Fed up with all of the cars parked along the street in her quiet neighborhood, an 89-year-old grandmother in Germany started slashing their tires. Altogether some 50 tires were vandalized before a neighbor spotted and reported the nefarious nana. The granny, Heidi Kohl, eventually confessed and was fined, but the story doesn't end there. When she told authorities she wouldn't be able to pay, they decided to have her work off her debt. They instead sentenced her to hard time knitting sweaters for her victims. We don't know how sweaters work for traction, but if the German officials are satisfied who are we to question their judgment? Prosecutors added that they don't fear any further actions by the sassy senior, pointing out that she has since moved to a retirement home.
Whenever there's auto industry-related lobbying going on in Washington D.C., the Alliance of Automobile Manufacturers is there. Consisting of eleven automakers representing 77 percent of all vehicle sales in the United States, the Auto Alliance has a "role in shaping meaningful public policy on the federal, state and even global levels," according to President and CEO Dave McCurdy. The newest member of the Alliance is Jaguar Land Rover, representing the two brands that were recently sold by Ford Motor Company to Tata Motors.
With the addition of the Indian-owned, British-based automaker, the membership now consists of BMW Group, Chrysler, Ford Motor Company, General Motors, Jaguar Land Rover, Mazda, Mercedes-Benz, Mitsubishi Motors, Porsche, Toyota and Volkswagen.
This week, Detroit got its $25B bailout loan approved by Washington, and according to The Wall Street Journal, European carmakers are making like this is a game of "Simon Says." The Journal reports that Fiat has proposed the idea of hitting up the European Commission for €40 billion ($55B USD) to help the European auto industry make the move to cleaner, greener cars ahead of the strict new emissions regulations currently being bandied about. Like we said, this rationale is very similar to the one Motown used to get its money.
Fiat's grand idea was presented to other automakers at the ACEA meeting on Friday, and according to a spokesman for the automaker, "All European carmakers agree on the [€40 billion] demand." What a shocker. Said demand hasn't been formally made to EC bigwigs yet, but the lobbying is obviously well underway.
You know what they say: "Buy low and sell high." General Motors stock closed at $9.45 on September 30, which is 78% below its 52-week high of $43.20. That little piece of news, coupled with GM's enormous financial losses and declining sales, makes stock in the 100-year-old company sound like a bad bet, but employees don't agree. The low price of GM shares has lead workers to snatch up all available employee purchasable stock, which is capped by volume in the company's two 401(k) programs. As a result, GM employees can no longer buy stock in the automaker through the company. Because of the share freeze, GM executives are also not allowed to buy, sell or trade any of the company's stock during this time due to the Sarbanes Oxley act. To obtain more employee purchasable shares for its 401(k) program, GM has to register more shares with the SEC, which is expected to happen on November 9.
What do failing banks and foreclosed houses have to do with race tracks? A lot, apparently, if you're Charles Schumer. The New York Senator added an earmark to the nation's $700 billion "rescue plan" that will extend current tax laws for race tracks that allow them to be considered the same as amusement parks in the eyes of the IRS. As long as that's the case, track facilities can write off improvements to their concession stands, parking lots and the tracks themselves over a seven-year period rather than 15 years. On the surface this sounds like small potatoes, but adding up the numbers reveals that the tracks will save $100 million in taxes by writing off improvements over a shorter span of time. That means less of the earnings from each of those seven years will go towards taxes, helping the track owners achieve a higher annual profit in the short term.
The race track earmark wasn't in the House bill that got shot down last week, but was added by Senator Schumer to the 450-page bill, along with a number of other earmarks by other senators, to attract a few more Yes votes when the bill returned to the House of Representatives. It must have worked, as the House passed the bill today by a vote of 263-171 and it was signed into law by President Bush this afternoon. We feel rescued already.
Helio Castroneves has known only success in pretty much everything he's ever attempted, whether it be open-wheel racing or his fancy footwork on Dancing with the Stars. But the Brazilian-born driver is going to need more than quick feet and a knack for racing to get the Internal Revenue Service off his back. The two-time Indy 500 champ, along with his sister/business manager and lawyer, is in a world of legal hurt after being indicted by the IRS on six counts of tax evasion, which could send the talented driver to prison for up to 35 years. Castroneves was allegedly using an offshore bank account to hide millions of dollars from the U.S. government, which is a really bad idea, especially if you get caught. He received a $1 million driver agreement and $5 million licensing agreement from Penske racing for 2000-2002, and he allegedly stuffed the $5 million into an offshore account via a deferred royalty plan for which he wasn't eligible. For its part, the IRS seems intent on making an example out of Castroneves, saying "This case sends a clear message that the IRS is committed to vigorously enforcing the lax laws and stopping offshore tax evasion."
[Source: Market Watch, Photo by Robert Laberge/Getty]
If you've been following the ongoing roof strength regulation saga, this will likely come as no surprise. Transportation Secretary Mary Peters has again asked for an extension to rewrite the government's vehicle roof strength rule. We've been reporting on this for more than three years, and the delays never seem to end (of course, we can assume the big cheese in Washington have more pressing issues on their plates these days). Rewriting the legislation set back in the 1970s isn't as simple as specifying stronger roof pillars. Beefing up the roof will add weight – potentially making a vehicle more top heavy and likely increasing the possibility of a rollover. The new rules will need to address these concerns, and take into account new safety technologies (curtain airbags, stability control, etc...) that are on our current-generation models. While each previous request for an extension included new deadline dates, this latest appeal didn't. A wise move considering the administration's track record on this issue.
Last week Congress signed a bill that frees up $25 billion in low interest loans for all automakers (including non-domestics if they plan to spend the money on green tech) and suppliers that spend money in the U.S. to develop green technologies. That was a big deal for Detroit automakers struggling to stay afloat during an abominable automotive downturn.
According to the Wall St. Journal, the $700 billion economic "rescue plan" fighting its way through Congress at the moment also includes money to bail automakers out of bad car loans, which in turn would supposedly go a long way toward freeing up money in the woeful car loan market. We're assuming this car loan bailout issue isn't just for Detroit automakers, as several overseas automakers offer financing here in the States, and plenty of banks are knee deep in car loans, as well. After looking at the positively radioactive sales for September, it's clear that the economic crisis is also affecting car sales. Not only are people finding it harder to get car loans even if they have good credit, but many would-be shoppers are staying away from big ticket purchases altogether until this fiscal mess gets fixed.
A Route 666 sign would look right at home in the shop next to the Fiat crest that's displayed on the wall. In fact, they may share a meaning. It seems we're not the only ones that chuckle when the number of the beast pops up on road signs. Barnegat, New Jersey can't keep mile marker 66.6 on either its Parkway or Turnpike. Whenever the signs are replaced, they're stolen again. The situation is much the same further north in Morris County, where so many Route 666 signs went missing that New Jersey changed the route designation to 665. There's a joke in here somewhere about hell rides on Jersey roads, but it happens elsewhere in the country, as well. The former interstate 666, which runs through Utah, New Mexico, and Colorado, was renamed Route 491, though there are certainly some drivers that continue to drive like hell no matter what road they're on.
While the U.S. banking industry is still waiting for Congress to give it a $700 billion hand, President Bush signed into law last night the spending bill that gives U.S. automakers $25 billion in loans to get their collective act together.
But unlike when a bank deems you worthy of their money, the Big Three won't be getting any cash for some time. Despite the companys' CEOs saying repeatedly how they were desperate for help and how automotive life as they know it would end if they didn't get financial help, there's at least a 60-day delay until they can cash this check.
Written into the bill is a clause requiring the Energy Department to come up with regulations that will determine who gets what and when. The agency has 60 days to do this, but could take much longer, as much as 18 months according to a department spokesperson.
Desperate or not, looks like GM, Ford and Chrysler are now at the mercy of the Energy Department.
Fed up with all of the cars parked along the street in her quiet neighborhood, an 89-year-old grandmother in Germany started slashing their tires. Altogether some 50 tires were vandalized before a neighbor spotted and reported the nefarious nana. The granny, Heidi Kohl, eventually confessed and was fined, but the story doesn't end there. When she told authorities she wouldn't be able to pay, they decided to have her work off her debt. They instead sentenced her to hard time knitting sweaters for her victims. We don't know how sweaters work for traction, but if the German officials are satisfied who are we to question their judgment? Prosecutors added that they don't fear any further actions by the sassy senior, pointing out that she has since moved to a retirement home.
Follow the Audi Mileage Marathon starting Monday morning
Paris 2008: MINI Crossover Concept
Paris 2008: Aston Martin One-77 (partially) revealed
Paris 2008: The GT by Citroen. No, the whole thing this time
Paris 2008: Lamborghini Estoque LIVE
In the Autoblog Garage: 2008 Chevy Corvette Z06
Autoline on Autoblog with John McElroy
Paris 2008: Le Day 1 Wrapup
Knight Rider: The Liveblog -- Season 1, Episode 2
By the Numbers - September 2008: Nobody Wins Edition
