The Truth About Cars » High Finance http://www.thetruthaboutcars.com The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. Sun, 23 Nov 2014 04:53:43 +0000 en-US hourly 1 http://wordpress.org/?v=4.0 The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars no The Truth About Cars editors@ttac.com editors@ttac.com (The Truth About Cars) 2006-2009 The Truth About Cars The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars » High Finance http://www.thetruthaboutcars.com/wp-content/themes/ttac-theme/images/logo.gif http://www.thetruthaboutcars.com/category/news-blog/high-finance/ GM Victim Compensation Program Deadline Extended http://www.thetruthaboutcars.com/2014/11/gm-victim-compensation-program-deadline-extended/ http://www.thetruthaboutcars.com/2014/11/gm-victim-compensation-program-deadline-extended/#comments Tue, 18 Nov 2014 13:00:24 +0000 http://www.thetruthaboutcars.com/?p=946618 The victims and families affected by the February 2014 General Motors ignition switch recall can breathe a little easier, as the deadline to file a claim with the victim compensation program administered by attorney Kenneth Feinberg has been extended. Autoblog reports the deadline is now January 31, 2015, per a recommendation to GM by Feinberg. […]

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Saturn-Ion-RedLine

The victims and families affected by the February 2014 General Motors ignition switch recall can breathe a little easier, as the deadline to file a claim with the victim compensation program administered by attorney Kenneth Feinberg has been extended.

Autoblog reports the deadline is now January 31, 2015, per a recommendation to GM by Feinberg. The move would allow both parties to be able to reach “every eligible person impacted” by the switch at the center of the February 2014 recall.

Since the window for accepting claims opened in August, a total of 2,105 were filed through last Friday, including 217 fatality, 128 severe injury and 1,760 less-severe injury claims. Among them, 72 claims were found eligible for compensation (33 fatality, 5 severe injury, 34 less-severe), while 292 claims (27 fatality, 30 severe injury, 235 less-severe) were under review.

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Report: US Median Income Could Soon Outpace Falling Car Prices http://www.thetruthaboutcars.com/2014/11/report-us-median-income-soon-outpace-falling-car-prices/ http://www.thetruthaboutcars.com/2014/11/report-us-median-income-soon-outpace-falling-car-prices/#comments Mon, 17 Nov 2014 15:00:18 +0000 http://www.thetruthaboutcars.com/?p=946258 Consumers looking for a new car may not need to take their wallets to the hospital afterwards should prices continue to fall and incomes continue to rise. According to Edmunds, the Auto Buyer’s Affordability Index found that a consumer whose income matched the U.S. household median of $54,457 could afford 54.1 percent — $16,448 — […]

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Woman Receiving Car Keys For Her Death Ride 1969 Extravaganza

Consumers looking for a new car may not need to take their wallets to the hospital afterwards should prices continue to fall and incomes continue to rise.

According to Edmunds, the Auto Buyer’s Affordability Index found that a consumer whose income matched the U.S. household median of $54,457 could afford 54.1 percent — $16,448 — of a new vehicle with an average transaction price of $30,382, as recorded in October 2014.

ABAI publisher Requisite Press stated that while the current percentage was still high, “transaction prices have recently begun to weaken under ideal conditions for strength,” such as the rise in income among consumers. There, the ABAI found said income had climbed 3.8 percent above the 52.1 percent value reported in April of this year, corresponding to an extra $653 in spending ability.

The publisher adds that should the center hold, the U.S. median household income would continue to outpace automotive pricing, a status not seen since 1980. President Phil Kelton explains:

New-car affordability is likely to improve in the coming days if we can avoid an income slowdown. The selection of affordable models is best increased by competition, but a sustained improvement in affordability will certainly give it a boost.

As for taking advantage of this burgeoning reality, Requisite Press suggests consumers “maximize their buying power” along every step of the car-buying process, with a suggestion to follow the 20-4-10 rule: 20 percent down, four-year loan term max, 10 percent of income spent on car payments.

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Ferrari To Pay $2.8B For Its Freedom From FCA http://www.thetruthaboutcars.com/2014/11/ferrari-pay-2-8b-freedom-fca/ http://www.thetruthaboutcars.com/2014/11/ferrari-pay-2-8b-freedom-fca/#comments Fri, 14 Nov 2014 14:00:08 +0000 http://www.thetruthaboutcars.com/?p=945081 Set to be its own master within a year’s time, Ferrari must first pay its dues before freedom calls, all to the tune of €2.25 billion ($2.8 billion USD). Automotive News Europe reports the payment will come from a sorting of affairs between the brand and parent company Fiat Chrysler Automobiles, consisting of “distributions and […]

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Set to be its own master within a year’s time, Ferrari must first pay its dues before freedom calls, all to the tune of €2.25 billion ($2.8 billion USD).

Automotive News Europe reports the payment will come from a sorting of affairs between the brand and parent company Fiat Chrysler Automobiles, consisting of “distributions and transfers of cash from Ferrari” among other transactions prior to the October 2015 separation.

CEO and Ferrari chairman Sergio Marchionne says 10 percent of the sports car brand will be made to the public between Q2 and Q3 of 2015, while 80 percent will be given to FCA’s investors; brand vice chairman Piero Ferrari will hold onto the remaining 10 percent.

The spinoff is part of an overall capital raising plan, which includes a $2.5 billion convertible bond set to mature in 2016, and underwritten by JPMorgan Chase, Goldman Sachs, Barclays and UBS. The plan will net FCA approximately €4 billion ($5 billion).

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Takata Issues Newer, Wider Annual Loss Forecast For FY 2014 http://www.thetruthaboutcars.com/2014/11/takata-issues-newer-wider-annual-loss-forecast-fy-2014/ http://www.thetruthaboutcars.com/2014/11/takata-issues-newer-wider-annual-loss-forecast-fy-2014/#comments Fri, 07 Nov 2014 13:00:16 +0000 http://www.thetruthaboutcars.com/?p=942449 The hits keep coming for Takata as its airbag debacle moves forward, this time with announcement that its annual loss forecast will grow wider than previously stated. Automotive News reports the new forecast calls for a loss of ¥25 billion ($218 million USD) during FY 2014, a ¥1 billion ($8.7 million) difference compared to the […]

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A sign board of Japanese auto parts maker Takata Corp's Annual General Meeting is seen on a street near the venue in Tokyo

The hits keep coming for Takata as its airbag debacle moves forward, this time with announcement that its annual loss forecast will grow wider than previously stated.

Automotive News reports the new forecast calls for a loss of ¥25 billion ($218 million USD) during FY 2014, a ¥1 billion ($8.7 million) difference compared to the forecast made in August; both figures are record losses for the automotive supplier.

Additionally, Takata will skip a dividend this year, the first time in eight years it has done so. The company took a ¥45 billion ($390 million) charge in Q1 2014 as a result of the airbag recalls, and has said future charges would be limited.

CFO Yoichiro Nomura apologized before the Tokyo Stock Exchange, saying his company hadn’t meant to worry its customers, automakers and investors who were all affected by its products. Takata shares declined 1.4 percent in trading, falling from ¥1,579 ($13.69) to ¥1,527 ($13.23) by the closing bell Thursday afternoon.

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Tesla Loses $75M In Net GAAP Income In Q3 2015 http://www.thetruthaboutcars.com/2014/11/tesla-loses-75m-net-gaap-income-q3-2015/ http://www.thetruthaboutcars.com/2014/11/tesla-loses-75m-net-gaap-income-q3-2015/#comments Fri, 07 Nov 2014 11:00:58 +0000 http://www.thetruthaboutcars.com/?p=942401 Tesla’s Q3 2014 earnings report had a few pluses (record deliveries of the Model S, high demand for the D trim sedans) and minuses (the third delay of the Model X, removal of brown and green from the Model S palette). The biggest minus, however, was its bottom line: A net loss of $75 million […]

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Tesla Model S at Tesla HQ

Tesla’s Q3 2014 earnings report had a few pluses (record deliveries of the Model S, high demand for the D trim sedans) and minuses (the third delay of the Model X, removal of brown and green from the Model S palette). The biggest minus, however, was its bottom line: A net loss of $75 million in GAAP income.

AutoNews reports the loss in Generally Accepted Accounting Principles income is double what Tesla lost in Q3 2013. Cash on-hand also decreased in the quarter, falling $304 million to $2.4 billion. Non-GAAP net income was $3 million, or just 2 cents per share based upon 142.7 million diluted shares.

Overall income from the 7,785 units delivered this period came out to $932 million in non-GAAP income, $852 million once GAAP is applied. Regulatory credits totalled $93 million, with $76 million in ZEV credits, thanks to the closure of additional contracts with a number of OEMs.

R&D spending climbed 28 percent over the previous quarter, hitting $119 million non-GAAP, $136 million GAAP. The expenses came as a result of work on the oft-delayed X, the D’s dual-motor drivetrain, and the new Autopilot semi-autonomous driving system.

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General Motors Stands To Lose $2B If Bankruptcy Protections Collapse http://www.thetruthaboutcars.com/2014/11/general-motors-stands-to-lose-2b-if-bankruptcy-protections-collapse/ http://www.thetruthaboutcars.com/2014/11/general-motors-stands-to-lose-2b-if-bankruptcy-protections-collapse/#comments Thu, 06 Nov 2014 14:00:45 +0000 http://www.thetruthaboutcars.com/?p=942057 Remember all of those bankruptcy protections sought by General Motors that were made against any and all future lawsuits linked to ignition-related accidents and fatalities that occurred prior to the automaker’s exit from said bankruptcy in July 2009? Guess how much it would owe if the shield collapsed? Bloomberg reports GM could be on the […]

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GM First Day as a Public Company Celebration

Remember all of those bankruptcy protections sought by General Motors that were made against any and all future lawsuits linked to ignition-related accidents and fatalities that occurred prior to the automaker’s exit from said bankruptcy in July 2009? Guess how much it would owe if the shield collapsed?

Bloomberg reports GM could be on the hook for as much as $2 billion if federal bankruptcy judge Robert Gerber of Manhattan rules in favor of the plaintiffs of a class action aimed at bringing said shield down.

The suit calls for damages to be paid due to lost resale value as a result of the February 2014 ignition switch recall, citing alleged fraud committed by the company during the proceedings, claiming executives knew of the issues affecting a handful of models made between 2003 and 2011. Bankruptcy attorney Chip Bowles explains:

In bankruptcy, you have to disclose your assets and liabilities. Those are basic requirements — and GM didn’t do it. It would be very easy for Gerber to say, “Guess what? If you know someone is a creditor you have to give them notice. If you fail to do so, they aren’t constitutionally bound by my orders.”

The collapse would only be the beginning: Aside from the 2.2 million vehicles that could be affected, another 9.6 million vehicles suffering similar ignition woes — 90 percent of which were made prior to the July 2009 reorganization — would likely see their owners wanting a part of GM.

A ruling could be made as early as late February of 2015.

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Tesla: Model X Delayed Until Q3 2015, D Models In High Demand http://www.thetruthaboutcars.com/2014/11/tesla-model-x-delayed-q3-2015-d-models-high-demand/ http://www.thetruthaboutcars.com/2014/11/tesla-model-x-delayed-q3-2015-d-models-high-demand/#comments Thu, 06 Nov 2014 13:00:55 +0000 http://www.thetruthaboutcars.com/?p=941801 Were you hoping to have a Tesla Model X next to your Model S sometime in the next few months? How does Q3 2015 sound? CEO Elon Musk informed investors during his company’s quarterly earnings call Wednesday that the electric SUV would be delayed until the aforementioned quarter to insure quality would be Job No. […]

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Were you hoping to have a Tesla Model X next to your Model S sometime in the next few months? How does Q3 2015 sound?

CEO Elon Musk informed investors during his company’s quarterly earnings call Wednesday that the electric SUV would be delayed until the aforementioned quarter to insure quality would be Job No. 1 as tooling and production step-up to handle both the S and the X:

In anticipation of this effort, we now expect Model X deliveries to start in Q3 of 2015, a few months later than previously expected. This also is a legitimate criticism of Tesla — we prefer to forgo revenue, rather than bring a product to market that does not delight customers. Doing so negatively affects the short term, but positively affects the long term.

In other news, Tesla is discontinuing two colors going forward — green and brown — and if you wanted a P85S, you’re out of luck there, as well: the highest-performing model will now be solely the P85D.

Speaking of the S, Q3 2014 sales have gone well for the automaker, with 7,785 units delivered overall and 907 delivered in a single day, the highest figures ever recorded in a quarter for Tesla. Most of the deliveries were in North America.

Demand for the 85D and P85D is also strong, meriting a boost in production capacity to over 2,000 units per week by the end of 2015.

Finally, the D is beating a path toward the Model 3. Per Jalopnik, Musk proclaimed that the dual-motor powertrain is a precursor to what could happen when the low-cost EV arrives, which may entail a FWD model followed by a D version.

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GM Offers Gift Cards To 700K Affected By Ignition Recall http://www.thetruthaboutcars.com/2014/11/gm-offers-gift-cards-700k-affected-ignition-recall/ http://www.thetruthaboutcars.com/2014/11/gm-offers-gift-cards-700k-affected-ignition-recall/#comments Wed, 05 Nov 2014 15:00:31 +0000 http://www.thetruthaboutcars.com/?p=941017 Just in time for Black Friday or Black Thanksgiving (for those heathens who really want Alex from Target to scan their cheap HDTV, instead of giving him the day off by voting with their wallets), General Motors will be giving their customers a $25 gift card if they bring in their vehicles affected by the […]

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Gift Cards Woo-Hoo

Just in time for Black Friday or Black Thanksgiving (for those heathens who really want Alex from Target to scan their cheap HDTV, instead of giving him the day off by voting with their wallets), General Motors will be giving their customers a $25 gift card if they bring in their vehicles affected by the February 2014 recall by December 1.

The Detroit News reports brochures about the gift card incentive began landing last week in the mailboxes of those who have yet to bring in their affected vehicle for a 30-minute part swap. Per GM representative Ryndee Carney, the promo went out to around 700,000 who haven’t ordered parts; those who did, but haven’t come in, weren’t eligible for the offer.

After said owners have their vehicles repaired, they will be given a code to redeem online for a $25 card from either Amazon, AMC, Applebee’s, Bass Pro Shops, Red Robin, Starbucks or Walmart, with delivery due between two to four weeks. Were all 700,000 to turn up, a total of $17.5 million would be given away in the promotion.

The National Highway Traffic Safety Administration is on-board with the initiative, encouraging GM to do everything it can to repair those affected vehicles. A similar program was offered by Toyota in 2010 during its unintended acceleration recall drive, one that made a huge splash with response rates, according to vice president of corporate communications, Mike Michels.

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Russian Billionaire Steps In To Keep The Nurburgring Alive http://www.thetruthaboutcars.com/2014/11/russian-billionaire-steps-keep-nurburgring-alive/ http://www.thetruthaboutcars.com/2014/11/russian-billionaire-steps-keep-nurburgring-alive/#comments Mon, 03 Nov 2014 12:00:17 +0000 http://www.thetruthaboutcars.com/?p=939649 Home to many a ‘Ring time, as well as one 24-hour FIA GT3 throwdown with as many competitors and fans as it can fit, the Nurburgring has found a new owner in Russian billionaire Viktor Kharitonin. Autoblog reports Kharitonin — founder of Russia’s largest pharmaceutical company, Pharmstandard — took over from previous owner Capricon, who […]

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Motorsports / 24h-Rennen Nürburgring

Home to many a ‘Ring time, as well as one 24-hour FIA GT3 throwdown with as many competitors and fans as it can fit, the Nurburgring has found a new owner in Russian billionaire Viktor Kharitonin.

Autoblog reports Kharitonin — founder of Russia’s largest pharmaceutical company, Pharmstandard — took over from previous owner Capricon, who paid €77 million ($96 million USD) for the track in a bankruptcy sale. Capricon couldn’t keep up with the monthly €5 million ($6.2 million) payments, however, which was when Kharitonin rode in to save the day.

Since then, the 1,342nd richest individual in the world has set up a holding company named NR Holding AG to oversee operations, as well as paid the next installment for December well in advance of the due date. Kharitonin’s company holds two-thirds of the Nurburgring, with German motorsports company GetSpeed maintaining the remaining third.

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Treasury: GM Bailout Suit Would Hinder Future Actions http://www.thetruthaboutcars.com/2014/10/treasury-gm-bailout-suit-hinder-future-actions/ http://www.thetruthaboutcars.com/2014/10/treasury-gm-bailout-suit-hinder-future-actions/#comments Fri, 31 Oct 2014 12:00:18 +0000 http://www.thetruthaboutcars.com/?p=938857 Should companies in the future need to be bailed-out by the federal government, they may not be so forthcoming with the necessary information if General Motors’ confidential documents linked to its own bailout see the light of day. Bloomberg reports the U.S. Treasury is doing all it can to protect the information submitted by GM […]

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Should companies in the future need to be bailed-out by the federal government, they may not be so forthcoming with the necessary information if General Motors’ confidential documents linked to its own bailout see the light of day.

Bloomberg reports the U.S. Treasury is doing all it can to protect the information submitted by GM prior to investing $49.5 billion into the automaker during the early days of the Great Recession:

Disclosure of the disputed information would also impair Treasury’s ability to obtain necessary information from companies in the future. [The] Treasury’s ability to act as a lender would be hampered.

The information is at the heart of a lawsuit filed by the Center for Auto Safety in 2011. Over 50,000 records were obtained thus far, but the advocacy group wants information on how much of a role the Treasury played in preventing pre-bankruptcy claims made against GM over vehicles linked to the February 2014 ignition switch recall from moving forward.

Clarence Ditlow, head of the Center for Auto Safety, disputed the idea that future companies in need of help would be dissuaded from “begging for billion in taxpayer dollars” were the desired documents revealed.

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GM Invests $63M Into Lansing Delta Township Expansion http://www.thetruthaboutcars.com/2014/10/gm-invests-63m-lansing-delta-township-expansion/ http://www.thetruthaboutcars.com/2014/10/gm-invests-63m-lansing-delta-township-expansion/#comments Fri, 31 Oct 2014 10:00:37 +0000 http://www.thetruthaboutcars.com/?p=938809 General Motors is gearing up to spend $63 million on expanding its Lansing Delta Township plant — home of the GMC Acadia, Buick Enclave and Chevrolet Traverse — as part of an overall $300 million improvement plan involving the automaker’s Michigan properties. The expansion will add 263,000 square feet in total to the 3.4 million […]

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2011 GMC Acadia Denali

General Motors is gearing up to spend $63 million on expanding its Lansing Delta Township plant — home of the GMC Acadia, Buick Enclave and Chevrolet Traverse — as part of an overall $300 million improvement plan involving the automaker’s Michigan properties.

The expansion will add 263,000 square feet in total to the 3.4 million square-foot plant, which first opened in 2006. The footage will be split into three pieces, with over 181,000 square feet going to the body shop to accommodate new robots and lean flexible tooling; 54,000 square feet to the paint shop for usage of improved body sealers and coatings; and 28,000 square feet for general assembly.

The investment is the second put into the plant since opening; Lansing Delta received $37 million in 2010 for tooling and equipment “to enhance the plant’s manufacturing capabilities.”

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FCA Spinning Ferrari Off From Parent Company By 2015 http://www.thetruthaboutcars.com/2014/10/fca-spinning-ferrari-parent-company-2015/ http://www.thetruthaboutcars.com/2014/10/fca-spinning-ferrari-parent-company-2015/#comments Wed, 29 Oct 2014 20:19:30 +0000 http://www.thetruthaboutcars.com/?p=938057 By this time next year, Ferrari will no longer be a part of Fiat Chrysler Automobiles, thanks to a plan announced today that will spin the exotic brand off from the rest of the Italo-American automaker. Bloomberg reports FCA will sell 10 percent of its stake to the public, giving the remaining 90 percent to […]

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By this time next year, Ferrari will no longer be a part of Fiat Chrysler Automobiles, thanks to a plan announced today that will spin the exotic brand off from the rest of the Italo-American automaker.

Bloomberg reports FCA will sell 10 percent of its stake to the public, giving the remaining 90 percent to the automaker’s own shareholders. The shares will be listed in the United States stock market, with Europe possibly receiving some of those shares, as well.

According to Morningstar analyst Richard Hilgert, the split “unlocks the value” in the Ferrari brand, which could be worth as much as $7.4 billion. He adds that the move helps pull Ferrari out of the shadow of FCA, citing “the street’s perception of low profitability to no profitability” regarding the automaker’s market performance.

Speaking of performance, FCA stock climbed to $11.56 Wednesday after opening at $11.31, falling to $10.85 at the closing bell. Ferrari stock, meanwhile, would go for $5.90/share for FCA shareholders.

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Tesla, US Bank Team For New Model S Lease Contract http://www.thetruthaboutcars.com/2014/10/tesla-us-bank-team-new-model-s-lease-contract/ http://www.thetruthaboutcars.com/2014/10/tesla-us-bank-team-new-model-s-lease-contract/#comments Wed, 29 Oct 2014 10:00:45 +0000 http://www.thetruthaboutcars.com/?p=937714 Want to own a Model S without worrying about a long-term commitment or how much it’ll hurt your bottom line? CEO Elon Musk has a deal for you. Reuters reports U.S. Bank will offer a lease with a 25 percent decrease in the amount paid per month. Per Musk, the bank was chosen due to […]

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Black Tesla Model S

Want to own a Model S without worrying about a long-term commitment or how much it’ll hurt your bottom line? CEO Elon Musk has a deal for you.

Reuters reports U.S. Bank will offer a lease with a 25 percent decrease in the amount paid per month. Per Musk, the bank was chosen due to having a “much lower cost of capital” than Tesla itself. As in previous leases, the lessee only needs to tap once on the vehicle’s touchscreen to agree the terms and conditions of the contract.

In addition to paying less per month a new Model S, Tesla will also offer its Happiness Guarantee to lessees who sign-on. The guarantee allows the lessee to return their vehicle to the automaker within three months if they find anything wrong with the product. However, Musk cautioned that if they wanted a new vehicle right away, they would need to wait a while. Lessees can also upgrade to a newer model after paying a pass-through fee.

U.S. Bank was chosen last year alongside Wells Fargo to enter into a partnership with the automaker to offer potential owners a 10 percent down payment on a new Model S purchase.

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Sixty-One GM Victim Compensation Claims Approved For Payout http://www.thetruthaboutcars.com/2014/10/sixty-one-gm-victim-compensation-claims-approved-payout/ http://www.thetruthaboutcars.com/2014/10/sixty-one-gm-victim-compensation-claims-approved-payout/#comments Tue, 28 Oct 2014 12:00:49 +0000 http://www.thetruthaboutcars.com/?p=936922 As of last Friday, 30 fatality and 31 injury claims have been approved for payout from the General Motors victim compensation fund created in the wake of the February 2014 ignition recall, and helmed by the staff of appointed attorney Kenneth Feinberg. The Detroit News reports a total of 1,580 were filed between August 1 […]

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Recalled GM ignition switch

As of last Friday, 30 fatality and 31 injury claims have been approved for payout from the General Motors victim compensation fund created in the wake of the February 2014 ignition recall, and helmed by the staff of appointed attorney Kenneth Feinberg.

The Detroit News reports a total of 1,580 were filed between August 1 and last week, consisting of 193 fatality claims, 102 serious injury claims, and 1,286 claims for less-serious injuries.

Regarding eligibility for payout, around 90 to 100 claims were declared ineligible, while the vast majority were still under review.

On the settlement front, offers were made to 31 victims and their families, 21 of whom accepted the terms with the remaining offers expected to be accepted. Deputy fund administrator Camile Biros added that the first checks are almost ready for issuing.

The window for filing closes on December 31, while verifications will continue into the new year.

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GM: Opel, Vauxhall Edging Closer To The Black Despite Russia http://www.thetruthaboutcars.com/2014/10/gm-opel-vauxhall-edging-closer-black-despite-russia/ http://www.thetruthaboutcars.com/2014/10/gm-opel-vauxhall-edging-closer-black-despite-russia/#comments Mon, 27 Oct 2014 14:00:02 +0000 http://www.thetruthaboutcars.com/?p=936162 Despite problems with the Russian market, as well as restructuring costs, General Motors says Vauxhall and Opel are on their way out of the red and into the black. Automotive News reports the European duo took a Q3 2014 loss of $387 million, compared to $238 million lost in Q3 2013. The majority of the […]

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Despite problems with the Russian market, as well as restructuring costs, General Motors says Vauxhall and Opel are on their way out of the red and into the black.

Automotive News reports the European duo took a Q3 2014 loss of $387 million, compared to $238 million lost in Q3 2013. The majority of the loss comes from Russia, where GM took $194 million in write-downs. A currency challenge with the ruble contributed $100 million to the overall figure, as well.

Barclays Capital analyst Brian Johnson believes that, putting aside the Russian-linked losses, Vauxhall and Opel are coming close to breaking even:

Backing out the losses from Russia, partly from the one-off charges and other related headwinds and partly from a depreciation in the ruble, Opel/Vauxhall looks to have been close to breakeven for the quarter.

GM is looking toward 2016 as the point where both of its European subsidiaries will be in the black, with future earnings between now and then tied to both the upcoming Corsa — set to arrive in January — and Astra. The Corsa already has 30,000 pre-orders, while the outgoing Astra saw its sales fall 9 percent through August 2014 to 121,950; the next-gen model will arrive in 2015.

Overall, the duo saw a 2 percent increase in sales during Q3 2014, moving 253,000. Annual sales through September climbed 8 percent to 683,797, and market share climbed a percentage point to 6.9 percent.

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Toyota Sells Some Of Its Stake In Tesla http://www.thetruthaboutcars.com/2014/10/toyota-sells-stake-tesla/ http://www.thetruthaboutcars.com/2014/10/toyota-sells-stake-tesla/#comments Mon, 27 Oct 2014 11:00:51 +0000 http://www.thetruthaboutcars.com/?p=935994 Daimler wasn’t the only to sell its Tesla shares last week, as Toyota has done the same with some of its shares in the company. Bloomberg reports the automaker sold part of its 2.4 percent stake in the company Friday, though no details were given as to how much of the $690 million ROI was […]

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2013 Toyota RAV4 EV, Exterior, Photography Courtesy of Alex L. Dykes

Daimler wasn’t the only to sell its Tesla shares last week, as Toyota has done the same with some of its shares in the company.

Bloomberg reports the automaker sold part of its 2.4 percent stake in the company Friday, though no details were given as to how much of the $690 million ROI was brought back into its coffers. The sale follows Daimler’s full divestment from the company, where it turned over its 4 percent stake for $780 million.

Toyota and Tesla are also winding down their RAV4 EV program before going their separate ways, where the latter supplied battery packs for the former’s 2,600 electrified crossovers over the past three years.

Though the two differ on what future they see — Toyota prefers hydrogen, Tesla opts for more electricity — Toyota representative Kayo Doi says her employer has “a good relationship” with Tesla, “and will evaluate the feasibility of working together on future projects.”

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Daimler Financially Divests From Tesla, BMW Could Step In http://www.thetruthaboutcars.com/2014/10/daimler-financially-divests-tesla-bmw-step/ http://www.thetruthaboutcars.com/2014/10/daimler-financially-divests-tesla-bmw-step/#comments Thu, 23 Oct 2014 11:00:59 +0000 http://www.thetruthaboutcars.com/?p=935314 Over five years ago, Daimler AG acquired a 9.1 percent interest in Tesla, gaining 1,000 battery packs for its Smart EV in exchange for helping to put the Model S on the road to production. Wednesday, Daimler sold its remaining 4 percent in the company, netting $780 million for the trouble. Despite the divestiture, both […]

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Mercedes-Benz B-Klasse Electric Drive – Laden / Mercedes-Benz

Over five years ago, Daimler AG acquired a 9.1 percent interest in Tesla, gaining 1,000 battery packs for its Smart EV in exchange for helping to put the Model S on the road to production.

Wednesday, Daimler sold its remaining 4 percent in the company, netting $780 million for the trouble.

Despite the divestiture, both automakers will continue cooperating on ongoing projects, such as the Mercedes-Benz B-Class Electric Drive recently launched in the United States. Daimler financial management board member Bodo Uebber said the sale would allow Tesla to “broaden its investor base,” adding that stock ownership wasn’t necessary to the overall relationship between the two companies.

As for who Tesla could now court, Forbes believes BMW could be drawn further into its own relationship with the company. International Strategy & Investment analyst Arndt Ellinghorst believes Tesla would benefit more from BMW’s carbon-fiber technology — put to great use in the i Series — than from providing batteries to Mercedes. Both companies met in June to discuss standardization for a potential EV charging network.

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GM Slapped With Lawsuits Totalling $10B Over Lost Value Claims http://www.thetruthaboutcars.com/2014/10/gm-slapped-lawsuits-totalling-10b-lost-value-claims/ http://www.thetruthaboutcars.com/2014/10/gm-slapped-lawsuits-totalling-10b-lost-value-claims/#comments Thu, 16 Oct 2014 13:00:37 +0000 http://www.thetruthaboutcars.com/?p=932002 General Motors twice experienced the business end of a leather glove Wednesday, when over 20 million consumers demanded satisfaction via two lawsuits totalling $10 billion in claims over lost resale value as a result of the February 2014 ignition switch recall. Bloomberg reports two class actions would come GM’s way, the larger representing those who […]

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2009 Chevrolet Cobalt Kia Store

General Motors twice experienced the business end of a leather glove Wednesday, when over 20 million consumers demanded satisfaction via two lawsuits totalling $10 billion in claims over lost resale value as a result of the February 2014 ignition switch recall.

Bloomberg reports two class actions would come GM’s way, the larger representing those who bought a GM vehicle between July 2009 and July 2014, whether or not they were still in possession of said vehicle.

The smaller lawsuit, meanwhile represents those who bought vehicles prior to the automaker’s bankruptcy in July 2009, though it may be muted depending on how a bankruptcy judge in New York rules next year regarding whether or not claims for accidents and economic losses made before the bankruptcy would be allowed to move forward.

According to the filing for the larger suit, “New GM’s” claims of being focused on safety and innovation were little more than a mask, resulting in diminished values of all GM-branded vehicles as a result of both the recall and the automaker’s “corporate culture of ignoring and concealing safety defects.”

For its part, GM vowed in an email to “vigorously defend against plaintiffs’ claims that GM vehicles have reduced resale value.”

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Panasonic Investing “Tens Of Billions” Of Yen In Tesla Gigafactory http://www.thetruthaboutcars.com/2014/10/panasonic-investing-tens-billions-yen-tesla-gigafactory/ http://www.thetruthaboutcars.com/2014/10/panasonic-investing-tens-billions-yen-tesla-gigafactory/#comments Mon, 13 Oct 2014 13:00:57 +0000 http://www.thetruthaboutcars.com/?p=930306 Just how much will Panasonic throw down on the table when it comes time to invest in Tesla’s new Gigafactory near Reno, Nev.? According to CEO Kazuhiro Tsuga, “tens of billions” of yen. Reuters reports Tsuga didn’t think the current exchange rate — which knocks his investment quote down to tens, if not hundreds, of […]

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Super GT Panasonic Toyota Prius

Just how much will Panasonic throw down on the table when it comes time to invest in Tesla’s new Gigafactory near Reno, Nev.? According to CEO Kazuhiro Tsuga, “tens of billions” of yen.

Reuters reports Tsuga didn’t think the current exchange rate — which knocks his investment quote down to tens, if not hundreds, of millions of dollars — was “bad,” so long as the exchange remained stable.

As reported earlier this year, Panasonic wants the Gigafactory all to itself, investing in all levels of production at the upcoming plant. The battery producer also agreed to manufacture lithium ion cells for Tesla’s and other manufacturers’ battery packs as part of the overall investment deal.

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NADA, CFPB Fight For Future Of Automotive Financing http://www.thetruthaboutcars.com/2014/10/nada-cfpb-fight-future-automotive-financing/ http://www.thetruthaboutcars.com/2014/10/nada-cfpb-fight-future-automotive-financing/#comments Thu, 09 Oct 2014 10:00:13 +0000 http://www.thetruthaboutcars.com/?p=927882 According to National Automobile Dealers Association chair Forrest McConnell, the United States government’s plan to tighten automotive finance regulations amounts to an attempt by said government “to take away the consumer’s right to get a discount.” Autoblog reports the Consumer Financial Protection Bureau wants to further extend its reach in the industry, arguing that a […]

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car salesman battle brigade

According to National Automobile Dealers Association chair Forrest McConnell, the United States government’s plan to tighten automotive finance regulations amounts to an attempt by said government “to take away the consumer’s right to get a discount.”

Autoblog reports the Consumer Financial Protection Bureau wants to further extend its reach in the industry, arguing that a flat-fee system would provide more transparency and prove beneficial to consumers over the current discretionary interest rate system, which the agency claims can be used to discriminate against certain groups of customers.

McConnell returned fire, proclaiming the CFPB’s reasoning as “flawed,” and that dealers are against discrimination:

Dealers have to discount those rates to be competitive. The current system saves customers money. Period.

At stake are 87.4 million outstanding loans worth over $900 billion as of Q1 2014, 90 percent of which originate from 38 auto finance companies that would fall under the proposed CFPB regulations.

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GM Compensation Claims Total 1130, 24 Death Claims Approved http://www.thetruthaboutcars.com/2014/10/gm-compensation-claims-total-1130-24-death-claims-approved/ http://www.thetruthaboutcars.com/2014/10/gm-compensation-claims-total-1130-24-death-claims-approved/#comments Tue, 07 Oct 2014 14:00:29 +0000 http://www.thetruthaboutcars.com/?p=927457 The compensation fund created by General Motors to pay claims resulting from injuries and deaths linked to a defective ignition switch found in a handful of 2003 through 2007 compact models has approved a total of 24 death claims for payout. According to The Detroit News, the overall number of claims jumped 30 percent last […]

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GM RenCen Garden

The compensation fund created by General Motors to pay claims resulting from injuries and deaths linked to a defective ignition switch found in a handful of 2003 through 2007 compact models has approved a total of 24 death claims for payout.

According to The Detroit News, the overall number of claims jumped 30 percent last week, from 867 to 1,130, while total death claims rose from 153 to 165.

Regarding injury claims, 79 for serious injury and 886 for less-serious injury cases were received, up from 70 and 644 respectively the week previous. The number of approved injury claims still stands at 16.

Finally, around 90 to 100 claims were found not eligible for payouts, while 30 victims and their families received settlement offers from the multi-million dollar fund.

Claims will be accepted until December 31, 2014.

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Buffett Enters Dealership Business With Van Tuyl Group Purchase http://www.thetruthaboutcars.com/2014/10/buffett-enters-dealership-business-van-tuyl-group-purchase/ http://www.thetruthaboutcars.com/2014/10/buffett-enters-dealership-business-van-tuyl-group-purchase/#comments Mon, 06 Oct 2014 12:00:46 +0000 http://www.thetruthaboutcars.com/?p=926441 Warren Buffett — no relation to Jimmy — is a lot of things: investor extraordinaire, railroad magnate, newspaper mogul, hip-hop enthusiast et al. As of last Thursday, however, he picked up a new title: master auto dealer. Bloomberg reports Buffett’s Berkshire Hathaway purchased Arizona-based Van Tuyl Group, the largest privately owned auto dealership group in […]

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Grand Re-Opening Of Jay-Z's 40/40 Club - Inside

Warren Buffett — no relation to Jimmy — is a lot of things: investor extraordinaire, railroad magnate, newspaper mogul, hip-hop enthusiast et al. As of last Thursday, however, he picked up a new title: master auto dealer.

Bloomberg reports Buffett’s Berkshire Hathaway purchased Arizona-based Van Tuyl Group, the largest privately owned auto dealership group in the United States, for an undisclosed sum. Namesake Larry Van Tuyl will continue to run the show, especially with Buffett’s plans to scale operations significantly.

The purchase is a bet on the consolidation of the dealership industry overall, as a handful of groups — like AutoNation, Group 1 and Penske — come into more dealerships; Van Tuyl operates 78 in 10 states, including Arizona, Texas and Nebraska.

Once the paperwork is sorted in Q1 2015, the group will be renamed Berkshire Hathaway Automotive. The group has over $8 billion in revenue.

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State, Federal Authorities Target Subprime Liar Auto Loans http://www.thetruthaboutcars.com/2014/10/state-federal-authorities-target-subprime-liar-auto-loans/ http://www.thetruthaboutcars.com/2014/10/state-federal-authorities-target-subprime-liar-auto-loans/#comments Mon, 06 Oct 2014 10:00:39 +0000 http://www.thetruthaboutcars.com/?p=926369 The same subprime lending practices in the mortgage industry that fueled the run-up toward the Great Recession have found a new market to infect: used-car auto lending. According to The New York Times, state and federal authorities are investigating used-car dealerships who finance subprime consumers by creating liar loans, loans where an applicant’s information is […]

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Ameriquest Mortgage NASCAR Nextel Cup Series Ford Fusion

The same subprime lending practices in the mortgage industry that fueled the run-up toward the Great Recession have found a new market to infect: used-car auto lending.

According to The New York Times, state and federal authorities are investigating used-car dealerships who finance subprime consumers by creating liar loans, loans where an applicant’s information is misrepresented, such as inflating one’s income or falsifying their employment information.

Thus far, the investigations have found hundreds of such loans, including a case in Odessa, Texas where two employees at a dealership created over 300 liar loans; the employees are now serving time in federal prison. Meanwhile, 15 states — including Florida, New York, Alabama, Ohio, Texas and Tennessee — have lawsuits pending against dealerships whose subprime lending tactics have financially damaged borrowers who would have otherwise been passed over.

Liar lending also damages lenders and investors — the latter including public pension funds and insurance companies — who buy the loans from the dealerships who commit to such tactics, eroding confidence in the securities generated by the loans. That said, more lenders are falling head over heels to have more loans in their portfolio — sometimes paying dealers in full immediately for them — fostering the sin that led some mortgage companies to the guillotine years ago.

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Metaxas: License Plate Recognition Can Improve Originations http://www.thetruthaboutcars.com/2014/10/metaxas-license-plate-recognition-can-improve-originations/ http://www.thetruthaboutcars.com/2014/10/metaxas-license-plate-recognition-can-improve-originations/#comments Wed, 01 Oct 2014 13:00:37 +0000 http://www.thetruthaboutcars.com/?p=922465 Aside from GPS-equipped starter interrupt systems, lenders have another tool to repossess a vehicle, with the added benefit of using the data obtained to acquire better contracts: license plate recognition. According to Auto Remarketing, the CEO of Fort Worth, Texas-based Digital Recognition Network, Chris Metaxas, says his company’s LPR technology has found 55 percent of […]

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DRN LPR Guide

Aside from GPS-equipped starter interrupt systems, lenders have another tool to repossess a vehicle, with the added benefit of using the data obtained to acquire better contracts: license plate recognition.

According to Auto Remarketing, the CEO of Fort Worth, Texas-based Digital Recognition Network, Chris Metaxas, says his company’s LPR technology has found 55 percent of their customers’ assets up to 100 miles away from where the paperwork claimed the vehicle would have originally been. As most assets are with the lenders’ customers, any deviation from that is a red flag.

Thus, originators seeking to minimize risk could use LPR data to “determine the truth of a statement someone may make on an application,” in turn enhancing the process so better contracts are entered into a given portfolio:

If you think about what a bank does in translating risk mitigation into their ability to grow their book of business, the loans they write, the policies they write, it is substantial and is exponential. What you lose on the back end is only a fraction of what you write on the front end.

Earlier this year, DRN and another LPR company entered into a lawsuit against Utah governor Gary Herbert and attorney general Sean Reyes over First Amendment issues regarding legislation that prohibited such technology from being used to analyze the image of the license plate in question. The lawsuit is part of an ongoing battle between privacy advocates who claim the private data tied to a plate can have the potential to be abused, and by LPR proponents like DRN who believe license plate numbers contain no such thing, citing the public nature of the plate itself.

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CFPB Brings The Hammer Down On Captives, Dealer Reserve http://www.thetruthaboutcars.com/2014/09/cfpb-brings-hammer-captives-dealer-reserve/ http://www.thetruthaboutcars.com/2014/09/cfpb-brings-hammer-captives-dealer-reserve/#comments Tue, 30 Sep 2014 14:00:47 +0000 http://www.thetruthaboutcars.com/?p=921689 The hammer has fallen on captive automotive lenders, such as GM Financial, Ford Motor Credit and Toyota Financial Services: The Consumer Financial Protection Bureau began officially asserting its authority over them as the feds and the lenders battle over allegations of discrimination in the latter’s loan products. Forbes reports the captives — regulated at the […]

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CFPB - Consumer Financial Protection Bureau Sign

The hammer has fallen on captive automotive lenders, such as GM Financial, Ford Motor Credit and Toyota Financial Services: The Consumer Financial Protection Bureau began officially asserting its authority over them as the feds and the lenders battle over allegations of discrimination in the latter’s loan products.

Forbes reports the captives — regulated at the state level until this month — will be used indirectly by the agency to regulate dealerships as far as financing is concerned; the new-car dealer lobby won exemption from oversight in 2010.

The focus? Dealer reserve. Lenders allow dealers to add a few percentage points to the former’s loan packages as compensation for generating the leads, generally capped between 2 to 3 percentage points by most lenders. However, the allegations claim dealerships use their dealer reserve to charge more on loans made to protected classes, such as women and minorities.

The CFPB plans to address the issue by “pushing lenders to switch to some form of dealership compensation that takes away dealer discretion, such as a fixed, flat rate for every customer.” The agency also suggested lower caps could also do away with the alleged variations in dealer pricing.

For its part, the National Automobile Dealers Association claims competition “keeps rates low,” that dealership compensation is lower than the rate caps suggested, and by moving to a fixed, flat rate with even lower caps, dealers would no longer be able to offer discounts on financing.

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