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Sunday, July 16, 2006

Media Digest 7/15/2006 and 7/16/2006, Autos and Oil&Gas


According to Reuters, EADS, the parent of Airbus, said that the company would release its plans for new mid-range jets and a freighter in a effort to improve its competitive position with Boeing.

Reuters also writes that GM, Renault and Nissan have agreed to a 90-day evaluation period to decide whether a three-way partnership and cross-ownership deal makes sense.

The New York Times reports that Bill Ford could be the last Ford to run the giant auto company. The company's market share in North American has dropped to 18% from 25% in 2000. The company is behind companies like Toyota in its efforts to build fuel-efficient cars and hybrids. As senior management turnover increases, Ford has found himself stretched thin in his efforts to manage the flagging company. Although Ford has said it will be profitable in North American by 2008, it is still unclear how they specifically plan to get there.

The New York Times says that it appears that there will be more consolidation among oil companies. Anadarko Petroleum has already announced it will buy Kerr-McGee and Western Gas Resources. Brokerages are indicating that other public companies may be buy-out targets. These include Nabors Industries, Murphy Oil, Encore Acquisition, Apache Corporation, Chesapeake Energy Corporation, and ATP Oil and Gas. Some analysts feel its is cheaper for companies to buy oil and gas through acquitions than it is to drill for it.

The Wall Street Journal reports that discounts from GM, Ford, and Chrysler are meeting with lackluster reponse from consumers, indicating that there could be more trouble ahead for the car companies.

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