Tuesday, January 26, 2010

Auto Company Overhauls

General Motors reached a deal to sell Saab to the Netherlands-based Spyker Cars NV, a speciality car firm. Many Saab fans are obviously happy about this, meaning that the storied brand will live on. It's likely it will compete with GM's Opel brand in Europe. For Saab, this is indeed a Dutch treat. :-)
With this sale finally out of the way, GM is investing in the future - sort of. The company insists n building more light trucks, but it hope to increase the corporate average fuel economy of its cars by making electric motors for its upcoming rear-wheel-drive hybrids, spending $246 million on a new plant to produce them. Ford, meanwhile, is moving production of the latest generation of its Explorer SUV to a newly redone plant in Chicago, while a factory that previously made the Explorer will build smaller cars. The good news is that the Chicago factory is hiring. The bad news is that new hires will only make fourteen dollars an hour. That's a good wage these days, but far less than autoworkers used to make.
It's a whole new ball game.

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