News Briefs - May 19
The Latest Headlines:
- Nissan, Nissan Diesel Form Light-Duty Truck Venture
- Gasoline Prices Still Falling, Lundberg Says
- Eaton to Boost Capital Spending
- IMF: Deflation Risk in U.S. Low but Not Minimal
- SFC Submits Bankruptcy Plan to Court
- Gasoline Prices Still Falling, Lundberg Says
Nissan, Nissan Diesel Form Light-Duty Truck Venture
Nissan Motor Co. and its truck affiliate, Nissan Diesel Motor Co., said Monday it would form a joint venture to develop light trucks for the global market, the Associated Press reported.Nissan Motor said it expected the venture to sell 60,000 vehicles in the first year of sales, slated for 2006-2007. The venture is expected to produce 1-ton to 2-ton trucks, Bloomberg said.
This is Nissan's first foray into producing light trucks. It will own 85% of the new company, while Nissan Diesel will invest 15%.
Gasoline Prices Still Falling, Lundberg Says
Average gasoline prices fell more than two cents to about $1.56 per gallon over the past two weeks, according to the Lundberg survey of 8,000 stations nationwide.About one-third of commercial trucking uses gasoline instead of diesel fuel.
The average price for gas, including all grades and taxes, fell 2.28 cents to about $1.56 per gallon on Friday, Lundberg said. On May 2, gas cost about $1.58 per gallon.
Industry analyst Trilby Lundberg said prices continued to drop in the wake of the U.S.-led victory in the Iraq war, but she said the downward trend may slow because crude oil prices have recently climbed back up to $29 per barrel, the Associated Press reported.
The national weighted average price of gasoline, including taxes, at self-serve pumps Friday was about $1.52 for regular, $1.62 for mid-grade and $1.71 for premium. Transport Topics
Eaton to Boost Capital Spending
Vehicle parts maker Eaton Corp. said it would boost capital spending to $300 million in 2003, an increase of almost $100 million from a year ago, Bloomberg reported Monday.Chief Executive Alexander Cutler said in an interview that Eaton is increasing spending because of new products.
Cutler also said he is seeing a “somber reaction” in the U.S. economy, but low inventory levels and the beginning of capital spending indicate there may be growth in 2004, Bloomberg said. Transport Topics
IMF: Deflation Risk in U.S. Low but Not Minimal
In a possible sign that the Federal Reserve could cut interest rates next month, the International Monetary Fund’s deflation task force said that risk of deflation in the United States appears relatively low, but is not minimal, Dow Jones reported Monday.The Fed had previously said it would be prepared to take action to prevent even the threat of deflation, which is a period of falling prices.
The task force said serious deflation in the United States is unlikely unless employment reached 8% or economic growth was below 1% for the next 18 months, Dow Jones said.
IMF also warned of a high and increasing risk of deflation in Germany, Taiwan and Hong Kong and of worsening deflation in Japan, Dow Jones said. Transport Topics
SFC Submits Bankruptcy Plan to Court
Student Finance Corp., a major lender of educational funds to would-be truck drivers from 1994-2002, said it has filed a reorganization plan with a federal court in Wilmington, Del., that could be the basis for its emergence from Chapter 11 bankruptcy.As part of its May 6 proposal, which needs court approval, SFC said it seeks to continue operations and expand its business. If approved, the plan will become effective around Sept. 15, the company said in a May 13 statement.
Based in New Castle, Del., SFC filed for bankruptcy protection Nov. 4.
Founded in 1993, the company made loans to students so they could get vocational training, particularly from truck driving schools.
SFC would then bundle the loans in tranches and sell them on secondary debt markets, in some ways similar to how mortgage-backed securities are marketed. The peak year for the company was 2001 when SFC administered $350 million worth of loans.
It stopped lending in February 2002 after it lost the ability to resell them on the secondary market because of rising payment delinquencies. Transport Topics
This story appeared in the May 19 print edition of Transport Topics.
