auto industry

IHS buys Southfield company, R.L. Polk & Co. for $1.4 billion

Michigan Radio Newsroom — Tue, 11 Jun 2013 16:20:18 +0000

IHS Inc. announced on Monday that they would buy the automotive data firm R.L. Polk & Co. for $1.4 billion.

Polk has a long history in southeast Michigan.

Founded in 1870 in Detroit, the company started keeping statistical data on the automotive industry in the 1920s.

Detroit businesses give back to the community

Stateside Staff — Thu, 23 May 2013 20:39:23 +0000

It’s Thursday, which means it’s time for our weekly conversation with Daniel Howes, the Business Columnist at the Detroit News.

This week, he focused on the business community in Detroit, where companies like General Motors are trying to give back through programs like the GM Student Corps. From Howe's column:

By itself, the pilot program unveiled in the Wintergarden of GM’s Renaissance Center, isn’t front-page news in a city bursting with the good, the bad and the financially ugly on a weekly basis. What GM Student Corps signifies, however, is another example of a key player in the business community seeing a communal need and moving to fill it, quickly.

He joined us today to discuss the business in Detroit as well as the health of the auto industry.

Listen to the full interview above.

In this morning's news: Lansing debating surplus, hospital merger sacked, carmakers won't shutdown

Michigan Radio Newsroom — Wed, 22 May 2013 11:15:50 +0000

Policymakers debate how to spend surplus

The debate continues in Lansing over how the state should spend almost half a billion dollars in unexpected revenue this year. The Michigan League for Public Policy believes that because the state’s Earned Income Tax Credit is less than a third of what it was a couple years ago, legislators should restore the credit for the working poor.

"A spokesperson for state House Democrats says they support the idea of using some of the money to restore the Earned Income Tax Credit. However, Governor Rick Snyder says a similar tax credit from the federal government does enough to help working poor families in Michigan. He wants to use the extra cash to fix roads," Michigan Radio's Jake Neher reports.

Merger between Beaumont and Henry Ford sacked

The planned merger between Beaumont and Henry Ford health systems, two of southeast Michigan’s largest health care providers, has been scrapped. The leaders of each hospital signed a letter of intent to merge last fall, but negotiations didn’t work out so well. On Tuesday, Henry Ford CEO Nancy Schlichting sent a letter to employees, indicating they’ll end talks and let the agreement expire.

“It became apparent that two very different perspectives have emerged for the new organization between Henry Ford and Beaumont,” Schlichting wrote. Michigan Radio's Sarah Cwiek has more.

Rising car sales cut plant shutdowns

Summer vacation will be cut short for auto factory workers in Michigan this year, as carmakers try to keep up with heightened demand. Detroit automakers plan to reduce their annual shutdowns at dozens of North American plants that produce popular Ford and Chrysler models.

“This sends a strong signal that the industry is in a healthy place,” Jeff Schuster, senior vice president of forecasting at market researcher LMC Automotive, told The Detroit News.

Chinese automakers and businesses quietly move into Detroit

Michigan Radio Newsroom — Mon, 13 May 2013 15:08:42 +0000

This morning, the New York Times reported on the slow and steady increase of Chinese companies setting up in metro-Detroit.

The NYT's Bill Vlasic reports it has been a largely unannounced trend – and given the public opposition experienced by Japanese automakers – it is most likely an intentionally quiet entrance.

Chinese-owned companies are investing in American businesses and new vehicle technology, selling everything from seat belts to shock absorbers in retail stores, and hiring experienced engineers and designers in an effort to soak up the talent and expertise of domestic automakers and their suppliers.

Overall, most Chinese suppliers are interested in expanding their direct business with Detroit car companies. Many Detroit car companies rely on low-wage countries like Mexico to get common car parts. Chinese companies are trying to change that.

Why are Detroit automakers losing out in Europe?

Stateside Staff — Mon, 06 May 2013 21:04:26 +0000

If you hear the word Europe, you might find yourself thinking of great places to travel, a rich history, or family roots.

If you're an auto executive and you hear “Europe,” you’ll likely sigh and take a couple of aspirin for your headache.

That's because the Detroit automakers stand to lose $4 billion in Europe this year. And with a collapse in auto sales across the pond, trying to muscle through the kinds of changes that saved the industry here in North America is a totally different challenge in Europe.

Michelle Krebs of Edmunds.com and Michigan Radio’s auto reporter Tracy Samilton discuss the bleak picture in Europe for Detroit automakers.

Listen to the full interview above.

Is the TPP a threat to U.S. auto makers?

Stateside Staff — Tue, 30 Apr 2013 20:59:00 +0000

On the surface, it sounds like easing trade restrictions with foreign nations could present new opportunities and more business for American companies like the Detroit Three automakers.

But, is there a deeper danger to American jobs in these overseas trade agreements?

Michigan Democratic Congressman Gary Peters voiced his concerns about a new multi-lateral trade agreement known as the Trans-Pacific Partnership.

Chrysler putting $20M into northwest Ohio plant

Associated Press — Sat, 27 Apr 2013 19:16:54 +0000

Automaker Chrysler plans to put close to $20 million into one of its northwest Ohio plants.

Chrysler says the work at the machining plant just outside Toledo will go toward new equipment and tooling. The investment won't bring any new permanent jobs though.

The spending will increase capacity for a torque converter for the new 2014 Jeep Cherokee.

The plant near Perrysburg makes torque converters and steering columns for several Chrysler plants in the Midwest as well as Canada and Mexico.

GM promises to “refresh, redesign or replace” car lineup by 2016

Stateside Staff — Wed, 03 Apr 2013 20:42:07 +0000

General Motors says the car and truck buying public will be seeing big changes in the next few years when we walk into a GM showroom.

GM’s North America Chief Financial Officer Chuck Stevens recently told analysts that the automaker will redesign, refresh or replace nearly 90 percent of its vehicles in the North American market between now and 2016.

Is this strategy a matter of blazing new trails, or playing catch-up with the competition?

This is a two-sided story. Starting this year with 2011 models, the federal government’s fuel-economy standards, which have sat frozen for years, are going to get a big-time thaw. It's the biggest change since the Corporate Average Fuel Economy (CAFE) law was created in 1975.

What women look for when buying a new car

Stateside Staff — Wed, 20 Mar 2013 21:20:30 +0000

In a recent study by L.R. Polk, none of the top ten car companies that women prefer were domestic.

Susan Ianni, the general manager of Gordon Chevrolet of Garden City, argued otherwise.

"Women here love domestic cars," she said. "It's in other parts of the country where the problem lies. Women aren't even looking at domestic cars. They aren't even on their shopping list. Women are going for the car they're driving which is probably a foreign car, so they're going back to that dealership and not giving domestic cars a chance."

So what was this study getting at and why do some women prefer foreign cars?

Stateside for Wednesday, March 20th, 2013

Stateside Staff — Wed, 20 Mar 2013 20:51:46 +0000

Today on the show, the city of Flint recently hired seven new police officers, but some say that might not be enough to make a noticeable difference on the streets.

We explore public safety in the one of the nation's most violent cities.

And, new data show women in the U.S. prefer foreign-made cars to domestics. We find out why and talk about what it will take for the Detroit Three to win over those women.

And there are almost fourteen thousand children in Michigan who have been taken out of their own homes by the state because of an abuse or neglect allegation.

Those kids rely upon the state to keep them safe and put them in an environment where they have a chance to thrive.

Six years ago, the state was sued over treatment of kids in its care. The state was back in court today to see where things stand. Michigan Radio's Sarah Alvarez brought us a report.

Stateside: What lies ahead for auto companies?

Stateside Staff — Tue, 26 Feb 2013 21:59:04 +0000

The clouds have been lifting for U.S. car makers.

With car sales and America's economy picking up, there are some who are looking further down the road.

They have been wondering if deeper, bigger challenges lie ahead for the companies who put the world on wheels.

One of those wondering is automotive writer Micki Maynard. She recently published a couple of pieces in Forbes Magazine exploring what she calls "The Secret Fear of the World's Biggest Auto Companies".

Micki Maynard spoke with us to explain exactly what is the "Secret Fear" of the World's Biggest Auto Companies.

To hear the full story click the audio link above.

Auto companies expect good December sales

Steve Carmody — Tue, 01 Jan 2013 14:43:06 +0000

December is shaping up to be another good month for the auto companies.

Analysts expect to see strong December sales numbers for General Motors, Ford, Chrysler and other auto makers: Rising consumer demand, new models in the showroom, big year end deals.

Mike Wall with IHS Global Insight says they’re all reasons to expect December to be a good month.

“We still have a fairly old fleet out there…in terms of the average age of vehicles….and we have a consumer base that is starting to reengage the market,” says Wall.

Stateside: A 2012 review of the auto industry

Michigan Radio Newsroom — Thu, 20 Dec 2012 22:05:31 +0000

The auto industry had some big stories in 2012.

Stateside spoke with Michelle Krebs, senior analyst at edmunds.com, and Tracy Samilton, auto beat reporter for Michigan Radio about this past automotive year.

Sales are up in Detroit's 'Big Three' automotive companies, and the companies are adding jobs.

One of the biggest themes this year was fuel efficiency, especially with the new government Corporate Average Fuel Economy (CAFE) standards.

Chinese firm acquires bankrupt battery maker A123

Michigan Radio Newsroom — Mon, 10 Dec 2012 22:27:38 +0000

A123, the bankrupt battery company with factories in Livonia and Romulus, announced Sunday that a Chinese firm will acquire most of its assets.

In an auction administered by the U.S. Bankruptcy Court for the District of Delaware, Wanxiang Group Corp. purchased most of the company’s commercial business assets for $256.6 million.

The acquisition has some Republican lawmakers worried.

From the Detroit Free Press:

Obama in Redford: Right-to-work laws "don't have anything to do with economics"

Michigan Radio Newsroom — Mon, 10 Dec 2012 21:26:37 +0000

In a speech Monday in front of employees from Redford Township’s Detroit Diesel engine factory, President Barack Obama weighed in on Michigan’s impending right-to-work legislation.

About halfway through the President’s address, intended to promote his plan for averting the fiscal cliff, Obama took up the issue of right-to-work, the Detroit Free Press Reports:

Stateside: Chinese cars yet to motor along U.S. roads

Michigan Radio Newsroom — Mon, 03 Dec 2012 20:46:35 +0000

China continues to be the world’s largest automotive market.

However, Chinese car manufacturers are still several years away from putting their products in the U.S. market, according to Michael Dunne.

Dunne is the president of Dunne and Company, a strategic marketing group helping auto companies expand in Asia.

Dunne addressed the status of China’s car industry, citing economic tensions with Japan.

Stateside: Labor unions' future reliant on cooperation

Michigan Radio Newsroom — Tue, 13 Nov 2012 21:41:42 +0000

Labor unions have suffered something of an image crisis over the past decade.

People blame their presence for convoluting many political and economic conversations.

But, according to Harley Shaiken, the unions’ place in society is far from extinct.

Shaiken is a professor of education and geography at University of California, Berkeley.

He addressed the problems currently facing labor unions as well as their past triumphs.

“Overall the public opinion polls are favorable when people are asked if they would join a union,” said Shaiken.

According to Shaiken, the economic gloom of states’ economies cannot entirely be blamed on labor unions.

GM share price up on better-than-expected earnings report

Michigan Radio Newsroom — Wed, 31 Oct 2012 18:27:52 +0000

GM shares were up Wednesday on the back of a stronger-than-expected third-quarter earnings report.

The automaker reported a net income of $1.48 billion, down just 14.5 percent from last year despite major losses in Europe.

As a result, GM stock had increased by 9.66 percent to $25.53 a share by 2:20 p.m.

Melissa Burden with the Detroit News has more:

Ford restructures in Europe, cuts 5,700 jobs

Michigan Radio Newsroom — Thu, 25 Oct 2012 20:28:43 +0000

Ford is cutting 5,700 jobs in the U.K. and Belgium as it tries to return to profitability in Europe.

The company is expecting annual losses of over $1.5 billion in Europe.

Alisa Priddle of the Detroit Free Press has more:

The actions will cut capacity by 18% or 355,000 vehicles a year which should result in annual savings of $450 million to $500 million, the company said today.

Battery company bankruptcy refuels electric car debate

Michigan Radio Newsroom — Thu, 18 Oct 2012 20:59:30 +0000

Tuesday’s bankruptcy announcement by A123 Systems Inc. has many taking another look at the prospects of the electric car.

Conservative commentators have taken the opportunity to bash the Obama administration for its green energy investments.

In 2009, A123 received a $249 million grant from the Department of Energy.