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👉 Stores behind on payments
👉 Ford halts EVs
👉Yellen visits China
LATE: Stores Struggle
Before its bankruptcy last April, Bed Bath & Beyond struggled with financial issues, notably in paying suppliers on time. This led to shortages on store shelves, especially during the crucial holiday season. This pattern of financial distress led to bankruptcy, similar to what happened to RadioShack and Toys R Us. Experts say that delayed payments to suppliers can be a warning sign of financial trouble. Recently, other retailers like Peloton, Saks, Express, and Bath & Body Works have also been late in paying their suppliers, according to Creditsafe, a company that analyzes financial risk.
Source: Somerset
While late payments can sometimes be strategic for bigger companies with market power, sudden and unusual delays can signal deeper financial issues. Creditsafe points out that these payment trends are impor
ant in understanding a company's financial health. For example, Peloton experienced a spike in late payments but is working towards financial stability despite sales challenges and recent losses.
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FORD: Slows EVs
Ford Motor is pushing back the launch of a new electric SUV and pickup truck, aiming instead to offer hybrid vehicles across its North American lineup by 2030. The company announced delays in production: the electric SUV in Canada is moved to 2027 instead of 2025, and the "T3" pickup truck is now set for 2026, previously planned for late 2025.
Source: CNN
These changes reflect wider industry trends, with slower EV adoption and high production costs. Despite scaling back on some EV investments due to these challenges, Ford remains committed to electric vehicles, ranking second in EV sales behind Tesla in the early part of the year. The SUV was part of a $1.3 billion plan to transform Ford’s Oakville Assembly Plant in Canada into an EV hub. Additionally, Ford's large Tennessee plant will start making a new electric truck in 2026, delayed from 2025, while continuing to build battery plants in Michigan, Tennessee, and Kentucky.
Yellen: Visits China
Janet Yellen, the U.S. Treasury Secretary, is in China discussing how to deal with excessive production and push for economic reforms. Her trip includes stops in Guangzhou and Beijing, focusing on the need for dialogue on economic issues and security.
Source: CNBC
It's part of broader efforts to address challenges and improve U.S.-China relations amid tensions. A report highlights China's issue with overproduction due to government support, suggesting a shift towards more market-driven policies. Yellen's visit aims to foster better communication between the two countries.
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