Warning lights blink for auto industry

Article Abstract:

Generous incentives, rising break-even, production and job cuts and slow customer traffic are some of the signs that have Wall Street analysts worried over the US auto industry. Despite selling vehicles at a pace similar to 2000's all-time level, Wall Street analysts believe the auto industry is facing a downturn of unknown magnitude. For instance, Ford will eliminate one shift and 850 workers from its Michigan truck plant for an indefinite period. The automaker is cutting 65,000 units from the 270,000 Expeditions and Navigators that it assembled at the plant in 2000.

Forecasts, trends, outlooks

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Judge orders Ford to replace faulty device

Article Abstract:

The Alameda County Superior Court has ordered Ford Motor to replace defective ignition devices on 2 million California vehicles that are prone to stalling. The court found the automaker guilty of concealing shabby parts from government inspectors. The ignition module was used in 300 models sold between 1983 and 1995, but was installed where it was exposed to high temperatures. The ruling could cost Ford $300 million but the company denies that the devices are defective and stall.

Legal issues & crime, Ford Motor Co.

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Chrysler moves to improve its image

Article Abstract:

DaimlerChrysler will run ads that tout the quality of cars made by the Chrysler Group. Dieter Zetsche, CEO of Chrysler Group, says the company is still still paying for problems that it had ten years ago. Zetsche adds that Chrysler has to do on the perception side what it had previously done on the quality side. However, analysts say Zetsche's plan could backfire, since quality is something that consumers have come to expect.

Advertising, Daimler AG

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