Automotive suppliers: France creates bailout fund September 28, 2009

To help automotive suppliers, France’s industry minister Christian Estrosi plans to set up an additional fund resembling the Fonds de modernisation des equipementiers automobiles (FMEA). The exact size of the new fund is unknown. A committee chaired, among others, by Plastic Omnium, Valeo and Faurecia representatives, has been appointed to determine how the money will be distributed.

The new fund will apparently be financed equally by the government and large automotive suppliers. Three working groups will provide short-term assistance and discuss restructuring possibilities, all in keeping with market expectations.

Building a Safer Car September 28, 2009

From the wood-paneled station wagon of the 1950s to the equally ubiquitous minivan of the 1980s, car companies have long designed products with baby boomers’ life stages in mind. Now, with the oldest members of that generation eligible to collect Social Security, safety is fast emerging as a focal point for innovation.

To find out what new automotive manufacturer safety features we’re likely to see—both around the corner and down the road—we spoke with Joseph Coughlin and Bryan Reimer. They are, respectively, the director and associate director of the U.S. Department of Transportation-sponsored New England University Transportation Center and also at AgeLab, a think tank at the Massachusetts Institute of Technology dedicated to improving older adults’ quality of life.

Slowing Job Losses Put Economy on Firmer Footing Growth Hinges on Whether Businesses Begin Restocking Shelves, Hiring Workers September 2, 2009

With the smallest job declines in a year, a recovery appears in sight. But businesses are proceeding with caution, uncertain of how strong a rebound will be.

Early signs of a stabilizing labor market added to the belief that the economy could grow in the second half of the year. Much of that growth hinges on whether businesses begin restocking shelves and ramping up their work force — a tricky decision for companies still dealing with wary consumers.

An increase in the average workweek is a good start, though. In July, it rose 0.1 hours for private workers and even more, 0.3 hours, for manufacturing employees. “That’s typically a leading sign that hiring is going to start to recover several months in the future,” said Steven Wood, Insight Economics LLC’s chief economist.

Some companies’ plans reflect the optimism. JTEKT Automotive Manufacturers in Vonore, Tenn., rehired 65 employees after furloughing 135 workers earlier this year. An uptick in new orders spurred the hiring, said Craig Woodford, president of the Vonore location. But he’s concerned it might not last.

China Journal Wrap: Renewed Calls for Global Currency, Warning on Bank Loans September 2, 2009

• China once again made its case for the creation of a new international reserve currency that could reduce dependence on the dollar as the world’s de facto reserve currency. In the People’s Bank of China’s annual report on its financial stability, the central bank said, “To avoid the shortcomings of sovereign credit currencies acting as reserve currencies, we need to create an… international reserve currency that can maintain the long-term stability of its value.”

• Despite government orders for banks to increase scrutiny of loans and concerns from outside analysts, June bank lending data is likely to show a sharp increase in new loans following slower credit growth during the previous two months. A regulatory official said that the June figure is expected to be around one trillion yuan, compared to 592 billion in April and 664.5 billion in May.

• Private equity firm Bain Capital discusses its decision to invest $420 million in electronics and China Appliances retailer Gome, which has seen its founder embroiled in legal disputes.

• China’s legislature adopted a new law on the mediation of disputes over rural land use, a source of frequent tensions between villagers and developers.

Coming Home: Appliance Maker Drops China to Produce in Texas September 2, 2009

HOUSTON — Farouk Shami, a Palestinian-born hairdresser who built a $1 billion manufacturing company around a popular line of hair irons, is moving all of his production of hand-held appliances from China to a sprawling new factory here.

The move flies in the face of conventional wisdom, which says gadgets like this are best made in a low-cost country. But, he says, outsourcing has led to a loss of control over manufacturing and distribution.

Mr. Shami says the Houston-made hair irons will cost about $2.50 more to produce than the China-made irons; he plans to absorb the cost without raising the retail price.

He says some costs will fall as large-scale production gets under way. One Texas Appliances Suppliers of plastic parts initially charged four times the cost of the Chinese supplier, but cut the price to near parity once it became clear that orders would be large and steady, he says.

The move is creating jobs in Houston at a time when factory jobs are evaporating in most places. On a recent afternoon, job applicants sat in the lobby of a cavernous new factory, hoping to be one of 30 people hired daily. The company expects to have 1,200 workers when the factory is at full speed in December.

Vampire ATV Tires September 1, 2009

Vampire ATV tires cost anywhere from $290 to $400 for four tires depending on what size and from where you purchase the tires. I haven’t been able to find them for any less than this, or at least not from reputable dealers that I would be willing to spend money at.

I’ve bought Vampire ATV tires for different ATVs of mine several different times, and like to buy from two different ATV suppliers. Instead of trying to find even lower prices on Vampire ATV tires, I would rather keep purchasing Vampire ATV tires from these two vendors because they have offered exceptional customer service time and again.

Big-Ticket Orders Surge 4.9% Amid Rising New Home Sales September 1, 2009

Orders for big-ticket items from airplanes to appliances surged in July at their fastest pace in two years, reflecting improvement in the Appliance Manufacturers sector.

Separately, new-home sales rose a sharp 9.6% last month in their fourth straight monthly increase, another sign of a recovery taking hold in the housing market.

The 4.9% increase in orders for durable goods — such items as cars and appliances that are designed to last three years or more — came largely from the transportation sector, the Commerce Department said Wednesday. Orders for commercial aircraft and parts more than doubled. Auto orders also rose as …

‘Clunkers’ Sequel Rattles Appliance Producers September 1, 2009

U.S. sales of major appliances have been sliding for three years, with shipments down 10% last year and 15% so far this year, according to the Association of Home Appliances Manufacturers.

The program “will provide consumers a unique opportunity to save money on energy-efficient appliances,” said Dave McCalpin, chief marketing officer for GE Appliances. He said Fairfield, Conn.-based GE is working with state governments to adopt rebate programs that rely on Energy Star ratings.

Some states are considering standards that exceed Energy Star requirements, a move GE opposes. “We believe it is very important that rebate programs are consistent across the country,” Mr. McCalpin said. The stricter proposals underscore criticisms that the Energy Star program is not tough enough in raising energy efficiency. The Environmental Protection Agency is looking at revising the program’s standards. If it does so after the states set their rules, the rebates could end up subsidizing some appliances that are not as energy efficient as they could be.