, 2010

Unless Congress acts, thousands of Michiganders will lose jobless benefits this week

Jobless benefits will expire for tens of thousands of unemployed Michiganders this week unless Congress approves an extension.



Many of those losing their benefits are expected to turn to Michigan food banks and other non-profit groups.



"Those safety nets are really not prepared to take on all of these extra families," says Judy Putnam, with the Michigan League for Human Services."


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