Business News Briefs: Ford Increases Offer to Rouge Victims, DaimlerChrysler-Volvo Merger Rumored, and More

Ford Motor Company has increased its compensation offer to the families of the victims of the February Rouge power plant explosion, offering $30 million to the families of the 14 workers injured and six workers killed in the blast. The automaker will provide each of the families a $1 million lump sum payment, plus salaries and benefits until the workers would be 65, and $100,000 trust funds for their children. The offer would require the families to waive all claims against Ford, Rouge Steel, and any other company.

Meanwhile, DaimlerChrysler is rumored to be talking to Volvo officials about a possible merger, with Volvo reportedly wanting close to $21 billion for its truck, bus, heavy equipment, marine, aviation, and other divisions. The company has declined to comment on the report.

Opel/Vauxhall has set an all-time record for sales in the first half of 1999, with nearly a million vehicles sold in Europe, an increase of 11.5 percent compared to 1998. The company increased its share of sales in 15 of 20 countries.

Key Takeaways:

• Ford Motor Company has increased its compensation offer to the families of the victims of the February Rouge power plant explosion, offering $30 million.
• The offer includes a $1 million lump sum payment, plus salaries and benefits until the workers would be 65, and $100,000 trust funds for their children.
• The offer would require the families to waive all claims against Ford, Rouge Steel, and any other company.
• DaimlerChrysler is rumored to be talking to Volvo officials about a possible merger, with Volvo reportedly wanting close to $21 billion for its truck, bus, heavy equipment, marine, aviation, and other divisions.
• Opel/Vauxhall has set an all-time record for sales in the first half of 1999, with nearly a million vehicles sold in Europe, an increase of 11.5 percent compared to 1998.
• Old Kent Financial Corporation has completed its acquisition of CFSB Bancorp, Inc.
• Rock Financial Corporation is closing and consolidating 12 of its traditional branch operations, while expanding its Internet and loan-by-phone services.
• Opel/Vauxhall's Astra is the second-best-selling car in Western Europe, with the company increasing its share of sales in 15 of 20 countries.
• Vehicle production in the U.S., Canada, and Mexico is estimated at 100,606 units, less than a third of the 304,087 cars and trucks built last week, due to the Fourth of July holiday and summer shutdowns.
• General Motors and Ford plants were shut this week, as were Nissan, Subaru-Isuzu, and Mercedes-Benz facilities.
• Including this week, 1999 North American output totals 9,394,170 vehicles, up 13.2 percent from a year ago.

Statistics:

• Ford Motor Company's compensation offer to the families of the victims of the February Rouge power plant explosion is $30 million.
• The company will provide each of the families a $1 million lump sum payment, plus salaries and benefits until the workers would be 65, and $100,000 trust funds for their children.
• Opel/Vauxhall's sales in the first half of 1999 totaled nearly a million vehicles, an increase of 11.5 percent compared to 1998.
• Vehicle production in the U.S., Canada, and Mexico is estimated at 100,606 units, less than a third of the 304,087 cars and trucks built last week.
• 1999 North American output totals 9,394,170 vehicles, up 13.2 percent from a year ago.
• Rock Financial Corporation closed $54 million in loans in the quarter ending June 30, up 86 percent over the first quarter.

Sources:

• "Ford increases offer to Rouge victims" (UPI, July 9, 1999)
• "DaimlerChrysler to sell phone holding" (UPI, July 9, 1999)
• "Opel sets European sales record" (UPI, July 9, 1999)
• "Automakers start summer shutdowns" (UPI, July 9, 1999)
• "Old Kent acquires CFSB Bancorp" (UPI, July 9, 1999)
• "Rock Financial closes offices, expands online" (UPI, July 9, 1999)