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POLITICO Magazine Original article ›
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The auto industry has only itself to blame for shaping and sustaining the retrograde world it finds itself in, says Politico magazine. GM supported the Trump administration's efforts to push back the fuel efficiency rules setup earlier. With Chrysler and Ford it went a step further in getting out of cars altogether and having a line of SUV's and other vehicles. This step is seen as retrograde and a result of several possible lines of thought among the car executives in Detroit. One is that the SUV higher profits would provide a cushion as this cycle in the industry's revival comes to a close. Another is that in a situation where GM's shares are depressed while Tesla with no profits is seeing a higher valuation, this could increase its share price. This has not happened and President Trump is as critical of the layoffs of 15% and closure of plants in GM's announcement, as Democratic senator Bernie Sanders is. Still another is that GM needs to prepare for all the tech changes happening in driverless cars, new tech advances, that a move like this would better prepare itself for the new world of transportation. This remains nebulous however and GM has failed to take account of the fact that only a short time ago about half of all car buyers were still not buying SUV's. Gas prices are volatile and will continue to be so that strategy cannot be based on cheap gas prices and SUV profits.    ...
Wall Street Journal Original article ›
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France's GDF Suez takes a $20.4 billion writedown. The European power generation industry is taking large losses as a result of the growth in wind and solar energy.
New York Times Original article ›
New York Times Original article ›
WSJ Original article ›
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One negative effect of the trade war with the U.S. is an increased emphasis on energy security and increased use of coal in China. After China committed to goals for climate change coal use declined in 2014, after reaching a high in 2013. The attack on Saudi oil facilities showed risk in its reliance on Saudi oil. China's import dependency for oil reached an all time high of 72% in 2018, according to BP 2019 Statistical Review. Gradually the commitment to climate change and lower use of coal has changed since 2016 with the withdrawal of the U.S. from the Paris Climate Change Agreement. Initially after the U.S. withdrawal under president Trump China made bold commitment to lead the fight against climate change but has since wavered. In an October 2019 speech Premier Li Kequiang called for the development of the coal industry to ensure energy security.  As China's economy slowed in 2019 in the face of U.S. tariffs and a trade war with the U.S. efforts are being made to increase infrastructure investment which has driven coal use higher. China's steel output reached a record of 750 million metric tons in 2019. The amount of coal fired capacity under construction in China now exceeds the rest of the world combined, much of it from plants permitted before 2017, according to Global Energy Monitor. China is also expected to become the world's largest importer of natural gas by 2020. Even the Russian gas fields from Siberia supply only a fifth of China's energy demands in 2020.  China has made large strides in renewable energy helping it meet its Paris Agreement targets. Renewable energy is about 10% of China's energy mix, but its use showed growth of 29% in 2018, making up half of the world's growth. China's use of coal in the energy mix has dropped to 58% in 2018 from 72% in 2008, according to BP 2019 Statistical Review, as a result of renewable energy investments. At the Madrid Climate Conference China renewed its commitment to the Paris Climate Change Agreement. Now it is a balancing act keeping in mind energy security and economic growth along with the need for clear skies and better air quality. ...
Wall Street Journal Original article ›
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Senator Corker of Tennessee's role in defeating the UAW union organizing drive in Tennessee. Corker was Mayor of Chattanooga and set up the industrial park wher VW located. He helped negotiate the terms for attracting VW to the city. His personal interest stems from his conviction that the UAW union damaged the auto industry in Detroit.
Wall Street Journal Original article ›
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The FDA has found deficiencies and violations of safe manufacturing practices at 2 Ranbaxy plants in India. The FDA issued a ban on imports of 30 generic drugs from Ranbaxy in India.
Unknown Original article ›
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Southwest Airlines CEO Kelly says studies have shown passengers just want to know if their flight is going to go and at what time. So he stresses these things, because travel is not perfect and its how his airline handles these situations that matters. He says its not a reach to say that Southwest is getting the 5% of revenues that is the max he thinks you can get from baggage fees, by simply not charging as passengers hate these fees. He wants to use new technology to manage fares better. Asked about things getting bette, green shoots of recovery, he isnt optimistic. He says Southwest has to be prepared for a lot of uncertainty and instability, and operate with an abundance of caution. He goes on to say what he sees as different in this downturn. Saying he wishes that steroids were legal, because the speed at which we identify issues , study them and make decisions is unlike anything he has experienced before. In Southwest's culture this is the difference between furloughing employees, grounding planes, and reducing flights and running as close to normal as possible. The cushion is gone now, and he has to manage risk much more carefully. This is good advice for other executives....
mint Original article ›
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Indian Finance Minister Sitharaman gives the following remarks in parliament on the White Paper presented to the 18th Lok Sabha in January 2024, describing the dire condition of the Indian economy by 2013 with mismanagement and "big ticket" corruption. India's Finance Minister Sitharaman describes the situation in three key areas by 2013 that left the economy of India in a fragile state, with projects stalled, development delayed, and capital investment not taking place. She gives as 3 main points of focus- the state of affairs at Defense Ministry, at the Environment Ministry, and for Energy supplies. At the outset she says PM Modi had suggested the need for such White Paper by 2015 so that future generations would know what had happened in India that failed the country at a time when China had already joined the community of developed nations. The issues go back to the coal scandal when coal auctions had to be cancelled by the Supreme Court for irregularities, the misuse of state owned banks leading to a large increase in non performing loans, and the mismanaged Commonwealth Games under government before 2014.  Sitharaman told parliament this had the effect of national security being compromised, Environment as a Ministry becoming a bottleneck, and the leadership failing the country. In the military there was a critical shortage of ammunition and equipment. She cites the Defense Minister at the time having the attitude that independent India has had a policy for many years not to develop the border areas, as an undeveloped border was better than a developed border. She also says Ministry stated that 92% of the Defense Budget was used up and major acquisitions have to wait for the military. Following this Sitharaman cited the scandals of that period and leakages of funds that weakend the country and failed its people. She compared capital expenditures today of 6.22 lakh crores in 2024 thre times the number in 2013 of 2.53 crores. HAL now makes Tejas jets and helicopters in Made in India production. At the Environment Ministry the delays that were 86 days reached a high of 316 days by 2013 for approval of development projects, with 355 projects pending, the nation brought to a standstill with the effects of the coal supplies to thermal power plants being wholly inadequate and Coal India in poor shape. The root of this was said Sitharaman- what everyone in Indian business knew, the term "genteel facts," as the cost of business going up. She cites the changes since then of aiming for Balance and Development- Transparency, Online Green Clearance, Standardized Environment Impact Studies, A new Department of Climate change, International Solar Alliance 2015, Mission Life 2022, Green Hydrogen, Namami Gange, Rooftop Solar. India set ambitious goals at the last Climate change Conference.    ...
Wall Street Journal Original article ›
DW.COM Original article ›
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Germany faces the unique challenge of phasing out coal and nuclear energy at the same time. Germany's response to the 2011 Fukushima nuclear disaster in Japan was for Chancellor Merkel to announce that all plants would be closed over the next decade. By the end of 2022 all 17 nuclear energy facilities will be shut down.

United States Department of State Original article ›
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Marco Rubio speaks for the US with profound convictions and long experience in the Florida legislature and the US Senate, and as akey member of the DJT administration. In his speech in Munich at the MSC he recalls his grandparents being from Piedmeont Sardinia in Italy and from Sevilla in Spain. He talks proudly of his Spanish and Italian heritage, of America founded by European settlers. For Europe this is a speech that shows America is profoundly part of Western Civilization that started in Europe. Here are some parts of the speech and Rubio's call for America and Europe to respond strongly to the mistakes in migration and deindustrialization that have hurt the people of Europe and America, with deeply felt negative consequences. "That infamous wall that had cleaved this nation into two came down, and with it an evil empire, and the East and West became one again.  But the euphoria of this triumph led us to a dangerous delusion:  that we had entered, quote, “the end of history;” that every nation would now be a liberal democracy; that the ties formed by trade and by commerce alone would now replace nationhood; that the rules-based global order – an overused term – would now replace the national interest; and that we would now live in a world without borders where everyone became a citizen of the world.  This was a foolish idea that ignored both human nature and it ignored the lessons of over 5,000 years of recorded human history.  And it has cost us dearly.  In this delusion, we embraced a dogmatic vision of free and unfettered trade, even as some nations protected their economies and subsidized their companies to systematically undercut ours – shuttering our plants, resulting in large parts of our societies being deindustrialized, shipping millions of working and middle-class jobs overseas, and handing control of our critical supply chains to both adversaries and rivals.  We increasingly outsourced our sovereignty to international institutions while many nations invested in massive welfare states at the cost of maintaining the ability to defend themselves.  This, even as other countries have invested in the most rapid military buildup in all of human history and have not hesitated to use hard power to pursue their own interests.  To appease a climate cult, we have imposed energy policies on ourselves that are impoverishing our people, even as our competitors exploit oil and coal and natural gas and anything else – not just to power their economies, but to use as leverage against our own.  And in a pursuit of a world without borders, we opened our doors to an unprecedented wave of mass migration that threatens the cohesion of our societies, the continuity of our culture, and the future of our people.  We made these mistakes together, and now, together, we owe it to our people to face those facts and to move forward, to rebuild.  Under President Trump, the United States of America will once again take on the task of renewal and restoration, driven by a vision of a future as proud, as sovereign, and as vital as our civilization’s past.  And while we are prepared, if necessary, to do this alone, it is our preference and it is our hope to do this together with you, our friends here in Europe.  For the United States and Europe, we belong together.  America was founded 250 years ago, but the roots began here on this continent long before.  The man who settled and built the nation of my birth arrived on our shores carrying the memories and the traditions and the Christian faith of their ancestors as a sacred inheritance, an unbreakable link between the old world and the new.  We are part of one civilization – Western civilization.  We are bound to one another by the deepest bonds that nations could share, forged by centuries of shared history, Christian faith, culture, heritage, language, ancestry, and the sacrifices our forefathers made together for the common civilization to which we have fallen heir. And so this is why we Americans may sometimes come off as a little direct and urgent in our counsel.  This is why President Trump demands seriousness and reciprocity from our friends here in Europe.  The reason why, my friends, is because we care deeply.  We care deeply about your future and ours.  And if at times we disagree, our disagreements come from our profound sense of concern about a Europe with which we are connected – not just economically, not just militarily.  We are connected spiritually and we are connected culturally.  We want Europe to be strong.  We believe that Europe must survive, because the two great wars of the last century serve for us as history’s constant reminder that ultimately, our destiny is and will always be intertwined with yours, because we know – (applause) – because we know that the fate of Europe will never be irrelevant to our own.  National security, which this conference is largely about, is not merely series of technical questions – how much we spend on defense or where, how we deploy it, these are important questions.  They are.  But they are not the fundamental one.  The fundamental question we must answer at the outset is what exactly are we defending, because armies do not fight for abstractions.  Armies fight for a people; armies fight for a nation.  Armies fight for a way of life.  And that is what we are defending: a great civilization that has every reason to be proud of its history, confident of its future, and aims to always be the master of its own economic and political destiny. It was here in Europe where the ideas that planted the seeds of liberty that changed the world were born.  It was here in Europe where the world – which gave the world the rule of law, the universities, and the scientific revolution.  It was this continent that produced the genius of Mozart and Beethoven, of Dante and Shakespeare, of Michelangelo and Da Vinci, of the Beatles and the Rolling Stones.  And this is the place where the vaulted ceilings of the Sistine Chapel and the towering spires of the great cathedral in Cologne, they testify not just to the greatness of our past or to a faith in God that inspired these marvels.  They foreshadow the wonders that await us in our future.  But only if we are unapologetic in our heritage and proud of this common inheritance can we together begin the work of envisioning and shaping our economic and our political future. Deindustrialization was not inevitable.  It was a conscious policy choice, a decades-long economic undertaking that stripped our nations of their wealth, of their productive capacity, and of their independence.  And the loss of our supply chain sovereignty was not a function of a prosperous and healthy system of global trade.  It was foolish.  It was a foolish but voluntary transformation of our economy that left us dependent on others for our needs and dangerously vulnerable to crisis. Mass migration is not, was not, isn’t some fringe concern of little consequence.  It was and continues to be a crisis which is transforming and destabilizing societies all across the West.  Together we can reindustrialize our economies and rebuild our capacity to defend our people.  But the work of this new alliance should not be focused just on military cooperation and reclaiming the industries of the past.  It should also be focused on, together, advancing our mutual interests and new frontiers, unshackling our ingenuity, our creativity, and the dynamic spirit to build a new Western century.  Commercial space travel and cutting-edge artificial intelligence; industrial automation and flex manufacturing; creating a Western supply chain for critical minerals not vulnerable to extortion from other powers; and a unified effort to compete for market share in the economies of the Global South.  Together we can not only take back control of our own industries and supply chains – we can prosper in the areas that will define the 21st century." ...
New York Times Original article ›
Wall Street Journal Original article ›
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India's airlines together will lose $1 billion to $2 billion in 2008, twice what they lost in 2007, according to aviation analysts. The airlines face a glut of domestic overcapacity. Until recently therre were 50 flights between Bombay and Delhi with 4 seats chasing each passenger according to Keskar, Boeing vice president in charge of sales in India. Boeing and Airbus are advising airlines in India to delay deliveries of planes so that the overcapacity does no lasting damage and the industry can recover from this as they see India as a boom market in the future. Boeing expects India will need 1001 aircraft till 2027. Reasons for the airline losses are that in the 12 months ending April 2008 passenger traffic increased by only 7%, and in the 12 months before that by 31%, and in the 12 months prior by 59%. Air India is cutting its domestic flights by 15% returning 14 leased jets to their owners as the leases expire and freezing the size of its fleet. Worldwide the airline industry could lose $6.1 billion in 2008 with a third of the losses in the USA. Passenger volumes fell in China for the second straight month in June but China's airlines appear stable because of milder competition and government support....
Wall Street Journal Original article ›
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How Renault- Nissan execute plan to build low cost cars for markets in Eastern Europe, Russia, Brazil, Mexico, North Africa and India, China. A new plant with initial capacity of 200,000 Logan type small cars to open in Tangiers, Morocco. Plants already operate in Brazil, Columbia, Mexico and Russia for Logan type vehicles. The Logan small car at $7500 is still a middle class car in countries like India so Renault is talking to Bajaj Auto of India,a maker of motorbikes and scooters, about making a $3000 car. The scenario that large automakers are looking at is one in which makers of small cars in India like Tata and Cherry in China master the art of making small cars with lower cost components and good quality and then move upscale using this expertise to underprice them in their segments like Toyota and Honda have done. Renault moved into the low cost segment in Sept 2004 with the Logan made in Romania, so its moving quickly in this segment and it is becomin a key part of Renault-nissan's global strategy. Note that Logan sales are about 400,000 but only 50,000 of these sold in France and Germany relatively small sales in Western Europe. ...
Wall Street Journal Original article ›
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GM and Ford are burning cash at a rapid rate. And the Energy Department says it is unlikely that any of the $25 billion in loans already approved for fuel eficiency retooling of plants will be disbursed by the end of 2008. GM used up $6.9 billion in cash in the third quarter of 2008 leaving cash reserves at $16.2 billion. It needs $11-$14 billion to fund ongoing operations. Ford burned through $7.7 billion in cash in the third quarter of 2008, leaving it with $18.9 billion. Both companies cannot fund salaries and ongoing operations if the market continues to collapse the way it did in the third quarter 2008 with losses of 30-45% in sales. Government support is the only way to fund operations but instead of the $50 billion initially talked about for lifesupport by the government the numbers will run into much more and even then there is no limit to what may be needed. Chrysler is in much worse shape, because it depends on the US market entirely for sales, and is the weakest of the three Detroit carmakers. It is privately owned so figures are hidden, one can guess that big numbers are involved for Chrysler being rescued or merged or taken over by the government....
New York Times Original article ›
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European countries are focussing on the environmental damage and emissions of biofuels generation, and will not subsidize biofuels that cannot show sustainability or prove that they are produced without causing some environmental damage. Germany has canceled tax exemptions for biodiesel at the pump and is mandating that only biodiels produced meeting sustainability criteria will count towards the national quota.The annual target of biofuels making 5.75% of transportation fuel in Germany. The European Union will require restrictions on imports of biofuels that are produced in an environmentally harmful manner. Europe rushed into the push to produce biofuels without thinking of these issues. In 2007 Europe paid farmers 45 euros per hectare or $27 per acre for any biofuel produced. Note that corn ethanol made in the USA does not meet this standard as its carbon dioxide reduction is 10-20% from the level of gasoli, neaccording to one German NGO. Quebec has discontinued the building of cornbased ethanol plants. The feeling is growing that corn is a less efficient source of biofuels because it requires a lot of processing and the environmental net benefits are small. It is also seen that the rush to corn ethanol in US may be overdone and pushed by politicians trying to help farmers more than the environment....
Wall Street Journal Original article ›
WSJ Original article ›
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This Canadian opinion in the WSJ by Philip Cross of Statistics Canada, says Canada's opportunity to diversify its exports to places other than the US, especially for auto exports is essentially nil, and for oil exports because of a lack of pipelines will lead to losses of tens of billions of dollars.  He then goes on to say that Canada should wait for American buyers to suffer as car prices increase by $12,000. No such increase is likely. As pointed out by the UAW's Fain Shawn and others capacity utilization at US auto plants is low with only 60 to 65% capacity utlilization. Ford with 60% capacity utilization, has 568,000 cars in inventory 8% higher than 2024, and make 80% of its cars entirely in the US. Ford is actually cutting prices of its cars as of April 2025 under it's "From America For America Program." Ford and GM could replace German and other cars as Americans shift to buying American. Hyundai and Kia are already shifting production to the US. South Korean and Japanese leaders will support the US as it is the right thing to do. This Canadian opinion does not acknowledge that the US is simply creating a level playing field, a point USTR Jamieson and DJT repeatedly make, and the Japanese, South Koreans, and even the Chinese understand. These countries were given the benefit they received for three decades through the absolute generous attitude of the American people.   ...
BusinessWeek Original article ›
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Europe has something that is just as bad as subprime mortgages that have troubled the US, its the bad debt of European banks to Eastern European emerging market countries. This plus the high indebtedness of companies in Western Europe is creating serious problems for the economies of western Europe. In addition to the property bubble in Ireland, the UK and Spain, Germany is facing falling demand for its exports as a result of the steep descent of the global economy, especially China. As a result of all this the EU is facing a problem of the magnitude of that faced by the US, if not worse. In much of Europe especially in Germany and the Eastern European countries what generates growth and jobs is exports. Three quarters of the cars made in Germany are exported, and many of the parts used in BMW's and VW's come from plants in the eastern european countries, some form Slovakia, Poland and from plants elsewhere in Eastern Europe. With the collapse of some Eastern European economies and serious problems in others these markets are shrinking. The same thing is happening to exports from Eastern European countries where factories there manufacturing goods for Western Europe are closing. And banks in the western European economies like UniCredit Group of Italy, Germany's Commerzbank, and Belgium's KBC Group have large loans outstanding in the eastern European countries to companies and consumers. And some of these countries have run up huge current account deficits. Bulgaria the deficit is 20% of GDP. Increasing the risk and hitting consumers in the east is that banks issued low rate mortgages and other laons in euros and swiss francs. With the Hungarian forint, Romanian leu, and other weaker currencies seeing big drops, the cost of repaying these loans has jumped. Instead of consumers being overstretched from overspending as in the USA, or facing foreclosures, these consumers are facing huge loan repayment problems from borrowing in other currencies. Morgan Stanley says more than half of the private debt in Hungary, Romania, and Bulgaria is in foreign currency. And customers in Eastern European countries owe foreign banks loans equal to one third of their combined GDP, according to the Bank of Internatonal Settlements. A lot of these loans could end up turning into bad debt if the economies of Eastern Europe deteriorate further as consumers there pull back, factories close and job losses mount, and currency values drop even more. This would create huge problems for Western European banks and restrict lending in Western Europe as these banks make fewer loans creating more problems for Western European economies, in the same manner as ricotcheting effects have done in the USA....
Wall Street Journal Original article ›
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Capcity utlization rates are dropping at Toyota's truck plants in Texas and Indiana. According to market research firm CSM the San Antonio plant will be at 72% capacity utilization this year and the Princeton, Indiana plant at 45%.
Wall Street Journal Original article ›
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Anand and Fairclough describe the aspirations of millions of young Indians stifled by the last few years of inept governance under the Congress party in India. Economic growth dropped to about 5% as the government did little to increase investment and growth, leaving India further behind nations such as China, Japan and S. Korea. The speed with which foreign investment in plants in Gujarat by the Tata Group, Bombardier and smaller companies such as Germany's Duravit took place, contrasts sharply with the red tape under the federal government of the Congress party and prime minister Manmohan Singh. Duravit's head of its Indian unit says the process was corruption free, fast, and had to be seen to be believed. Tata Group's head Ratan Tata, was a strong supporter of Modi after the Tata Group built its plant for manufacturing the Nano small car in Gujarat. The decisive mandate from the election, including the decisive vote from young people, the strong support of the business community in India determined to move ahead after 3 years of stalled governance, and the low starting point in areas such as electricity development and regions of the country lacking essential infrastructure, gives Modi a unique opportunity to put India on the path of good governance and rapid economic development....
BBC News Original article ›
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An agreement for a aircraft purchase order of 300 jets is signed during Chinese president Xi Jinping's visit to Paris. China Aviation Supplies Holding Company and Airbus sign an agreement for purchase of 290 A320 planes and 10 A350 XWB jets. The deal is worth $30 billion. President Jinping also visited Italy where Italy signed on to the Chinese Belt and Road Initiative.

Honda Revs Up Outside Japan

Wall Street Journal Original article ›
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Honda plans to move more of its manufacturing to the U.S. as the value of the yen drops below 80 to the dollar in 2011. Honda faces problems from parts shortages after floods in Thailand, and U.S. market share down 1.5 percentage points to 9% in 2011. Honda's profit declined by more than 50% for the third quarter of 2011. The yen trading at 77 to the dollar in Dec 2011 is making it impossible for Honda to make a profit from vehicles made in Japan and sold in the U.S. Honda plans to double the capacity of the Civic plant in Greensburg, Indiana, increase capacity at its other assembly plants. It will build a new plant in Celaya, Mexico, in 2014, to manufacture the Fit subcompact. This will raise North American production from 1.29 million vehicles to close to 2 million. About 200,000 to 300,000 of these vehicles will be exported to other international markets. Profits on small subcompacts are small, making manufacture of the Fit more economical in North America than in Japan. In 2011 Honda manufactured between 30-40% of vehicles in Japan, the new plans are to reduce this to 10-20% in the next 10 years, a major shift....
Wall Street Journal Original article ›
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Ford Motor Company's results in the second quarter of 2013 show sales up 15% to $38.1 billion. Profits were up to $1.23 billion from the $1.04 billion for the same quarter in 2012. Most of the profit comes from N. American market with $2.33 billion pretax profit in the second quarter of 2013, increasing from $2.01 billion in the same quarter 2012. Earnings in Asia were $177 million, after a $66 million loss in 2012 for the same period. Losses in Europe were down to $348 million from $404 million in the second quarter of 2012. Vehicles with a common platform strategy such as the Kuga in European market and the Escape in the U.S. market are part of Ford's strategy for maximum coverage worldwide are helping increase sales. Building of 7 new plants in China under a $5 billion investment plan and a 8th plant under construction have helped increase sales in China. As a result car sales in China increased 47% in the first half of 2013 to 407,721 vehicles, in a late effort to catchup with VW, GM and Toyota. Overall sales growth in the automobile industry in the U.S. provides about 20% of growth in U.S. GDP, according to Ford economists....

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