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–Manufacturing is a base that every country wants. Developing or devloped does not matter, each country wants manufacturing..as a matter of fact if manufacturing is good or the output is on the rise it’s certain that economy will turn around. So let us see if there are GreenShoots in manufacturing sector or not.

GM to shut down 13 assembly plants temporarily
Last Updated: Thursday, April 23, 2009
CBC News

General Motors Corporation said Thursday it will temporarily shut down 13 assembly plants in the United States and Mexico between May and July, a move that will take 190,000 vehicles out of its production schedule. GM said the shutdowns wouldn’t affect operations that are in the process of launching new products, including the new Chevrolet Camaro built in Oshawa, Ont., and the Buick LaCrosse (called an Allure in Canada) launching soon at its assembly plant in Fairfax, Kan.

GM said its Canadian plants would take their usual two weeks of summer downtime during the weeks of June 29 and July 6.

Sources: GM to shut most US plants up to 9 weeks
AP Sources: GM to close most US factories for up to 9 weeks this summer to reduce inventory
Tom Krisher, AP Auto Writer
On Wednesday April 22, 2009, 10:53 pm EDT
DETROIT (AP) — General Motors Corp. is planning to temporarily close most of its U.S. factories for up to nine weeks this summer because of slumping sales and growing inventories of unsold vehicles, three people briefed on the plan said Wednesday. Analysts say the company could be seeing sales decline because of talk about a potential bankruptcy.

U.S. Auto Market Likely Shrank 35% in May on Chrysler, Economy
By Alex Ortolani and Doron Levin
June 1 (Bloomberg) — Chrysler LLC, idling plants and shutting dealerships in bankruptcy, probably helped shrink the U.S. auto market by 35 percent in May as the industry endured its worst start to a year since at least 1976.

The seasonally adjusted sales rate tumbled to 9.2 million last month from 14.2 million a year earlier, based on 7 analysts surveyed by Bloomberg. Chrysler may have fallen 51 percent and General Motors Corp., poised to file for bankruptcy today, may have fallen 37 percent, according to 5 analysts.

–Once manufacturers of this size go down they have a ripple effect.

Biggest auto part supplier to Ford bankrupt.
Visteon files for Chapter 11
Auto parts supplier files for bankruptcy protection for its U.S. business. Company plans to keep operating through reorganization.

More auto industry bankruptcies loom
Auto parts manufacturer trade group predicts widespread bankruptcies after the government rejects request for $8 billion to $10 billion in additional help.
By Chris Isidore, CNNMoney.com senior writer
Last Updated: June 16, 2009: 4:21 PM ET
NEW YORK (CNNMoney.com) — A plea by struggling auto parts makers for $8 billion to $10 billion in additional federal loan guarantees was turned down by the Obama administration’s auto task force last week. Neil De Koker, the CEO of the Original Equipment Suppliers Association, said Tuesday that widespread bankruptcies throughout the sector would likely result. Hundreds of suppliers are facing a cash crunch due to long production shutdowns at Chrysler and General Motors.

–Long story short…..

U.S. March Factory Orders Dip 0.9%, Ex-Transport Down (Update1)
By Shobhana Chandra
May 1 (Bloomberg) — Orders placed with U.S. factories fell more than forecast in March after rising the month before, a sign the economy will emerge just gradually from the worst recession in at least half a century.

Bookings decreased 0.9 percent, after a revised 0.7 percent gain in February that was smaller than previously estimated, the Commerce Department said today in Washington. Excluding demand for transportation equipment such as cars and airplanes which tends to be volatile, orders also dropped 0.9 percent.

The economy shrank more than forecast in the first quarter as inventories slumped by a record and homebuilding plunged, while a rebound in consumer spending and smaller stockpiles set the stage for a return to growth later this year. Still, job losses continue to mount and the government’s stimulus efforts will take time to gain traction, delaying a recovery.

–Now ready for some stupidity….watch the dates on these articles and they both came up on Bloomberg. This is the best part….Even though Chrysler , GM are filing for Bankruptcy shutting down plants factory orders slip…etc….manufacturing index rises.

U.S. ISM Manufacturing Index Rises More Than Forecast (Update2)
By Bob Willis and Courtney Schlisserman
May 1 (Bloomberg) — Manufacturing in the U.S. shrank in April at the slowest pace in seven months after a collapse in inventories caused orders and production to steady.

The Institute for Supply Management’s factory index rose to 40.1 last month, higher than forecast, from 36.3 in March. Readings less than 50 signal a contraction.

Companies cut stockpiles last quarter at the fastest pace on record, bringing forward the day when production and employment stabilize and help right the world’s largest economy. Still, the worst recession in at least a half century is likely to persist a bit longer as companies from Caterpillar Inc. to Chrysler LLC and General Motors Corp. continue to cut back.

–and the story continues..just 15 days later….on June -15th.

NY state factory slump deepens in June
On Monday June 15, 2009, 9:06 am EDT
NEW YORK (Reuters) - The slumping New York state factory sector shrank at a more severe rate in June than during the previous month, the New York Federal Reserve said on Monday, confounding expectations of a slight improvement.

The New York Fed’s “Empire State” general business conditions index fell to minus 9.41 in June from minus 4.55 in May.

–But you see the index went up…now either you have to be a researcher to find out how they compute the index and even if you could get a handle on that it might turn out that hum..it was a computer glitch or if that’s not the case then it would be another ones of America’s favorit…fine print. That fine print that you need a magnifying glass to read would suggest that they has skipped this and that and the other to calculate the index.

– That is exactly how greenshoots are developed…here is US. It’s a computer that tells greenshoots are developing therefore they are developing. Common sense can go to hell….indicator has to tell..and if it did..then all is well…..!!

–Let us continue to see how the manufacturing problems can spread through broader economy and mind you this is just one example.

Chrysler Bankruptcy Would Reopen the Pandora’s Box of Counterparty Risk
Posted Apr 30, 2009 12:21pm EDT by Aaron Task
Chrysler appears headed for a bankruptcy filing after talks with its creditors broke down. If Chrysler’s creditors refused to take about 30 cents on the dollar for their approximately $6.9 billion of debt, what are the odds GM bondholders will take 10 cents on the roughly $27 billion of GM debt they hold, as has been proposed? (GM bondholders has presented a counter offer featuring a debt for equity swap, The WSJ reports.)
And if the Obama administration’s hard line with the automakers’ creditors fails, is there any hope for a change in the current policy of paying bank debt holders 100 cents on the dollar?

–It’s not car companies alone….

Boeing trims delivery outlook
By Justin Baer in New York,
Published: June 12 2009 00:21 | Last updated: June 12 2009 00:21
Boeing trimmed its 20-year outlook for industrywide aircraft deliveries, conceding the bitter downturn in air-travel demand, volatile fuel prices and other challenges confronting airlines this year would also curb manufacturers’ growth. In its 45th annual market analysis, Boeing predicted that manufacturers will deliver 29,000 aeroplanes in the next two decades. The tally marks a 1.4 per cent decline from last year’s 29,400 forecast, although inflation would help keep the dollar value of those deliveries at $3,200bn, the company said on Thursday.

–But hey ! the manufacturing index is up……….go figure !!

Now do you think there are GreenShoots in manufacturing ? I will leave you thinking for an answer to that !!

Here comes another bullshit news….all these companies GM, Chrysler, Ford as they continue to shut plants and take away jobs…lay off people in reocrd numbers… which area gets impacted first ? Michigan right ? Detroit-Michigan that’s where all the car companies are…but look US Michigan Consumer Sentiment index is up…may be more shit needs to hit the fan in Michigan that obviously pushes the index up….great index…..

U.S. Michigan Consumer Sentiment Index Rises to 65.1 (Update2)
By Bob Willis

May 1 (Bloomberg) — Confidence among U.S. consumers rose more than forecast in April to its highest level since before the collapse of credit late last year unleashed a financial panic that sent the economy into a freefall.

The Reuters/University of Michigan final index of consumer sentiment rose to 65.1, the second straight gain, from 57.3 in March. The index reached a three-decade low of 55.3 in November. Record low mortgage rates, cheap gasoline and surging stock prices are providing some relief to the beleaguered American consumer in the face of mounting unemployment and tumbling home prices. Improved confidence may keep consumers spending, helping to pull the economy out of its slump in the second half of the year.

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