General Motors Corp. says it will force 1,000 to 1,200 underperforming dealerships to close their doors as the automaker tries to thin dealer ranks to make the remaining outlets stronger. Dealers were told of the move in a video conference Monday. In addition, the company expects to lose 500 Hummer and Saturn dealers when the brands close or are sold, and it expects 400 dealers to close voluntarily. Another 500 would be consolidated into other dealers. A dealer told the Associated Press about the changes, and company spokeswoman Susan Garantakos confirmed the numbers.
Swine flu spread worries hog farmers
Like the virus itself, the name “swine flu” is spreading quickly. For the pork purveyors and hog farmers who make up the nation’s $15 billion pork industry, that’s a disaster. It doesn’t seem to matter that the strain may not come entirely from pigs and cannot be spread by eating pork. Hog prices are already dropping as financial markets worry people will have second thoughts about buying “the other white meat.” Though it is suspected of killing more than 150 people in Mexico, public health officials have said eating products like bacon, ham and pork chops is safe as long as the meat is cooked thoroughly.
Home prices drop, but not at record pace
In another sign the housing crisis could be reaching the bottom, home prices dropped sharply in February but for the first time in 25 months the decline was not a record. The Standard &Poor’s/Case-Shiller index released Tuesday showed home prices in 20 major cities tumbled by 18.6 percent from February 2008. That was slightly better than January’s 19 percent and the first time since January 2007 the index didn’t set a record. But the good news was mixed. All 20 cities in the report showed monthly and annual price declines, but half recorded annual records. Prices fell by more than 10 percent in 15 cities, including Las Vegas, San Francisco and Phoenix. In fact, Phoenix home prices have lost more than half their value since peaking in July 2006.
Two big banks appeal need for more capital
Citigroup Inc. and Bank of America Corp. will need to raise more capital if they can’t convince regulators that “stress test” results were mistaken, according to two people familiar with the matter. The banks are hard at work preparing their appeals, said the people, who spoke on condition of anonymity because everyone involved in the process has been ordered not to discuss it. Objections could include suggestions that regulators don’t fully understand the companies’ operations, they said. But the companies face an uphill battle in convincing officials the results are mistaken because the tests can’t look too easy, analysts said. Shares of Bank of America and Citi each dropped about 5 percent in afternoon trading.
From Herald news services
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