auto beat

5224 users shared this document! click

auto beat DELPHI GIVEN UNTIL FEB. 1 TO FILE REORGANIZA- TION PLAN. Delphi Corp.s bankruptcy judge has agreed to allow the company another six months in which to file its reorganization plan. Its the second extension of the period during which Delphi may file its plan before creditors are allowed to offer their own proposals. Creditors, shareholders and other parties will then have until April 2 to file responses. Delphi told the judge it needs more time to finalize its plan because it hasnt completed labor negotiations with its unions. When it filed for Chapter 11 last October, the company predicted it would emerge from bankruptcy in early 2007. S&PSTILLGLOOMYABOUT U.S. AUTO SUPPLYBASE. Auto suppliers in North America will continue to struggle with challenges to their fragile financial health at least through this year as Ford and General Motors cut produc- tion in the second half, says Standard & Poors Ratings Services in its latest report. S&P already has a negative outlook on 23 of the 33 auto suppliers it monitors, and even more carry junk credit ratings. Only three companies on S&Ps listBorgWarner, Johnson Controls and Magna Internationalenjoy invest- ment grade ratings. FORD PONDERS ITS OWN DIESELENGINE FOR FULL- SIZE TRUCKS.Ford Motor Co. is developing a 4.4-liter V-8 diesel engine for its F-Series pickup trucks and perhaps large SUVs, Automotive News</i>reports. AN says the company is well along in planning for the engine but hasnt yet committed to production, which is at least two years away. The newspaper speculates that the engine might be built in Dagenham, U.K., at volumes that could reach 100,000 annually. The new engine is described as a scaled-up version of the 3.6-liter V-8 diesel Ford began producing in April in Dagenham for its Range Rover SUVs. Ford already offers a 6-liter diesel for its F-Series Super Duty pickups and E-Series vans in the U.S. That engine, which has been plagued with performance glitches, is supplied by Navistar International Corp. Ford also sells numerous diesel-powered models in Europe, where it has a diesel engine joint venture with PSAPeugeot Citroen. JAPAN AIMS TO REPLACE 40% OF GASOLINE FOR AUTOS WITH BIOFUELS. Japan hopes to substitute ethanol and other biofuels for 40% of the gasoline used for auto fuel by 2010, according to the Nihon Keizai Shimbun. The ambitious goal will require heavy government subsidies, including help in funding a $2.6 billion program to update and expand the nations ethanol capacity. Even so, Japan would have to rely heavily on imported ethanol, since the 40% goal would require roughly 20 times the volume of ethanol Japan could produce domestically, the newspaper notes. The government also will test new blends of biofuels. And Tokyo wants its Finance Ministry to offer tax incentives to persuade consumers to switch to the more expensive gasoline-ethanol blends. Japan said earlier this month it plans to introduce a gasoline blend with 3% ethanol in the sugarcane-producing region around Okinawa. Last week, the government said it wanted all vehicles to be capable of running on a 10% ethanol blend by 2030. DOMESTICS CARS, JAPANESE TRUCKS TOP SATIS- FACTION POLL. The good news: Cars made by Detroits Big Three automakers are gaining in popularity. The bad news: Japanese minivans, pickups and SUVs topped American brands in seven of 10 market categories. T H E D A I L Y R E P O R T F O R A U T O M O T I V E E X E C U T I V E S daily T U E S D AY J U N E 2 0 , 2 0 0 6 PA G E 1 O F 3 Contents

Comments