Category Archives: fools ‘n frauds

Chinese Qoros Defends Name against Kia Quoris in EU

Upstart Chinese automaker Qoros Automotive Company has successfully defended it brand name against South Korean Kia in a German Court. A district court in Hamburg granted Qoros’ motion for a preliminary injunction against Kia Motors Corporation that bars Kia from using the name “Quoris motor vehicles in the European Union. The court found that coexistence of “Qoros and “Quoris” in a car market would cause consumer confusion. Continue reading

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BP in Plea Deal Pays $4 Billion for Deepwater Horizon Gulf Oil Spill. Highest Execs Free from Criminal Charges as Stockholders Pay Fines

BP shareholders will pay $4 billion in criminal fines and penalties because of the Deepwater Horizon Oil spill that killed 11 people and caused the largest environmental disaster in U.S. history. The highest BP executive are now clear of future criminal charges as the result of the plea bargain where stockholder will pay fines for causing the monumental oil pollution that is still despoiling the Gulf Coast coast. During the disaster, BP publicly maintained that 5,000 gallons of oil were spewing forth daily into the Gulf, when in fact 60,000 gallons a day were gushing into the water and destroying the ecosystem. Continue reading

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Chinese Motorcycles, RVs and Engines Violate Clean Air Act

Senior executives at two vehicle and engine importers in California will pay a $50,000 penalty because the products sold were in violation of Clean Air Act regulations. The defendants, Yuan Cheng International Group, Inc. (YCIG) and NST, Inc. (NST), located in Montclair, California, allegedly imported and sold vehicles and engines from China that had excessive levels of emissions. Continue reading

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Hyundai Cancels Media Event in Wake of EPA MPG Fraud

Hyundai has just canceled a media event in Michigan after the revelation last Friday that 600,000 of its 2010-2012 models had fraudulent EPA stickers that overstated mileage ratings by as much as 3 mpg. Continue reading

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Hyundai and Kia Caught in EPA Mileage Rating Fraud

The U.S. Environmental Protection Agency (EPA) today announced that Hyundai Motor America and Kia Motors America will lower their fuel economy (mpg) estimates for the majority of their model year 2012 and 2013 vehicles after EPA testing found “discrepancies” between agency results and data submitted by the company. The fraud produced mileage claims that could be as much as 6 mpg higher than EPA tests showed. About 900,000 vehicles are affected in the largest mileage scam to date. Continue reading

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General Motors Posts Q3 Profit of $1.5 Billion, off -$200 Million. Ideologues Out in Full Force for Halloween and the Election

General Motors Co. (NYSE: GM) today announced third quarter net income of $1.5 billion, a drop of -$200 million from the same period in the prior year. This works out to $0.89 per share including special items, which reduced net income by $100 million and cut earnings per share by $0.04. In the third quarter a year ago, GM’s net income was $1.7 billion or $1.03 per share. The results represent a turnaround especially in view of Q1 of 2009 when GM lost almost -$10 per share.

In spite of wild claims – critics say deliberately false – from the repudiated Republican right about the auto bailout, GM is not going bankrupt. GM’s debt-to-equity ratio is only 25% of the overall auto industry average, and it now has more than $37 billion in liquidity. GM in the context of the current travails of the global auto industry is performing reasonably well. Continue reading

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GM and BMW Diagnostic Tool Counterfeiter Arrested in Virginia

The seller of Chinese-built counterfeit tools was indicted yesterday by a federal grand jury in the Eastern District of Virginia for alleged participating in a conspiracy to sell U.S. consumers more than $3 million worth of counterfeit General Motors (GM) and Bavarian Motor Works (BMW) automotive diagnostic tools, electronic keys and fobs. Continue reading

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Presidential Run Gets Uglier – Labor Ads “Romney a Traitor”

The United Auto Workers Union among other labor groups is applauding and promoting new advertisements that call presidential candidate Mitt Romney an economic traitor who desecrated teh American flag. The ads – both television and online were unveiled today by a front group called Workers’ Voice and Patriot Majority Continue reading

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Ally Financial Sells Its Canadian Auto Financing Business

Notably absent as buyers were Ford Credit and General Motors. Ally has other international operations in Europe and Latin America on the block, and GM has submitted a bid for the business. Ally expects to announce the buyer after the U.S. Presidential election next month. Continue reading

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Ally Financial to Sell Mexican Insurance Business

Ally Financial today announced that it has reached an agreement to sell its Mexican insurance business, ABA Seguros, to the ACE Group, one of the world’s largest multi-line property and casualty insurers. ABA Seguros is the fourth largest insurer in the Mexican auto insurance market, and the transaction has a purchase price of $865 million in cash.

The latest move to fix the balance sheet of the former finance arm of General Motors comes a week after the announcement that Ally will make a payment of approximately $134 million, or $1.125 per share, to the U.S. Treasury next month. U.S. taxpayers have invested $17.2 billion in keeping Ally in business as a bank holding company after improvident home mortgages made it bankrupt under the Bush market crash. Continue reading

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Milestones: 25 years of Volvo Airbags

The airbag has been a standard feature in all cars for several years now, but in the early days both the technology and its reliability created intense debate with safety advocates and government regulators ignoring the very real problems earlier designs had. The problem in the U.S. was largely caused by Joan Claybrook and other advocates and legislators who sold the idea of the airbag as eliminating the need for unpopular safety belts and belt interlock system.

In spite of extensive crash test data from Ford and General Motors, among others, showing that the regulation proposed in 1984 and effective in 1987 required a too powerful explosion to protect an unbelted 170-pound male without hurting smaller stature people the law went ahead. Regulators and politicians simply ignored the engineers. Dead drivers and passengers, some of them decapitated, were the grisly result until the regulations were rewritten as field results came in – dead on arrival so to speak. Continue reading

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Taiwan Auto Lights Maker Guilty of Price Fixing

A Taiwan-based auto lights manufacturer and its aftermarket U.S. distributor have pleaded guilty for participating in a seven-year, international conspiracy to fix the prices of auto lights. Tainan County, Taiwan-based Eagle Eyes Traffic Industrial Company and its U.S. subsidiary, Chino, … Continue reading

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NHTSA Says Chinese Counterfeit Air Bags are a Safety Problem

The U.S. Department of Transportation’s National Highway Traffic Safety Administration – NHTSA – has published a consumer safety advisory to warn vehicle owners and repair shops about the dangers of counterfeit Chinese air bags. NHTSA said it has become “aware” of a problem involving the sale of counterfeit air bags for use as replacement parts in vehicles that have been involved in a crash. Continue reading

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Fraud Charges Filed in Gulf Oil Cleanup Employment Scam

A 22-count federal indictment was unsealed in New Orleans charging Connie M. Knight, 46, with impersonating a federal employee in order to get people to pay her for fraudulent hazardous waste safety training after the BP Deepwater Horizon Gulf oil spill. Continue reading

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AIG Bailout of $182 Billion Paid Back. Taxpayers make at least $12B

The U.S. Department of the Treasury announced it is selling 553,846,153 shares of its American International Group (AIG) common stock at $32.50 per in a public offering. The proceeds to Treasury from the common stock sales are expected to be ~$18.0 billion. This means that the transaction locks in at least a $12.4 billion positive return on the $182 billion in Treasury and Federal Reserve loans and commitments to AIG. The bailout loan will be fully paid off in what remains an unpopular (but extremely effective) example of government intervention in a failed marketplace. Ideologues still refuse to admit that the TARP and associated government actions saved the U.S. and perhaps the global economy. It certainly – without question – saved the U.S. auto industry and this includes companies that received no loans. Continue reading

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