Death of the Diesel: Volkswagen Board Crisis as Three Chairman Indicted in Germany for Stock Market Manipulation

Posted on 24 September 2019 by Ken Zino
AutoInformed.com - VW Diesel Scandal

Prison?

The Brunswick (Germany) public prosecutor’s office announced today that it had brought an indictment against the former Chairman of the Board of Management of Volkswagen AG, Prof. Martin Winterkorn, as well as against the Chairman of the Supervisory Board, Hans Dieter Pötsch, and the Chairman of the Board of Management, Herbert Diess, for the charge of market manipulation. The cases will now be examined by an independent court that could impose jail time, which is virtually unheard of for this level of (alleged) white collar criminals.

As a result, the Supervisory Board of Volkswagen AG hastily convened a meeting, claiming that it was unaware that the indictments were coming since it was allegedly cooperating in the investigation by the public prosecutor. It will also meet again tomorrow to discuss what is company threatening development. Continue reading →

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Death of the Diesel: Daimler Guilty of Selling Dirty Diesels in Germany – Pays $957,000,000 Fine Rather than Litigate

Posted on 24 September 2019 by Ken Zino
AutoInformed.com on Dirty Daimler Diesel Engines

“We are not yet at the level that we aim to reach in the medium to long term,” said Dieter Zetsche, now retired, but a decade ago Chairman of the Daimler Board and Head of Mercedes-Benz Cars as the diesel engine fraud was well underway. It ain’t over…

The multi-billion-euro German Dieselgate scandal continues to pollute the images and empty the coffers of  German automakers today as Daimler said it would pay a fine of  870 million euros for selling Mercedes-Benz diesel cars that polluted more than allowed since 2008. The Stuttgart public prosecutor issued a fine notice against Daimler AG pursuant to Sections 30 para. 1, 130 para. 1 of the Administrative Offenses Act based on a negligent violation of supervisory duties in the area of vehicle certification in connection with deviations from regulatory requirements in  Mercedes-Benz diesel vehicles.

The negligent violation of supervisory duties occurred on the department head level. It appears that the Daimler has refrained from taking a legal action challenging the fine notice because senior executives are not implicated. The public prosecutor’s administrative offense proceeding against Daimler AG is thereby concluded. This is not so at Volkswagen Group where senior executives were indicted today. Continue reading →

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Penske’s Newgarden, Pagenaud One-Two in 2019 IndyCar

Posted on 23 September 2019 by Ken Zino
AutoInformed.com on Indy Racing League

Colton Herta leads the start of the IRL Grand Prix of Monterey.

Team Penske’s Josef Newgarden (No. 2 Hitachi Chevrolet), a 28-year-old from Hendersonville, TN clinched his second series title in the last three years by finishing eighth in Sunday’s double points race at Laguna Seca. He joined Sam Hornish Jr. as the only Americans to win multiple series crowns since 1995.

Newgarden entered the race needing a fourth-place finish to secure the title regardless of the performances of his fellow contenders, Andretti Autosport’s Alexander Rossi (No. 27 NAPA AUTO PARTS Honda), teammate Simon Pagenaud (No. 22 DXC Technology Team Penske Chevrolet).  Pagenaud finished fourth in the race and second in the series championship, 25 behind Newgarden. Rossi took sixth to finish third in the championship, 33 back of the champion. Rossi came in 41 points behind, Pagenaud 42.

Newgarden gave team owner Roger Penske his 16th series championship, including the fourth in the last six years. Josef Newgarden didn’t have a race-winning car on Sunday afternoon, but his eighth-place finish was enough for him to earn his second Series Championship, and Team Penske’s 16th.  Continue reading →

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SEC Charges and Settles False Financial Disclosures Against Nissan, Former CEO Carlos Ghosn, Former Director Greg Kelly  

Posted on 23 September 2019 by Ken Zino
AutoInformed.com on Nissan False Financial Disclosures

The $140 million in undisclosed compensation and retirement benefits was never paid out to Ghosn.

After fraudulently concealing from investors more than $140 million of compensation and retirement benefits, Nissan, Carlos Ghosn and Greg Kelly have negotiated cut a bargain plea deal with the U.S. Securities and Exchange Commission. *Nissan, Ghosn, and Kelly settled without admitting or denying the SEC’s allegations and findings. In an administrative proceeding, the Commission charged Nissan with violating the anti-fraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. (Nissan CEO Hiroto Saikawa Forced Out Over Ghosn Matter)

Nissan settled the charges, agreeing to pay a $15 million civil penalty and to cease and desist from committing or causing violations of the anti-fraud provisions. To settle the charges, Ghosn and Kelly agreed to be permanently enjoined from violating or aiding and abetting violations of the anti-fraud provisions. Ghosn also agreed to a $1 million civil penalty and a 10-year officer and director bar. Kelly agreed to a $100,000 penalty, a five-year officer and director bar and a five-year suspension from practicing or appearing before the Commission as an attorney. Critics no doubt will say the settlement is laughable given the amount of money involved. Continue reading →

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Amazon Wants to Meet the Paris Agreement 10 Years Early

Posted on 20 September 2019 by Ken Zino
AutoInformed.com ongrowing Environmental defiance of trump policies

“We’re done being in the middle of the herd on this issue—we’ve decided to use our size and scale to make a difference,” said Jeff Bezos, Amazon founder and CEO.

The business world continues to speed past the anti-environmental Trump agenda, reflecting the views of customer, not self-interested bought and paid for politicians. In the latest example, Amazon says it wants net zero carbon by 2040 and 100% renewable energy by 2030. It backed up its green words with green cash yesterday by announcing that it will purchase 100,000 fully-electric delivery vehicles from Rivian – apparently the largest order ever for electric delivery vehicles – and devote $100 million to reforestation projects around the world to begin removing carbon from the atmosphere now.

It’s part of the so-called Climate Pledge, a commitment to meet the Paris Agreement 10 years early. Amazon is the first signatory of this pledge, and it will hardly be the last. The Climate Pledge calls on signatories to be net zero carbon across their businesses by 2040—a decade ahead of the Paris Accord’s goal of 2050. Continue reading →

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CARB Sets Tropical Forest Standard Rules

Posted on 20 September 2019 by Ken Zino
AutoInformed.com on CARB Tropical Forest Standards

Tropical forests are on the verge of losing their role as one of the world’s biggest carbon sinks.

The California Air Resources Board today endorsed a “science-based” standard that is claimed to help protect tropical forests*, their communities and natural biodiversity for decades to come.

The so-called Tropical Forest Standard – a decade in the making – is the first government-enacted, global standard for maintaining and protecting tropical forests throughout an entire state or province by incentivizing responsible action and investment.” The standard provides a minimum set of requirements for such large-scale programs to reduce emissions from tropical deforestation.  Continue reading →

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First Ford Performance Off-Road Leveling Kits

Posted on 18 September 2019 by Ken Zino
AutoInformed.com on Ford Performance Truck Parts

Available through Ford dealers for $1,495 before installation.

Taking a page from the Mopar and the aftermarket, Ranger and F-150 owners can now buy the first-ever Ford Performance off-road leveling kits with tuned suspension. Yes, the era of the performance truck is well underway as growing OE and aftermarket offerings keep expanding. (New Colorado ZR2 – an Off-Road Performance Pickup, More Trucks – Chevrolet Colorado ZR2 Bison, Chevy Performance Releases Colorado ZR2 Race Parts, First Look – New or Revised 2020 Jeep Gladiator)

Most Ranger and F-150 trucks are purchased with four-wheel drive, and it’s said the leveling kits will enable off-road drivers to risk more challenging terrain. Beyond adding additional ground clearance, off-road performance is improved with Ford truck-optimized FOX  shocks. Continue reading →

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GM Strike Gets Nasty as it Cancels UAW Healthcare Plan

Posted on 18 September 2019 by Ken Zino
AutoInformed.com on GM

Well, one real no-deal point is now clear – health care costs.

On Monday night as UAW workers from nearly 70 facilities in 19 states were standing on the picket lines, GM chose to terminate their health coverage immediately. The company’s decision was made without any warning to the UAW, leaving more than 48,000 members and their families at risk of being suddenly uninsured.

The UAW activated the strike fund as soon as it became aware of GM’s strategic (ham-fisted?) decision to cut healthcare. (Watch Laura Prater Video) Continue reading →

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UAW Strike Cost at GM Builds Substantially with Duration

Posted on 17 September 2019 by Ken Zino
AutoInformed.com on UAW GM Strike

Click to Enlarge.

Last Sunday morning the UAW declared a national strike on General Motors, leading to ~46,000 hourly workers to walking off at 11:59 p.m. This is the first UAW national strike since 2007. Yesterday morning negotiations resumed.  (Teamsters to Honor Picket Lines of 50,000 UAW GM Workers, General Motors Offers UAW $7 Billion in U.S. Investments, an $8000 “Signing Bonus” or is that Bribe?,  UAW to Strike GM – Contract Talks Deadlocked)

The two sides claim to be at odds over wages, benefits, investments, job security and temporary workers, but the real sticking points that mean no deal are not publicly known. How far apart the sides really are will determine the length and cost of the strike. The strike shuts down more than 30 manufacturing plants in the US, including 12 vehicle assembly plants and eight engine and transmission plants. Worse, the Teamsters won’t deliver vehicles in inventory to dealers. (The GM Grinch that Stole Christmas, or Did It?) Continue reading →

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Sonic Financial Takes Over Speedway Motorsports

Posted on 17 September 2019 by Ken Zino

AutoInformed.com on Speedway Motorsports Takeover by the Smith FamilySonic Financial Corporation (“Sonic Financial”)  and Speedway Motorsports (NYSE: TRK) today announced that Sonic Financial’s tender offer to purchase all outstanding shares of common stock of Speedway Motorsports expired one-minute past 11:59 p.m., New York City time, on September 16, 2019. This means that barring a last minute legal challenge Speedway will be taken private and no longer publicly traded and subject to stock exchange rules. (Speedway Motorsports Ownership Scuffle Underway)

Sonic Financial intends “to promptly complete the acquisition of all shares of Speedway Motorsports through a merger of Speedway Motorsports and a subsidiary of Sonic Financial, without a vote of Speedway Motorsports stockholders, in accordance with Delaware law.” Continue reading →

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Teamsters to Honor Picket Lines of 50,000 UAW GM Workers

Posted on 15 September 2019 by Ken Zino
AutoInformed.com on Democrqats and the union movement

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“Teamsters and the UAW have a decades-long relationship of having each other’s back. And that continues with the UAW’s notification that it will go out on strike against General Motors at midnight. Our 1.4 million members stand in solidarity with the UAW and will honor their picket lines,” said Teamsters General President Jim Hoffa this afternoon.

“We laud the UAW for its work to ensure that its GM employees are treated with respect and dignity on the job. At a time when more and more companies are downsizing and shipping jobs out of the U.S., it is imperative that unions fight for their members. Workers should be rewarded for good work with fair wages and benefits. That’s what the UAW is demanding.”

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General Motors Offers UAW $7 Billion in U.S. Investments, an $8000 “Signing Bonus” or is that Bribe?

Posted on 15 September 2019 by Ken Zino
AutoInformed.com on the UAW

First Round – no GM decision.

In its latest statement – with perhaps a hint of desperation – GM said today that “We presented a strong offer that improves wages, benefits and grows U.S. jobs in substantive ways, and it is disappointing that the UAW leadership has chosen to strike at midnight tonight. We have negotiated in good faith and with a sense of urgency. Our goal remains to build a strong future for our employees and our business.” GM Claims the Offer contains… 

Continue reading →

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UAW to Strike GM – Contract Talks Deadlocked

Posted on 15 September 2019 by Ken Zino
AutoInformed.com on GM andthe UAW

The opening day for contract talks this year arguably began with baseball. An example of idiocy from the tone-deaf management of General Motors, the opening day lineup was changed as UAW members arose in anger and successfully got a Mexican-Made Chevrolet Blazer removed from the Chevrolet Fountain at Comerica Park, the home of the Detroit Tigers. Both the Union and GM leadership just watched the Mexican stolen base with defensive indifference. In the Blazer’s place now is a U.S.-made Traverse.

Local UAW Union leaders from across the nation met Sunday morning after the 2015 General Motors collective bargaining agreement expired last night and opted to strike at midnight on Sunday. In a widely expected development, the autoworkers are calling on the Big 3 automaker “to recognize the contributions and sacrifices that the company’s UAW members have made to create a healthy, profitable, industry.”

There are other issues in play that thus far have not been part of the publicly known parts of the negotiations. UAW President Gary Jones, of course is under an investigation by the FBI in the fraudulent diversion of funds from FCA Fiat that were supposed to support UAW worker training. He refused to stand down as president during the contract talks as criminal investigations ensue. Continue reading →

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August Global Light Vehicle Sales Drop -3.9%

Posted on 13 September 2019 by Ken Zino
AutoInformed.com on Global Light Vehicle Sales August 2019

Trump’s economic whims are the cause of the prolonged US-China trade conflict, and a slowing economy continues to present a major risk to the automotive market.

Global Light Vehicle (LV) sales fell 3.9% in year-on-year (YoY) terms in August, but the selling rate accelerated to 94.9 mn units/year, from 90.9 mn units/year in July, according to the LMC* consultancy. However, in a whistling past the graveyard qualifier, LMC notes that “the selling rate was the strongest since August 2018’s WLTP-distorted result, though additional WLTP requirements may have contributed to the surge in Europe’s selling rate in August 2019 as well.” (WLTP How Does It Work? Will it Work?)

Elsewhere, selling rates in the USA and China appear stabilized. “However, in YoY terms, China is still firmly in negative territory, while the US comparison was positive, helped by calendar effects. Meanwhile, August brought some renewed weakness in South America, too.” (AutoInformed: July Global Vehicles Sales Drop More Than 3M) Continue reading →

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Ford Recalls 311,907 Explorer SUVs for Dangerous Seat Frames

Posted on 13 September 2019 by Ken Zino

AutoInformed on Safety RecallsFord Motor Company is issuing a safety recall on 2017 Ford Explorer vehicles for an improperly coined seat-frame edge that cuts users hands. Affected Explorers are equipped with power seats and may have seat frames with sharp edges. Customers could come in contact with the sharp edges when reaching between the power front seat and center console, presenting the risk of injury.

It took 31 reports of hand injuries before Ford acted on replacing the dangerous part. This is the seventh safety defect recall – thus far – on the 2017 model Explorer. Continue reading →

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