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As Some States Take Measures to Relieve Gas Prices Like Tax Suspensions, Illinois Does Little, Critics Say by Kevin Bessler, The Center Square
As gas prices continue to soar around the country, some states are taking action with sizable tax breaks. But in Illinois, little is being done, critics say. At $5.27 a gallon June 2, Illinois is one of seven states in the country with the average price for a gallon of gas over $5. The other states are California, Oregon, Washington, Nevada, Arizona and Alaska. Overall, retail gas prices are up 48 cents over the past month and are 32% higher than the day before Russia invaded Ukraine on Feb. 24, although
gas prices began their significant rise in 2021. Industry analysts say prices will continue rising over the coming months. New York removed the state’s motor fuel and sales tax on gasoline the same week, cutting the cost for drivers by about 16 cents a gallon. A number of New York counties also moved to cap their local sales tax on gasoline. The suspension will bring an estimated $600 million in savings to New Yorkers this year, New York state Sen. John Mannion, D-Geddes, See Relieve Gas Prices, Page 9
New-Vehicle Prices Flirt with Record High in May New-vehicle average transaction prices (ATPs) increased to $47,148 in May, according to new data released by Kelley Blue Book, a Cox Automotive company. Prices rose 1% ($472) month over month and remain elevated compared to one year ago, up 13.5% ($5,613) from May 2021. The average price paid for a new vehicle in the U.S. in May was the second-highest on record, behind only December 2021, when ATPs reached $47,202. New-vehicle inventory days’ supply stayed in the mid-30s in May—holding steady since
mid-January—while customer demand remained stable. These conditions enabled most dealers to continue selling inventory at or above the manufacturer’s suggested retail price (MSRP). The average price paid for
a new vehicle has been “over sticker” throughout 2022. In May, new vehicles from Honda, Land Rover and Mercedes-Benz See New-Vehicle Prices, Page 13
Vol. 11 / Issue 10 / July 2022
Ford Adding 6,200 Manufacturing Jobs in Midwest Plants United Auto Workers and Ford Motor Company leaders on June 2 announced plans to add more than 6,200 new U.S. manufacturing jobs in the Midwest, convert nearly 3,000 temporary UAW-Ford workers to permanent full-time status and provide all hourly employees health care benefits on the first day of employment. These actions—which come more than a year ahead of 2023 contract negotiations—are part of the company’s Ford+ growth strategy and include plans for an all-new global Mustang coupe and Ranger
pickup for North America, as well as an all-new electric commercial vehicle for Ford Pro customers. Supported by $3.7 billion of investments in manufacturing facilities across Ohio, Michigan and Missouri, the new UAW-Ford manufacturing jobs are expected to result in the creation of an estimated 74,000 additional indirect non-Ford jobs nationally, based on a 2020 study by BCG on the economic impact of F-Series production. The $3.7 billion investment and more than 6,200 new union jobs See Ford Adding Jobs, Page 14
Insurers Too Late for Subrogation in Auto Parts Price-Fixing Case, Court Rules by Jim Sams, Insurance Journal
Insurers waited too long to intervene in anti-trust litigation that brought settlements requiring dozens of auto parts manufacturers to pay a total of $1.2 billion to resolve price-fixing allegations, a panel of the U.S. 6th Circuit Court of Appeal ruled June 1. In a published decision, the appellate panel affirmed a U.S. District Court ruling that denied a motion to intervene filed by Financial Recovery Services on behalf of eight insurers that sought “equitable subrogation” for the payments it made to insureds for the total loss of their vehicles. FRS did not seek to intervene in the litigation until long after settlement negotiations were concluded and final-approval hearings were held in 41 coordinated cases. The 6th Circuit panel said in its opinion that allowing intervention would require the court to revisit issues that were settled while FRS “watched from the sidelines.” “Allowing FRS to claim subro-
gation rights after settlement would uproot earlier efforts to define classes, expend considerable resources to amend allocation plans and increase costs associated with the claims-administration process, thereby reducing the amount of settlement proceeds available,” the panel said in an opinion written by Justice Karen Nelson Moore. Attorneys representing consumers in 2012 filed anti-trust lawsuits against dozens of auto manufacturers. The Department of Justice launched an investigation into price-fixing allegations, resulting in guilty pleas by 26 manufacturers that paid millions in fines. The civil lawsuits were consolidated into a single case assigned to the U.S. District Court for Eastern Michigan in Detroit. The court approved four separate settlement agreements between the plaintiffs and 73 of the defendants from 2016 through November 2020. FRS, a third-party administrator for auto insurers, did not get See Price-Fixing Case, Page 9
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