News Briefs - Dec. 12
The Latest Headlines:
- Bush Names Friedman Top Economic Adviser
- Dana to Close Ind. Engine Parts Plan
- Okla. IRP Investigation Continues
- U.S. Launches Probe of Navistar, Paccar Truck Axles
- Government Reports Shed Light on U.S. Trade
- Crude Oil Rises Ahead of OPEC Decision
- FRA Grants Money for Train Crossings
- Dana to Close Ind. Engine Parts Plan
Bush Names Friedman Top Economic Adviser
President Bush ignored protests from supply-side conservatives and named Stephen Friedman to replace former National Economic Council chief Lawrence Lindsey, the Associated Press reported Thursday.Friedman, a former Wall Street investment banker, said he “strong shared” Bush’s view that Congress need to pass another economic stimulus package, AP reported.
Bush had chosen Friedman last week for the post, but his introduction was delayed after questions were raised about his health and to give government attorneys time to review his extensive investment portfolio, AP said. Conservatives took the time to mount a campaign against Friedman, who they see as not having a strong enough commitment to cutting taxes, AP reported. Transport Topics
Dana to Close Ind. Engine Parts Plan
Dana Corp. said Thursday that its would close a foundry in Indiana that manufactures cylinder liners for heavy-duty trucks and lay off most of the plant’s employees, Bloomberg reported.Dana said that the closure and the 210 job cuts are part of a cost-cutting plan.
The Richmond, Ind. foundry has been unprofitable and Dana has been unable to find a buyer for it, Bloomberg said.
A spokesman for the Toledo, Ohio-based company said he couldn’t say when in 2003 the plant would close down, Bloomberg reported. Transport Topics
Okla. IRP Investigation Continues
Five officials with the Oklahoma Tax Commission testified recently before a grand jury investigating corruption involving truck registrations at the commission, the Oklahoma City, Daily Oklahoman reported.The officials testified Dec. 10 through Dec. 12 and included two commissioners, a former commissioner, the chairman and administrator, the paper reported.
The testimony is secret. The grand jury has already indicted eight people for alleged bribes and a kickback scheme that revolved around the registration fees truckers pay to operate in the state.
The grand jury is expected to issue a report on its investigation next year, the Daily Oklahoman said. Transport Topics
U.S. Launches Probe of Navistar, Paccar Truck Axles
The National Highway Traffic Safety Administration said Wednesday that it has launched an inquiry into front-axle ends and bearings on trucks made by Navistar International Corp. and Paccar Inc., Bloomberg reported.
The inquiry was spurred by ArvinMeritor Inc, which supplies the parts. ArvinMeritor told NHTSA in October that the parts may fail and cause the wheels of a truck to fall off, Bloomberg said. ArvinMeritor told NHTSA of at least 50 incidents involving failures of the equipment.
The investigation into the parts on Paccar's Perterbilt and Navistar International's 9000 Series trucks began on Dec. 3, Bloomberg reported.
Bloomberg said ArvinMeritor made the parts for trucks between 1996 and 2002. Transport Topics
Government Reports Shed Light on U.S. Trade
Two government reports on the state of U.S. trade showed some bright news for the economy.The Commerce Department said that the United States' trade gap narrowed to $127 billion in the third quarter, its first quarterly improvement of 2002.
Analysts said that a reduction in the U.S trad gap was a good thing because it would be tough to maintain the recovery if the deficit continued deepening, Bloomberg said.
At the same time, the Labor Department said that prices of imported goods – an indication of inflation – fell 1% in November. The decline was the first in five months and the largest since a 1% drop in December 2001.
Imports in November cost 2.4% more than they did in the same month last year, Labor said. Transport Topics
FRA Grants Money for Train Crossings
The Federal Railroad Administration said Wednesday it had awarded $5.4 million in grants for 10 states to improve railroad crossings.Federal Railroad Administrator Allan Rutter said in a Dec. 11 announcement that the money could be used for a variety of railroad crossing improvements along federally-designated high-speed rail corridors.
The grants are part of a program that has helped improve nearly 300 highway-rail crossings since 1991, FRA said. Transport Topics
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Crude Oil Rises Ahead of OPEC Decision
A decision expected Thursday afternoon from the Organization of Petroleum Exporting Countries pushed the price of crude oil higher in early morning trading, Bloomberg reported.Crude oil is the basis for motor fuels like gasoline and diesel fuel, with cost changes often being passed on to consumers at the pump.
Ministers from OPEC members were scheduled to meet officially in Vienna, Austria Thursday afternoon, but had already been holding informal sessions, Bloomberg said.
In electronic trading on the New York Mercantile Exchange, the price of crude oil rose 1% to $27.67 a barrel, Bloomberg reported. Transport Topics
