Dear Sir or Madame-
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In this April 14, 2010 Publication:
General Motors Could Post Profit This Year After $4.3
Billion Loss
Geithner To Meet With China Vice Premier
Regarding Currency Exchange Rate
Protectionism Boomerangs, Hurting Local Die Caster
Die Casters...Partnering with your Local Tool Builder in a
Continuous Improvement Environment Leads to Success
Just Announced! June 2nd NADCA Energy Efficiency Workshop
NADCA Sends Letter to Geithner on Currency Manipulation
General Motors Could Post Profit This Year After $4.3 Billion Loss
The Washington Post (4/8, Whoriskey) reports General Motors lost $4.3 billion in the second half of 2009, but the
automaker feels it will be able to turn a profit this year. The company's "financial condition has improved
dramatically since it entered bankruptcy proceedings in June," and was also "revived" by a $50 million investment
from the US Government. Chris Liddell, GM's vice chairman and CFO said "there is still significant work to be done,"
but he continues to "believe we have a chance of achieving profitability in 2010." The $4.3 billion net loss
"includes the impact of a $2.6 billion settlement related to a union retiree medical plan," as well as the $1.3
billion drop due "to the impact of foreign exchange rates on the company's liabilities." Veteran automotive analyst
Maryann Keller said GM "should be able to make money," noting the company "generated $1 billion in cash in the six
months after it emerged from bankruptcy protection last July" and the Chinese market "appears to be growing."
The Wall Street Journal (4/8, Terlep, subscription required) reports Lidell remained cautious in his
analysis, "I don't want to sit here and predict profitability and disappoint," but said, "There is nothing I've seen
in the first quarter that changes my opinion that we could be profitable." Additionally, due to the US government's
$50 billion investment in the company, it now owns 60% of GM and the company must repay a portion of the $6.7
billion US Treasury loan it received by the end of June.
Geithner To Meet With China Vice Premier Regarding Currency Exchange Rate
The AP (4/8) reports that Treasury Secretary Timothy Geithner is set to meet Vice Premier Wang
Qishan in a sign that "Washington and Beijing are moving toward settling the currency dispute," although no official
agenda has been outlined.
But the Wall Street Journal (4/8, Solomon, Dean, subscription required) reports that Geithner is
expected discuss why China would benefit from a more flexible exchange rate. Economists say Geithner will have to
"choose his words carefully," the New York Times
(4/8, Bajaj, Bradsher) adds. Geithner needs to "meet criticisms in the United States that he is too soft on China
while at the same time not interfering with any gradual shift in the consensus among Chinese officials toward
allowing the renminbi to inch up this year," said economist Stephen Green.
The Washington Post (4/8, Schneider), meanwhile, notes that Geithner has said he will rely on talks
with Wang to address the currency issue rather than declare China a "currency 'manipulator.'" The Post goes on to
say that such a ruling "would have marked a turn toward more open pressure on China to revalue the renminbi."
Protectionism Boomerangs, Hurting Local Die Caster
U.S. trade policy is supposed to be about protecting American jobs, but that isn't always the effect.
Just ask anybody in the die-casting industry, which has been hit hard by bankruptcies and plant closings. The
recession and the decline of U.S. auto manufacturing are part of the story, but this once-solid American industry
also was hurt by its own government.
To protect a single U.S. magnesium producer, with about 400 employees in Utah, the U.S. imposed special tariffs on
imported magnesium in 2005. Since then, the North American Die Casting Industry estimates that magnesium die casters
have eliminated 1,675 jobs, most of them in small Midwestern towns.
To view the rest of this article, click here.
OEM LEADS - Ready for Corporate Members
This is your monthly reminder to corporate members. Leads generated during February can now be accessed by logging in to myNADCA. Click here
to login.
Not sure of your login? Click here to get your login resent. Want to export your leads? Click on "Lead Report Data Export" and search ALL the leads by categories such as state, company type, metal. Results can be viewed online or exported to an Excel document. If you need further assistance accessing the leads, please contact NADCA President, Daniel Twarog at twarog@diecasting.org or (847) 808-3162.
Just Announced! June 2nd NADCA Energy Efficiency Workshop
Save the date for this one day seminar featuring Alex Monroe’s Cap and Trade Key note Presentation. The seminar will be held at Nemak in Sylacauga, AL. More information to come. For the most current information visit: www.diecasting.org/meetings/energy
NADCA Sends Letter to Geithner on Currency Manipulation
NADCA recently sent a letter to U.S. Secretary of State Timothy Geithner concerning currency manipulation.
The letter urged Geithner to cite China as an illegal currency manipulator in the Department of Treasury Semiannual
Report on International Economic and Exchange Rate Policies. NADCA believes that this step will go a long way in
fulfilling the President’s commitment on the campaign trail to crack down on China’s clear manipulation - which the
current Administration has repeatedly publicly acknowledged.
Manufacturers face tough economic times at home, and unfair competition from overseas, due in part to illegal
exchange rate manipulation, is slowing economic recovery. China continues this manipulation to gain a competitive
advantage in international trade, thus causing injury to domestic U.S. manufacturers - particularly small,
middle-market companies.
The letter raised the point that without significant pressure and personal intervention by the President, small and
medium sized manufacturers in this country will continue to lose business and jobs to this unfair competition.
