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Category Archives: news analysis
GM to Freeze U.S. Pension Plans and Convert to 401Ks
GM’s global pension plans were underfunded by $24.5 billion, an increase from $22.2 billion at the end of 2010, GM reported today in its year-end results. Of that potentially crippling debt $13.4 billion is in the U.S. Continue reading
NHTSA Proposes Distracted Driving Guidelines for Automakers
U.S. Transportation Secretary Ray LaHood announced today groundbreaking federal guidelines for automakers to limit the ‘distraction risk’ caused by the growing number of in-vehicle electronic devices. The new distracted driving design recommendations appeared to catch automakers off guard since they did not have a ready response.
Moreover, NHTSA said this was only the first of a series of proposed distracted driving design practices that manufacturers can use to ensure the systems or devices in their vehicles are less likely to distract drivers and cause accidents. The intent is to “limit tasks not directly relevant to safely operating the vehicle, or cause undue distraction by engaging the driver’s eyes or hands for more than a very limited duration while driving.”
While not a formal regulation (yet?), the voluntary design standards from the National Highway Traffic Safety Administration bring additional pressure on automakers to reform automotive electronics. Thus far automakers have ignored with impunity the deadly results from the consequences of the growing use of an increasing array of in-vehicle electronic devices and screens. Even if they don’t become regulations, the guidelines will make it difficult for consumer organizations – say Consumer Reports – to recommend vehicles that don’t meet them. And you can be sure that NHTSA will ultimately incorporate them into its own safety ratings. Continue reading
Posted in auto news, distracted driving, news, news analysis, safety
Tagged auto informed, auto safety, autoinformed.com, automotive news, distracted driving, dot, Ken Zino, nhtsa, ray lahood
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Distracted Driving Prompts Technology Forced Compliance
Most fleet managers lack confidence in current enforcement methods, so 27% plan to investigate cell phone use analytics and 21% plan to explore ‘smartphone’ software within the next twelve months to automate and force employee compliance with regulations and company policies. Translation: big brother is going to get bigger, ultimately with privacy and civil liberty implications for all drivers. It is also just a matter of time before the National Highway Traffic Safety Administration gets more involved in regulating all drivers. Continue reading
Posted in auto news, distracted driving, news, news analysis, safety, transportation
Tagged auto informed, autoinformed.com, automotive news, cell phones, distracted driving, dot, Ken Zino, nhtsa, ntsb
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Energy Conversion Devices Files Chapter 11, Sells Ovonic Battery. Common Stock to Be Worthless Under Reorganization
OBC was the inventor and worldwide licensor of nickel-metal hydride (NiMH) rechargeable battery technology, but the cancellation of GM’s EV1, which used the batteries, and the building of a NiMH battery factory in Ohio, which was never used, severely hurt the company, which had a record of obtaining research grants and licensing patents, but was ultimately never able to profitably commercialize its advanced technologies. Continue reading
Buick Drops Base Regal Model in 2013. E-Assist Now Standard
Starting with 2013 models this fall, E-Assist will be standard on the mid-size Buick Regal with the discontinuation of the 2.4-liter base model. It is the second mild-hybrid to join the Buick lineup as standard equipment following the full size … Continue reading
Ford Motor CFO Booth, Global P.D. Head Kuzak to Retire
Ford Motor Company announced today that Lewis Booth, 63, executive vice president and chief financial officer, and Derrick Kuzak, 60, group vice president, Global Product Development, will retire on 1 April. Both of these key executives served the Number Two U.S. automaker for more than 30 years. Booth had wanted to retire for years but stayed on out of loyalty. Kuzak came as a surprise.
These senior executive changes are unfortunate in timing as both the highly compensated Booth and Kuzak did yeoman’s work in trying to right a still troubled company that recently is showing signs of returning to competitive health.
In late 2008, a week after the collapse of Lehman Brothers triggered a worldwide financial crisis and the ongoing Great Recession, Booth returned from heading Ford of Europe to Dearborn as Ford’s chief financial officer where management was struggling with the dire cumulative effects of years of losses, declining sales, heavy debt loads and unfunded pension liabilities – the same issues Booth was grappling with in Europe. Prior to that Booth headed Mazda in Hiroshima. Ironically, it was Booth as Ford’s CFO who was forced to sell Ford’s controlling interest in the feisty Japanese company for badly needed cash. Continue reading
Posted in auto news, news analysis, people
Tagged auto executives, auto informed, autoinformed.com, automotive news, derrick kuzak, ford motor, Ken Zino, lewis booth
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Local and Network TV See Steep Declines as News Sources
The long term declines in the number of people getting news from such sources as local TV and network news shows have steepened this year. The number of people gathering campaign news online, which had nearly tripled between 2000 and 2008, has leveled off in 2012. In previous campaigns, declining figures for traditional TV and newspapers as sources were at least partly offset by increasing numbers turning to the internet. Continue reading
Posted in fools 'n frauds, news, news analysis, people, Uncategorized
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Aftershocks – Toyota Revenues Drop 10%, Profits Down 57.5%
Major factors contributing to the decrease include the negative effects of marketing activities and incentives of ¥120 billion, as well as currency fluctuations of ¥200 billion, both breathtaking demonstrations of leverage effects in the automobile business. Continue reading
Posted in auto news, financial results, news analysis, results
Tagged auto informed, autoinformed.com, automotive news, financial results, Ken Zino, tmc, toyota, Toyota q3 results
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Chrysler Group Posts a Modest 2011 Profit of $183 Million
Chrysler Group earned a profit of $183 million for the full year 2011, up from a net loss of $652 million a year ago. The positive, if small, result came as the Italian owned company paid back a $551 million in debt to taxpayers. Chrysler’s net revenue for the year was $55.0 billion, up 31% from a year ago. Fourth quarter net revenue increased 41% to $15.1 billion, the best quarter since it emerged from a controversial taxpayer financed bankruptcy in 2009. Continue reading
Toyota, Honda, and Nissan Post Strong January Auto Sales
Toyota was Number Three overall in U.S. sales, and a mere 12,000 vehicles behind Number Two Ford Motor. Toyota truck production in the U.S. – the last to recover from last year’s natural disasters – still has not caught up with demand. When it does – and Toyota’s pickup truck plant in Texas has been working overtime since late last year – Toyota could easily surpass Ford in U.S. sales. Toyota’s luxury division, Lexus, at 12,274 vehicles easily outsold Ford’s moribund Lincoln at 5,221 sales. Lexus production too is still recovering from the Japan earthquake so Ford is facing challenges on two fronts. Continue reading
BLS Says U.S. Unionization Rates Unchanged in 2011
The data also show that among full-time wage and salary workers, the median weekly earnings of union members were $938, compared to $729 for nonunion workers. Continue reading
Posted in economy, labor issues, news, news analysis
Tagged auto informed, autoinformed.com, automotive news, bls, hilda solis, Ken Zino, unionization rate, unions
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Ford Motor U.S. Sales Increase 7% in January. Industry up 11%
The Ford F-Series, America’s top-selling vehicle for the past 30 years, posted January sales of 38,493 vehicles, representing an 8% gain amid signs that the full size pickup truck market in the U.S. is declining. Here preliminary numbers show that full size trucks now account for only 11% of the total industry. Continue reading
Posted in auto news, news analysis, results, sales
Tagged auto informed, autoinformed.com, automotive news, f-series, ford results, january sales, Ken Zino, lincoln, results
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Chrysler Group January 2012 U.S. Sales Rise 44%
Because of its revived U.S. sales in 2011 Chrysler Group is now earning a greater return in profits at 4% of turnover when compared to owner Fiat’s return of 2.8%, which was down from 2010 given the ongoing Eurozone crisis. Continue reading
Posted in auto news, news analysis, results, sales
Tagged auto informed, autoinformed.com, automotive news, chrysler, chrysler sales, Fiat, january results, Ken Zino, sales results
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Japanese Suppliers Yazaki, Denso Plead Guilty of Price Fixing
The two-year price fixing sentences would be the longest imprisonment imposed on a foreign national for a Sherman Act antitrust violation. The fine amounts and prison sentences are subject to court approval and the potential influence of the U.S. State Department, which based on previous actions, cares little – if at all – in my opinion about competitive aspects of the U.S. auto industry or its effects on workers and the U.S. economy. In fact it can be argued that since the end of World War Two, State has actively pursued policies that strengthen offshore competitors of U.S. firms at the expense of the U.S. middle class. Continue reading
Posted in auto news, fools 'n frauds, litigation, news, news analysis, people, results
Tagged auto informed, auto parts big rigging, autoinformed.com, automotive news, denso, department of justice, honda, japanese price fixing, Ken Zino, sherman antitrust act, state department, toyota, yazaki
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PBGC Says American Airlines Workers Should Worry About Pensions and Medical Care – So Should Taxpayers
The Pension Benefit Guaranty Corporation has called out what it says is misleading statements to American Airlines employees by its management about their pension plans under a bankruptcy reorganization. “American Airlines is telling their workers and retirees not to worry, … Continue reading
Posted in aviation, economy, financial results, labor issues, news, news analysis, people, results, transportation
Tagged american airlines, amr, auto informed, auto news, autoinformed, autoinformed.com, automotive news, Ken Zino, pbgc, pension, pension benefit guaranty corporation, zino
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