Lithia adds 2 dealerships in California
MEDFORD, Ore. - Lithia Motors Inc. said it will acquire two adjacent stores in Redding, Calif. - Rodway Chevrolet and Boyland Toyota. Lithia plans to begin operation as Lithia Chevrolet of Redding and Lithia Toyota of Redding by the middle of this month.
Lithia also said it has completed a master agreement with General Motors that will allow it to acquire more GM dealerships. The group now has 24 locations and sells 23 brands of vehicles.
JIMMY UP $50
DETROIT - Pontiac-GMC has added $50 to the prices of Jimmy compact sport-utilities. New prices for two-wheel-drive models are: two-door, $22,351; four-door, $24,432. Prices of 4wd models are: two-door, $24,339; four-door, $26,420. Prices include the $515 destination charge.
GM STRIKE LOOMS
FLINT, Mich. - Workers at the General Motors stamping plant here are closer to a walkout after a strike notice by the UAW on Thursday, May 28, the Associated Press reported. Labor problems may prevent the plant from supplying stampings for GM's redesigned full-sized pickups. UAW Local 659 could strike as early as Thursday, June 4, over health, safety and subcontracting. On Monday, May 25, GM removed dies for the 1999 Chevrolet Silverado and GMC Sierra from the plant. A spokeswoman said GM wants to ensure a smooth launch; production is scheduled to begin this month.
TOKYO - Honda Motor Co. is recalling 189,033 cars in Japan because of a fuel-pump problem. A different pump was used in export models, so the recall does not affect cars sold outside of Japan. The problem cars are Civics, Domanis and Integras built between July 1991 and January 1994. Honda estimates the cost of the recall at ¥1.9 billion, or about $14.1 million. No accidents or injuries have resulted from the problem, said Honda spokesman Takeshi Sumita.
EXEC UNDER STUDY
TOKYO - A former Nissan Motor Co. managing director is under investigation for possible violations of Japan's insider trading rules. Nissan CFO Tadahiro Shirai said the individual, whom he did not name, resigned in March. The executive was in charge of procurement when he allegedly purchased, in the name of a relative, 12,000 shares of stock in parts maker Tosok Corp., just before an announcement that Nissan was going to sell 3.6 million Tosok shares it held to another company, Nidec Corp. After the announcement, Tosok's share price nearly tripled.
CUMMINS TO CUT JOBS
COLUMBUS, Ind. - Cummins Engine Co. says it will cut about 1,000 jobs this year, or 4.3 percent of its work force, as it cuts costs to improve profits. Chairman James Henderson told employees of the plan in a recent memo, Bloomberg News Service reports. Cummins expects to cut the jobs through voluntary retirement, buyouts and attrition. The diesel engine manufacturer took action in response to slow demand in Asia, costly new engine programs and higher warranty costs.