Daimler Mans The Barricades
By Edward NiedermeyerAugust 7, 2008 - 1,451 views
Fears of takeover, foreign or otherwise, figure large in the minds of many European auto execs. These fears ostensibly caused the Porsche-VW shotgun marriage collegial partnership. Schaeffler's "sneak-up" takeover of Continental is fuelling a whole new round of paranoia. Daimler's market value has declined by 45 percent on the year; the weakness has placed the Stuttgart firm in the middle of the takeover mania. Reports emerged saying "a foreign hedge fund is buying a large number of shares in (Daimler)," followed swiftly by more rumors that Swedish hedge fund Cevian Capital was taking a position in the firm. Daimler now says that it has "no indication" that it is under assault. But that confidence is undermined by reports from Automotive News [sub] that Daimler has enlisted Deutsche Bank to watch its back. Deutsche Bank is reportedly helping Daimler find an "anchor investor" who could play white knight should a takeover materialize. Hedge funds, like most predatory creatures, tend to not give a lot of warning in advance of a takeover, so its hard to blame Daimler for freaking out over this one. Especially considering that the prime suspect, Cevian Capital, "does not see itself as a hedge fund but as an investor that pushes for changes in companies." Yikes!
Posted in Germany | High Finance | Insurance | News Blog | 8 comments 
Congressional Support for $25b Motown Handout Growing
By Frank WilliamsJuly 28, 2008 - 16 views
The automakers whining lobbying in Washington seems to be paying off. The Detroit Free Press reports that 71 members of the House of Representatives have said they'll support the Advanced Technology Vehicles Manufacturing Handout Initiative. The $25b program's meant to help the domestic automakers catch up with the transplants meet the 2020 CAFE standard of 35 mpg by giving loaning them money to engineer fuel-efficient vehicles or upgrade old plants. Rep. Sander Levin from Michigan explained, "Funding this new program is critical to the future of the U.S. auto industry, as well as our nation's efforts to reduce our dependence on foreign sources of oil. The federal government must be an active partner in the effort to create these jobs and technologies here in Michigan the United States." Several members of the Senate have also expressed support for the program, including Sen. Barak Obama (surprise!). But the chances of it (or anything else) being passed this year are slim. Congress will start their August vacation recess this week; they have no plans to convene after the election. That leaves only September for them to get anything done. As if. [thanks to carveman for the link]
Posted in High Finance | Insurance | News Blog | Politics | 17 comments
Small Trucks Pickup Poor Crash Test Ratings
By Edward NiedermeyerJuly 24, 2008 - 124 views
With full-sized pickups taking a hosing, manufacturers may be looking towards smaller trucks to stem the bleeding. But a recent test of five compact pickups by the Insurance Institute For Highway Safety (IIHS) shows that they don't share the crash safety advantages of their full-sized brethren.The IIHS' first-ever side-impact test of compact pickups shows that all but the barely-compact Tacoma (which scored a "good") offer sub-standard side protection in crashes. The Dodge Dakota/Mitsubishi Raider, Nissan Frontier and Ranger/B-series earned "marginal" ratings, while the Chevy Colorado rated a dead-last "poor." The IIHS says that side-impacts are the second most common type of fatal crash, accounting for 9k deaths last year. Accordingly, the Institutes say that small pickups have the highest rates of driver deaths in accidents "of any vehicles on the road, including minicars," and that the small trucks "aren't good choices for people looking for safe transportation…until they improve." Still, some of the improvements that the IIHS recommends (stability control, side airbags) will soon become standard on some of these trucks, and optional on others. But if you think a compact pickup is any safer than say, a compact car, this might just be your wake-up call.
Posted in Insurance | News Blog | Safety | 24 comments
Chinese Panda Clone Banned From Europe
By Edward NiedermeyerJuly 18, 2008 - 110 views
Automotive News [sub] reports a Turin [Italy] court has banned the Great Wall GWPeri from European sales. The court agrees with Fiat's assessment that the car "is a (Fiat) Panda with a different front end." The court ordered Great Wall to pay Fiat about $24k for the first imported model, and nearly $80k for each future import. Great Wall's lawyers say they'll appeal the decision. Fiat is also suing Great Wall in China, where the Panda isn't even sold. That case is still pending. It's been rumored that Great Wall has been interested in the U.S. market for some time, so let me be the first to say, bring the GWPeri here! The Panda's supposed to be a fun little car, and our own struggling automakers could use a captive import or two right now. Bring it as a Chevy, and let Fiat angrily nurse its $2b of GM's money. Either way, this is clearly a sign of things to come. Up next, lawsuits over this (Great Wall) Scion xB, this (SG) RX300, this (Lifan) MINI Cooper, this HUMMER, etc, etc. Hell, Great Wall even stole its GWPeri ad from an old Citroen C4 spot. Talk about incorrigible.
Posted in China | Europe | Insurance | News Blog | 11 comments
GMAC OnStar Insurance Deal: “no additional data is gathered or used for any purpose other than to help manage transportation costs”
By Robert FaragoJuly 2, 2008 - 37 views
According to their press release, GMAC Insurance wants to "help you cut costs on the road." To that end, they offer the same five gas-saving tips offered by every auto-related PR firm in the entire country. Oh, if you've got an inactive OnStar button in your car (ah, but is it REALLY inactive?), you can also reduce your motoring expenses by signing-up for their Low-Mileage Discount. Providing you live in one of 34 non-paranoid, insurance industry-dominated states, doing so earns you some time money off for good behavior not driving. Here's how it works: "With the subscriber's permission, the odometer reading from his or her monthly OnStar Vehicle Diagnostics email is forwarded to GMAC Insurance. Based on those readings, the company will adjust the premium using discount tiers corresponding to miles driven. Information sent from OnStar to GMAC Insurance pertains solely to mileage, and no additional data is gathered or used for any purpose other than to help manage transportation costs. Customers who drive more than 15,000 miles per year are not penalized. In fact, all OnStar customers receive an insurance discount simply for having an active OnStar subscription." So, unlike OnStar, GMAC Insurance is promising NOT to provide law enforcement officials with OnStar data; you know, if you're suspected of a crime or in the event of a crash. And if you believe that, GM's got a high mileage hybrid SUV they'd like to sell you.
Posted in Crime & Punishment | Insurance | News Blog | 8 comments
Telematics For The [Insurance] People
By Edward NiedermeyerJune 26, 2008 - 40 views
Our own Jonathan Locker has wondered aloud whether big brother-like aspects of remotely-monitored telematics systems make them worthwhile. But even the Gadsen Flag crowd might be tempted to allow a spy in the trunk if it means saving up to 60 percent on car insurance. The Wall Street Journal documents how insurance companies like Progressive and GMAC Insurance are using telematics to determine customers driving styles– and offer discounts or surcharges accordingly. The Progressive self-reported (non-GPS) mileage program is currently offered in Michigan, Minnesota and Oregon. A staggering 34 percent of customers in those markets have been using the system to save money since 2004. GMAC's program is tied to GM's OnStar system; it costs $199 to $299 after a 12 month free introductory period. But with up to 54 percent in "good driver" discounts available, GMAC reports a 200 percent rise in subscriptions since last year. But these discounts are only available if telematics tell your insurance company that you use your gas and brake pedals within their "safe use" parameters. Brake too hard, drive to many miles, or drag race someone at a stop light and you could be looking at up to nine percent surcharges.
Posted in Insurance | News Blog | 16 comments
Banking Crisis Guts Successful Supplier
By Martin SchwoererJune 25, 2008 - 39 views
Does anybody need a reminder that the credit crisis is hurting our economies? Case in point: German car-industry supplier Schenk Plastic Solutions. Schenk is a small but basically healthy company that relies on Daimler for 60 percent of sales. They have a patented new product named SkinForm which was developed for premium car interiors. It's been reported that SkinForm is unique and has no real competition, since it offers superior quality at a super-low price. Mercedes wants Schenk to supply SkinForm for one million cars per year. In 2005, Schenk sold a majority interest to a private equity company named Argantis to finance their expansion plans. Surprise! Argantis is connected to IKB, a German bank which is basically bankrupt after investments in subprime U.S. real estate. So IKB pulls the plus on Argantis, which subsequently pulls the plug on Schenk. A great company with good products and healthy customers is forced to declare its insolvency. As these things go these days, the Indians come to the "rescue." Automobilwoche reports that the Ashok Minda Group, based in Uttar Pradesh, will be buying Schenk. Globalism wins, Daimler is happy and the West's industrial base is eroded a little bit more.
Posted in High Finance | Insurance | News Blog | Overseas | Suppliers | 18 comments
Auto Club Offers Married Gay Couples Free Memberships
By Robert FaragoJune 24, 2008 - 206 views
The Better World Club differentiates itself from other roadside/travel services by dint of its "dedication to preserve the environment." We're talking discounts on hybrid rentals and green hotels/eco-travel; the nation's only bicycle roadside assistance ("service for you and your bicycle up to 30 miles annually with a maximum of two service calls per covered member, per year"), free Carbon Credits with auto insurance, one percent of revenues (gross? net?) donated to environmental cleanup/advocacy and "a unique policy agenda includes supporting state attempts to regulate autos to reduce greenhouse gases." And just in case that isn't politically correct enough– and I'm thinking it is– Better World is now proud to offer married gay couples free membership. "We want to congratulate all the same-sex partners who are taking the big step," says Mitchell Rofsky, BWC President. "We didn't think you'd ever get married!" Don't worry if you're a gay couple in a state without gay marriage, or a breeder. BWC will "even" offer opposite-sex couples the same wedding present. "Gay marriage is good for everyone, so we're including all the June brides… grooms… spouses… whatever!" says Rofsky. In other words, BWC's using gay marriage to generate a fundamentally generic press release to lure media coverage. Mission accomplished.
Posted in Insurance | News Blog | Sales | Whiskey Tango Foxtrot | 16 comments
Analyst Predicts $12 a Gallon Gas
By John HornerMay 22, 2008 - 3,542 views
The Wall Street Journal [sub] reports: "The world's premier energy monitor is preparing a sharp downward revision of its oil-supply forecast, a shift that reflects deepening pessimism over whether oil companies can keep abreast of booming demand." Previously, the International Energy Agency had forecast an ever-increasing supply to match ever-increasing demand. Oops. The U.S. Energy Department's own forecasting shop, the Energy Information Administration, has long adhered to the same demand-driven scenario. Now, both agencies have been caught with their analytical pants down. While some blame oil speculators for rapidly rising fuel costs, most economists and oil analysts point to increasing world-wide demand combined with the difficulties of finding new oil and oil suppliers unwillingness to spend the money to find more of the stuff. Speaking on CNBC's Squawk Box, Dr. Robert Hirsch, Management Information Services Senior Energy Advisor, fueled speculators' speculation. "The prices that we're paying at the pump today are, I think, going to be 'the good old days,' because others who watch this very closely forecast that we're going to be hitting $12 and $15 a gallon, and then, after that, when world oil production goes into decline, we're going to talk about rationing."
Posted in Fuel Economy | Insurance | News Blog | 73 comments
Smart Deemed Safe. Kinda.
By Glenn SwansonMay 14, 2008 - 2,046 views
According to the AP [via Yahoo! News], the diminutive 2008 smart fortwo received an Insurance Institute for Highway Safety (IIHS) rating of "good" in both front- and side-impact testing. It's the IIHS' highest rating. However, the IIHS pointed out that "the front-end test scores can't be compared across weight classes, meaning a small car that earns a good rating isn't considered safer than a large car that did not earn the highest rating." Still, "all things being equal in safety, bigger and heavier is always better," says IIHS president, Adrian Lund. Meanwhile, U.S. government crash tests gave the fortwo five stars in side-crash testing, BUT the driver door unlatched and opened. Government regulators say the incident requires them to note a "safety concern," which will appear on the cars' window stickers. More than 6.1k smart cars have been sold in the U.S. through April 2008. "America has never seen a car this size before and their first question usually isn't about (fuel) economy, it's about safety," says the president of smart USA, Dave Schembri. "And that's why we think these results are so very important." So now you know: the clown car is a safe ride. As long as you stay out of the way of Tahoes and Expeditions.
Posted in Insurance | News Blog | Safety | 18 comments
POWERED
