http://www.kentucky.com/345/index.xml News, sports, and entertainment from Kentucky.com en-us Copyright 2008 Kentucky.com Industries 60 Sun, 06 Jul 2008 09:17:35 EDT http://blogs.law.harvard.edu/tech/rss McClatchy Interactive's Workbench webmaster@kentucky.com http://www.kentucky.com/574/story/450367.html http://www.kentucky.com/574/story/450367.html Thu, 03 Jul 2008 17:10 EDT
Gov. Arnold Schwarzenegger and state Treasurer Bill Lockyer worked out the deal for Tesla Motors Inc. after learning that the Silicon Valley-based company intended to build its second-generation vehicle in New Mexico.

The financial break, announced Monday, allows Tesla to avoid paying state sales tax on equipment it buys to build its Model S. That will save the company 7 percent to 9 percent on each purchase.

The five-passenger sedan is expected to cost about $60,000 and will be able to travel 225 miles between charges to its electric engine.

Schwarzenegger says it drove him "absolutely insane" to learn Tesla planned to take its environmentally friendly technology to another state.]]> http://www.kentucky.com/574/story/450154.html http://www.kentucky.com/574/story/450154.html Wed, 02 Jul 2008 23:53 EDT
GM shares fell $1.77, or 15.1 percent, to close at $9.98. Their session low of $9.96 marked their lowest point since Sept. 13, 1954, when they hit $9.92, according to the Center for Research in Security Prices at the University of Chicago. The price is adjusted for splits and other changes.

The drop came after a Merrill Lynch analyst cut his rating for GM to "Underperform" from "Buy" and slashed his price target for the company to $7 from $28, saying that the decline in automotive sales has been more severe than anyone expected and will likely continue through next year.

"We believe there is potential downside in the stock below $7 and that bankruptcy is not impossible if the market continues to deteriorate and significant incremental capital is not raised," John Murphy wrote in a note to investors.

David Healy, an auto analyst with Burnham Securities, said the $10 mark is a purely psychological one but highlights the automaker's dramatic share price plunge since the beginning of the year, along with worries that the company may have to file for bankruptcy protection. GM shares are down about 60 percent this year.]]> http://www.kentucky.com/574/story/450555.html http://www.kentucky.com/574/story/450555.html Wed, 02 Jul 2008 19:14 EDT
The No. 2 Japanese automaker, with the most fuel-efficient model lineup in the industry, never put both feet into the U.S. truck market, instead focusing on slow-but-steady growth with popular cars like the Civic and Accord.

It paid off in June. While its major competitors reported double-digit sales declines and burgeoning truck and sport utility vehicle inventories, Honda had a modest 1 percent sales increase. Its car sales were up almost 20 percent from the same month last year, and the Civic and Accord were among the industry's top sellers.

"They are better positioned than anybody in terms of the products they have for this kind of environment," said Ron Harbour, a partner with the Oliver Wyman Group and author of a widely respected annual report on auto factory productivity.

But while Honda may look like it can peer into the future, the company's top U.S. executive says it is well-positioned for $4 per gallon gasoline because it always has emphasized small, fuel-efficient vehicles.]]> http://www.kentucky.com/574/story/448875.html http://www.kentucky.com/574/story/448875.html Wed, 02 Jul 2008 18:33 EDT
"We're going to continue to see declines for the rest of the year," predicted Jesse Toprak, chief industry analyst for auto information site Edmunds.com.

All major automakers but Honda Motor Co. reported steep sales declines for June as buyers continued to flee from trucks and sport utility vehicles to more fuel-efficient models. High gas prices and a sluggish economy helped keep sales low.

Even Toyota, with its flexible, efficient factories, couldn't make the shift from trucks to cars as quickly as American drivers. Its sales for June shrank 21 percent from a year earlier, and it fell far short of some analysts' predictions that it would overtake GM.

June sales at GM had a still-dramatic drop of about 18 percent, as the overall market fell 18.3 percent, according to Autodata Corp.]]> http://www.kentucky.com/574/story/449667.html http://www.kentucky.com/574/story/449667.html Tue, 01 Jul 2008 23:54 EDT
The struggling market has resulted in an 11.2 percent sales decline for the automaker, with a disproportionate amount of the decline, 14 percent, hitting the profitable truck lineup.

As the Detroit Free Press previously reported, the company started the dismissals earlier this month, when it let go of more than 200 contract employees. Another round of contract-employee cuts is expected Thursday.

Ford spokesman Mark Truby confirmed Monday that the dismissals have spread to Ford's regular white-collar workforce. However, the bulk of the dismissals are expected in the weeks ahead, as the Aug. 1 deadline approaches.

In an effort to reach its objectives, the automaker is also forgoing filling many open positions and cutting benefits, such as tuition and scholarship programs for employees.]]> http://www.kentucky.com/574/story/449671.html http://www.kentucky.com/574/story/449671.html Tue, 01 Jul 2008 23:54 EDT
The executives responsible for GM's most important launch this year invited journalists to drive the new crossover side-by-side with the Toyota Highlander on Tuesday at GM's Milford Proving Grounds, confident that the seven- to eight-seat vehicle was more comfortable, could handle more cargo and would respond better in road and handling maneuvers than its competitor.

Don Butler, executive director of Chevrolet truck marketing, demonstrated that the Traverse could easily accommodate two golf bags, three carry-on size suitcases or a bulky baby stroller in the cargo hold with the third seat engaged, while there was less room for the items in the back of the Highlander.

GM's family of crossovers already includes the Buick Enclave, GMC Acadia and Saturn Outlook. GM has said the crossovers have exceeded expectations, and on Monday, said it plans to add more overtime and Saturday hours at the Lansing Delta Township assembly plant in Michigan to increase production of the vehicles.

GM's Spring Hill, Tenn., plant expects to begin manufacturing the Chevy version of the crossover in July.]]> http://www.kentucky.com/569/story/451726.html http://www.kentucky.com/569/story/451726.html Thu, 03 Jul 2008 16:50 EDT
Yet.

Home loan lenders in some parts of the Midwest are starting to enact their natural disaster procedures, which typically affect any house in a federal disaster area that is in the process of being sold.

Buyers with pending contracts will likely have to have appraisers take a second look at the houses before lenders will sign off on the loans, lenders in an affected area said. The appraisers will be looking for flood damage that could affect the value or salability of the houses.

So far, only one of Stehmeier's pending sales fell in that category. A RE/MAX Realty 100 agent based in Greenfield, Wis., she specializes close-in Milwaukee suburbs hard hit by floods this month. The affected house - a 50-year-old two-story selling for about $180,000 - endured some basement puddling and seeping, not a full-fledged flood, Stehmeier said.]]> http://www.kentucky.com/569/story/451668.html http://www.kentucky.com/569/story/451668.html Thu, 03 Jul 2008 16:15 EDT
Now is a good time to check in with an old hand at home lending.

Jeff Altman, a mortgage broker and partner with WestCal Mortgage Corp. in Orange, Calif., has been in the business for 16 years. He fielded questions on the market, mortgage rates, mortgage bailouts and more.

Q. Mortgage rates have risen over the past month. Where do you see them headed?

A. Depending on what the Federal Reserve does, I see them getting a bit higher and then stabilizing.]]> http://www.kentucky.com/569/story/451725.html http://www.kentucky.com/569/story/451725.html Thu, 03 Jul 2008 16:50 EDT
A. Congratulations on paying off your mortgage. Your question is well founded. Mortgage financing has changed significantly in the past few years and it is highly unlikely that the lender from which you received your mortgage is still involved.

Mortgage financing and the clearing of title for residential real estate has become much more complicated as a result of the packaging and selling of mortgages as securities. While there have been attempts to establish a national uniform practice for mortgage satisfactions (clearing the title when the mortgage is fully paid), the process is determined by state laws.

Typically what you can expect to happen is that the mortgagee (the secured creditor) will send you a payoff statement showing that the mortgage obligation has been satisfied. Second, the mortgagee will record a satisfaction of mortgage with your county recorder to establish in the public records that the mortgage has been satisfied. You should contact the mortgagee and confirm that they will begin this process, but be patient.

Due to the possible delays caused by secured creditors, this may take a few months. A mortgage is used to secure the performance of an obligation and the term mortgage is derived from the French words mort meaning "dead" and gage meaning "pledge." Accordingly, the word mortgage is well chosen because when the debt is paid the pledge ceases to exist.]]> http://www.kentucky.com/569/story/448962.html http://www.kentucky.com/569/story/448962.html Wed, 02 Jul 2008 11:00 EDT
The president told a Rose Garden news conference Wednesday that one reason for the rising deaths "is that our troops are taking the fight to a tough enemy."

Bush said it has also been a "tough month for the Taliban." He said he is assessing whether to send more U.S. troops there.

In June, militants killed more U.S. and NATO troops in Afghanistan than in Iraq for the second straight month. In fact it was the deadliest month for U.S. troops in Afghanistan since the war began.]]> http://www.kentucky.com/569/story/448830.html http://www.kentucky.com/569/story/448830.html Tue, 01 Jul 2008 14:08 EDT
The company also is selling its $470 million manufactured housing portfolio to Vanderbilt Mortgage and Finance Inc. at a loss, for about $300 million. CIT expects to see combined cash proceeds from both deals of about $1.8 billion.

"These sales complete our exit from all home lending businesses, removing the uncertainty surrounding this asset class, and advances our strategic transformation into a company focused entirely on commercial finance," said Jeffrey M. Peek, CIT chairman and chief executive, in a statement.

The home lending business consists of $9.3 billion in assets and related servicing operations. The servicing centers, which employ about 300 people, are located in Marlton, N.J. and Oklahoma City, Okla. In the second quarter, CIT expects to record a $2 billion loss on the home lending segment

The sale of the portfolios is scheduled to be completed this month, while the transfer of the servicing platform will be completed by the 2009 first quarter.]]> http://www.kentucky.com/569/story/449450.html http://www.kentucky.com/569/story/449450.html Tue, 01 Jul 2008 18:54 EDT
"We've all been looking to the federal government to step in and do something about all of these foreclosures, and they've done nothing," Easley said. "So we decided we'd do it on the state level and if nothing else, help the people of North Carolina."

Under the proposal, lenders would be required to give subprime mortgage holders at least 45 days notice before starting foreclosure proceedings. Subprime loans are typically offered to borrowers with poor credit histories.

Mortgage providers also would have to inform the state about delinquent borrowers. That notification would give the state's banking commissioner time to work with homeowners and lenders to try to hammer out a new payment plan to stave off foreclosures.

That negotiating period would keep some North Carolina residents from losing their homes, said Rep. Dan Blue, D-Wake, one of the bill's primary sponsors.]]> http://www.kentucky.com/574/story/451620.html http://www.kentucky.com/574/story/451620.html Thu, 03 Jul 2008 15:35 EDT
A. Your neighbor is correct about the importance of tightening wheel lug nuts. Excessively tightened lug nuts can strip the threads, distort brake rotors, damage the wheel, and possibly shear off the lug stud. Insufficiently tightened lug nuts can come loose, with catastrophic consequences.

It sounds like the fellow at the service station used either a lug wrench or impact gun to install the wheel lug nuts, rather than a torque wrench. A simple lug wrench comes in either an L or cross shape and with the right amount of grunt tightens lug nuts pretty well. An impact gun uses compressed air and a hammering effect to quickly and noisily zip the lug nuts tight. The problem with impact guns is they're so powerful, one can easily over-tighten the nuts, leading to the above difficulties. A torque wrench measures the tightening force applied, allowing the user to accurately follow the manufacturer's recommendations.

Torque is the twisting force one applies to the wrench. It's measured in the US in pound feet (or foot pounds if you prefer that phrasing). If you have a 1-foot-long wrench and applied 80 pounds of force to the end of it, you'd have 80 lb-ft of torque, the correct rate for some, but not all, lug nuts. A 2-foot wrench with 40 pounds applied would apply the same torque. It's also important to tighten the lug nuts in a crisscross pattern to avoid wheel and brake rotor distortion. Believe it or not, there's a manufacturer's torque specification for just about every nut and bolt on a car, particularly on the engine and drivetrain.

Brake rotor distortion is a fairly common fault, causing a pulsation or chattering effect when one applies the brakes. Improper lug nut tightening and/or excessive use of the brakes (overheating) are the two most likely causes. In their quest to reduce vehicle weight, many manufacturers have thinned down the brake rotors, which unfortunately makes them more susceptible to damage.]]> http://www.kentucky.com/569/story/452995.html http://www.kentucky.com/569/story/452995.html Sun, 06 Jul 2008 09:15 EDT
Even the optimism that surrounds a new president taking office cannot resurrect home values overnight, and presidents have no direct ability to reduce rising mortgage rates. Nevertheless, Democrat Barack Obama and Republican John McCain both promise help for homeowners facing foreclosure.

Obama supports a broader role for government than does McCain. Both envision the Federal Housing Administration providing new, cheaper mortgages to distressed homeowners who otherwise would have difficulty refinancing into more secure government-insured loans with lower monthly payments.

For the plans to work, lenders would have to be willing to take a substantial loss by reducing the amount owed on the loan. But some would have a powerful incentive to do so. A refinancing deal could allow them to recover far more money than they would get from the costly process of foreclosing on the property and trying to resell it.

Obama supports legislation along these lines by Sen. Chris Dodd, D-Conn., that would help about 400,000 homeowners. People would not have to have good credit to qualify as long as they could show they can afford the new payments.]]>