Labor costs in the auto production industry in Mexico is rising, as more automakers set up shop south of the border and drive up demand for employees. Wages have already grown by double-digit percentages in recent years.
General Motors CEO Mary Barra testified that the automaker failed to properly address the flawed ignition switch in its vehicles that lead to a major recall and several deaths. Barra said GM “misdiagnosed it as a customer satisfaction issue and not a safety issue,” at first.
In Volkswagen’s recall, car owners in Europe are getting much less than affected drivers in the United States. VW owners in the U.S. will reportedly receive $20,000 in compensation, while those in Europe will receive a software update to their car and a tubular plastic “flow transformer” that is supposed to improve the flow of air through in the engine and reduce emissions.
U.S. industrial production increased 0.7% in July, the Federal Reserve reported today. The rise was more than economists had expected and comes after a 0.4% jump in June.