P.M. Executive Briefing - Jan. 4
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Volvo Promotes Truck Executives
Stockholm, Sweden-based Volvo Global Trucks Corporation announced Thursday the appointment of Tryggve Sthen as president of the company. The new firm controls Volvo Truck Corporation as well as the recently acquired Renault V.I. and Mack Truck subsidiaries.Sthen was previously the president of Volvo Truck. Jorma Halonen was named as his successor. Both positions were effective Jan. 1. Transport Topics
Sears to Close 89 Stores, Slash 2,400 Jobs
Department-store chain Sears, Roebuck & Co. (S) announced on Thursday that it would close 89 stores and eliminate 2,400 jobs before the end of the first quarter, Bloomberg reported.
Store officials blame disappointing holiday sales for the closings. In October, Sears predicted a booming holiday season and ordered more electronics and other gift items than it could sell.
The closings of Sears follows a growing trend of store closings in the United States as the economy slows down. Transport Topics
Factory Orders Rose 1.7% in November
Factory orders are rising in the United States, which means more loads for trucks to haul.Increased demand for jetliners and electronic components helped push up orders in November by 1.7%, the Commerce Department reported Thursday. That rise followed a 4% drop in October.
Analysts had expected a 1.3% increase, according to a Bloomberg News survey of economists.
When transportation equipment - automobiles, aircraft and ships - was excluded, orders increased 0.7% in November, after falling 1.9% during October.
Inventories at U.S. factories rose 0.5% in November after a 0.7% rise in October with stockpiles of transportation equipment leading the way. Shipments fell 0.4% in November, while unfilled orders rose 0.6%. Transport Topics
Unemployment Claims Hit 2½-Year High
Claims for unemployment benefits in the last week of December stood at their highest point in two and a half years, Bloomberg News reported Thursday.This could mean less purchasing power for workers and therefore fewer loads for trucks to haul, but it could also help trucking companies ease the driver shortage.
Initial claims by jobless workers rose by 16,000 to 375,000 in the week ending Dec. 30, according to Labor Department figures.
This was the highest point since the week ending July 4, 1998, when General Motors Corp. (GM) was in the throes of a strike.
But this time, a general slowing in the economy is to blame. Symptomatic of this slowdown is Thursday's announcement by Sears, Roebuck & Co. (S), the major U.S. department store company, that it would close 89 stories and cut 2,400 jobs after a decline in December sales, Bloomberg said.
Also, a survey by private employment consulting firm Challenger, Gray & Christmas found that businesses announced more job cuts in December than in any month since that company began keeping such records in 1993. Transport Topics
Upgraded Toledo Plant to Build Jeep Cherokee Replacement
DaimlerChrysler (DCX) said it would stop making the Jeep Cherokee, turning factory resources toward its new Jeep Liberty -- a smaller but more luxurious sport utility vehicle, Bloomberg News reported Thursday.The Liberty will be built at the new Toledo North assembly plant. DaimlerChrysler plans to spend $435 million to upgrade that facility, Reuters reported.
The company plans to start two-shift production in the spring while improving productivity, Reuters reported. This isn't likely to affect shipments to or from the Toledo facilities, since Cherokee production will not end until the middle of this year.
The Cherokee's phase-out had been planned. It was supposed to cease production in November 2000, but the company said it kept cranking them out to meet demand, Reuters reported. Transport Topics
Ford Buys Stake in Driver-Ed School
Ford Motor Co. (F) announced Thursday that it bought a stake in Top Driver Inc., a driver training school for commercial fleets and new drivers, Bloomberg reported.In its announcement, Ford said the investment was completed in October but it did not release the amount of the investment or the size of the stake.
The car and truck maker said that the purchase would give the company a role in driver education and training.
When Ford starts offering driver-courses, it plans on giving graduates special discounts on its cars and trucks. Transport Topics
Headlines From Today's A.M. Briefing
- Fed Rate Cut Helps Drop Crude Oil Price
- Forward Air Buys Assets of Expedited Delivery Services
- Calif. Wildfires Close Section of I-8
- Global Stock Markets Rise Slightly on Rate Cut
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