Ford Motor Co. of Canada Ltd. has claimed the top spot in Canadian vehicle sales in June for the first time in 50 years, the company reported Thursday. Ford Canada said it sold 27,408 vehicles in June, as it posted a 25-percent increase over the same month of 2008. The increase came in a month when General Motors Corp. sought bankruptcy protection in the U.S. and Chrysler Canada Inc. dealers were short of vehicles because its North American plants were shut as it also went through a bankruptcy protection process in the United States. Ford sold more than 5,000 units ahead of perennial market leader General Motors, whose sales were 31 percent below where they were a year ago. Toyota and Honda both dropped 17 percent. Chrysler Canada’s sales fell 58 percent.
New rules offered for bank buyers
The Federal Deposit Insurance Corp. proposed new guidelines Thursday for potential buyers of failed banks as the government seeks to sell a growing number of closed financial institutions. The FDIC wants to attract a new class of private equity fund buyers for banks that collapse during the financial crisis, but must provide more transparency than some of those potential investors are accustomed to. One proposal would require investors to keep the banks they acquire well capitalized at a 15-percent leverage ratio — or the bank’s capital divided by assets— for at least three years.
Investors fight GM asset sale
An attorney for a trio of bondholders opposed to General Motors’ sale plan on Thursday urged a judge to call the government’s bluff and require the automaker to restructure itself through a more traditional Chapter 11 process instead of through the quick sale of its assets. Michael Richman said in his closing statement that it’s doubtful that the government would actually make good on its threat to cut off funding to the automaker if the sale doesn’t go through by its July 10 deadline. While GM may be powerless to fight the government’s demands, the court can “push back”, he said.
Factory orders climb in May
Orders to U.S. factories jumped in May by the largest amount in nearly a year, another sign that the nosedive in manufacturing is nearing an end. The Commerce Department said Thursday that total orders rose 1.2 percent in May, better than the 0.8 percent increase that economists had expected. The April performance was revised slightly lower to a gain of 0.5 percent, from 0.7 percent. The May increase was the best showing since a 2.1 percent rise last June. The back-to-back increases in April and May were the first consecutive gains in nearly a year. The May tally reflected a 1.8 percent rise in demand for durable goods, items expected to last at least three years.
From Herald news services
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