By on January 12, 2016

Matthias Müller

Volkswagen CEO Matthias Müller apologized again to dealers and customers for the ongoing diesel scandal in a statement to CNBC’s Phil LeBeau. When pressed, he also admitted that buybacks are possible.

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By on November 26, 2015

Editor’s notes: One of the best reads of the year, there’s nothing like some Fargo-style forgery on a massive scale to liven up your afternoon. This piece originally ran September 3rd, 2015.

In the opening moments of the above scene from the flick “Fargo,” Oldsmobile dealership sales manager Jerry Lundegaard is working up some bogus paperwork to cover his tracks with General Motors Acceptance Corporation (GMAC). We can infer that he sold some floor-planned cars and did not pay back GMAC, which was the impetus for the movie’s storyline of his bumbling attempt to extort money from his father-in-law.

Jerry’s store may have been “out of trust” with GMAC on a few dozen 1987 Cutlasses, but that pales in comparison to the scheme concocted by New York car dealer John McNamara.

Between 1980 and 1991, McNamara convinced GMAC to advance him $6.2 billion to pay for 248,000 conversion vans that did not exist. It was one of the largest Ponzi schemes in history and ended up costing GMAC $436 million, equal to $725 million in today’s dollars.

We would like to show you a photo of McNamara but none are to be found. That may be because it is believed he went into the Witness Protection Program a few years after his conviction for fraud in 1992. Just picture Lundegaard with a really big brain.

McNamara’s brilliant swindle was deliciously simple. It was based on one undeniable truth he learned from his years of owning a Buick-Pontiac-GMC dealership on Long Island: General Motors and GMAC were too incompetent and too bureaucratic to figure out that they were being scammed.

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By on September 3, 2015

In the opening moments of the above scene from the flick “Fargo,” Oldsmobile dealership sales manager Jerry Lundegaard is working up some bogus paperwork to cover his tracks with General Motors Acceptance Corporation (GMAC). We can infer that he sold some floor-planned cars and did not pay back GMAC, which was the impetus for the movie’s storyline of his bumbling attempt to extort money from his father-in-law.

Jerry’s store may have been “out of trust” with GMAC on a few dozen 1987 Cutlasses, but that pales in comparison to the scheme concocted by New York car dealer John McNamara.

Between 1980 and 1991, McNamara convinced GMAC to advance him $6.2 billion to pay for 248,000 conversion vans that did not exist. It was one of the largest Ponzi schemes in history and ended up costing GMAC $436 million, equal to $725 million in today’s dollars.

We would like to show you a photo of McNamara but none are to be found. That may be because it is believed he went into the Witness Protection Program a few years after his conviction for fraud in 1992. Just picture Lundegaard with a really big brain.

McNamara’s brilliant swindle was deliciously simple. It was based on one undeniable truth he learned from his years of owning a Buick-Pontiac-GMC dealership on Long Island: General Motors and GMAC were too incompetent and too bureaucratic to figure out that they were being scammed.

Read More >

By on July 8, 2015

starlimo

When Maggie Dajani realized that the tire-pressure warning light was on in the van she’d rented to take six teenagers and their parents to a One Direction concert in El Paso, she took the van back to the rental company. A representative of the company, Star Limo, told her not to worry. She then continued to the concert. Shortly afterwards, the van blew two tires and rolled over. Several motorists helped drag the ten passengers out of the van, which was filling with smoke. The children went to the hospital with various injuries, and one of them reportedly received one hundred and fifty stitches as a result.

Now, the New Mexico Public Regulatory Commission has delivered a very, ahem, business-friendly verdict on the whole ordeal. Turns out that Star Limo is the beneficiary of a unique combination of regulatory conditions.

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By on July 7, 2015

The Gulf Of Mexico Dead Zone... absolutely caused by ethanol corn production (courtesy: Wired)

Last week’s news of BP’s $18.7 billion settlement with federal and state governments brought to close the second act of one of the worst environmental tragedies of all time. There’s no promise that the third act won’t drag out for decades and ultimately end in heartbreak either.

BP’s structured settlement means the oil producer will pay roughly $1 billion each year over the next two decades to state and local governments impacted by the 3.9 million barrels of oil dumped into the Gulf of Mexico from the Deepwater Horizon oil rig. Of course, there’s no amount of money that could assuage the grief from families of the 11 workers killed in the spill.

But the settlement doesn’t address the hundreds of individual or class action lawsuits, or many of the claims made against BP by local business owners and people since the 2010 spill. Some of those civil cases are still in court, some on appeal, and many are years away from a meaningful conclusion.

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By on July 3, 2015

Julie Hamp Not In BlackResigned Toyota PR chief Julie Hamp was named to PR Week’s “Power List” two weeks after being busted for allegedly importing illegal prescription painkillers into Japan last month. Hamp allegedly received 57 pills of Oxycodone in a box labeled “necklaces” at Narita Airport in Tokyo.

The list, which ranks her No. 10, was released the same day Hamp resigned her position and included an editor’s note at the top explaining the awkward timing.

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By on July 2, 2014

“So you honked at me because you believed I was speeding…”

“Because you were driving recklessly and speeding now, it’s got wet roads and you were on your cell phone.”
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By on May 19, 2014
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Seattle’s TV stations are reporting that a wealthy businessman who led police on a high speed chase through the city of Olympia in his Ferrari F360 has been sentenced to just one year of work release. According to the reports, Shaun Goodman pleaded guilty to felony police evasion and DUI for the December 29 incident that saw his terrified passenger leap from the moving car when he slowed at an intersection and ended only after he crashed into a parked car and then careened into the side of a house. Read More >

By on May 14, 2014
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Two weeks ago we had a horrific accident here in Buffalo. It was the end result of a street race that saw a 47 year old man trapped in the wreckage of his car and burned alive.

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By on April 28, 2014

2014 Volvo S60, Interior, Gauges and steering wheel, Picture Courtesy of Teknikens Värld

Yesterday, someone had the audacity to honk at me. It wasn’t one of those cheerful little toots that a person might use to get someone’s attention when waving them into traffic, but a full-on ten second blast – the kind that you should only use when you are behind the controls of a freight train that is bearing down upon someone in the tracks. The offender? Some octogenarian in a Buick. My crime? A not so near-miss that occurred while I was making a left turn across traffic from a side street into a center turn lane. Read More >

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