Latest Automotive News

Subscribe in a reader





Honda exec.: Federal Reserve should cut interest rates to help economy

Email   small font medium font large font

Google
 
Web AutoNews24h.com

ROCHESTER, Mich. (AP) _ Honda Motor Co.'s top U.S. executive said Friday he would like to see the U.S. Federal Reserve cut interest rates further to keep the American economy going.

John Mendel, executive vice-president of automobile operations, also predicted that the U.S. auto market will stabilize around 16 million vehicles sold this year because of government and other actions to shore up the troubled housing industry.

``The economy is not in horrible shape,'' he told a small group of reporters at a technology event for Acura, the automaker's luxury brand, in suburban Detroit. ``I mean, the world is not falling apart.''

Federal Reserve policymakers meeting in early August acknowledged they might have to take action to ease a growing credit crunch. A cut in one interest rate came 10 days later on Aug. 17, and analysts are expecting a broader rate cut when Chairman Ben Bernanke and his Fed colleagues meet in September.

Automotive forecasting company CSM Worldwide has forecast U.S. sales will total 16.2 million in 2007, or 350,000 fewer vehicles than last year. That would be the lowest annual sales level since 1998 and more than one million vehicles lower than the peak of 17.3 million in 2000, according to Ward's AutoInfoBank.

Mendel said Honda would stick to its projection of about three per cent U.S. sales growth this year because it is expecting a sales boost from its new Accord, which is expected to go on sale in mid-September.

Receive the latest automotive news by email!

Enter your email address:


Related news
September auto sales in the United States are expected to be weak due to a credit crunch, high gas prices and the troubled housing market, reflecting an overall slowdown for the year ...
Ford Motor's U.S. sales plummeted 21 per cent in September on a steep dropoff in car sales, while Toyota reported a four per cent decline, according to results released Tuesday. But Honda Motor ...
Ford's U.S. sales plummeted 21 per cent in September on deep cuts in sales to car rental agencies. Toyota sales slipped four per cent, but General Motors and Honda fared better in ...
Honda Motor Co. expects its global sales will rise six per cent this year to a record 3.76 million vehicles thanks to booming demand in the U.S., Europe and Asia, the automaker's president ...
Mazda, a rare bright spot in the Ford group, reported a 29 per cent jump in profit for the second fiscal quarter Friday on brisk demand for its small cars in the ...
FREDERICTON (CP) _ New Brunswickers are paying an average of $1,800 dollars for auto insurance, according to a new survey that's being questioned by the province. That's more than twice the $851 average ...
Massachusetts, New York, and Texas have all raised insurance rates in the last few months For Texas it was the first significant rate hike in 22 years, and ...
DETROIT (AP) _ Ford Motor Co. has received several bids for its Jaguar and Land Rover units, but a spokesman said they were preliminary and no sale of either British automaking business ...
AUBURN HILLS, Mich. (AP) _ A top marketing executive at Lexus is joining Chrysler LLC to lead its global marketing efforts, Chrysler said Wednesday. Deborah Wahl Meyer, 44, will become Chrysler's vice-president and chief ...
NEW DELHI(AP) _ The chairman of India's Tata Group has confirmed his company's interest in acquiring the Jaguar and Land Rover units of Ford Motor Co. ``We certainly have an interest in that,'' ...

Best Investment Newsletter

- 46% in 2008

- invest in the best performing US stocks only and sell them when the uptrend is over

- very easy to follow, simple buy/sell signals

- no need to have investing or trading experience

Find More Now!


Honda exec.: Federal Reserve should cut interest rates to help economy
> © 2006-2017 AutoNews24h.com except where otherwise noted