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New GM Chief Bends to U.S. Pressure
Facing heavy government pressure, General Motors Corp.’s (NYSE:GM) chief executive spent his second day on the job making a public break from his predecessor, sending a sharply different message of willingness to shake up the ailing auto maker.
Obama Said to Find Bankruptcy Likely for GM, Chrysler
President Barack Obama believes a quick, negotiated bankruptcy is the most likely way for General Motors Corp. (NYSE:GM) to restructure and become a competitive automaker, people familiar with the matter said. Obama also is prepared to let Chrysler LLC go bankrupt and be sold off piecemeal if the third-largest U.S. automaker can’t form an alliance with Fiat SpA.
Ford May Flip to Laggard From Leader If GM Improves
Ford Motor Co. (NYSE:F), the only U.S. automaker not taking federal aid, could lose its competitive edge if President Barack Obama is successful in slimming down General Motors Corp. (NYSE:GM) with lower labor costs, debt and dealers. Obama gave GM 60 days to devise a new strategy to cut costs with its union, slash debt with bondholders and reduce dealers and brands.
Toyota, Nissan Lead 32% Plunge in Japan Auto Sales
Toyota Motor Corp. (NYSE:TM) and Nissan Motor Co. (NASDAQ:NSANY) led a 32 percent drop in Japan’s auto sales to the lowest level in 35 years as economic recession exacerbates slumping domestic demand. Vehicle sales, excluding minicars, fell to 323,063 vehicles in March, the Tokyo-based Japan Automobile Dealers Association said in a statement today.
Oil Falls Below $49 a Barrel on Gloomy Data
Oil prices slipped below $49 Wednesday as new signs of deterioration in the world’s three biggest economies — the U.S., Japan and China — undermined crude’s recent gains. Benchmark crude for May delivery was down $1.22 to $48.44 a barrel by midday in Europe in electronic trading on the New York Mercantile Exchange.
Fannie, Freddie Are Pressured as Homeowners Fall Behind
The rapid rise in the number of borrowers skipping their mortgage payments is putting renewed pressure on the financial reserves of Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE). The mortgage-finance companies were taken over by the government in September, making this one more concern that the Obama administration needs to tackle before year’s end when analysts expect the two companies to run out of the government aid already earmarked.
Global Trade Collapse Smacks Industrial Companies
World trade is declining at the fastest rate since the Great Depression, causing many industrial companies to struggle. The world’s shipping lanes are less crowded and barge hulls are emptier. According to World Bank forecasts issued on Mar. 31, the volume of world trade in goods and services will drop 6.1% this year, the biggest decline in 80 years.
MasterCard reaches deal in Europe on fees
MasterCard (NYSE:MA) on Wednesday said it’s reached a tentative deal with the European Commission on fees that it charges merchants as it pursues a legal appeal. According to the European Commission, MasterCard will lower merchant fees on cross-border and certain domestic euro-area transactions. The new fees will be up to 0.3% for consumer credit card transactions and up to 0.2% for consumer debit cards.
HP Is ‘Studying’ Android for PC Use
If Hewlett-Packard (NYSE:HPQ), the world’s biggest PC maker, were to install Google’s (NASDAQ:GOOG) operating system on netbooks, Microsoft (NASDAQ:MSFT) Windows could face strong competition. Move over, Microsoft. Hewlett-Packard may give Google the entrée it needs to provide the go-to operating system for new lines of mass-market notebook computers.
Hitachi executive indicted in price-fixing scheme
Hitachi Displays Ltd. executive Sakae Someya was indicted by federal court in San Francisco on Tuesday for allegedly conspiring to fix prices for display panels sold to U.S. computer maker Dell Inc. (NASDAQ:DELL) The U.S. Justice Department said in a statement that Someya sought with unnamed co-conspirators “to suppress and eliminate competition” by fixing the price of thin film transistor-liquid crystal displays (TFT-LCD) sold to Dell for use in notebook computers.
Wells told employees it may cut foreign workers
Wells Fargo & Co. (NYSE:WFC), one of the largest U.S. lenders, told employees this month that it’s considering cutting foreign workers, citing political pressure stemming from the government’s bailout of the banking industry, according to an internal email obtained by MarketWatch.
