United States

Good News, Bad News in Automotive Industry

Paul C. Kadzielski

April 19, 2010 was an eventful day for General Motors and Toyota. Toyota, the number one carmaker in the world, was fined $16,375,000 by the US Transportation Department which Toyota has agreed to pay by May 19, 2010. The fine is the United States government's response to the over 4 million defective Toyota gas pedals resulting 16 deaths and over 240 injuries. General Motors, the number two carmaker in the world, announced that it would be paying back its $6.7 billion dollar loan 5 years earlier than the projected deadline due to strong earnings. The company received $57 billion in aid from the US government including a $6.7 billion dollar loan. GM has already paid $2 billion back.

• American auto companies like GM are recovering from the recession faster than expected and closing the gap between foreign competitors. That means more jobs in America for research, development and labor related to the auto industry and a stronger American economy that will mean more jobs overall in the months to come.

Additional Reading:

http://www.msnbc.msn.com/id/36652465/ns/business-autos/

http://www.foxnews.com/politics/2010/04/18/toyota-agree-million-government-fine/