Friday, October 17, 2008

Auto briefs

Levin to seek $25B more for auto industry

WASHINGTON — Sen. Carl Levin said Thursday he may seek an additional $25 billion in loans for the auto industry before the end of the year, citing deteriorating economic conditions for Detroit’s car makers. Levin, D-Detroit, said doubling the loan program to $50 billion would help automakers during a difficult period. Congress approved a $25 billion loan program last month, but credit markets have tightened since then and the companies have reported dismal sales figures. "I think we ought to make sure that we take every step we can to assist the industry through this rough patch," Levin said. Levin said he was "exploring" the possibility of seeking the funding in an economic stimulus plan Congress may consider after the elections.

Ford to idle Ranger plant in December

The union representing workers at the Ford Ranger plant in St. Paul says Ford Motor Co. is laying off 760 workers for the month of December. The members of United Auto Workers Local 879 learned Wednesday that their last day will be Nov. 26. They’ll return to work sometime after Jan. 1. Company officials have said the struggling economy and poor auto sales are forcing them to cut back production. Ford had planned to close the St. Paul Ranger plant in 2009, but officials later decided to keep it open until 2011. Most of the 760 employees will receive unemployment benefits during the work stoppage.

Subaru Forester is Motor Trend top SUV

Motor Trend magazine has picked the 2009 Subaru Forester as its sport utility vehicle of the year, citing its fuel efficiency, comfort on the road and competency off the pavement. The award, announced Thursday, came from a field of 13 finalists mostly made up of car-based crossover vehicles, with few traditional body-on-frame truck-based SUVs as in previous years. It will be featured in the magazine’s edition that hits newsstands on Nov. 3. The all-wheel-drive Forester with a 2.5-liter, four-cylinder engine with an automatic transmission gets an estimated 20 miles per gallon in city driving and 26 on the highway. Other finalists were the BMW X6, Chevrolet Traverse, Dodge Journey, Ford Flex, Honda Pilot, Infiniti EX and FX, Kia Borrego, Lexus LX570, Nissan Murano, Toyota Sequoia and Volkswagen Tiguan.

Ford Australia will cut 450 additional jobs

MELBOURNE, Australia — Ford Australia announced it will cut another 450 jobs in response to slumping sales and the global economic crisis. The latest cuts in manufacturing and office staff, which will take place before the end of the year, bring total job losses at Ford to 1,400 during the past 15 months. The job cuts at two plants in the state of Victoria will be carried out on a voluntary basis and all employee benefits and entitlements will be provided, Chief Executive Marin Burela said. He said the global financial crisis and recent poor sales had affected Ford in the U.S. and abroad.

Honda exec says Big 3 slow to act on gas hikes

TOKYO — Honda’s chief executive welcomed the U.S. government decision to extend loans to American automakers Thursday, but said their problems highlighted their slow response to soaring gas prices. "It is totally proper for the U.S. government to help out U.S. automakers," Takeo Fukui told reporters in Tokyo, adding that Honda also relies on the same parts makers in the United States. Last month, President George W. Bush signed a sprawling, stopgap spending bill, including a $25 billion in taxpayer-subsidized loans to the troubled U.S. automakers. Fukui said Honda benefited by refraining from expanding into the once lucrative pickup truck sector, and that its sales were holding up despite the gloomy outlook for the industry.

Detroit News staff, wire and Bloomberg News reports.

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