Published: Saturday, January 30, 2010
Business briefs: Growth rate best in U.S. in six years
The economy boomed at the end of 2009, growing at the fastest rate in more than six years. Now if only it could keep it up. The economy expanded at an annual rate of 5.7 percent in the fourth quarter, the second straight quarter of growth. But analysts warn it’s unsustainable. Consumer spending, chilled by double-digit unemployment and scant wage gains, remains weak. And the benefits of government aid and higher company output to feed stockpiles will dwindle. Many analysts predict gross domestic product will expand at a rate closer to 2.5 to 3 percent in the current quarter and 2.5 percent or less for the year. That won’t be enough to significantly reduce the unemployment rate, now 10 percent. In fact, most analysts expect the rate to keep rising for months and to remain close to 10 percent through year’s end.
Airbus prices to rise 5.8 percent
European planemaker Airbus says the continued strength of the euro has forced it to raise prices for the first time in two years. Airbus says it has increased the catalog prices of its planes by an average of 5.8 percent. The planemaker didn’t raise prices in 2009, when its customer airlines suffered the worst-ever fall in passenger demand. Chief Salesman John Leahy said in a statement Friday that Airbus tried to keep prices down, but that ongoing dollar weakness and financial challenges ahead forced it to act. The company says the increased cost of materials and commodities was also a factor.
Electric car firm to sell shares
Electric car manufacturer Tesla Motors Inc. said Friday it plans to sell stock to the public. The company, based in Palo Alto, Calif., said in a filing with the Securities and Exchange Commission that it intends to raise $100 million with its initial public offering. However, that figure could change. Tesla did not give a date for when it plans to launch the IPO, nor did it say how many shares it would sell or at what price. A Tesla IPO has been widely anticipated. The company has garnered attention for its high-end Roadster, an all-electric sports car that retails for $109,000. The two-door Roadster is the only model Tesla currently sells, but the company plans to start selling a four-door sedan, the Model S, in 2012. The Model S is slated to go for $49,900 with a tax credit.
Toyota repair plan for gas pedal unclear
Toyota will announce plans next week for repairing 2.3 million vehicles under recall for accelerator pedals that could stick, but the time frame for completing the repairs has yet to be finalized, the company said Friday. The Japanese automaker took another public relations hit when Consumer Reports, one of the most-watched arbiters of automotive quality, pulled its “recommended” ratings from the eight Toyota models whose sales have been halted until Toyota provides a repair. The magazine also advised shoppers to avoid used models under the recall.
From Herald news services
Airbus prices to rise 5.8 percent
European planemaker Airbus says the continued strength of the euro has forced it to raise prices for the first time in two years. Airbus says it has increased the catalog prices of its planes by an average of 5.8 percent. The planemaker didn’t raise prices in 2009, when its customer airlines suffered the worst-ever fall in passenger demand. Chief Salesman John Leahy said in a statement Friday that Airbus tried to keep prices down, but that ongoing dollar weakness and financial challenges ahead forced it to act. The company says the increased cost of materials and commodities was also a factor.
Electric car firm to sell shares
Electric car manufacturer Tesla Motors Inc. said Friday it plans to sell stock to the public. The company, based in Palo Alto, Calif., said in a filing with the Securities and Exchange Commission that it intends to raise $100 million with its initial public offering. However, that figure could change. Tesla did not give a date for when it plans to launch the IPO, nor did it say how many shares it would sell or at what price. A Tesla IPO has been widely anticipated. The company has garnered attention for its high-end Roadster, an all-electric sports car that retails for $109,000. The two-door Roadster is the only model Tesla currently sells, but the company plans to start selling a four-door sedan, the Model S, in 2012. The Model S is slated to go for $49,900 with a tax credit.
Toyota repair plan for gas pedal unclear
Toyota will announce plans next week for repairing 2.3 million vehicles under recall for accelerator pedals that could stick, but the time frame for completing the repairs has yet to be finalized, the company said Friday. The Japanese automaker took another public relations hit when Consumer Reports, one of the most-watched arbiters of automotive quality, pulled its “recommended” ratings from the eight Toyota models whose sales have been halted until Toyota provides a repair. The magazine also advised shoppers to avoid used models under the recall.
From Herald news services
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