Car dealership numbers increase

Car dealership numbers increase

DETROIT

The number of U.S. car dealerships is rising again after thousands of closures during the recession.

It’s another sign of strength for the car industry, which has been seeing steady sales increases over the past few years despite the wobbly recovery. It’s also good news for the economy, since new car dealerships typically employ around 53 people, according to the National Auto Dealers Association.

There were 17,767 U.S. dealerships at the end of 2011, or 108 more than at the end of 2010, according to a report released this week by Urban Science, a consulting firm. In a typical year, the number of dealerships falls by 2 percent because of retirements and downsizing, so a rise is fairly significant.

The two largest contributors to the increase were Fiat, which added 135 dealerships, and Chrysler, which added 50. California saw the most dealership openings, with 31. New Jersey was next with 10.

EPA to OK sorghum for cleaner ethanol

BISMARCK, N.D.

The government is on the verge of approving a grain mainly used as livestock feed to make a cleaner version of ethanol.

The Environmental Protection Agency has concluded ethanol made from grain sorghum can qualify as an advanced biofuel if it’s made at plants with the proper green technology. Advanced biofuels have even less of a carbon footprint than conventional biofuels such as corn ethanol.

Advanced ethanol made from sorghum could help meet the federal goal of producing 36 billion gallons of renewable fuels per year by 2022. Officials say it also could give farmers a new moneymaking opportunity and help the environment.

Sorghum is more resistant to drought than other crops, including corn, and produces about the same amount of ethanol per bushel as corn with one-third less water.

Tighter rules for risky mortgages

WASHINGTON

New federal rules proposed Wednesday would require all high-risk mortgage lenders to obtain property appraisals for the first time.

Under the rule, all mortgages deemed risky would require an appraisal by a licensed or certified appraiser, including a written inspection of the home’s interior, according to regulators including the Federal Reserve and the Consumer Financial Protection Bureau. Previously, there was no universal federal requirement that appraisals be performed on all risky mortgages.

Consumers would receive more information, including a free copy of the appraisal, the agencies said.

A second appraisal would be required if the seller bought the home at a lower price in the previous six months. The provision is meant to prevent fraudulent flipping of properties using inflated appraisals.

The rules would apply to higher-risk mortgage loans — those on people’s homes whose interest rates are above a variable threshold.

Associated Press