Aussie Camera Company Banks Big Bucks From Ailing America

The Newspaper
by The Newspaper

At its annual shareholder meeting in Melbourne, Australia yesterday, Redflex announced it had become the largest photo enforcement vendor in the world. Redflex officials cited worsening US economic conditions as a key factor in its success, as municipal leaders across America face declining income and property tax receipts. Desperate to find new sources of revenue, mayors and city councils have sought out the company’s turnkey red light camera and speed camera systems. Redflex Chairman Chris Cooper told shareholders that such expansion in a down market was a sign of the company’s strength. “Clearly the world’s commercial situation is at this time extremely unstable and indeed to many nothing less than frightening,” Cooper said. “Despite this general scenario the good news is that Redflex continues to grow strongly in its business pursuits around the globe… with post-tax profit rising by a very pleasing 44 percent.”

Eighty-percent of this revenue came out of the pockets of US drivers already hard hit by economic conditions in Arizona, California, Colorado, Illinois, Louisiana, Maryland, New Mexico, Ohio, Oregon and Washington. The head of US operations for Redflex, Karen Finley, singled out the new statewide freeway speed camera program in Arizona as an example of a “high yielding” effort with “other states eagerly awaiting program results.”

With a total of 1500 automated ticketing machines, Redflex CEO Graham Davie claimed that no other “pure photo enforcement vendor” in the world could match the Australian company’s revenue. Davie’s formulation excluded corporate giants like Affiliated Computer Services (ACS), a Fortune 500 company, and Germany’s Robot GMBH (Traffipax), each of which operate cameras in addition to other, large-scale business lines.

Redflex itself hopes to be absorbed by a corporate giant and has tried to drive up its stock price in advance of expected buyout offers from unnamed suitors. The extra capital provided by a larger parent company would help Redflex in its plan to match the photo ticketing density of the UK which uses 6000 cameras to monitor a population of 60 million. With five times the population, the US could see 30,000 speed cameras plus 35,000 red light cameras for a total of 65,000 automated ticketing machines. In this case, Redflex would collect just under $2 billion from drivers each year if the company maintained its existing market share.

The biggest challenge to Redflex dominance comes from the company’s US-based competitor, American Traffic Systems (ATS). In a lawsuit expected to be heard early next year, ATS argues that the contract between Redflex and the state of Arizona was void because Redflex had been illegally using radar units that were not certified by the Federal Communications Commission. Redflex countered that it was not at fault because company officials were not aware of the law.

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  • F1guyus F1guyus on Nov 20, 2008

    I've got no problem with my community deploying traffic cameras as long as they don't have a problem with me patronizing merchants in communities that don't.

  • Analoggrotto By the time any of Hyundai's Japanese competitors were this size and age, they produced iconic vehicles which are now highly desirable and going for good money used. But Hyundai/Kia have nothing to this point that anyone will care about in the future. Those 20k over MSRP Tellurides? Worn out junk sitting at the used car lot, worn beyond their actual age. Hyundai/Kia has not had anything comparable to the significance of CVCC, 240Z, Supra, Celica, AE86, RX-(7), 2000GT, Skyline, GT-R, WRX, Evo, Preludio, CRX, Si, Land Cruiser, NSX etc. All of this in those years where Detroiters and Teutonic prejudiced elitists were openly bashing the Japanese with racist derogatory language. Tiger Woods running off the road in a Genesis didn't open up a moment, and the Genesis Sedan featuring in Inception didn't matter any more than the Lincoln MKS showing up for a moment in Dark Knight. Hyundai/Kia are too busy attempting to re-invent others' history for themselves. But hey, they have to start somewhere and the N74 is very cool looking. Hyundai/Kia's biggest fans are auto Journalists who for almost 2 decades have been hyping them up to deafening volumes contributing further distrust in any media.
  • Bd2 Other way around.Giorgetto Giugiaro penned the Pony Coupe during the early 1970s and later used its wedge shape as the basis for the M1 and then the DMC-12.The 3G Supra was just one of many Japanese coupes to adopt the wedge shape (actually was one of the later ones).The Mitsubishi Starion, Nissan 300ZX, etc.
  • Tassos I also want one of the idiots who support the ban to explain to me how it will work.Suppose sometime (2035 or later) you cannot buy a new ICE vehicle in the UK.Q1: Will this lead to a ICE fleet resembling that of CUBA, with 100 year old '56 Chevys eventually? (in that case, just calculate the horrible extra pollution due to keeping 100 year old cars on the road)Q2: Will people be able to buy PARTS for their old cars FOREVER?Q3: Will people be allowed to jump across the Channel and buy a nice ICE in France, Germany (who makes the best cars anyway), or any place else that still sells them, and then use it in the UK?
  • Tassos Bans are ridiculous and undemocratic and smell of Middle Ages and the Inquisition. Even 2035 is hardly any better than 2030.The ALMIGHTY CONSUMER should decide, not... CARB, preferably WITHOUT the Government messing with the playing field.And if the usual clueless idiots read this and offer the tired "But Government subsidizes the oil industry too", will they EVER learn that those MINISCULE (compared to the TRILLIONS of $ size of this industry) subsidies were designed to help the SMALL Oil producers defend themselves against the "Big Oil" multinationals. Ask ANY major Oil co CEO and he will gladly tell you that you can take those tiny subsidies and shove them.
  • Dusterdude The suppliers can ask for concessions, but I wouldn’t hold my breath . With the UAW they are ultimately bound to negotiate with them. However, with suppliers , they could always find another supplier ( which in some cases would be difficult, but not impossible)