April 2009 Archives

Because it's all American, according to the American International Automobile Dealers Association.

Today, the association responded to President Obama's call to buy American cars.

Here's the statement:

The American International Automobile Dealers Association today responded to a speech in which President Barack Obama asked Americans to buy "American" vehicles as part of our economic recovery.

"AIADA objects to President Obama's 'buy American' solution for the auto sector," said AIADA President Cody Lusk. "In today's globalized economy 'buying American' can mean anything from buying a Chevy Avalanche built by Mexican workers in Silao, Mexico to buying a Toyota Camry built by Americans in Georgetown, Kentucky."

"The real issue is that every car purchased in America today is a shot in the arm for our economy, a boost for car dealers, who are the cornerstones of communities all across this country, and a win for American consumers who have the opportunity to choose the vehicles that best meet their driving needs. President Obama must recognize that protectionist policies and statements like "buy American" have no place in America's economic recovery."

I got this in my inbox yesterday. It's a six-minute film on world hunger that's pretty moving.

Here's the world hunger film.

The Aerospace Corp. in El Segundo tracks space debris.

Space Junk Around Earth on the Rise, Experts Say

(space.com) The space around Earth is becoming more cluttered by the day with orbital junk that, if left unchecked, will pose an ever-increasing threat to current and future spacecraft, a panel of experts told a Congressional subcommittee on Tuesday.

While space debris levels rose this year after the Feb. 10 collision between U.S. and Russian satellites, more rigorous tracking and cleaner spacecraft could help avoid such orbital smashups in the future, the panelists said.

"The threat posed by orbital debris to the reliable operation of space systems will continue to grow unless the sources of space debris are brought under control," NASA's chief orbital debris scientist Nicholas Johnson told the House Space and Aeronautics Subcommittee in Washington, D.C.

Read more about space junk.

Toyota will not increase the base price for the 2010 Scion tC.

The 2010 tC will arrive at dealerships in May.

The base manufacturer's suggested retail price (MSRP) for the tC is $17,000 when
equipped with a five-speed manual transmission, and $17,800 for the four-speed
automatic.

The tC receives one new exterior color, Nautical Blue Metallic, which
replaces Blue Ribbon Metallic.

No surprise here.

Mattel Bratz ruling widely expected, analyst says

(AP) Monday's favorable ruling for Mattel Inc. in its lawsuit against MGA Entertainment Inc. was widely expected, an analyst said Tuesday, but the ruling removes one more layer of uncertainty in the $100 million verdict.

On Monday, a federal judge upheld the $100 million verdict in the lawsuit over rights to Bratz doll and confirmed the doll is Mattel property.

A temporary federal receiver will take control of the Bratz brand and MGA's assets. Mattel of El Segundo, Calif., and MGA, Van Nuys, Calif., have been battling over who owns Bratz since 2004. A jury last year awarded Mattel the $100 million verdict for copyright infringement and breach of contract.

A hearing set for May 18 will determine whether the receivership should be made permanent.

"The impact on Mattel's stock should be minimal, since this ruling was anticipated by most investors and the jury verdict was already known," said BMO Capital Markets analyst Gerrick Johnson in a note to investors. "Any reaction is likely to be positive, though, as one more layer of uncertainty has been removed."

Read more on Mattel and Bratz.

Torrance-based Toyota Motor Sales USA Inc. is recalling 39,100 Toyota stainless steel exhaust tip retention clamps, the company said Monday.

This optional accessory was designed specifically for 2008 model year Highlander and Highlander HV vehicles sold in the United States.

Due to improper heat treatment, the original clamp used to secure the stainless steel exhaust tip to the exhaust pipe may develop microscopic cracks. If this occurs, the crack may expand causing the clamp to break. And in the worst case the exhaust tip may fall off.

Customers with questions or concerns should contact Toyota at 800-331-4331.

The buyer of a median-priced South Bay home in March of last year could have saved $125,750 simply by waiting 12 months to make a purchase, according to data from a report released Monday.

The median price of all homes sold in the South Bay last month was $499,250, down 20.1 percent compared to a year earlier, the Los Angeles-based California Association of Realtors said.

The median price represents the middle figure where half of homes sold for more and half for less.

The South Bay median did not fall nearly as much as that of Los Angeles County, which saw a 33.2 percent decline to $300,000.

For the South Bay, the 20.1 percent drop in median price for March was more dramatic than the February year-over-year decline of 13.5 percent.

The area's median price for March was down 30.6 percent from the peak of August 2007. That averages out to a drop of $11,600 a month.

Bad news for the Power Chevrolet Pontiac dealership in Hawthorne.

Here's Saturday's story on the Pontiac and Hawthorne.

What killed Pontiac

NEW YORK (CNNMoney.com) -- The Pontiac car brand, once marketed as General Motors' "excitement division," will be killed off by the end of next year, the carmaker announced Monday.

The decision to shutter Pontiac was one of several aggressive steps GM spelled out in an updated survival plan Monday. The government has given the company until the end of next month to restructure and slim down in order to survive.

The new GM will focus on four core brands: Chevrolet, Buick, GMC and Cadillac.

Read more on Pontiac's demise.

Wyle deserves bump for work on COLBERT treadmill

By Muhammed El-Hasan

Call it the El-Hasan Bump.

Many of the businesses I write about benefit from the resulting exposure.

That is why most people return my calls -- even those who hate me.

Read all of El-Hasan's Business Casual column.

Home prices in the Los Angeles-Long Beach-Glendale region slid 24.94% in February compared to a year ago, according to real estate data source First American CoreLogic.

Nationwide, home prices dropped to their 2004 levels.

Mark Fleming, chief economist for First American CoreLogic, said in a statement:

"Over one-fifth of U.S. housing wealth has vanished and home prices continue to decline. Decreases are now being driven by rising unemployment and a high volume of distressed home sales. Given that home prices are generally a lagging indicator of market health, we believe the largest declines have already taken place, but we expect home prices to continue to decline into 2010 as economic conditions and excess housing inventories dampen prices,"

VW is benefiting from a lot of EU stimulus spending.

Toyota first-quarter global sales fall 27 percent

TOKYO (Reuters) - Toyota Motor Corp (7203.T) said on Thursday its group-wide sales fell 27 percent to 1.767 million vehicles in the first quarter of 2009, keeping it ahead of Volkswagen AG (VOWG.DE) as the world's top-selling carmaker.

Toyota was expected to be in a tight race with the German automaker in the January-March quarter, when the Japanese giant suffered double-digit percentage drops in its three biggest markets of the United States, Japan and China.

Read more about Toyota beating out VW.

It'll recover, but we must be patient.

Honda, of course, has its US and North American headquarters in Torrance.

Honda's Production Falls for Fifth Month on Lower Auto Demand

April 23 (Bloomberg) -- Honda Motor Co., Japan's second- largest automaker, cut production 38 percent last month as sales in the U.S., Japan and Europe slumped.

Output fell to 215,773 vehicles in March, the Tokyo-based automaker said in a statement today. Exports declined 58 percent to 22,497 units. For the year ended March, production slid 9.6 percent to 3.57 million, the first drop in 12 years.

Read more on Honda's production slump.

If Northrop wins, the program would be administered through Northrop's Aerospace Systems sector in El Segundo.

Boeing open to split contract on $35B tanker deal

WASHINGTON (AP) -- Boeing Co.'s top defense executive said Wednesday the company will support splitting a $35 billion contract with rival Northrop Grumman Corp. for new Air Force refueling jets if the Pentagon chooses that approach.

Defense Secretary Robert Gates plans to try again this summer to award a contract to build 179 new tankers, the latest attempt after a series of failed tries. Some lawmakers have proposed buying planes from both Boeing and Northrop to speed up production and defuse the heated rivalry between the two big defense contractors. Gates doesn't endorse that plan.

Jim Albaugh, head of Boeing's defense unit, said it appeared the Pentagon will use a winner-take-all competition to build the plane. But the Chicago-based company will support any shift to a split contract, he added.

"We are going to support whatever type of acquisition that our customer wants to put in place," Albaugh said in a phone interview.

Read more on the aerial refueling tanker.

That's what it says "substantially" in the first sentence of this article. The fact is that the the financial crisis started in the US, but the rest of the world invested in our mess. So they carry part of the blame for their current pain.

Geithner says crisis unprecedented in modern times

WASHINGTON (AP) -- Treasury Secretary Timothy Geithner said Wednesday the United States bears a substantial share of responsibility for a global economic crisis that could cost the world up to $4 trillion in lost output this year alone.

While the crisis started in the U.S., Geithner said its damage has spread widely with serious challenges facing much of the globe.

"Never before in modern times has so much of the world been simultaneously hit by a confluence of economic and financial turmoil such as we are now living through," Geithner said in remarks to the Economic Club of Washington.

Read more on the financial crisis.

Torrance-based American Honda Motor Co. will give away a new 2010 Honda Insight hybrid Wednesday at an Earth Day event at the Honda Center in Anaheim.

Also at the event, people will be able to test drive the 2010 Insight.

In addition, about 100 first-generation Insight owners are expected to attend the event.

The event is from 10 a.m. to 2 p.m.

Three South Bay Starbucks are closing, part of the company's effort to shut hundreds of under-performing locations nationwide.

That's in addition to the recent closure of Fox Hollow Coffee, the coffee house on Hawthorne Boulevard between Kmart and 190th Street.

The local Starbucks closings are:

- 2263 E. Maple Ave. in El Segundo

- 2104 Pacific Coast Highway in Lomita

- 285 W. 6th St. in San Pedro

Engineering work on the Joint Strike Fighter is done at Northrop Grumman's Aerospace Systems sector in El Segundo.

Cyber Spies Steal Fighter Jet Data

(CBS) A series of online spy attacks breached a $300 billion Pentagon fighter jet program and the Air Force's air traffic control system in recent months, according to a Wall Street Journal report Tuesday.

The computer spies copied several terabytes of data from the Joint Strike Fighter project, the most expensive in Defense Department history, pertaining to the electronics and design systems of the aircraft, several current and former officials told the Journal.

Officials said the separate incursion into the air traffic control system could allow intruders to interfere with military aircraft.

The source of the espionage appears to be China, according to a former official, though the origin of any attacks could be masked. Chinese officials deny any involvement and say U.S. suspicion is the result of a "Cold War mentality."

Read more about the Joint Strike Fighter Data Theft.

The average rent at large Torrance apartment complexes dropped by 0.9 percent in the first quarter compared to a year ago, a study released Monday said.

The average rent was $1,521 in the January-to-March period, according to Novato-based Real Facts, which compiles rental data.

During the same period, Los Angeles County's average apartment rent dropped 2.3 percent to $1,655.

In further bad news for landlords, Torrance's aparment occupancy rate dropped 3 percent to 93.8 percent, the study said.

The survey of nationwide population centers found that rents generally have slipped for three consecutive quarters.

California's share of the space market -- from satellites to rockets -- is greater than any other region of the nation or world, according to a report released Monday.

California accounts for 44 percent of the U.S. space market, and 21 percent of the global market, contributing more than $76 billion in total economic impact and more than 370,000 jobs, the report by the California Space Authority, a Sacramento-based industry group, said.

Boeing Co.'s El Segundo satellite factory and Northrop Grumman Corp.'s Space Park facility in Redondo Beach are major players in the space business.
California receives $9.8 billion of the U.S. Department of Defense's $18.5 billion space budget.

The industry contributes $31 billion in revenue to the California economy, creating 71,000 direct jobs and 300,000 indirect jobs. That amounts to $19 billion in wages.

Good news for environmentalists and people who hope to save money if and when gas hits $4 a gallon again.

Toyota Said to Slash Prius Price in Duel With Honda

(Bloomberg) -- Toyota Motor Corp., the world's largest automaker, will cut the base price of its Prius gas- electric hybrid model by $1,000 to $21,000, as it competes with Honda Motor Co.'s Insight, said a person familiar with the matter.

Honda introduced the Insight on March 24 with a sticker price starting at $19,800, undercutting the 2009 Prius, which starts at $22,000. Toyota will announce prices on the 2010 model tomorrow, with details about the new car tomorrow, said the person, who asked not to be named because the statement is pending.

Read more about the Prius price drop.

Space Exploration Technologies, the Hawthorne-based developer of low-cost rockets, said it postponed today's planned launch of the RazakSAT satellite because of a "potential compatibility issue" between the spacecraft and the Falcon 1 rocket that would carry it into orbit.

The RazakSAT is owned by the Astronautic Technology Sdn Bhd of Malaysia.

Known as SpaceX, the local rocket company said the Falcon 1 and satellite both passed all preliminary checkouts and are cleared for launch. However, "a concern has been identified regarding the potential impact of predicted vehicle environments on the satellite," SpaceX said.

The company said it is considering options to minimixe the launch risks.

This is a Ford-sponsored survey, so not sure how valid it is. Is it credible, or does it fall into the same category as cigarette-funded studies, chocolate maker-funded studies or winery industry-funded research.

Report Finds Ford Quality Improved

(Kicking Tires) Ford received more good news about its improving quality from research group RDA of Bloomfield Hills, Mich. The company's initial-quality study showed that during the first three months of 2009, Ford vehicles had a combined average of 1,228 "things gone wrong" per 1,000 vehicles in the first three months of ownership.

To put that number into context, it was a 5% improvement over Ford's score last year and -- more importantly -- only Toyota managed a better score. Meanwhile, GM finished third and Honda came in fourth.

When it came to overall satisfaction, Honda and Toyota tied for first, with 81% of customers saying they were satisfied with their purchases. Ford was right behind them with a score of 79% customer satisfaction.

Here's my survey news source.

VW's surge in market share is driven in part by government incentives.
But the big question is: What are the Japanese and Europeans doing right that Detroit should emulate?

Volkswagen may beat Toyota as top seller

TOKYO/FRANKFURT (Reuters) -- Volkswagen's global vehicle sales fell by 11.4% in the first quarter but its market share gains may have let it overtake Japan's Toyota Motor as the world's top-selling automaker.

Government incentives in key markets have fueled demand for the German group's vehicles, limiting its sales decline even as the global market shrank by more than a fifth.

VW's first-quarter group sales of 1.39 million vehicles - excluding truckmaker Scania but including VW trucks and buses for two months - gave it a global market share of 11%, up from 9.7% a year earlier, it said in a statement.

Toyota has given no forecast for retail sales, but its latest estimate for shipments for the 2009 first quarter is 1.23 million vehicles, down 47% from a year earlier.

Read about VW's surge.

This week's installment of Business Casual column looks at the Vue, San Pedro's tallest building.

Business Casual: A `Vue' on how things could be

By Muhammed El-Hasan

Can San Pedro's gritty downtown maintain its composure in the midst of a young, beautiful building?

In December, residents started moving into the Vue, a new 16-story glass tower condominium complex.

San Pedro's tallest building stands in stark contrast to the downtown's historic art deco structures, giant maritime monuments and blue-collar air.

Read the whole Business Casual.

This will appeal to fans of Battlestar Galactica.

Hands On: My Day as a Honda Cyborg

(PCMag.com) On Wednesday, Lance Ulanoff became a cyborg, joining a select group who test-drove two mobility prototypes and learned that the future of robotics lies not necessarily in humanoids, but headless devices like Stride Assist and Bodyweight Assist.

Read the Cyborg Experience.

This is the last thing we need to hear amid this bad economy that's really hurting our port.

Los Angeles Port's Rivals Make Gains

(WSJ) Next month, shipping giant AP Moeller-Maersk will make a move that would have been unlikely a decade ago. A line of 6,000-container ships that now goes to Southern California will dock in Seattle instead.

While that represents a small fraction of the eight million containers handled annually at the Port of Los Angeles, it is an example of how the nation's largest port is coming under pressure as volumes drop. New regulations, such as tougher environmental restrictions, have made the port more fuel efficient, but the additional costs have made it more vulnerable to losing market share of U.S.-bound goods.

"Business on the West Coast will be more competitive" in the current economy, said Geraldine Knatz, the executive director of the port. "Pacific Northwest ports are marketing against us."

Read the whole story. (subscription may be required)

This is nothing compared to what the Detroit 3 are going through.

Toyota operating loss may hit $5 billion in 2009/10: report

TOKYO (Reuters) - Toyota Motor Corp's (7203.T) operating loss could balloon to over 500 billion yen ($5 billion) in the year to March 2010, as the global economic crisis hits car sales, the Nikkei business daily said on Sunday without citing sources.

Sales of automobiles could tumble to about 6.5 million units during the current year, falling 7 million units for the first time in six years, Nikkei said.

A survey of 19 brokerages by Reuters Estimates has operating loss at the world's biggest automaker expanding to a median 550 billion yen in the current year, from an estimated 450 billion yen in the year ended last month.

Read the whole story.

This reminds me of Toyota's controversial ad a few years ago that depicted a black person with a golden tooth gap.

Honda denies placing anti-Muslim 'advert'

(The Times) A Muslim advocacy group claims an Internet advert promoting the use of environmentally friendly hybrid cars, allegedly placed by a leading motor vehicle manufacturer, suggests that Muslims sponsor terrorism.

But Honda, the manufacturer in question, has distanced itself from the advertisement.

Read the whole story.

Earnings season could be brutal.

Boeing shares fall after analyst downgrade

(MarketWatch) - Boeing Co. shares were trading lower in premarket trading early Monday after the aerospace giant lowered its first-quarter earnings estimate and said it would reduce commercial-aircraft production because of sluggish demand.

Read the whole story.

Don't get me wrong, I want as many aerospace jobs as possible to stay in the South Bay. But we should rethink what aerospace jobs are all about.

Ending fighter jet work will hurt local patriotism

By Muhammed El-Hasan

Here we are working hard to protect America, and this is the thanks we get.

On Monday, the Pentagon announced new budget priorities that threaten to diminish our local aerospace work force.

Read the whole column.

Rep. Dana Rohrabacher, a Republican whose district includes the PV Peninsula, talked to me on Monday about the Pentagon's proposed cuts to local aerospace programs including the C-17, F-22. I couldn't fit everything he told me into my story, so here's a quote you may have missed:

"I think that we've got an administration that is directing tens of billions, if not hundreds of billions, of dollars to keep Wall Street speculators in their high-paying jobs, and they're (administration officials) canceling the jobs of aerospace workers who are providing us with major defense assets that keep our country safe. It doesn't make any sense. And the C-17 and the F-22 are programs that are currently hiring thousands upon thousands of people, not only in Southern California, but elsewhere."

The Detroit News came out with this news yesterday, but Toyota denied it. Now it may turn out to be true. Toyota needs to avoid outright denials that later cause embarrassment.

Toyota's US sales and marketing headquarters is in Torrance.

Toyota to revamp U.S. operations amid slump-WSJ

DETROIT - Toyota Motor Corp plans to announce a major overhaul of its U.S. operations, bringing sales, manufacturing and engineering under one powerful executive, The Wall Street Journal reported.

Yoshi Inaba, a former senior executive who left Toyota in 2007, was asked by the automaker this week to oversee most of the key aspects of the U.S. business, the newspaper reported on Thursday, citing people familiar with the matter.

The announcement of the overhaul, to be made in Japan, could come as early as Friday, it said.

Inaba is expected to be named president of Toyota Motor North America and will be based in New York, it said.

With the appointment of Inaba, credited with laying the groundwork for Toyota's fast growth in the United States over the past several years, Toyota is expected to bring him back to the company's board, the Journal reported.

Read the whole story.

I don't have a dog, so this doesn't affect me much. But Southern California is full of pooch-owners, so Honda is really on to something.

REDONDO BEACH -- Hercules, a Chihuahua mix, went car shopping recently without the slightest worry of pushy salespeople, high-pressure tactics or getting a loan.
Hercules looked over a new "dog friendly" Honda Element at a dog park here at the invitation of USA TODAY, which got a peek at the vehicle prior to its public debut Thursday at the New York International Auto show.

The new version of the Element is sort of a rolling Ritz-Carlton for the canine set. It features a built-in bed in the cargo area, a private electric cooling fan, a spill-proof water bowl and a mesh net to keep animals separated from people. Rubber floor mats are embellished with a dog-bone design.

Being shown at the show as a concept, a final version of the pooch-coddling 2009 Element will go on sale in late summer, setting up a dogfight of sorts with Toyota.

Read the whole story.

... auto sales.

This actually surprises me and speaks to China's economic growth and its resilience during this worldwide recession.

China auto sales surpass US for 3rd month

SHANGHAI -- Preliminary figures show auto sales in China reached about 1.03 million in March, exceeding U.S. sales for the third month in a row, state media reports said Wednesday.

Sales data from 14 major auto makers, accounting for roughly 90 per cent of total sales, totaled 1.026 million, the Shanghai Securities News and other state-run newspapers said, citing Chen Bin, head of the Department of Industry at China's main economic planning agency.

Full industry data due to be released by the China Association of Automobile Manufacturers in coming days could push March auto sales in China, the world's second-largest auto market, to a monthly record, the report said.

Read the whole story.

The supplier issue is one of Toyota's biggest concerns now. Another is the possible damage to the US economy and, by extension consumer spending, if GM fails.

Exec says Toyota prepared for GM bankruptcy

NEW YORK (AP) -- A top Toyota executive says the automaker is prepared to deal with a possible bankruptcy filing by rival General Motors.

Toyota Motor Sales USA President Jim Lentz says his company shares about two-thirds of its 500 parts suppliers with GM, which is facing the possibility of a bankruptcy. Lentz made the remarks Wednesday at the New York International Auto Show.

Lentz says only a small number of Toyota suppliers are critically short on cash. Analysts fear that an automaker bankruptcy would take down parts suppliers and disrupt production industrywide.

Lentz says the $5 billion parts supplier bailout by the Obama administration will help preserve the supply base. The Tokyo-based automaker builds cars in the U.S. in Kentucky, Indiana and Texas.

Read the whole story.

Sometimes a good laugh is all I need to make it through the day.

I just got an email from Marcus & Millichap about a property deal. Here's how the email starts:

"Attached please find a press release for the closed lusting ..."

Seven minutes later, I received another email from the same sender that read:

"I apologize, i mean listing."

A day after the Pentagon suggested ending funding for the C-17 military cargo plane, which is aseembled in Long Beach, LA County Supervisor Don Knabe said he will be calling on his colleagues on the Board of Supervisors in opposing the suspension of the C-17 program by introducing a formal motion of opposition next week.

Here's Knabe's statement:

"At a time when the Federal Government is pouring hundreds of billions of dollars into efforts to protect jobs and shore-up the economy, it is counterproductive and foolhardy to cut a program that employs 5,000 people at the C-17 plant in Long Beach and another 30,000 people at supplier facilities across the nation," said Knabe.

"Beyond the economic impact from losing these jobs, the C-17 continues to prove that it is needed in the battlefield. Now we need to continue the fight in the political battlefield. This airborne workhorse is critical to U.S. forces and to our homeland security. The C-17 has shown its value many times in Iraq and Afghanistan and its usefulness closer to home during disaster relief missions."

Here's the story on the Pentagon budget proposal, which affects the South Bay.

Fresh & Easy Neighborhood Market, the El Segundo-based grocery store chain, announced the voluntary recall of its self-branded Chili & Lemon Flavored Pistachios due to a potential Salmonella contamination.

The company removed the item from sale on March 30 pending the outcome of the FDA and California Department of Public Health investigation.

"This is the only fresh&easy™ product that contains pistachios from Setton Farms," the company said in a statement. "No other fresh&easy™ branded products are included in this recall."

Two major military aircraft programs that support thousands of Southern California jobs -- including many in the South Bay -- could lose their funding if Congress supports the Pentagon's budget priorities.

A third program with a major local presence could see reduced funding, according to the Defense Department proposal.

On Monday, Defense Secretary Robert Gates said the nation should stop pouring billions into the futuristic, super-expensive F-22 jet fighters and the C-17 Globemaster, a heavy-duty military transport plane.

He also recommended reduced funding for the F/A-18 Super Hornet. While assembled in St. Louis by Boeing Co., the Super Hornet's center and aft fuselage are made in El Segundo by Northrop Grumman Corp.

Boeing builds the C-17 in Long Beach with subcontractors in the South Bay. The F-22 and super Hornet also have local subcontractors.

Read the whole story.

Good news for Northrop's El Segundo-based Aerospace Systems sector, which makes the center fuselage for the F-35. Bad news for Raytheon's El Segundo-based Space and Airborne Systems, which makes a major computer system for the F-22.

Gates Proposes Major Changes to U.S. Military Programs, Weapons Buys

(WSJ) Defense Secretary Robert Gates unveiled a sweeping overhaul of the Pentagon's top weapons priorities that he said will orient the U.S. military toward winning unconventional conflicts like the one in Afghanistan rather than focusing on war with major powers like China and Russia.

Among the major changes he is proposing in the Defense Department's 2010 budget are ending production of Lockheed Martin Corp.'s F-22 Raptor at 187 jets, effectively shutting the door on the Air Force's desire for more of the advanced jets. Mr. Gates said funding for another Lockheed program, the F-35 Lightning, or Joint Strike Fighter, will be increased in 2010 to $11.2 billion, which will now buy 30 jets, up from 14.

Interesting video. An interview with a former bank regulator who says Geithner is taking us for chumps.

Here's the video.

Shrewd move from Northrop.

Too bad our government didnt' put money away for a rainy day -- like a recession.

Northrop's 'Shrewd' Settlement Will Create a Gain (Update2)

(Bloomberg) -- Northrop Grumman Corp., the warship builder that just agreed to the largest whistleblower settlement against a defense contractor, will record a gain from the move this quarter as it draws down a reserve set up for the case.

Northrop said it won't need the full reserve because it was able to offset the $325 million settlement with the resolution of an equal value from its own lawsuit against the U.S. government to recover costs on a canceled missile program.

The company established a pretax reserve of $112.5 million in 2006 for the whistleblower case concerning satellite parts. Los Angeles-based Northrop said yesterday that "adjustments for legal matters" will result in a net gain to second-quarter results, without specifying the amount. Reversal of the reserve may amount to after-tax profit of about $62 million, or 19 cents a share, estimates Jim McAleese, a defense industry consultant.

Read the whole story.

This week's installment of Business Casual looks at how we'll know the recession is over.

Business Casual: Sign of recovery will be in the swirls of smoke

The signs of recession surround us wherever we go.

Like the going-out-of-business- sale signs that people hold up at street corners.

Read the whole column.

Smart move on Toys R Us' part. Other retailers will likely follow, if they haven't already.

Toys "R" Us puts value shops within U.S. stores

NEW YORK (Reuters) - Toys "R" Us has rolled out shops in the front section of its U.S. stores, highlighting toys for $3 and under as it responds to the recession that has made even indulgent parents cut back on toys for their kids.

The privately-held specialty toy retailer, which operates almost 850 Toys "R" Us and Babies "R" Us stores in the United States, said its "$1-$2-$3 Fun" shops will carry about 100 items at those prices.

The effort to woo shoppers comes after U.S. toy retail sales fell 3 percent to $21.64 billion in 2008 from a year earlier, according to market research firm NPD Group.

Read the whole story.

This Wall Street Journal piece makes a strong argument that home prices have a ways to go before they hit bottom.

Home Prices: Low, But Still No Bargain

(WSJ) Forget low mortgage rates and the buyer's market. Real-estate prices still have a long way to fall.

Homeowners are watching anxiously for any signs of housing market stabilization. So, too, are all those who believe the market may hold the key to the economy.
And yet the most recent data makes for more gloomy reading.

The closely watched Case-Shiller index, which tracks prices across twenty major cities, shows that through January the crash was getting worse, not better.

And yet, even after these declines, homes overall still may not be that cheap relative to wages. More on that later.

Read the whole commentary.

But Toyota is better prepared than maybe any other large car maker to weather this storm.

Experts say auto sales still likely haven't hit rock bottom

(Daily Tech) While examining the plight of the domestic automakers -- GM and Chrysler (and to a lesser extent Ford) -- many blame inefficient designs from years past or the added expenses of the high union pay or benefits. What many forget is the base reason why these companies are in such bad trouble -- cars just aren't selling.

After a miserable January and February, sales in March plunged again. And it wasn't just domestic automakers either; sales of Toyota, Honda, General Motors and Ford all fell at least 36 percent for the month. There were some small signs of hope -- all of companies posted small gains from January and February and all of them beat their forecast -- except for Toyota.

Auto sales are at their lowest levels in 27 years, but auto executives are still wary of saying that they've hit rock bottom. But as GM and Chrysler LLC fight to avoid bankruptcy without their requested bailout loans, some of their employees took heart at the small bright spots in the bad news. Mark LaNeve, vice president for GM North America vehicle sales states, "Maybe we're starting to...show some signs of life."

Read the whole story.

DaVita Inc., the El Segundo-based operator of nationwide kidney dialysis centers, recently partnered with insurance company CIGNA to launch a health management program for DaVita employees.

The Lifestyle Management Program is created to help employees stop smoking, manage stress and lose weight. As part of the program, eligible employees can receive five personal coaching sessions by phone.

Employees can also use other tools from the program, such as a workbook and measuring tape.

Hopefully, we're nearing a bottom.

American Honda Motor March sales down 34 percent

(AP) American Honda Motor Co. said Wednesday its March U.S. sales fell 33.7 percent to 88,379 vehicles from 138,734 vehicles in the same month of 2008.

The company had 25 selling days last month, compared with 26 days in the year-ago period.

Sales of passenger cars declined 30.9 percent to 55,294, while truck sales slumped 38 percent to 33,085.

Sales of the Civic declined 34.4 percent to 20,645. Acura division sales fell 29.5 percent to 9,005 vehicles, as sales of the TL dropped 21.3 percent to 3,231 and TSX sales rose 16.6 percent to 2,556.

The company's 2010 Insight debuted in limited quantities on March 24 and recorded sales of 569 units in its first partial month of sales.

Read the whole story.

This may help slow the housing market's bleeding.

U.S. mortgage applications climb, rates at fresh low

NEW YORK (Reuters) - U.S. mortgage rates set fresh record lows last week, fostering demand for refinancing that drove home loan applications to the highest level since mid-January, data from the Mortgage Bankers Association showed on Wednesday.

The pace of the rise ebbed from the prior three weeks, when homeowners in droves raced to refinance as average 30-year mortgage rates sank by a half percentage point. Last week, however, the rate dipped by just 0.02 point to 4.61 percent.

All eyes are on the housing market to see how soon a spate of government interventions stabilizes the deepest slump since the Great Depression, and thus energizes the U.S. economy.

The Mortgage Bankers Association's applications index, which includes both refi and purchase requests, rose by a seasonally adjusted 3 percent in the week ending March 27 to 1,194.4.

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