Best of the Blogs: New Ford Factory in China Will Double Production There, Cost Almost $1 Billion
By Kathleen Culliton Apr 19, 2012 11:10 am
Minyanville's daily roundup of some of the best financial commentary from around the Web.
This column highlights the most interesting and useful business and financial commentary from around the Web each day. Use our comments section to post your own suggestions for blog content that you've read or written.
Wall Street Journal: Driver's Seat
"Ford Motor Co. said Thursday it will build a $760 million factory in eastern China as part of a plan to double its production capacity there by 2015, which would mark the auto maker's largest industrial expansion in at least 50 years. The Dearborn, Mich., car company is spending nearly $5 billion to add plants and new dealerships at a blistering pace, trying to catch up in Asia, where it lags its chief rivals in sales and production capacity. The Hangzhou factory will be part of the company's Changan Ford Mazda Automobile joint venture. By the time the expansion is complete, Ford will be capable of building 1.2 million passenger cars a year in China-nearly half as many vehicles as it built last year in North America." (Also read Drive, Talk, and Surf? Automakers Pushing Media Gadgets Despite Dangers.)
"Facebook is known for making changes and its user base is known for not liking them. However, shortly after the change is implemented, most people tend to forget what it looked like before the change and adapt to the new way of life on Facebook. This may be happening again, although on a much smaller scale than recent changes (Timeline) and the complainer may have a valid point this time. When Facebook began to push the open graph and the ability for people to connect with it in new ways, other than a "login with Facebook" button, we saw news and music become the top two ways that third-parties integrated their services. You can now see what your friends are reading or listening to. The reading of news articles is the current focus for Facebook." (Also read Why Did Facebook Pay $1 Billion For Instagram?)
"Last month, in response to Yahoo's wrongheaded patent infringement lawsuit against Facebook, I wrote about my experience filing patents at Yahoo. Patents I helped to file, ostensibly only for defensive purposes, were turned into blunt weapons to thwart innovation and extort money. As I said, "I thought I was giving them a shield, but turns out I gave them a missile with my name permanently engraved on it." Yesterday, Twitter announced their Innovator's Patent Agreement, an open source contract intended to guarantee patents will only be used defensively, even when sold. The IPA seems to directly address the issues raised in my article."
Financial Times: FT Alphaville
"A 'tempest in a teapot'. That's how JP Morgan CEO Jamie Dimon described the fuss caused by the bank's Chief Investment Office apparently entering into large credit trades. It may well be teapot-sized, for him. The point for some hedge funds is that even if it was a swimming pool, you'd feel a bit cramped if Shamu joined you for your morning laps. Which is to say that, for those actually trading credit indices, the thing that is such a big deal is whether the trading behaviour of JP Morgan's CIO distorted the market." (For related content, see JPMorgan Ready to Take Wall Street Top Spot.)
New York Times: Economix
"American-owned multinational companies grew in 2010, but they mostly grew abroad. A new Bureau of Economic Analysis report shows that in 2010, the worldwide work force employed by United States-based multinationals grew 0.5 percent, to 34 million workers. Within these companies, their foreign payrolls grew 1.5 percent, to 11 million overseas workers. Their domestic payrolls, on the other hand, grew about 0.1 percent, to 23 million workers. That meager growth at home was still welcome news, though, considering that in the same year total private sector employment in the United States fell by 0.6 percent. The United States economy was still reeling from the financial crisis, and a lot of that job growth at home was likely enabled by sales growth abroad."
No positions in stocks mentioned.
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