Microsoft Faces Antitrust Scrutiny, Fannie Mae Program Expands, Saturn Sees Leasing Gains

Strategic Insights -

The US Justice Department is considering a delay in the release of Microsoft's Windows 98 operating system due to antitrust concerns, while Fannie Mae's Flexible 97 mortgage program has been a success in Atlanta and will be expanded nationwide in June. Meanwhile, General Motors' Saturn subsidiary has seen a boost in sales through reduced lease prices, but may struggle to meet demand over the summer.

Key Takeaways:

  • The US Justice Department is considering a delay in the release of Microsoft's Windows 98 operating system due to antitrust concerns, with a decision expected by May 15.
  • Fannie Mae's Flexible 97 mortgage program, which allows home buyers to qualify for a mortgage with a 3 percent down payment and few restrictions, has been a success in Atlanta and will be expanded nationwide in June.
  • The program has enabled an estimated 475 home buyers to borrow over $50 million in Atlanta since its introduction in July, with no income limitations or counseling requirements.
  • General Motors' Saturn subsidiary has seen a 25 percent increase in lease sales, with 35 percent of its volume now in leases, up from 10-12 percent.
  • Saturn slashed its lease prices in February, with the price of a Saturn SL sedan dropping from $177 to $129 a month for a 36-month lease.
  • Division President Don Hudler warned that Saturn may struggle to meet demand for its vehicles over the summer due to the increased popularity of leasing.

Statistics:

  • 475 home buyers have borrowed over $50 million in Atlanta through Fannie Mae's Flexible 97 mortgage program since its introduction in July.
  • 35 percent of Saturn's volume is now in leases, up from 10-12 percent.
  • Lease sales for Saturn have increased by 25 percent since the introduction of reduced lease prices in February.
  • Saturn reduced its lease prices in February: The price of a Saturn SL sedan dropped from $177 to $129 a month for a 36-month lease.

Sources:

  • Bloomberg News
  • Associated Press
  • Automotive News
  • Fannie Mae (Atlanta Partnership Office)