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Daily Briefing

DAILY BRIEFING

September 23, 2009

General Motors raising output at 3 factories

DETROIT - General Motors Co. will go to 24-hour operations at factories in Kansas, Michigan and Indiana to handle an expected increase in demand and to make up for production lost from a large-scale factory consolidation announced earlier in the year. The automaker says it will add a third shift at its factories in Kansas City, Kan., Delta Township, Mich., near Lansing, and Fort Wayne, Ind. About 2,400 production workers will be recalled as a result of the added shifts, and 600 more will be recalled at parts factories across the country, said Tim Lee, group vice president for global manufacturing. The increases announced Tuesday, coupled with other production increases unveiled during the summer, will allow GM to raise North American production from about 1.9 million vehicles this year to 2.8 million in 2010, Lee said. The increase also is necessary because of an expected sales increase next year and because GM's inventory was at a record-low level of 378,000 at the end of August, said Mark LaNeve, vice president of U.S. sales. GM's plant in White Marsh, which makes transmissions for heavy-duty pickup trucks, has added a small amount of overtime, said John Raut, a factory spokesman. Raut said he doesn't anticipate any changes in employment at the plant, which has 178 hourly workers and 41 salaried employees.

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- Associated Press

Judge denies dismissal of Magna creditors' lawsuit

WILMINGTON, Del. - A bankruptcy judge has refused to dismiss a lawsuit filed by creditors of horse-track owner Magna Entertainment Corp. Magna's committee of unsecured creditors claims that instead of selling assets to avoid bankruptcy, Magna officials allowed parent company MI Developments and billionaire Frank Stronach, who is chairman of both MID and MEC, to prop up Magna with equity infusions disguised as secured loans. They say the scheme was meant to ensure that Stronach retained control of MEC's most valuable assets. At a hearing Tuesday, an attorney for Ontario-based MI Developments argued that the claims were baseless and should be dismissed. The judge said the case was a close call, but that the committee should have the chance to prove its claims at trial. Magna Entertainment owns Laurel Park and Baltimore's Pimlico Race Course, host of the Preakness, the second leg of racing's Triple Crown.

- Associated Press

Home prices rose 0.3% nationwide in July

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