December 17, 2008
Chrysler To Close All 30 Plants For One Month
Chrysler LLC announced Wednesday it will shut down all 30 of its manufacturing plants for at least a month.
The company, which is suffering from slow sales and the credit crisis, will begin the shutdown on Dec. 19.
Chrysler made the announcement in a letter sent Wednesday to its employees, suppliers and the United Auto Workers union that was also posted on its Web site. Chrysler said dealers are unable to close sales for buyers due to a lack of financing, and estimate that 20 to 25 percent of their volume has been lost due to the credit situation.
The blanket shutdown will come as Chrysler and its larger rival, General Motors Corp., both seek to shore up cash as they seek a federal bailout they say they need to survive.
OPEC Announces Record Production Cut
OPEC agreed Wednesday to slash production by 2.2 million barrels per day -- one of its biggest production cuts ever -- in an effort to offset the falling price of oil.
The cut, which goes into effect Jan. 1, comes on top of existing reductions of 2 million barrels per day (bpd) agreed to by the 12-member Organization of the Petroleum Exporting Countries at its last two meetings. It lowers the group's supply target to 24.845 million bpd.
News of the cuts in crude production failed to boost oil prices Wednesday. Light, sweet crude for January delivery fell nearly 5 percent, or $2.07, $41.53 on the New York Mercantile Exchange.
Crude oil prices have plummeted more than 70 percent from summer highs of nearly $147 per barrel.
Britain Sets Date For Iraq Troop Withdrawal
British Prime Minister Gordon Brown and Iraq's prime minister announced Wednesday that British troops will halt military operations in Iraq on May 31 and most personnel will leave the country by the end of July.
Brown and Iraqi Prime Minister Nouri al-Maliki made the announcement after a meeting in Baghdad. British officials had previously said the 4,100 soldiers based near the southern city of Basra would head for home by mid-summer.
"The role played by the UK combat forces is drawing to a close. These forces will have completed their tasks in the first half of 2009 and will then leave Iraq," Brown and al-Maliki said in a joint statement.
Britain once had 45,000 troops in Iraq, but the government's support for the U.S.-led war was very unpopular at home. British officials said they would move helicopters from their base in Iraq to Afghanistan, but they have no plans to increase troop numbers there.
Al-Maliki thanked British troops for their efforts to rid the country of terrorists and build a basis for democracy.
"We thank (British troops) for the efforts they have made for getting rid of dictatorship and terrorism. They have made a lot of sacrifices," al-Maliki said.
The British Defense Ministry said U.S. troops will take over the British base in Basra.
Despite general improvement in security, the announcement came on a deadly day in Iraq. A double bombing in eastern Baghdad killed at least 18 people and wounded 52 others, Iraqi police said.
The first blast took place Wednesday morning near the traffic police headquarters in the Nahda neighborhood in eastern Baghdad. Moments later, a roadside bomb went off, police said.
The U.S. military says a roadside bomb exploded near an American patrol hours earlier in the same area but that there were no deaths or injuries.
Government Projects Slowing U.S. Oil Demand
U.S. oil consumption is expected to level off by the year 2030 because of increases in fuel efficiency, the wider use of renewable fuels and an expected rebound in oil prices, according to a new report from the Energy Department.
It was the first time in more than 20 years that the Energy Information Administration predicted virtually no growth in U.S. oil consumption.
The new report projected that America's overall energy use will continue to increase, but at a much slower rate than projected just a year ago. The EIA predicts Americans will make up the difference by relying more natural gas and by reaping the benefits of new fuel efficiency standards.
Although the EIA is predicting the rapid growth of renewable fuels such as biofuels and solar and wind power, it expects traditional fossil fuels to still account for nearly 80 percent of total energy use in the year 2030.
These projections, however, were made based on laws and regulations now in effect.
President-elect Barack Obama has announced his intention to move the country away from fossil fuels and to set limits on greenhouse gas emissions.
Fewer Americans Expected To Travel For Holidays
The number of Americans traveling during the Christmas holiday period is expected to drop for the first time since 2002, travel and auto group AAA said Wednesday.
Travel is expected fall by 2.1 percent from last year's levels due to the fallout from the economic downturn.
"Without question, the economic downturn of 2008 eroded the discretionary income many Americans would have spent on travel and, for some, altered their travel plans throughout the year," AAA President and CEO Robert L. Darbelnet said in a press release.
The AAA forecast is based on an online survey of nearly 2,300 adults nationwide, with an additional 5,000 Americans surveyed from the top 10 states of origin in the United States.
Airline travel will see the largest decline, with 8.5 percent fewer travelers, according to the survey. The number of Americans who travel by car will dip 1.2 percent from last year's levels. Other forms of travel, such as train and bus, will experience a smaller decline of 0.7 percent from last year, the survey found.
Although a slowing economy is keeping many people at home, traveling may be less expensive this year. Motorists can expect to pay about $1.30 per gallon less for gasoline this year over 2007, AAA said.
Hotel costs are also expected to drop, down 16 percent from a year ago. But those taking a plane will not fare as well, with average prices expected to climb 3 percent.
Ill. High Court Won't Hear Challenge To Blagojevich
The Illinois Supreme Court has refused to hear a challenge to Gov. Rod Blagojevich's fitness to hold office.
A spokesman said Wednesday that the court rejected the challenge without comment.
Attorney General Lisa Madigan had argued Blagojevich's legal and political troubles are keeping him from performing his duties.
She had argued they amount to a disability, so Blagojevich should have his authority removed temporarily.
Meanwhile, an attorney for Gov. Rod Blagojevich challenged a legislative panel considering the governor's impeachment on Wednesday, arguing that some members should be removed because they've clearly already made up their minds.
Lawyer Ed Genson argued it would be illegal for the committee to use material from government wiretaps, and he objected to the panel's rules, saying they don't provide a clear standard for deciding whether to recommend impeachment.
Rep. Barbara Flynn Currie, committee chairwoman, said the panel has wide latitude on how to
handle evidence.
"We're not a court of law. We're not quite a grand jury," Currie said. "We're not bound by specific rules of evidence."
The committee will recommend to the full House whether to move forward with impeachment.
Chrysler To Close All 30 Plants For One Month
Chrysler LLC announced Wednesday it will shut down all 30 of its manufacturing plants for at least a month.
The company, which is suffering from slow sales and the credit crisis, will begin the shutdown on Dec. 19.
Chrysler made the announcement in a letter sent Wednesday to its employees, suppliers and the United Auto Workers union that was also posted on its Web site. Chrysler said dealers are unable to close sales for buyers due to a lack of financing, and estimate that 20 to 25 percent of their volume has been lost due to the credit situation.
The blanket shutdown will come as Chrysler and its larger rival, General Motors Corp., both seek to shore up cash as they seek a federal bailout they say they need to survive.
OPEC Announces Record Production Cut
OPEC agreed Wednesday to slash production by 2.2 million barrels per day -- one of its biggest production cuts ever -- in an effort to offset the falling price of oil.
The cut, which goes into effect Jan. 1, comes on top of existing reductions of 2 million barrels per day (bpd) agreed to by the 12-member Organization of the Petroleum Exporting Countries at its last two meetings. It lowers the group's supply target to 24.845 million bpd.
News of the cuts in crude production failed to boost oil prices Wednesday. Light, sweet crude for January delivery fell nearly 5 percent, or $2.07, $41.53 on the New York Mercantile Exchange.
Crude oil prices have plummeted more than 70 percent from summer highs of nearly $147 per barrel.
Britain Sets Date For Iraq Troop Withdrawal
British Prime Minister Gordon Brown and Iraq's prime minister announced Wednesday that British troops will halt military operations in Iraq on May 31 and most personnel will leave the country by the end of July.
Brown and Iraqi Prime Minister Nouri al-Maliki made the announcement after a meeting in Baghdad. British officials had previously said the 4,100 soldiers based near the southern city of Basra would head for home by mid-summer.
"The role played by the UK combat forces is drawing to a close. These forces will have completed their tasks in the first half of 2009 and will then leave Iraq," Brown and al-Maliki said in a joint statement.
Britain once had 45,000 troops in Iraq, but the government's support for the U.S.-led war was very unpopular at home. British officials said they would move helicopters from their base in Iraq to Afghanistan, but they have no plans to increase troop numbers there.
Al-Maliki thanked British troops for their efforts to rid the country of terrorists and build a basis for democracy.
"We thank (British troops) for the efforts they have made for getting rid of dictatorship and terrorism. They have made a lot of sacrifices," al-Maliki said.
The British Defense Ministry said U.S. troops will take over the British base in Basra.
Despite general improvement in security, the announcement came on a deadly day in Iraq. A double bombing in eastern Baghdad killed at least 18 people and wounded 52 others, Iraqi police said.
The first blast took place Wednesday morning near the traffic police headquarters in the Nahda neighborhood in eastern Baghdad. Moments later, a roadside bomb went off, police said.
The U.S. military says a roadside bomb exploded near an American patrol hours earlier in the same area but that there were no deaths or injuries.
Government Projects Slowing U.S. Oil Demand
U.S. oil consumption is expected to level off by the year 2030 because of increases in fuel efficiency, the wider use of renewable fuels and an expected rebound in oil prices, according to a new report from the Energy Department.
It was the first time in more than 20 years that the Energy Information Administration predicted virtually no growth in U.S. oil consumption.
The new report projected that America's overall energy use will continue to increase, but at a much slower rate than projected just a year ago. The EIA predicts Americans will make up the difference by relying more natural gas and by reaping the benefits of new fuel efficiency standards.
Although the EIA is predicting the rapid growth of renewable fuels such as biofuels and solar and wind power, it expects traditional fossil fuels to still account for nearly 80 percent of total energy use in the year 2030.
These projections, however, were made based on laws and regulations now in effect.
President-elect Barack Obama has announced his intention to move the country away from fossil fuels and to set limits on greenhouse gas emissions.
Fewer Americans Expected To Travel For Holidays
The number of Americans traveling during the Christmas holiday period is expected to drop for the first time since 2002, travel and auto group AAA said Wednesday.
Travel is expected fall by 2.1 percent from last year's levels due to the fallout from the economic downturn.
"Without question, the economic downturn of 2008 eroded the discretionary income many Americans would have spent on travel and, for some, altered their travel plans throughout the year," AAA President and CEO Robert L. Darbelnet said in a press release.
The AAA forecast is based on an online survey of nearly 2,300 adults nationwide, with an additional 5,000 Americans surveyed from the top 10 states of origin in the United States.
Airline travel will see the largest decline, with 8.5 percent fewer travelers, according to the survey. The number of Americans who travel by car will dip 1.2 percent from last year's levels. Other forms of travel, such as train and bus, will experience a smaller decline of 0.7 percent from last year, the survey found.
Although a slowing economy is keeping many people at home, traveling may be less expensive this year. Motorists can expect to pay about $1.30 per gallon less for gasoline this year over 2007, AAA said.
Hotel costs are also expected to drop, down 16 percent from a year ago. But those taking a plane will not fare as well, with average prices expected to climb 3 percent.
Ill. High Court Won't Hear Challenge To Blagojevich
The Illinois Supreme Court has refused to hear a challenge to Gov. Rod Blagojevich's fitness to hold office.
A spokesman said Wednesday that the court rejected the challenge without comment.
Attorney General Lisa Madigan had argued Blagojevich's legal and political troubles are keeping him from performing his duties.
She had argued they amount to a disability, so Blagojevich should have his authority removed temporarily.
Meanwhile, an attorney for Gov. Rod Blagojevich challenged a legislative panel considering the governor's impeachment on Wednesday, arguing that some members should be removed because they've clearly already made up their minds.
Lawyer Ed Genson argued it would be illegal for the committee to use material from government wiretaps, and he objected to the panel's rules, saying they don't provide a clear standard for deciding whether to recommend impeachment.
Rep. Barbara Flynn Currie, committee chairwoman, said the panel has wide latitude on how to
handle evidence.
"We're not a court of law. We're not quite a grand jury," Currie said. "We're not bound by specific rules of evidence."
The committee will recommend to the full House whether to move forward with impeachment.
