Bernie's Feed
Oct 25, 2013

Detroit pension cuts ‘function of mathematics’: investment banker

DETROIT (Reuters) – Cuts to Detroit’s public pensions and retiree healthcare were inevitable given the city’s sagging finances, a top consultant for the city testified on Friday during the third day of a trial to determine whether the city is eligible for bankruptcy.

Money owed to Detroit workers and retirees is a key factor in the case, which will also hear testimony by Kevyn Orr, Detroit’s state-appointed emergency manager. Orr is expected to explain efforts to negotiate with the city’s numerous creditors, including retirees and pension funds, before deciding to file for the largest-ever Chapter 9 municipal bankruptcy on July 18.

Oct 24, 2013

AutoNation posts higher profit, shares rise

DETROIT (Reuters) – AutoNation Inc (AN.N: Quote, Profile, Research, Stock Buzz) the largest U.S. auto dealer, on Thursday posted a 13 percent increase in quarterly profit amid rising demand for both new and used vehicles.

Third-quarter net income of 75 cents per share on profit of $92.6 million missed analyst expectations of 77 cents per share, according to Thomson Reuters I/B/E/S. A year ago, its net income was $81.6 million, or 66 cents a share.

Oct 24, 2013

AutoNation posts higher quarterly profit, shares rise

DETROIT, Oct 24 (Reuters) – AutoNation Inc the
largest U.S. auto dealer, on Thursday posted a 13 percent
increase in quarterly profit amid rising demand for both new and
used vehicles.

Third-quarter net income of 75 cents per share on profit of
$92.6 million missed analyst expectations of 77 cents per share,
according to Thomson Reuters I/B/E/S. A year ago, its net income
was $81.6 million, or 66 cents a share.

Oct 23, 2013

In Detroit bankruptcy trial, union says city had pensions in sight

DETROIT (Reuters) – A trial on Detroit’s eligibility for bankruptcy protection kicked off on Wednesday with opponents claiming the city tried to bypass restrictions on cutting workers’ pensions, as experts in municipal bankruptcy around the country watched closely in a case that could set important precedents.

At issue is whether Detroit, which in July filed the largest municipal bankruptcy in U.S. history, negotiated in good faith before it sought protection from its creditors.

Oct 23, 2013

U.S. Bankruptcy Court to decide if Detroit really is broke

DETROIT, Oct 23 (Reuters) – Is Detroit bankrupt? A federal
judge began hearing arguments Wednesday morning in Detroit on
the largest municipal bankruptcy filing in U.S. history that
will ultimately will answer that question.

For a city saddled with massive debts and fighting to
deliver services to its residents, the answer may sound simple.
But the decision by U.S. Bankruptcy Judge Steven Rhodes on
whether Detroit is eligible to restructure its debts and
liabilities under Chapter 9 of the U.S. Bankruptcy Code that
covers municipalities will rest on a slew of complicated issues
to be addressed over a multi-day hearing.

Oct 10, 2013

Exclusive: VW divided on union for U.S. plant but worker vote a must

DETROIT (Reuters) – Volkswagen AG’s (VOWG_p.DE: Quote, Profile, Research, Stock Buzz) top executives are divided over whether and how workers at the company’s Tennessee assembly plant should be represented by a union, but ultimately will insist on a formal vote by those employees, a person with knowledge of the board’s thinking said.

While VW’s U.S. executives are hostile to the United Auto Workers, the eight-member management board may still ask the union to help set up a German-style employee board at the Chattanooga plant, said the person, who asked not to be identified.

Oct 4, 2013

Tesla in talks with Samsung SDI for battery supply deal

DETROIT/SEOUL Oct 4 (Reuters) – Popular electric carmaker
Tesla Motors Inc may name South Korean battery
producer Samsung SDI Co Ltd as an additional
supplier as the California auto upstart tries to add more models
and expand, although at least one source familiar with the
discussions described the deal as being far from done.

Both Tesla and Samsung SDI, a unit of Samsung Electronics Co
Ltd, on Friday confirmed that the two companies are
in talks about the South Korean company supplying battery
technology to Tesla, the maker of the best-selling U.S. electric
car, the premium Model S sedan with a price tag of $70,000.

Oct 1, 2013

Head of VW labor group to meet Tennessee workers-sources

DETROIT/BERLIN (Reuters) – Volkswagen AG’s (VOWG_p.DE: Quote, Profile, Research, Stock Buzz) most influential labor leader will meet with workers at the German automaker’s plant in Chattanooga, Tennessee on Wednesday to discuss the possibility of the United Auto Workers union representing them, several sources said.

Bernd Osterloh, head of the automaker’s global works council, will participate in a dialogue about the possible establishment of a German-styled works council at the plant, said the sources, who asked not to be identified.

Oct 1, 2013

Ford, Chrysler increase U.S. sales in September

DETROIT (Reuters) – Chrysler Group LLC Ford Motor Co (F.N: Quote, Profile, Research, Stock Buzz) beat analysts’ expectations on Tuesday by posting their best September U.S. sales increases in six and seven years, respectively.

Ford’s sales rose 5.8 percent to 185,146. Chrysler, an affiliate of Italy’s Fiat SpA (FIA.MI: Quote, Profile, Research, Stock Buzz), said its sales were up 1 percent at 143,017.

Sep 26, 2013

U.S. union efforts at VW plant may face hurdle after eight workers say misled

DETROIT (Reuters) – Eight employees at Volkswagen AG’s Tennessee plant have said they were misled into endorsing the United Auto Workers, handing some ammunition to opponents of the union’s efforts to organize for the first time at a foreign-owned U.S. factory.

The UAW has countered that the complaints, which were filed with the National Labor Relations Board, are a “frivolous and baseless” attempt to delay negotiations between the union and Volkswagen.